Google +LinkedInPinterestYouTubeInstagramTwitterFacebook
USAA is The American Legion's preferred provider of financial services. Offering a range of top-rated financial and insurance products and services. USAA welcomes honorably discharged U.S. military veterans, active-duty troops and qualified family members and descendants of those who have served. USAA contributes funds to American Legion programs when members join through a dedicated channel:
usaa.com/legion or by calling toll-free at 1-877-699-2654.

Financial Questions & Answers

Financial Questions & Answers

Question:

I am in my 80s, and two-thirds of my investments are in Vanguard’s Inflation Protected Bond and Long Term Treasury funds. Do you have any better suggestions for SAFE funds? – Lee

Answer:

We think that both the investments you mention probably deserve a spot in your portfolio, although not the entire spotlight. Make no mistake, both of these investments may be subject to significant fluctuation.

We think having cash, equivalent to what you anticipate using in the next two to three years is a sound move. A high yield savings account would be ideal for this purpose. Yes, we understand that in today’s environment that’s a bit of an oxymoron, but still the stability and safety is welcome.

You could also incorporate some guaranteed investments – a certificate of deposit ladder or a savings annuity in the mix. On the bond front, a short-term bond fund could also be part of your portfolio. Typically, short-term bond funds will be less sensitive to rising interest rates.

In the end, how you invest should be determined by your goals, risk tolerance, and tax situation. It might be beneficial to sit down with a fee-only Certified Financial Planner™. While you would pay for the time and advice, this person would not be trying to sell you any investments and would shoot you some straight advice for your particular tolerance for risk and situation.