UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: texasfool2000 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76085  
Subject: Dollar Cost Averaging Date: 8/30/1999 6:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My father-in-law recently died and unfortunately his pension stopped at his death. My mother-in-law (age 67) now has only her Social Security check and their savings to live on. My father-in-law was very conservative with his investments and had basically all of their money (about $300,000) in a money market account earning about 5%.

Since she will need income from her investment, and since she is still relatively young, I want to get my mother-in-law into some more agressive investments. My big fear though, is getting her into the stock market just prior to a huge correction, especially since she did not experience any of the big gains of the last six years or so.

My strategy to avoid taking a big hit is to keep the bulk of her money in the 5% money market account for now, but to begin monthly transfers into a couple of moderate risk, balanced mutual funds with the goal of getting her completely out of the money market fund over a six to eight year period. That way, if there are any big market corrections within the next few years, she would not be hurt as badly and would still have the opportunity to continue buying, at a lower price, following the correction.

I'd appreciate any comments or suggestions on this strategy.

Thanks.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement