A Tale of Two Widows
A friend and I are both widows, both living off Social Security and a retirement nest egg, both 65. The only differences are that she has more money than I, and I work part-time.
We both have managed portfolios, and until yesterday both were diversified in stocks, bonds, and money market accounts. Yesterday my friend told her broker, against his advice, to sell everything and take the money as cash. We're talking several hundred thousand dollars. He put the money into Treasury Bonds.
I don't know a thing about Treasury Bonds, but I know the most basic of stock market tenets is "buy low, sell high," and my friend apparently sold low. For this reason, I haven't considered getting out of the stock market myself. But I honestly don't know which of us has made the better decision.
I have confidence in my broker, a conscientious man who understands my situation. I plan to talk with him soon about my account, but I realize no one can predict at this point what the market will do.
I'd be interested to hear your thoughts.