Income investments limited

Inadvertently, the following question was cut short in last week's "Moneywise" column. I have savings accounts and am drawing on them because my part-time work doesn't provide enough income. I would like to buy a stock, but the companies want me to keep investing. Would I do better to put my money in government bonds? Some banks won't let me take money out for 30 days. -- Mrs. M. C.

At your age (60) you cannot afford to lose your capital, but gaining more income is also important. Although you didn't indicate the extent of your investable funds, you could buy income stocks that would just about double your return from savings. You buy stocks from a broker. Don't be misled by their advice to keep investing. You must determine what to do with your money. You could also put money into one of the money-market mutual funds. Although current yields are down from past peaks, they are still at least 50 percent higher than savings. And there is no commission to get in or out if you have $1 ,000 initially. Government bonds, either EE or HH Savings, will pay 6 1/2 percent. Except for timed certificates of deposit, I know of no bank that currently requires 30 days' notice for withdrawals.

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