Dan Celia

Financial Issues

July-August 2017 – Q: We are retired. How much should we have in cash, and how much of our savings should we invest?

A: Unfortunately, the economy is going to continue to be based on what happens in Washington with the legislation of the Trump administration. And that is a very difficult thing to predict.

That said, I suggest maintaining some cash as a starting point. You should look at how much you draw from your accounts to help supplement your income. At a minimum, you should have 8 to 12 months of that amount of cash easily accessible in the bank. If you don’t need to draw any of your money to supplement your income, then I would suggest you have about 20% of your savings in cash, CDs, or Israel bonds.

Another consideration would be to invest 15% or so in a charitable gift annuity with the balance in conservative investments such as preferred stocks and utility companies.

For more information on these annuities, contact the AFA Foundation at afafoundation.net or call 800-326-4543, x345.

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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).

Financial Issues website
Email: [email protected]
AFA Foundation: 800-326-4543, ext 345