My mother is a 68 year old widow with a small pension, social security and nothing in the bank. She needs to sell her home and either buy something smaller or rent an apartment. She's looking to me for advice as to which would be wiser and what to do with the monies from the sale of her home. She would like to make some supplimental income. What can I tell her is the "foolish" thing to do?
Congradulations on posting message no 18,000. For this TMFPixy should award cyber antlers.Much depends on how much income your mother needs and also how much she will be able to get for her home when she sells it.Fools generally prefer to invest all available funds in stocks. The basic investment is an S&P Index fund such as Vanguard Index 500. It will average 12% return over time. You would then sell portions of it as needed for expense money rather than owning fixed income investments. Fools would invest 3 to 5 years expenses in a laddered maturity bond or CD portfolio. See the Bond board on Fooldom for more on this. Enter Bond in the board box below and press find.You may want to begin your planning by working through one of the retirement planners. Fooldom has one. But there are many of them out there.Best of luck to you. Ask again if you have more questions.
>>She's looking to me for advice as to which would be wiser and what to do with the monies from the sale of her home. She would like to make some supplimental income.<<What I might do, were I her, is to sell the house and buy a duplex- live in one side and rent out the other, which would basically pay most if not all the mortgage. IF I happened to have some money left over I'd put it in couple of good dividend(2% or better) paying growth stocks. I hope this helps.Eddie
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