Money Investments

 

One of the biggest concerns that I currently have is making sure that I have enough money so that we can pay our bills until both of us reach the age of 95.  Since my wife is five years younger than me, then I would need to live to 100 in order to reach by budgeted goals.  I doubt that will happen, but it would be nice to reach 90.

Presently and taking into consideration no more COLA raises, we receive about $3500 from Social Security.  Our monthly expenses are right around $5-6000, so we are needing an additional $2500 each month for the next 22 years or $660,000, assuming no interest is earned on money.

In order to generate $2500/month at an interest rate of 4%, one would need $750,000.

The average rate of return for the Stock Market is 10% but the stock market is rather risky.

The average rate of return for Mutual Funds, depends upon the fund...

Equity - 9-12%

Hybrid - 5-8%

Bond - 6-9%

Index - 10%

However, Mutual Funds are a little less risky than the Stock Market.

My wife and I have our money is a very safe Credit Union CD at 4.5% but was in a previous CD at 5.5%.

We are looking at earning interest at half the return of alternative investments but there are no risks.

While the Stock Market generates those average returns over a 20-40 year time frame, my wife and I need to count on our money RIGHT NOW...

So, minimal risks are mandatory for us.