Dan Celia

Financial Issues

September 2015 – Q: I’m retired and concerned about a market downturn. I’m less concerned about the loss of money than the loss of income. Any suggestions?

A: I believe the importance of creating income is vital to a healthy financial future. (See A Case for Income at afafoundation.net.) In fact, right now it is more important than ever to create permanent income, and there is no better way to do this than through a charitable gift annuity.  

I do not suggest that you commit all your money to a CGA, rather carve out a piece of your resources to create permanent income. When the markets turn down or when inflation turns up, a CGA dependably provides income that can be added to your Social Security and/or pension.

One other thought about the remainder of 2015: If you are approaching retirement, I suggest that you have a significant portion, 60% to 70% of your investments, in money market accounts. Wise investors understand the value in not losing principal during volatile economic times.

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Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (afr.net).

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