A retired couple wants to increase their cash flow. Their net worth is just over

Question

A retired couple wants to increase their cash flow. Their net worth is just over $500,000. Which of the following actions would be most helpful to them:

a)Sell their fixed annuity and invest in Series EE saving bonds.
b) Sell their fully depreciated residential investment property producing $8,400 annually (FMV $175,000, original cost $85,000) and buy growth stock mutual funds

c)Sell their antique collection (FMV $75,000, cost $110,000) and buy zero-coupon bonds

d) Sell their home (FMV $180,000, cost $60,000) and buy municipal bonds

Explanation / Answer

c)Sell their antique collection (FMV $75,000, cost $110,000) and buy zero-coupon bonds

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