Best option for retiree

[april47]

I am a 64 year old widow who pretty much lives on SS right now but will receive a small pension in a year and will also have the option to take my own SS for a higher amount in a few years. I currently get my late husbands SS. I actually made more than him so my own benefit will be substantially higher if I wait until at least 66 or 67. I have a small CD and some savings that is in a regular savings account. What would be the best place to put $5-10,000 besides the savings account? Bear in mind that I can't afford to lose this money.

[danshirley]

What is a CD:
www.fdic.gov/deposit/deposits/certificate/
Treasuries:
www.bankrate.com/brm/green/investing/investing3-1a.asp
bonds.about.com/od/bondinvestingstrategies/a/safestinvestmen.htm
www.treasurydirect.gov/

You have of course been following the recent 'crises' about the US debt and realize how this affects treasuries?

If not I'll leave someone else to explain it.... I don't have it in me.

[yclept]

"Bear in mind that I can't afford to lose this money."

No can do! Leave it under the mattress and lose to inflation. Put it in the bank (passbook, Cert of Deposit, whatever), lose less to inflation. Buy a T-bill, note, or bond as Dan linked to above and probably keep up with inflation, but you'll have to hold to maturity to assure you don't suffer a loss in nominal principal; but if the secondary market discounts the price on your bond, it is really only an indication that you are actually not keeping up with inflation.

If you cannot take on any risk, then you cannot attain any reward. Keep in mind that because of inflation, doing nothing is by default an action. Sorry, but that's just the way it is, and this is a particularly volatile time in the securities markets, offering high rewards for being right, and large losses for being wrong. There will be folks here to recommend mutual funds, but bear in mind that with mutuals you are really just paying someone (who hopefully knows a lot) to decide where you should place your money to try to receive the risk/reward profile outlined in the prospectus of the fund. There are no guarantees there either.

[runewell]

No can do! Leave it under the mattress and lose to inflation.

What inflation? OK if you include gas prices there has been inflation.

bear in mind that with mutuals you are really just paying someone (who hopefully knows a lot) to decide where you should place your money to try to receive the risk/reward profile outlined in the prospectus of the fund.

Not Necessarily! You could pick a mutual fund that is rather passively managed and comes with a low expense fee.

I think it would be helpful to know exactly what you mean by "I can't afford to lose this money". Knowing nothing else I think I would put 50% in a broad index fund and 50% in some sort of CD or money market.

If you cannot take on any risk, then you cannot attain any reward.

The OP didn't sound like reward was the major focus. I think we need to know more about OP's situation and risk tolerance (which sounds low).

[yclept]

"What inflation? OK if you include gas prices there has been inflation."

Mostly fuel, utilities, transportation and food right now, you know, luxuries!

[ModE98]

www.notmsnmoney.proboards.com/index.cgi?board=startinvesting&action=display&thread=350
The above can point you to some income stocks that likely will keep you a bit above inflation. May be well worth some risk, perhaps of up to 50% of available cash. Not a professional money advisor, so this is only a suggestion of one way to approach your inquiry.

[danshirley]

A warning about annuity salesmen:

www.consumerismcommentary.com/lies-annuity-salesmen-tell-dateline-undercover-investigatio/

www.stltoday.com/business/columns/jim-gallagher/article_906e301d-e99a-58e0-abef-cc5b0cb38366.html