Ask Terry Questions Investment


By Terry Savage on April 16, 2024 | Investments

Hi Terry, came into a money settlement and I would like your opinion on how to invest it without paying too much taxes? I am 67, but still working. And I wanted to sit with someone to talk about it who would you recommend. I know, there is Fediltiy, Swab who would be best and is there a different?? Thank you.

Terry Says

If you are still working, you can contribute to an Individual Retirement Account. Are you covered by a plan at work? If so, there are limits on what you could contribute to a traditional IRA.
If you are not eligible for a traditional IRA you could open a ROTH IRA — where the money will grow without paying taxes — as long as your income is below $146,000. That’s probably your best bet.

You could go directly to to open a ROTH IRA. Since you are over 50, you can contribute as much as $7500 in 2024. I would suggest that you put it into a conservative stock fund — perhaps the Fidelity Equity-Income fund, and plan to hold on to the account for at least 10 years, through any ups and downs of the market.

But a lot depends on your entire financial picture. I don’t know if you have other retirement accounts, how much money is involved, and your living situation. So I would suggest keeping half the money in savings or Treasury Bills (read this) so you don’t get upset if the market goes down in the coming years.

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