Lump Sum Proceeds & Best Way To Allocate for Growth?
Hi Terry,
I’ve received the proceeds from the sale of property and after paying off all debts (except my mortgage which is affordable and ends in a few years), have about $150,000. I had considered starting a CD ladder in order to be prudent with the proceeds, but I’ve also given thought to adding it to my existing Vanguard index fund and hope for larger growth over that same amount of time. I’m not near retirement age so I’m hoping to not need these funds for a long while. Would you have any suggestions on the better places to put these proceeds?
Thanks, your advice is appreciated as always!
Terry Says
Whew, that is a BIG decision. It requires logic, perspective — and emotional self-discipline. I typically ask: “How much are you willing to lose?” When someone responds “not a penny” then I suggest CDs or T-bills.
And my standard default to a question like this is: how about half and half? Half in a CD and half in an index fund. That way you can only be half wrong –or half right!
OR, even better, maybe this is time to get some overall financial planning advice from someone who is not trying to sell you something. Click here and watch the video.
