investing when retired

lyn2222 · #1 (**permalink**) 12-02-07, 10:42 AM

I'm a newbie at stocks and want to help my mother, who is 82 and obviously retired. She has about $7,500 in VKMGX, and she's getting a monthly check of about $40, about 6.4% She also has $15,000 in CDs paying about 5%. I told her she could do better and am looking for an investment that will give her a monthly check at a better rate of return. Any suggestions? Thanks

Stocktrading101 · #2 (**permalink**) 12-04-07, 12:07 AM

Well 5% is pretty good, the problem it is in a CD, you could easily put that money in say an ING savings account and get far better liquidity.

Added to that the 6.4% isn't all that bad.

There are ETFs and such I could recommend, but the problem is the market is so volatile that staying in cash and more conservative investment is by all means a very smart way to go. Keep the returns guaranteed as can be and the risk minimal.

EvaluatingStocks · #3 (**permalink**) 01-11-08, 06:30 AM

I agree with Stocktrading101 - given the current uncertainty in the market I would stick with her CDs for now (since retirees should focus on capital preservation). Also, an online savings account like ING, HSBC Direct, or Etrade can give you similar yields with the benefit of liquidity. This is a good site to check out:

Checking Account | High Yield Savings Accounts | Best Money Market Account Online