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bd68 · 07-06-2009, 07:27 PM

Agree with some of the others. I would stick with treasuries and CD's (which I view as essentially equivalent to treasuries from a "risk" perspective). It is unlikely someone of her age and investment experience will truly understand and accept valuation changes in even a bond fund (If my parents are any example...I explained it dozens of times but I still hear about it when the statements come!) Sure, in the treasuries she has the risk of buying power erosion from inflation but that is unlikely to upset her as much as a decline in value on her statement.

I think your advice regarding a Vanguard consult would be perfectly suitable for someone much younger with a lifetime of savings ahead of them instead of behind them.

bd68

07-06-2009, 07:27 PM	#31
bd68 Dryer sheet aficionado Join Date: Jun 2008 Posts: 29	Agree with some of the others. I would stick with treasuries and CD's (which I view as essentially equivalent to treasuries from a "risk" perspective). It is unlikely someone of her age and investment experience will truly understand and accept valuation changes in even a bond fund (If my parents are any example...I explained it dozens of times but I still hear about it when the statements come!) Sure, in the treasuries she has the risk of buying power erosion from inflation but that is unlikely to upset her as much as a decline in value on her statement. I think your advice regarding a Vanguard consult would be perfectly suitable for someone much younger with a lifetime of savings ahead of them instead of behind them. bd68 __________________ "The world has changed. Not everyone has been informed." comment seen on youtube