Return on investment requires some measure of investor risk

DEAR BRUCE » I am in my 70s. I have no mortgage or any other bills to worry about. I receive Social Security and a small pension. I recently rolled over my 401(k). My broker put it in a mutual fund. This month it went down $2,015.90. I was told it’s a good fund, not to worry. Since this is the only savings I have, should I consider talking to a new adviser? I can’t afford a loss of any amount. — Meg DEAR MEG » The statement you made, “I can’t afford a loss of any amount,” is troublesome to me. I can’t think of anyplace you can put the money and get a decent return that doesn’t have some measure of risk. But I think you will be in good shape in a conservative port- folio. Notice I said “portfolio,” not “mutual fund” or anything similar.

You didn’t indicate how much money you have and that is a troublesome part of the equation, but in my opinion, you are far better advised to invest your money with a degree of risk. Risk is part of today’s investment environment. If you stay with major companies that pay dividends, over a period of time, I think you will do fine. DEAR BRUCE » Considering the following facts, did the IRS have a right to put a lien on my daughter’s house? She separated in March 2004; a quit claim deed gave her the house in May (she refinanced in her name only). The divorce was final in November 2004. IRS put a lien on the house for delinquent business taxes in No-

vember 2005. — M.S. DEAR M.S. » It would appear that the home was being held jointly until May of 2004. During that period of time the couple is mutually accountable for his taxes. I would consult a tax attorney or accountant who specializes in tax matters to be certain that the IRS is on solid ground, but from the little that you told me, unhappily, it likely is. Send questions to bruce@ brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided. The Bruce Williams Radio Show can now be heard 24/7 via iTunes and at www.taeradio.com. It is also available at www.brucewilliams.com.