Diversify More?
Q: I just discovered this website and was wondering if I could pose a question to you regarding my investments and financial situation in general.
I would really appreciate getting an objective opinion on the way I have dealt with my financial situation after becoming a widow at 71 last year.
A: Sure. If you want to send me an email with the information I would need to answer your questions, I’ll be happy to help…there’s no cost.
Your posted comments on this and other questions are welcome.
If you have a question for Jeff an answer is just a click away.
Find a wealth of information at Jeff's website.
posted by Jeffrey D. Voudrie @ 4:34 PM
2 comments
2 Comments:
Thank you for your quick reply.
1. My main concern is about this: the bulk of my money is invested by the sama bank where I have a working checking account and a MM account. Investment is very conservative (4.37%), cash & equivalent (58.80%), fixed income (34.64%), equities (2.19%), real estate & special assets, like I requested. Interest compounded.
Because of the total amount, I'm in a so called "private client" group with some privileges.
I wonder if it's wise to have all my eggs in one basket and could I do better with the investments?
2. There is a living trust, will, power of attorney and advance health directives in place (I have one daughter in charge). I also wonder what role the bank could play in all this despite these precautions.
I would appreciate your advice.
There is a difference between the ‘bank’ portion of the company and the ‘investment’ portion of the company as far as safety and insurance. The bank portion is FDIC insured up to $100,000. The investment side is probably insured against fraud, etc. up to the full amount of the account. (That doesn’t protect you from investment losses, just means you don’t have to worry about something happening to the ‘bank’.)
I can’t comment on your investments without knowing more about what you are invested in. It will also depend on your tax situation, income, etc. Since you are reinvesting the dividends you probably don’t need the income.
Lastly, you mentioned that you are a widow and 71 years old. How involved in the investment decisions were you prior to your husband’s death? Sometimes, the wife isn’t that involved. If that’s your case then you are particularly at risk.
Unfortunately, the days of blindly trusting your financial advisor are long gone. Instead, it pays to be cynical. Don’t follow a recommendation just because they made it. You need to educate yourself, research a recommendation and only proceed if you are confident that it’s the right decision.
Here’s an article you might find of interest:
Watch Out for Those Who Prey on the Elderly
I recommend getting a child involved in the decisions. Even then, they need to do the research as well.
Alternatively, if your nest egg is big enough and you aren’t relying on it for income, you can move ultra-conservative to something like treasury securities and/or Certificates of Deposit.
Let me know if I can be of further help.
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