Investment question for windfalol
Hello….My Daughter-in-law will soon receive approximately $30,000 in Life Insurance proceeds. She needs a reliable person to advise her as to where she should invest this lump-sum payment with two goals in mind:
1. Lock in the investment for 6 months to a year to prevent herself from spending the funds one dollar at a time. (her words)
2. Somewhere that will provide a small return on Investment or growth.
I was going to suggest a IRA but I’m no expert…..
Thank you for your time and advice.
Terry Says
For the first 6 months do this: https://www.terrysavage.com/t-bills-beat-cds/
That will put the money away safely, earning about 5% for 6 months.
She will need to first deposit the windfall in her checking or money market account, which you will link to the Treasury Bill account per the above article.
Then, please write back. She needs to make a plan. First, pay down any and all credit card debt –and close most card accounts so she won’t be tempted again. Kee3p the oldest card, which helps her credit score.
Is she working? If so she can open an IRA. But also she should sign up for the company retirement plan, if offered.
I’ll tell you what — Once she buys the treasury bills write back to me. If she gets that far, I’ll mail her a copy of my book –The Savage Truth on Money– and it will give her all the basics to get started!
