what to do with not-a-lot of savings (pension, financial advisor, conversation)

[Jessie Mitchell]

Looking for advice!

-I am married.
-68 years old, husband 67 years old.
-Both receiving social security, plus union pension.
-House and cars owned outright, all relatively new/low mileage and home well-maintained/recently updated and renovated.
-No other debt.
-We have adequate monthly retirement income for all expenses, plus can save $1000 or $2000 most months just from income.
-No current health issues, sufficient insurance coverage.
-I know nothing about investing, literally nothing.

So we have about $100K in savings. House is only other asset. Seems like that money, which we don't currently need for anything and don't foresee any immediate need for (although of course things can arise) should not just be sitting in a savings account. Or should it?

I know it's not a ton of money, but maybe we should put it somewhere where it at least isn't losing value??? It would have to be something safe, something that doesn't require me to be involved in assessing/buying/selling -- all that stuff with which I am and would like to continue to be uninvolved. Maybe something where we could get our hands on it if we absolutely needed to, perhaps with some relatively minor penalty attached?

Any advice for a not-money-savvy person like myself? (Husband is even more clueless, if you can imagine that!)

Thanks!

[YorktownGal]

Originally Posted by Jessie Mitchell

Looking for advice!

-I am married.
-68 years old, husband 67 years old.
-Both receiving social security, plus union pension.
-House and cars owned outright, all relatively new/low mileage and home well-maintained/recently updated and renovated.
-No other debt.
-We have adequate monthly retirement income for all expenses, plus can save $1000 or $2000 most months just from income.
-No current health issues, sufficient insurance coverage.
-I know nothing about investing, literally nothing.

So we have about $100K in savings. House is only other asset. Seems like that money, which we don't currently need for anything and don't foresee any immediate need for (although of course things can arise) should not just be sitting in a savings account. Or should it?

I know it's not a ton of money, but maybe we should put it somewhere where it at least isn't losing value??? It would have to be something safe, something that doesn't require me to be involved in assessing/buying/selling -- all that stuff with which I am and would like to continue to be uninvolved. Maybe something where we could get our hands on it if we absolutely needed to, perhaps with some relatively minor penalty attached?

Any advice for a not-money-savvy person like myself? (Husband is even more clueless, if you can imagine that!)

Thanks!

I think a bank CD is your best bet.

The stock market has been more volatile lately. This week the stock market lost almost a thousand point in a couple of hours and then ended the day breaking even. Phew!

Your house will increase with inflation. You are doing fine!

[SunGrins]

Originally Posted by Jessie Mitchell

Any advice for a not-money-savvy person like myself? (Husband is even more clueless, if you can imagine that!)

Thanks!

I would suggest getting to a financial advisor and talking about options at your age and your level of savings and acceptable risk. Ask around to your friends or look at local reviews or ratings to pick someone nearby with a good track record. You need to have a frank discussion with your questions answered. (This is not the place for that.) The money sitting in a savings account is not really helping you other than being in a safe place as opposed to under the mattress or in a coffee can in the garden.

I have two pots of money. One is managed by my financial guy, and it is focused on growth and acceptable risk. I don't touch that except for required minimum deductions and it has grown considerably. The other pot of money (about a third of the total) is for me to do with as I please. I use that for bigger expenditures and travel. My income from retirement is enough to pay my usual expenses and still save a few hundred to go into my "fun" pot. Having a trusted financial guy enabled me to do that because when I was trying to manage it on my own, I was clueless and not attentive enough.

About eight years ago I moved 1000 miles, but I kept my old financial guy until he retired. I then went with his partner after that and there has not been any real changes. We do "zoom" or phone conversations periodically and that works for what I need.

[Teacher Terry]

You can put 10k each in a IBond with the government. It’s fixed rate for 6 months depending on inflation. So for instance I am getting 7% interest. It’s totally safe.

[rjm1cc]

I would lean toward the financial advisor.
You can get a service from the large mutual funds and brokers that will manage the money without an advisor. But since you have no experience I lean toward the advisor.
Yes you want some assets that will grow and you can use in 10 or 15 years.
But for now, be sure you have an adequate emergency fund.
If you will be replacing a car (or anything) in say 5 years then maybe a CD or probably a 5 year bond (not a bond fund) but discuss with your advisor.

[mojo101]

Originally Posted by Teacher Terry

You can put 10k each in a IBond with the government. It’s fixed rate for 6 months depending on inflation. So for instance I am getting 7% interest. It’s totally safe.

what is IBond?

[herringbone]

Originally Posted by mojo101

what is IBond?

savings bonds

https://www.aarp.org/money/investing...y-i-bonds.html

[twinkletwinkle22]

Talking to an investment advisor about money is like asking a salesman what they can sell you. I don't advise doing it.
At OP's age they have time to study and learn what is best for them.

Bank CD rates have been very low and may not be going any higher, hard to tell.
I-Bonds are a good idea, they are from the US Treasury and include some inflation coverage. Each person with a Social Security # can buy a $10,000 I-Bond every year and yes they are paying 7% right now and that is adjusted every 6 months.
IMO the Treasury is a safe, reliable investment source.
You can also purchase short term bonds and longer term bonds.

Maybe also start reading about stock funds and learn about them also. Fidelity and Vanguard are two good companies.
Good luck. You are fortunate to have money to invest but it's up to you how to do it.

[HB2HSV]

Originally Posted by Jessie Mitchell

Looking for advice!

-I am married.
-68 years old, husband 67 years old.
-Both receiving social security, plus union pension.
-House and cars owned outright, all relatively new/low mileage and home well-maintained/recently updated and renovated.
-No other debt.
-We have adequate monthly retirement income for all expenses, plus can save $1000 or $2000 most months just from income.
-No current health issues, sufficient insurance coverage.
-I know nothing about investing, literally nothing.

So we have about $100K in savings. House is only other asset. Seems like that money, which we don't currently need for anything and don't foresee any immediate need for (although of course things can arise) should not just be sitting in a savings account. Or should it?

I know it's not a ton of money, but maybe we should put it somewhere where it at least isn't losing value??? It would have to be something safe, something that doesn't require me to be involved in assessing/buying/selling -- all that stuff with which I am and would like to continue to be uninvolved. Maybe something where we could get our hands on it if we absolutely needed to, perhaps with some relatively minor penalty attached?

Any advice for a not-money-savvy person like myself? (Husband is even more clueless, if you can imagine that!)

Thanks!

Sounds like both of you are doing well. Congratulations.

Just about the only question is what to do with your $100K savings?

1) The "official inflation rate" number this month is 7%, but in reality is much higher. A big part of reason is the government changed how they calculate the CPI. If using the same definition as back in 1980s, the real inflation number can be as high as 20%.

2) it has already been published the cost of gasoline prices has gone up 56% from last year. The cost of steaks is up 26%, etc. You get the pictures. The REAL INFLATION rate is much higher than 7%.

3) so where to put your hard-earned savings? If you put it in regular savings account essentially earning 0% interest, you will loss a minimum of 7% of its purchasing power this time next year.

4) So where? Stocks? Have you seen what the stock market is doing lately? We're going into a BEAR MARKET. Compare with money in the savings account, do you prefer losing money at 7% or losing money at 30%?

5) You can use that $100K to buy an annuity. But look carefully on the yields annuity gives you. It may be lower than the inflation rate.

6) Historically, the investment options that hedge against inflation are:
* REAL PROPERTIES. That includes something you can see & touch such as real estate, arts, gold & silver (not Stocks or ETF), and REAL business.

The easiest option is for you to buy gold & silver. The next option will require you to do some soul searching & learning, that is buy a rental property. It will produce another nest egg for you but this one will produce additional rental income for you every month. In the long run, the house will appreciate and further help you build your wealth. Buying a REAL business is probably not for you at your age.

But what will you do with ALL the money you make? Well, that would be a good headache to have

[davebarnes]

I-bonds first.
Low-cost stock index second.
Short-term bond fund third.
CDs are crap.
Gold & silver are crap.

But, you need to educate yourself. Do you lack the time to read?