The search for higher interest rates

Thanks Harry,
The main point is that investors often focus on one element of risk while being completely oblivious to other potential problems. Yes I do recommend stock ownership for people her age. She may live another twenty years. Currency depreciation can occur at any time and it can be very devastating on a portfolio. The appropriate mix for this lady would depend on many factors not disclosed in the the email. It would be highly unlikey that an investor her age would have more than 50% in stocks, but I wouldn't have less than 25% in the markets. Many people are jaded by the markets of the past ten years, but a well mixed investor should have nearly doubled their money over that time. A portfolio of 50% stocks and 50% bonds would have only gone down 4 or 5 years out of the last 36 years and even during those declines the losses weren't that large. The bonds in the portfolio would have gone up to offset some of the temporary losses in stocks. Multiple studies have shown that the optimal mix for an investor taking an income from their portfolio is a minimum of 50% stocks. Holding too much in cash is taking more of a gamble that the dollar will remain a solid store of wealth than I am willing to risk.

you should/could have addressed that she is 82 and what is health and other situations of home and family and living expenses. she has 1M !! hooray for her.
i agree on the stk mkt if she may be 50,60, or even 70 but with her at 82 what principle is she willing to draw and what getting in other income and what are goals of leaving/using the 1M.