IRA Rules

Posts Tagged ‘401k’

Question: What’s the bes way for a senior citizen to invest?

My mom has $100 to $200 a month that she wants to invest. Her first desire was to buy life insurance, but she is uninsurable due to bad health (really bad). She only gets social security. I know she can’t contribute to IRA because she has to be working, right? So she is looking into money markets or annuities. I want to help her, but I don’t know a lot about this type of thing. She has ruled out CD’s becaus she doesn’t have a lump sum. She wants to put a small sum in each month and get the highest amount of interest. We know that most savings accounts are pathetic as far as interest earned.

Answer: Good for you for helping out mom. The boomerang of karma will definitely come back to you.
Considering the sum she should find out the minimum required to open an account at a Fidelity, Schwab or TDAmeritrade. Once opened she can buy some stocks that pay dividends (Bank of America yields around 9% right now) or buy municipal bonds ($1000 increments) that are yielding 4-6% tax free. These options are fairly safe investment options. Either way have her read up about investing and the options available to her.

PAUL SCHRADER INTERVIEW PART 1 of 3 “TAXI DRIVER”

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