Q: I am a single female, age 82, recently sold home and entered retirement facility. I have approximately $100,000 from the sale of my home. I need to invest to supplement Social Security and Retirement income. What do you recommend?
A: Based on the information you’ve provided below, and depending on the amount of supplemental income you need, a diversified dividend paying fund will likely be your best bet. Something that is relatively stable (not too much risk) but generates income for you on a monthly basis. We like an ETF (exchange traded fund) called SDY, which tracks the dividend payers in the S&P 500. With a $100,000 investment, you should be able to generate approximately $4,000 to $5,000 per year. That equates to approximately $300 – $400 per month.