Question

The couple plans to retire in the next year, sell their home and move to a retirement community where a new home will cost $190,000. They wish to supplement their retirement income, which will be approximately $40,000 from their retirement plan and $8,000 from Social Security. The best recommendation to the couple is to take the $300,000 net proceeds from the sale of the home after paying off its mortgage and:

Answer 1

Answer:

pay for the $190,000 new home in full and invest the extra $110,000 in high yielding blue chip preferred stocks to provide retirement income

Explanation:

The couple should pay for the $190,000 new home in full and invest the extra $110,000 in high yielding blue chip preferred stocks to provide retirement income since it seems the couple are looking for additional or extra retirement income which is why it is best for the couple to Invest in high yielding blue chip preferred stocks which gives income and safety, along with the benefit of a low 15% maximum tax rate on cash dividends received.

Therefore this is the best choice for the couple because it will help them to have a better retirement extra income.