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Subject:  Re: investments for the non-financially literate Date:  4/20/2013  10:18 AM
Author:  alstroemeria Number:  72092 of 88103

if they are still working, they can continue to contribute to their Roth

They are retiring this year and have already put $5k apiece into Roths (I mentioned they could put in another $1k apiece). They find it stressful to have even minimal contact with financial doings.

As for getting a fee-based advisor, they don't feel more comfortable about it than any other advisor--not going there.

As for couch potato rebalancing--they prefer something like a Wellington/Wellesley fund where the company takes care of it. All they want is $$ arriving in their checking account every year (or month or quarter). I also thought about retirement income funds, but they are so heavily into bonds, this seems like a bad time for that.

The truth is these people aren't unusual. A lot of people would be happier with a pension where $$ arrives like paychecks, if smaller.

They worked hard for decades and now have health issues (I think I detect possible signs of dementia in one of them), and they want SIMPLE. They NEED simple. Picking a fee-only adivsor and trusting him/her is too scary for them. Making decisions about rebalancing every year when one of them may not be compos mentis for many years is also scary for them. They know enough to know that whatever they read last is most persuasive--so when they read individual stocks are best, they think that's a good idea, or an advisor, or coffeehouse. But when they start into to actually committing, they simply can't do it. It will be hard enough to get them to roll over into IRAs and buy a couplefew mutual funds.

I thank all of you for your suggestions--they're applicable to most who read this board. Do continue the conversation, especially about what to invest their taxable funds into (aside from the $72+k in low-interest cash) vs Roths vs IRAs.

I think they trust me because I don't claim to have the one perfect answer, I don't sneer at their discomfort with financial matters, and I'm willing to take their need for simplicity into account as a major factor.
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