We are retired( 69 & 71) living ok on social security. We are inheriting 65k. We have no debt. We do not trust the economic stability of our system. We are thinking of sum cash and the rest in gold. Is this a good or bad idea?

Terry Says:  Well, that’s a nice problem to have!  But I have a lot of questions for you — and in the process of answering, you might want to spend some money on doing a bit of financial planning.  Then I will give you my investment thoughts.

Do you each have a will — and has it been updated recently?

Do you have a healthcare power of attorney, giving your spouse (or adult child or trusted friend) the power to make medical decisions if you are incapable?

Do you have a “living will” — which I call the “pull the plug document” giving your instructions for care if your situation is terminal?

Have you given a copy of these medical powers to your doctor?

Have you decided who would be the “executor” of your estate, and these powers — a trusted child or younger friend, if you and your spouse are incapacitated.

These are critical questions you must answer, especially now that you have some money.  I’m sure this inheritance will give you some peace of mind, and that is priceless.  I could make lots of investment recommendations, but I think you are better off leaving it in a bank money market deposit account where it will be safe.  I do believe that gold prices will move higher.  But that is somewhat speculative — and where would you keep gold coins safely??

I might also suggest taking half of the money and putting it into an immediate annuity — where you would get a monthly check until the second of you dies, but the additional monthly amount would be small.  You can see what you could get at www.immediateannuities.com.  I did a check and it looks like if you put $30,000 into the annuity it would boost your income about $150/month over both of your lives.  And unlike Social Security, there would be no inflation adjustment in the future.  So I think you’re better off keeping the money safely in the bank — and taking care of those issues I mentioned above.

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