When I tell people I’m caring for my 91-year-old dad who has Alzheimer’s disease, they look at me sympathetically and say, “I don’t know how you do it.” When they learn that I also cared for my grandmother when she had Alzheimer’s, they gingerly ask, “Are you afraid of getting it yourself?”
I’m going to try to mislead you, but it’s for a very good reason. What I have for you is a U.S. stock fund that not only has beaten the S&P 500 index, it’s nearly certain to continue doing so in the long run. For now, I’m going to call this mutual fund the Super-Secret Fund, or SSF for short.
In a recent column I exposed my own portfolio and its daring dullness. It is that very dullness which, I believe, is the key to its success. Still, beneath this dull exterior beats the heart of “The Gambler.” Even yours truly gets the occasional urge to buy that risky stock, offering the possibility of a 1,000 percent return, and sometimes I just can’t resist acting on that thrill-seeking urge.
If you want to earn more on your “safe” money than you can get from buying certificates of deposits directly from a bank, you might want to consider something called brokered CDs.
Nearly two years after announcing she had gotten a preventive double mastectomy and encouraging women to get tested for the BRCA1 breast cancer gene, actress and director Angelina Jolie says she has had her ovaries and Fallopian tubes removed to reduce her risk of ovarian cancer, the disease that killed her mother at age 56.
Sonny has bad credit and needs a small business loan. Of course you want to help, but can you make the payments or afford losing collateral if he defaults? Your daughter is going through a divorce and she needs the security deposit for her new apartment. If you give it to her, can you count on her to pay it back?
I’ve filled out more than a few risk-profile questionnaires over the years. These forms are supposed to measure how much investment risk you’re comfortable with, such as what percentage of your portfolio should be in risky stocks versus low-risk bonds. Every questionnaire I’ve ever done has pegged me as a living-on-the-edge kind of guy who should have between 70 percent and 91 percent of my money in stocks or stock funds. And that’s the problem.
One of the most frequent questions I get from clients is whether to buy long-term care insurance. With the average cost of a private room in care facilities topping $94,000 a year, according to a 2013 study by insurer John Hancock, it’s a reasonable concern. Many of us will need some form of long-term care (LTC), so the question of whether to buy insurance to help with the associated costs is a real one.
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