What non-stock options are available for a 72-year-old man? I’m retired and sitting on a pretty good amount of funds. I’m looking for investments that are semi-liquid and semi-safe.
Without doing a full risk assessment profile, I will take the terms “semi-liquid” and “semi-safe” to mean that you are comfortable handling some conservative level of risk.
Rather than trying to get growth from individual stock positions, I would recommend constructing a globally diversified portfolio utilizing institutional share class no-load mutual funds and ETFs.
What are institutional share class no-load mutual funds?
Keep in mind:
What are ETFs?
Keep in mind:
To stay on the conservative side, I would construct a portfolio with approximately 25-30% equity and keep the balance in high-quality, short-term fixed-income positions.
Using no-load mutual funds and ETFs provide great liquidity as most give you access to all your money whenever you need it, with no front-end or back-end fees to buy or sell. If you construct this portfolio on your own, for example at a discount brokerage firm, make sure to inquire about trading costs and no-load funds and ETF options.
It is possible to construct a liquid, conservatively allocated portfolio that is less risk than an all-stock portfolio. Take some time to investigate your options with investment class no-load mutual funds and ETFs to make sure the choices are right for your retirement needs as well as for your portfolio.
To be sure, there are many advantages to having such investments that can save you additional fees and expenses, and keep your money more at hand, when you need it.