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>>I am 61 years old and have no risk tolerance whatsoever!!! I have 1.3 million dollars earning Money Market rates and every time I think I am going to do the smart and sensible thing, I chicken out. What can you recommend as an investment to generate the highest yield to a person in my situation?<<

I think more information is needed here. How much monthly income do you need this $1.3 million to generate for you for the rest of your life? Are you still working and earning and saving? Do you have other assets (rental properties, for instance)? Are you debt-free (e.g., is your house paid off)? Do you have a pension coming? Have you decided when you will begin to draw Social Security benefits, presuming you're eligible?

If you're risk averse, I'm guessing you'll actually want to avoid things that "generate the highest yield." And you may not need those things.

Find out what rate of return you *need* on this money for it to meet your goals. Why go off seeking 8-10 percent return every year if you only need four percent (and therefore can park it somewhere relatively safe)? On the other hand, why settle on a four percent return if that means you're going to run out of money at age 78 or 82 or whatever? Once you figure out the rate of return you need, you can look for the best way to earn that. Why take on the risk of a high-yield, high-risk investment if you don't need to at this point in your life and already know you are a risk adverse person?

With this much money, maybe you should consider hiring a fee-only (not fee-based -- fee-*only*) financial advisor -- someone who isn't selling anything on commission -- to get some guidance on this. They can run numbers for you and offer options based on your risk tolerance. It doesn't sound like there's any rush here, so why not proceed with caution.

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