Investing an unexpected cash input while in retirement
What is the best way to invest a recent unexpected cash input (over $100,000) while in retirement? My spouse and I are in our mid-70s and in good shape financially. Our emergency fund exceeds $200,000 and just “sits there.” We receive max Social Security benefits and a military pension, have no debt, and to date have not touched investment assets (mostly moderate portfolio).
Terry Says
This is the nicest “problem” I’ve ever been asked to consider! First, your money shouldn’t just be sitting there “doing nothing.” Did you read my article about how to invest in 6-month Treasury Bills, currently yielding about 4.7%. If not, please read this: https://www.terrysavage.com/t-bills-beat-cds/
Next, I’m going to ask a strange question that might not seem relevant, but do you have an up-to-date estate plan, preferably a Revocable Living Trust? It looks like you might have money “left over” at the end. And if that’s the case, you can invest some more aggressively for children or grandchildren, so perhaps some of this new-found money should go into a 529 college savings plan for a grandchild.
Or perhaps you need to cover the biggest risk your finances might face — the need for expensive long-term custodial care. Today you can buy a combo life/LTC insurance policy. If you don’t use the care, the named beneficiary gets the life insurance proceeds. A lump sum could cover that need easily. Read this article: https://www.terrysavage.com/long-term-care-insurance-the-latest/
It’s hard to make recommendations for that money without knowing more about your entire financial picture. Consider talking with a trusted Fee-Only, FIDUCIARY financial advisor. You can find on through this link at my website.
