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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Investing for safety Date: 10/17/2011 4:08 PM
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Bottom line:

1. I need to invest her money to ensure minimal risk of principal.

2. We are looking at like $65,000. This is it, all she has, only SS comes in monthly and a small pension.

3. She needs a $700 payout monthly, for expenses she has.


she needs 700/m from the 65K?
that's something like 13% annual ... pretty much impossible long-term.
(and depending how + she is from 65 .. her long-term could easily be 20 yrs.


4. I am thinking an 80/20 split between Fixed income/equities.

5. How do I minimize tax implications? I will set up a new account, I believe it is an IRA (non-roth) at present, so would I keep it as a traditional IRA even though she is not putting any new monies in?


iirc, the "rule o thumb" for her would say 65/35 .. but you (someone) has to decide how to balance risk/reward.

and ...but for making sure moving the IRA to another broker isn't taxable, taxes should be irrelevant (IMO)




6. Any advice is appreciated. I am thinking Schwab to manage as that is who I use at present and they have a great selection/low fees.


Schwab to *manage* or Schwab to hold the account?
i like them (use them) for the latter,
just don't know about the former
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