Increase your returns with stocks

Dear Bruce: Iama 74-year-old widow who is very independent. The balance on my mortgage is about $141,000, and I pay $740 plus $240 HOA fees a month. I have about $100,000 in equity in my condo. I also currently have $50,000 in a checking account earning 1.5 percent yearly and $20,000 in an IRA that is a five-year fixed 1 percent interest, which ends in March 2018.

I also have $100,000 in an annuity that pays me $668 a month for as long as I live. I’m collecting Social Security in the amount of $1,927 (net) a month. I am currently retired.

I want to put the $50,000 to work somewhere that will earn me a nice dividend. I’m hoping you have some good suggestions. I’m on a tight budget, as you can see. — E.W.

Dear E.W.: You are on a tight budget, but you’re a lot better off than many people your age, and your income is guaranteed, for the most part.

The annuity, which is paying around 8 percent, isn’t bad. I wouldn’t be distressed about that one, but I would surely want to get more than 1.5 percent on the checking account and the 1 percent interest on a five-year investment.

Since you are retired, now is the time to spend some time studying investing. You should be able to increase your interest income to somewhere close to 10 percent by taking a little adventure in the stock market, which I have no problem with.

Dear Bruce: My 48-yearold single daughter feels the need to buy a house in order to ensure she has enough money to live comfortably in later years. She has a stressful job, and she would like to retire in 10 years. She earns $70,000 annually, has $767,000 invested through a broker, $200,000 through workrelated investments, and she has no debt.

Her rent is $1,550 monthly, plus utilities, and likely to go up each year (she lives in the suburbs of Philadelphia). She has three cars, all paid for. Her money is invested conservatively and not keeping up with inflation. She doesn’t know whether to keep renting or to buy a townhouse. — E.N.

Dear E.N.: Your single daughter certainly has a good handle on things. She has a net worth somewhere near a million dollars and she is only 48 years old. Plus, she earns $70,000 annually. Not too shabby!

I am a little distressed about the $1,550 rent payment plus utilities. You mentioned she lives in the suburbs of Philadelphia. I am confident she could find something a bit less pricey, and I think that’s the first thing she should do.

The fact that she has three automobiles is another problem, unless they’re collector items.

Other things being equal, if she continues to save and wishes to retire in 10 years, I think it’s a doable goal.