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I would appreciate anybody's help in trying to figure out the best way(s) to invest my mother's $$. My father recently passed away and, all total, mom's got about 400K from insurance, etc and is not sure where to put it safely to last. Although I do invest my own bucks, I haven't given a lot of though as to how to invest once one is retired. She is thinking about staggering CD's, keeping a big chunk in money markets, etc...I think that she just ain't gonna get enough return with this along with SSI to keep her going for the many years I see ahead of her (she's 68 but in good health; house paid off, no significant outstanding debts, etc). Any ideas/suggestions as to how to safely allocate her $$ would be appreciated.
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There's an article in the archives of fool.com called the THE FIVE YEAR CUSHION, where you project your needs for five years and keep the rest invested in stocks or S&P 500 index.
Year 1: The money is keep in a money market account.
Year 2: Money is a one year CD or T-bill
Year 3: Money is a two year CD or T-bill or Bond
Year 4: Money is a three year CD or T-bill or Bond
Year 5: Money is a four year CD or T-bill or Bond
From then on each year you determine your money needs for next year, five years away and buy your Year 5 CD, T-bill etc. If the market is down at that point, wait it out, you have 5 years worth of cash or equivalent so there is no rush. This the basic idea, but read the article for details. I'm not sure which archive it is in without checking. I am just retired and this is the way I am planning to adjust my investing.

glenn
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I found the correct title to the article that I referred to in my first reply.
CREATING A COMFY "INCOME CUSHION" by David Braze on April 17, 2000 in the Retiree Port archive. It gives all the details. I hope that this will be of some help to you. The rate of withdrawal is dependent upon many other factors. Such has how much additional money does your mother need beyond her SS and Pension income, the rate of inflation, and the rate of growth of her investments. If you would like more help please feel free to contact me at (gstipps@iquest.net). I am retired and have been helping others determine whether they can retire or not and how to make the money last.

Have a great Thanksgiving,
glenn
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