What to do with a large cash bonus
I just received a large cash bonus, around $50k, and would like some advice on what might be best for this. It will be placed in my money market for now, but otherwise I would normally put most of it into mutual funds or stocks directly. I am just a few years from retirement hopefully, and otherwise have an appropriately managed retirement account considering my age. Thank you.
Terry Says
I think you should treat this as a windfall and keep it in the bank! It could take longer than anticipated to recover from the economic impacts of “social distancing.” And the market will be more volatile because of it.
This is NOT the time to hunt bargains in the stock market — although, in hindsight, there will be bargains. But the odds are against you being correct about which ones, and the timing.
See if you can discipline yourself to hang on to this cash, safely, even if you are earning almost no interest. I predict that one day you’ll be glad you followed this advice.
