No. of Recommendations: 0
The wife is insistant that she wants zero risk of loss of principal. She wouldn't listen to T-bill funds.

It is hopeless. Even if you keep the money as dollar bills in a safe deposit box, a sufficiently organized bunch of criminals could get it out. Perhaps a tornado could. Or nuclear attack. I suppose, however, that is the nearest thing to zero risk of loss of principal, though.

But, unless she thinks inflation is at an end (along with Roger Bootle, author of The Death of Inflation, there is the risk of loss of purchasing power even though the dollar amount does not go down. With a 3% inflation rate, the purchasing power of that money is cut in half every 24 years. That is a risk, too. At least with treasury bonds (e.g., long bonds), you roughly keep up with inflation. Even that has an opportunity cost.

While I would not presume to change her mind, you might. Have her read The Motley Fool Investment Guide and some of the essays on the main Motley Fool website and Fool's School. Education is the answer.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.