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My husband and I are both 62. We each have monthly corporate retirement income and will start drawing Social Security this year. We have $103,000 that we need to move out of our corporate 401(k). Our objective is a monthly income and something with no risk to the principal. We are afraid of annuities. What are our options?

Last Updated: May 11, 2010

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The goals that you are describing involve growth without any risk, but these two things do not go together. One must assume some risk for the potential of growth. One option to consider is a bond fund with a good rating for performance and low expenses. This could provide monthly income with minimal risk. Second, consider blue chip stocks which pay dividends of 4 to 6 percent. This would increase the level of risk but would give opportunity for growth of principal.

For more information on investing, check out eXtension's "Investing for Your Future".

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