Retired couple wonders what to do with all that cash

DEAR HARRY: My wife and I have just reached our "forced" required retirement age of 70. We have both been pretty good at saving, particularly in our pension plans. The Required Minimum Distributions will exceed our preretirement salaries. So you can see that we're in good shape. We have been conservative with our own savings, with all of it in bank CDs or U.S. obligations. The problem is that we stopped buying these about seven years ago because of the low interest rates. As a result, we now have more cash than ever. There's only one security left: a 30-year Treasury bond that matures in 2017. Our cash available is more than $250,000. Any suggestions for what to do now?

WHAT HARRY SAYS: With the economy improving, there has been much talk about the possibility of the Fed raising interest rates slowly in the near future. There is very little doubt that new Fed Chairman Janet Yellen essentially will stick with the policies of her predecessor, Ben Bernanke. I agree that it looks like we are in for higher rates, but not overnight and not sharp increases. My vote is to play it safe by spreading out your money over a short period to increase your interest income without sticking your neck out too far. Spread that money out equally in insured CDs to come due in three, six and 12 months. That will allow you to re-evaluate periodically.


Email Harry Gross at, or

write to him at Daily News, 801 Market St., Philadelphia, Pa. 19107.