--- title: Widow's $115,000 Retirement Savings Plan Too Risky description: When a loved one is ill, saving for retirement is never top of mind. That was the case for Lisa Bowman, whose husband suffered a… authors: - name: Donna Rosato url: https://money.com/author/donna-rosato-3/ at_money_since: 2013 articles: 125 covers: - Retirement - Career Advice - Housing - Insurance - Investing - Lifestyle - Mortgages - Personal Finance - Taxes social: - https://x.com/RosatoDonna former_staff: true published: '2013-02-13T15:10:45.000Z' modified: '2024-04-14T08:59:18.000Z' section: Retirement tags: - Investing - makeovers - Retirement - retirement savings - widow word_count: 481 canonical: https://money.com/widows-115000-retirement-savings-plan-too-risky/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Widow's $115,000 Retirement Savings Plan Too Risky](https://img.money.com/2012/01/507598381.jpg?quality=85&w=1012&h=569&crop=1) When a loved one is ill, saving for retirement is never top of mind. That was the case for Lisa Bowman, whose husband suffered a debilitating stroke six years ago and passed away in 2011. With a steady stream of medical bills not covered by their high-deductible plan, the couple just managed to get by. Since Bowman was relocated from Watertown, N.Y., to Arkansas for work last year, she has made saving a priority. In 2012 she contributed $17,000 to her 401(k), socked away $4,000 in a Roth, and put another $11,000 into individual stocks in a taxable account. She'd like to buy a home and take a vacation, but she worries that would be too profligate. "I feel panicked," she says. **Occupation:** Retail manager **Goals:** Create a retirement savings plan, buy a new home **Total income:** $104,000 **Total assets:** $195,000 Retirement savings: $115,000 Home equity: $36,000 Stocks: $24,000 Cash: $20,000 ### THE PROBLEM To reduce her fear, Bowman needs an allocation that won't cause sudden losses, says Jeremy Kisner of SureVest Capital Management in Phoenix. And she deserves to have a place she can truly call home. ### THE ADVICE **Diversify.** The bulk of Bowman's retirement assets are in growth-oriented stocks that can be volatile. "If we had another 2008, she'd be down 40%," says Kisner. He suggests adding more bonds as well as stocks of companies that tend to grow more slowly but are more dependable. [Related: Couple with $455,000 plays it too safe](https://money.com/couple-needs-to-take-more-risk-with-455000-savings/ "Couple needs to take more risk with $455,000 savings") Since bonds have had a good run, a 15% allocation makes sense for now, says Kisner; she can add more bonds over time. At Bowman's current savings rate, she's on track to retire at 63 -- and she can take vacations too. **Stop picking stocks.** For her taxable account, Bowman has been picking stocks willy-nilly. "I feel like I'm throwing darts," she says. Kisner suggests she invest in a global allocation fund such as BlackRock Global Allocation or First Eagle Global fund ; both carry sales loads, but annual fees are low. "For relatively small amounts of money, a global allocation fund is easier than choosing a bunch of funds based on market trends," he says. **Buy a house now.** Bowman recently listed her New York home but expects it could take a long time to sell it. She'd planned to save for a 20% down payment on a $150,000 house in Arkansas, though that will take a couple of years or cut into her retirement contributions. [Related: 5 retirement choices: Get 'em right, live well](https://money.com/5-retirement-choices-saving-vs-investing/ "5 retirement choices: Saving vs. investing") Rather than risk interest rates going up, Kisner suggests buying now using a Federal Housing Administration loan, which requires just 3.5% down. At today's rates, her monthly nut on a 30-year FHA loan -- including taxes and mortgage insurance -- will be less than her $1,250 rent. Bowman says she'll take his advice: "I feel much better about where I am." ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/widows-115000-retirement-savings-plan-too-risky/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "Retirement Planning", "item": "https://money.com/retirement-planning/" }, { "@type": "ListItem", "position": 4, "name": "Widow's $115,000 Retirement Savings Plan Too Risky" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/widows-115000-retirement-savings-plan-too-risky/#webpage", "url": "https://money.com/widows-115000-retirement-savings-plan-too-risky/", "name": "Widow's $115,000 Retirement Savings Plan Too Risky", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2013-02-13T15:10:45.000Z", "mainEntity": { "@id": "https://money.com/widows-115000-retirement-savings-plan-too-risky/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/widows-115000-retirement-savings-plan-too-risky/#breadcrumb" }, "dateModified": "2024-04-14T08:59:18.000Z" }, { "@type": "Article", "headline": "Widow's $115,000 Retirement Savings Plan Too Risky", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2012/01/507598381.jpg?quality=85", "width": 1463, "height": 2048 } ], "author": [ { "@type": "Person", "name": "Donna Rosato", "url": "https://money.com/author/donna-rosato-3/", "@id": "https://money.com/author/donna-rosato-3/#author", "image": "https://img.money.com/2014/05/140530_bio_author_rosato.jpg?quality=85&w=190&h=190&crop=1", "email": "donna_rosato@moneymail.com", "sameAs": [ "https://x.com/RosatoDonna" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2013-02-13T15:10:45.000Z", "description": "When a loved one is ill, saving for retirement is never top of mind. That was the case for Lisa Bowman, whose husband suffered a…", "abstract": "When a loved one is ill, saving for retirement is never top of mind. That was the case for Lisa Bowman, whose husband suffered a…", "@id": "https://money.com/widows-115000-retirement-savings-plan-too-risky/", "inLanguage": "en-US", "dateModified": "2024-04-14T08:59:18.000Z", "wordCount": 481, "keywords": [ "Investing", "makeovers", "Retirement", "retirement savings", "widow" ], "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "Retirement planning", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement_planning" ] } ] } ] } ```