| Seniors scouting the Internet for safe, high-yield | | | | government backed bonds. Consequently, seniors |
| investments are finding that safety and high yield are | | | | who only a few years ago were flying high with |
| rarely found together these days. "Once we looked | | | | Lucent and Cisco are now pouring their funds into |
| for return on principle; now we hope for return of | | | | U.S. Treasuries. |
| principle," says one 63-year-old who had hoped to | | | | Is there life beyond cash in the cookie jar? Can |
| retire last year, but who has extended his | | | | seniors move forward and still protect their nest |
| professional career to compensate for the 40% loss | | | | eggs? Some experts counsel that moving ahead with |
| in his retirement portfolio. He is echoing the | | | | a retirement plan is not only psychologically healthy, |
| sentiments of many who watched helplessly as their | | | | but financially healthy as well. In fact, say some, |
| nest eggs imploded. | | | | there is no time like the present to buy a retirement |
| A major change in seniors' investment philosophy has | | | | home. |
| taken place in recent years. Once upon a time, | | | | Such advice may seem rash to those who watched |
| investors facing retirement did not shrink from placing | | | | their existing home values plummet, but seniors who |
| their money in aggressive equity funds with high | | | | are waiting for the price of their existing homes to |
| yields. Now many are opting for safe havens that | | | | return to early-21st century highs are making a |
| offer meager returns. | | | | mistake, advisors say. Communities for active adults |
| There was a time when returns of two or three | | | | are selling new homes at affordable prices that will |
| percent were laughable, but today's focus on | | | | not be seen when the housing market bounces back. |
| preservation of capital has pushed aside giddy | | | | Some adult communities, such as Virginia's popular, |
| scenarios in which 200% gains occurred in a matter | | | | well-regarded Shenandoah, feature homes equipped |
| of months, even weeks. Today's investors are | | | | with Universal Design, which allows graceful aging in |
| settling for extremely modest returns in exchange | | | | place, assuring peace of mind now and in the future. |
| for assurances of safety. Some prefer to keep their | | | | Shenandoah stands out because its home builders are |
| money in short term Cds or even money market | | | | old hands at pricing homes at a level that makes |
| funds. | | | | sense in a down market. |
| Financial advisors who work with seniors generally | | | | Today as before, diversification means stocks, |
| applaud a return to choices that reveal a healthy | | | | bonds, perhaps Cds and money market funds, but |
| aversion to risk. Conventional wisdom has always | | | | also home ownership. "Living well is the best |
| been that as retirement approaches, portfolios should | | | | revenge," wrote the seventeenth century poet |
| be more heavily weighted in bonds and bond funds. | | | | George Herbert, and his words have meaning for |
| Bonds, it is believed, are less risky and more liable to | | | | those of us struggling through an economic |
| provide a sense of security. | | | | maelstrom. A satisfying retirement that includes life in |
| Bonds have not been immune to downturns, | | | | a beautiful new retirement community is the best |
| however, and the bond funds that have prevailed | | | | revenge against the vicissitudes of an uncertain |
| have mostly been those with high-quality, | | | | world. |