Inheritance investment
My son inherited $100,000 under very tragic circumstances. This money has been sitting in a Chase savings account for 5 years. I and he feel an urgency to invest this money in a retirement account that will grow over time. He is 39 years old , works as a chef and has limited other savings or assets. He wants this money managed at low fees since he not knowledgeable in finance. Where should he go and what kind of investment vehicle do you recommend? I have read about Charles Schwab and Fidelity as good options. Please advise. I have read your columns for years and respect you very much. Thank you so much.
Terry Says
I wish you had asked this question five years ago — because at his age, and depending on his needs/circumstances, I would have suggested that at least half be invested in the stock market for the long run. I would also suggest that some of this money be place in an Individual Retirement Account where it could grow tax-deferred. He can contribute up to $6,000 if he earns at least that much.
BUT, I hesitate to “prescribe” based on this small amount of facts. What your son (and likely you) need is a meeting with a FIDUCIARY (no ripoffs!) fee only financial advisor. You can search for one at
Wealthramp.com — and be matched with a carefully vetted advisor who will ask questions about your entire financial situation and make personalized recommendations, probably using Fidelity or Vanguard mutual funds.
