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Investing/Strategies / Retirement Investing
|Subject: Re: Investing for current income||Date: 7/7/2000 9:33 PM|
|Author: rjm1||Number: 23168 of 74536|
My father recently died, leaving my mother fairly wealthy with phone stocks (the old AT&T breakup group). We need to decrease her concentration in the group,
diversify, but also secure monthly income to supplement here decreased pension and Social Security income. I'm obviously looking for the best yields available, but
with a good level of safety. Can I improve upon the 6.66% Fidelity is currently paying within their Money Market? Are there three or four other places to invest for
current income to add safety through diversity on the income side? Prefered shares, High Quality Corporate Bonds, Bond funds? Any suggestions?
Depending on tax bracket look at municipal tax free bonds and money market funds.
If you buy bonds stick with the bonds and not mutual funds if you can.
Look at the Retire Early Home page.
Look for discussions on safe withdrawl rates and keeping a "cash/fixed income" fund to cover several years of living expenses.
The basic idea is to sell stock in an up market and have enough cash and maturing bonds to cover living expenses in a down market.
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