Terry, I recently sold some real estate and need to know where to invest so I can supplement my social security and be able to live. I have somewhere between $600,000 to $800,000 to invest. Since I am no longer getting monthly income (besides ss) I want to able to live off the investment with out touching my initial investment. Is this possible? Am I being realistic??

Thank you for any help/advice you can give me.

Terry Says:

Very simply, NO, this is not possible. Unless you only need another $500 a month. That is all you could safely earn on this amount. And anyone who tries to tell you otherwise is  not disclosing additional risk.

Now, let me ask you WHY you are so insistent on not touching the principal?   Are you trying to leave it ALL to your heirs?   This is your money, and you deserve to enjoy it!

Whatever is left, you can leave to your heirs. And now you should have an “estate plan” — probably a Revocable Living Trust, like a will. When you get the money you will open a bank account (or two) in the name of your RLT. It uses your SS number. Or you could go to www.TreasuryDirect.gov and open an account to buy some one- year Treasury bills direct from the government.

The trust is controlled by you while your are alive and competent. But you will name a successor trustee to manage it after your death or if you are unable to do so.

I realize this is a lot to consider, but now you have a significant asset, and you must do some planning  you need an attorney who specializes in estate planning and elder law  if you need some sources please write back to me

 

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