Answer to Question #24345 in Finance for Victor Bucci

Question

Difficult decision: You are retired, you are not rich, you are trying to select which is the better investment? A Bond fund that pays about say 6% per year or a stable stock that pays a dividend of only say 2 or 3% per year but has a growth potential of say maybe 8% per year. Of course when you compare funds to stocks, it is not easy, too many variables. Each month you also have to withdraw say 5% in either one, bond or stocks, how can you decided. IRA rules relate that you must withdraw when you reach 59 1/2, so as you can see, you pretty much have to keep yourself alive financially.