October 2016 –Q:Is there any way we can earn a little bit more income other than with our cash in the bank?
A: I’m often asked this question. The only real opportunity to earn income is to take some risk. I am developing an “income portfolio” that may be helpful to people who are retired. It is going to be available to my Financial Issues partners (financialissues.org) after September.
The best thing you can do for now is to sit tight. Wait until after the upcoming national election – or even the end of the year – before making any decisions. As always, your best income option is a charitable gift annuity. Had you done a charitable gift annuity four years ago, and if you were over 65, you would have averaged well over 5% each year on that income – far outpacing any certificate of deposit. However, remember, this is a charitable gift annuity and there is some sacrifice of principal as you shore up your income.
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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).
