I stand to inherit a bit of money. Not a live altering amount, but certainly more than I've been exposed to at one time. I'm 59 years old and have no retirement fund. No defined benefits package. So, I want to fix that problem. I've never invested a dime in my life. At my age safe investments are the way to go. Mutual funds? Money market? Educate me on this world.

I'd recommend finding a good financial planner. I would want some of it in mutual funds or other items that follow the market......perhaps 30%/70% safe at your age. The problem is, nothing 100% safe (cd's, bonds, etc.) are paying anything worth a damn right now.

First, educate yourself. Second, never invest in anything you don't fully understand. Third, keep a long term mindset. The market can be volatile, don't invest in it unless you have the ability to ride out the rough patches. ie March of 2020.
Having said all that the diversification offered by a good mutual fund(s) is an excellent choice.

I'm a big Vanguard fan. Great place to learn and manage your money. You can deal with an advisor if needed.

Indexed ETF's, not individual stocks or mutual funds are the way to go in my opinion.

It doesn’t hurt to sit on enough readily available cash to pay for major expenses you’d otherwise pay interest on and maintain or increase it by putting it back as if you’d financed them. There are some killer mortgage rates right now if you’ve been eying anything along those lines.

I'd hold back some as cash for an emergency fund and put the rest in an IRA account invested in an S&P 500 market index fund like SPY.

One thing that might help is to get your debt under control if that is a concern.
With little or no debt then that money is suddenly a lot more valuable.
Then look at investments ~ I'd max out the yearly in an IRA then the rest in a conventional account but talk to a pro first.
Look for a pro or start reading up.
Most major players have plenty of online education ~ risk vs reward.
As we get older it seems than not losing it has an increasing value vs making money with it.
YMMV

quote:

Originally posted by Jeff Yarchin:
I'm a big Vanguard fan. Great place to learn and manage your money. You can deal with an advisor if needed.

Indexed ETF's, not individual stocks or mutual funds are the way to go in my opinion.

My brother uses Vanguard. I intended to use them too.

quote:

and put the rest in an IRA account

That will depend on how much money he has. There are annual limits.

If you look for an advisor find a fiduciary

https://www.google.com/amp/s/w...nancial-advisor/amp/

ETF?

Good for you especially with no previous planning. A Godsend I would say. Especially if you have a family.

You need to determine how you feel about risk (gain Vs. loss) vs preservation.


What kind of $ are we talking about in general. $10k, $100k $250k or more.

At 60 years of age it changes things. How soon will you need it? And what percentage will you need annually to live.

More info is needed.

quote:

Originally posted by V-Tail:
ETF?

exchanged traded fund I believe. Newish jargon concept.

Pay down/off any bad debt, put some aside for an emergency fund, and then look at some investment vehicles.

Get some personalized tax and financial advice BEFORE anything gets inherited.

Many angles exist, and you want to find out before you take steps that close them off. For example, if some of that money is already in an IRA, depending on your relationship to the account owner, you might be able to put some or all those funds from their IRA straight into an Inherited IRA. That avoids the limits that would apply if you just took the money and wanted to start your own.

Not suggesting that an "Inherited IRA" approach is what you should do, it's just an example of what is out there. The 'right' approach for you will take into account the tax aspects as well as what you intend to do with the funds.

Spend a few bucks getting professional advice from someone who will not profit from your decisions: a CPA/tax pro and a non-commissioned (fee-only) financial pro. I guarantee you that you will be glad you did.

I would suggest getting a financial advisor with the heart of a teacher. If you feel like they are trying to sell you or are slimy, run. I did this and my investments are averaging about 8% higher than when I did it myself. You want good growth stock mutual funds although at your age, it may double once or twice before you need to tap into it.

Read Joel9507's wisdom carefully. But also understand that an Inherited IRA is not without consequences. The most significant of which are the yearly RMDs (Required Minimum Distribution, an age-dependent forced withdrawal) that start the year after it is established, and is added to your annual income thereby increasing your tax liability. If you are under 70 1/2, you can plow that distribution right back into a traditional IRA and push the taxes down the road a bit, perhaps even leaving the residue to your heirs and making it their problem.

Most brokerages these days allow investors to set up a self-directed IRA where they can invest in virtually any investment vehicle with minimal fees, and zero pressure (also called "investment advice"). Some years ago, on a job change, I moved my 401K into a "managed portfolio" product with one of my banks. They invested my money in various mutuals and "rebalanced" yearly. This was a great deal, for them not so much for me. After some years of less-than-satisfactory growth, I moved everything to a self-directed SEP-IRA that has been far more rewarding. Mine is with TD Ameritrade, and I can cautiously recommend them, cautiously because of the unknown changes that will come soon (they in the process of being acquired by Charles Schwab).

WRT actual investment vehicles, kind of depends on how much of a gambler you are (tolerance for risk). Folding over your money and sticking it back in your wallet provides maximum safety, but little return. Mutuals/ETFs/etc. are safe and stable, but won't have much greater returns. Individual stocks can be big winners or go to zero. Options and futures are a way to adjust the value of your investment almost as quickly as you can at the casino. Some people have gotten rich playing poker, many more have gone broke. My point being it is an almost endless spectrum between safe/boring and risky/exciting. It is not enough to figure where you are on this spectrum before you start as your perspective will change over time. Also, you don't have to be consistent, you can, for example, put half your money into a relatively safe ETF, and half into Tesla or tulip bulb futures if you want. If you do decide to "play the market," at any level, don't neglect to get educated. Look at it this way, everybody you are betting against has read the books, why should you leave yourself at a disadvantage?

So you pays yer money and takes yer choice, just like everything in life. Then just leave it alone and let it simmer in its own juices, think of it as smoking a brisket rather than frying an egg. Take a look every ten years or so, and marvel at how much it has grown, then leave it alone for another ten. Tossing a little into the pot every year to reduce your tax burden (e.g. via an annual IRA contribution) is not the worst idea in the world either.

Famed investor Warren Buffett’s investment advice: "For most people, the best thing to do is to own the S&P 500 index fund."

www.google.com/amp/s/grow.acor...-sp-500-index-funds/

quote:

Originally posted by old rugged cross:
Good for you especially with no previous planning. A Godsend I would say. Especially if you have a family.

You need to determine how you feel about risk (gain Vs. loss) vs preservation.


What kind of $ are we talking about in general. $10k, $100k $250k or more.

At 60 years of age it changes things. How soon will you need it? And what percentage will you need annually to live.

More info is needed.

Less than 100k. I'm told at my age the safer the better. I plan on working to at least 67.

quote:

Originally posted by V-Tail:
ETF?

Exchange Traded Fund (ETF).

Not sure exactly how it differs from a mutual fund, but they are probably cousins of some kind. I tend to stay away from that sort of thing, so I’ve never bothered to figure out the nuances.