BUM
Thinks s/he gets paid by the post
I read a recent thread "Asset Alloc. for a 24 year old", lets take a look from the other end of the telescope.
An 84 year old friend of mine is worried that she might outlive her money. She is in good health and lives in, and owns outright her own townhouse and drives her own car. Her husband set up all investments decades ago and died in 2001. Her account statements show no buy/sell activity.
Here are the investments and assets:
$8,650 Money market sweep acct. paying .32%
$3,900 Common stock (CHG)
$8,400 CEFs (MYN MFM)
$18,500 MFs (ETNYX PTIEX)
$7,200 Annuity (AIM/Cigna)
$200,000 Townhouse
She has been drawing $600 per month from the annuity for years and says that amount is more than enough to pay her expenses. I don't know how much Social Security she gets, and how much real estate taxes she pays nor if there was any life insurance.
Doing the simple math her $46,600 investments divided by $600 a month says shes got 6 years left. Might be enough. My feeling is that most of the money is at risk and in haphazard slices and dices. With recent market declines she was worried enough about it to ask my opinion.
What do you think?
An 84 year old friend of mine is worried that she might outlive her money. She is in good health and lives in, and owns outright her own townhouse and drives her own car. Her husband set up all investments decades ago and died in 2001. Her account statements show no buy/sell activity.
Here are the investments and assets:
$8,650 Money market sweep acct. paying .32%
$3,900 Common stock (CHG)
$8,400 CEFs (MYN MFM)
$18,500 MFs (ETNYX PTIEX)
$7,200 Annuity (AIM/Cigna)
$200,000 Townhouse
She has been drawing $600 per month from the annuity for years and says that amount is more than enough to pay her expenses. I don't know how much Social Security she gets, and how much real estate taxes she pays nor if there was any life insurance.
Doing the simple math her $46,600 investments divided by $600 a month says shes got 6 years left. Might be enough. My feeling is that most of the money is at risk and in haphazard slices and dices. With recent market declines she was worried enough about it to ask my opinion.
What do you think?