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Subject:  Please Help a Newcomer Manage Retirement Date:  5/3/2000  11:28 PM
Author:  DrCatwoman Number:  21765 of 88810

My 94 year old grandmother is retired and has asked me to look after her finances, as she no longer feels up to balancing her checkbook and paying her few bills. She has also just moved into an assisted living facility. She has a monthly income from her pension and social security, which will probably not quite meet all of her expenses - She will probably need about $6,000 per year above and beyond her pension. When she needs a higher level of care in the facility, the cost goes up. She has about $60,000, which she had in safe but not lucrative investments like CD's and bond funds that were not really even keeping up with inflation. She liked the bond funds because the dividend was tax free, but in my opinion, she needs more income even if it means paying more income tax. Although she is quite frail, she is not really in poor health, and could easily live for a few more years. I would like to invest some of her money in mutual funds, and a smaller portion in stocks, while keeping perhaps a 2 year supply of cash in CD's. I want to preserve her money for as long as possible, and not just keep everything in cash and spend down until there is nothing left (by the way, whatever is left will go to me). At the same time, I don't want to make a poor investment choice and lose any of her money. Also, she lived through the crash of 1929 and has misgivings about the stock market that I do not share. If you message board members have any advice or could tell me what you would do in my situation, please do. Thanks.
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