Inherited Money Now What?? (annuities, bonds, IRA, brokerage)
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Hi All-I've recently inherited a large sum of money and would like to invest some of it. Can anyone give me some advice as to what a smart, low risk investment would be? I'm not sure if I should do a money market, IRA, CD or something completely different. Thanks for any advice!
Safest thing to do is short term CD or bank Money Market while you learn and understand the other investments.
Depending on the amount..make sure you stay within the FDIC limits for the bank ($100,000). If you have more than that spread out your money to different banks.
Having 2 accounts at the bank won't help you as the FDIC is by owner, not account.
Once you understand investments better (risk factor here) then move your money and invest.
Fidelity is one of the big brokerage firms that deal with securities, mutual funds, bonds, etc and has some good educational material to look over.
I have a wonderful investment opportunity available....you can think of it as a 'bridge' to your financial independence.
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Oh my!
Why bother? I need couple of loans to be paid off
At this time i would suggest a CD to be your best bet. At least it guarantees you a fixed interest rate. Talk to financial people that you trust, not just anyone, then move your money. Econonmy isn't the best right now, so don't rush!
If I were you... I put 5k in a Roth IRA every year, another 10k in mutual fund, and nothing in CDs (I guess I am the only one here). Make monthly deposits into your mutual fund to maximize your yield and max out your IRA every year. Leave the rest in a high-yield interest savings account (comparable yield to some of the best CD rates). Or you can invest in stocks but that is risky and not recommended unless you know what you are doing (and few are). You could also purchase houses for cheap and re-sell it later but now is not the time...
Hi All-I've recently inherited a large sum of money and would like to invest some of it. Can anyone give me some advice as to what a smart, low risk investment would be? I'm not sure if I should do a money market, IRA, CD or something completely different. Thanks for any advice!
The greatest temptation is to treat a sum of money as a single entity. Someone comes up with a great idea or investment and you invest everything, and it plops dead. It may be a pain in the tuckus, and difficult to manage, but have at least three totally unconnected types of investments, and only invest in those after you have a basic understand of the risks/rewards and opinions from people totally outside of the arena. You won't get rich quick, but you won't get poor quick either.
If you invest in stocks, you can be better off looking outside of normal channels for tips on investments. IE; food prices are going up. If they continue OR if the price of gas comes down, companies like Conagra stand to make money. This is old advice by now and the market has anticipated it, but that illustrates the concept.
I plan on contacting a financial advisor, but I just wanted to see other people's opinions. I already have the money in a high interest savings account, so I'm good there, I just want to put some somewhere I can't touch it. I know nothing about the stock market, so I definitely don't feel comfortable doing that. I already bought a house, so I have some instant equity with that. I really just want to put it away and have it earn interest, but not "get rich quick". Thanks again for the advice, I will be contacting the FA soon.
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