Quote:
Originally Posted by skipdup
This is important money so she wants to be as risk adverse as possible. But she also needs to earn around 7% annually.
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Looking for a home run, I see. Risk-free return would be considered US treasury bonds. That's 3% annual return. Assuming she wants little volatility in return, the only place you'll see that is high yield (ie. junk) bonds or a mafia-type activity.
Her age suggest a strong emphasis on maintaining principle, which defaults her into high-yield savings accounts, CDs, and government bonds. Sorry, anything over 4% is a pipe dream. jurgen