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My wife now deceased July 1922,68 years married,received an annuity from her brother upon his death on 2/21/2021.
I put it in money market for her,some of it is now in CD at 4.5 percent.My daughter will receive it at my death along with every thing else.She is my caregiver,Moderno 2nd booster has me crippled.
If you personally received 100k and wanted to use that money to provide a source of income, what would you do? I realize answers will vary which is why I'm interested.
Depends on whether you need a certain rate of return, a certain amount, or will take whatever you can get, a lot or a little. I'm assuming you want to keep the principal intact.
My bank pays 4.4% for Money Market Accounts. FDIC insured. Keeps principal intact. One of the safest things. You'd generate about $6,947 each year, assuming the same rate, compounded daily. But of course rates don't stay the same. The principal is still accessible, if you need it. There are banks that pay a bit more than that rate.
If you personally received 100k and wanted to use that money to provide a source of income, what would you do? I realize answers will vary which is why I'm interested.
If it was me, I but stocks that pay dividends. Dividend stocks generally pay around 3 to 4% a year. This may not be the best income generating investment, but this is what i would pick. It give a decent rate of return and I could still sell the stock at any time if I needed to. Also I do not need this money to pay my bills, so any dividends would be reinvested in stocks earning more interest. This is also based on the fact the last several year Saving accounts were paying 1/10th to 1/2 percent interest for the last several years. Now that Fed interest rates are going up, I would expect Savings, CD, Bonds and Dividend returns to increase as well.
Last edited by TechGromit; 09-11-2023 at 12:13 PM..
I would buy NVDA all 100k. If that's not your thing just pick something you think will outperform. Real estate is hard now, interest rates, suck. $100k is really nothing so take a moon shot.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by sunnydays12
I'm in the same boat. I inherited 200K and 100K I will need in 2years and the other 100k I will not need until 10 years from now.
For the short term a 2 year CD is 5.25 and how would that compare to a triple tax free muni bond. I know nothing about buying bonds.
For the long term I'm considering VOO.
Thanks....
What state are you in? (Does it have an income tax?, if so, how much?)
Muni's have their place (and risk)
For the $100k in 10 yr growth plan... follow your allocations for diversifying.
If it's speculative money, you might want it in a Roth (as possible, and if you have enough extra money to set it aside)
VOO is OK, and what Buffet seems to like. (actually VV)
It is not the right diversification for your entire invested portfolio. But it is easy to divy up. Check out the Lazy Portfolios. and use your $100k in CD's as your cash portion. Put the other $100k to work for you.
Consider world economics and current upheaval (I would stay light on international for the current times)
International often lags USA markets, so you might have some clues as to when is safe to get more international exposure. (Some Lazy's have 33% International. Too much risk for me at this moment + my aggregate international has always underperformed my US (except for certain countries)).
History clearly tells us.. These things don't always turn out so well for the world economy,
N Korea (Sanctions)
Iran (Sanctions)
Venezuela (Sanctions)
Lebanon (Sanctions)
Russia (Sanctions and a war and internal issues)
China (large country with some internal crisis')
Africa famines + turf war seeking natural resources allocated to the major countries
Instead... go with the winners (least corrupt nations with decent security and growth potential.)
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2 year and 10 year.
