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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.

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