Increasing retirement income

I am a widow, 70, with a government pension of $600 a month and $30,000 in savings. How can I invest those funds to increase income? -- O.D. At this point and from other information in your letter, I suggest dividing your funds roughly 50-50. Put $15,000 in a money-market mutual fund. Several are currently earning 15 to 17 percent. You can get a list of these funds from the No-Load Mutual Fund Association, Valley Forge, Pa. 19481. I suggest investing the other $15,000 in a group of two or three utility stocks. A local stockbroker can suggest two or three producing income in the 13-to-15-percent range. An average of 15 percent return will provide $375 gross income each month, most of which will be tax-free. If the value of your utility stocks increases markedly over the next two years, you might switch them to a different group of stocks for more income. Your broker can help . In your position you should avoid risky shares.

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...