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Question for the Money Doctors

Question submitted on Oct 23, 2018.


I am 66 years old retiree. My wife is also retired. I have $200,000+ in the bank drawing little to no interest. My primary home is paid off and I own a rental property. Our retirement income is enough to support our monthly expenses and still leave some money to save. I am financially conservative. What is a safe investment for my situation?
I need to start somewhere.


Based upon your set of facts, you have sufficient retirement income to cover your expenses with some extra to put into savings.   Congratulations!

You should keep a portion of the $200,000 in savings as your reserve in case you have unexpected expenses.  You'll need to figure that amount.

If you want a risk free investment, then that would be a savings account, money market fund, or a short term government bond fund.  However, the amount of interest you receive will be minor.

If you are willing to take some risk and you do not need the funds short term, then you can consider some equity investments.

Please take a look at the link above to learn more about investing.

You might consider looking into a low cost balanced mutual fund to invest this money.  A balanced fund would be a combination of stocks and bonds.   The more bonds, the more stable the fund, but if there are more stocks in the fund, there is a possibility of a better return.

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