Retirement investments

Was forced to retired in 2012 at the age of 57..IMRF was taken at highest value until I turn 62 in 2018 so I have a bit of extra income for now. Can’t put it into my IRA because I am not currently working. What is the best way to invest this extra money for the time being…approx. $200/month

Terry Says:  Well, you have a long time horizon to make this money grow — but now that you’re retired you probably have a lower risk tolerance (unless you get another job!)   So I’d suggest something reasonably conservative that will still give you opportunity for growth.  Choose an Equity-Income fund.   I’ve owned the T. Rowe Price Equity-Income fund forever, but you can also find them at Vanguard and Fidelity.  You’ll probably have to start with at least $1,000 to open an account, but can set up an automatic monthly withdrawal from your checking account.

It won’t be a tax-advantaged account (unless you do earn some income and decide to set up a Roth IRA), but even if it is an after-tax account it’s worth doing — and if you hold over the years, you’ll be able to sell and get a capital gains tax break on any gains.