My mom has about $300K that she doesn't know what to do with and she doesn't have a financial advisor.

She's nearing retirement, so she needs to put it in a safe, conservative investment. Do y'all have any suggestions?

When will she need the money and in what way? I'd start there.

She'll need it for some of her retirement. Plans on retiring in the next two years.

2004FIGHTINTXAG said:

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She'll need it for some of her retirement. Plans on retiring in the next two years.

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So in two years from now will she plan to withdraw it all? Will she begin taking annual withdrawals of $25k/yr? Will she only need this for emergencies in retirement?

I wouldn't want to put it all in fixed income if she's only using a portion each year and it's not her emergency fund. If she's going to pull it all out in two years I'd hate to try to time the market.

Tomas Hermensa said:

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2004FIGHTINTXAG said:

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She'll need it for some of her retirement. Plans on retiring in the next two years.

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So in two years from now will she plan to withdraw it all? Will she begin taking annual withdrawals of $25k/yr? Will she only need this for emergencies in retirement?

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She'll have supplemental income coming in that she won't need to draw from it immediately upon retirement.
It'll be for an emergency.

themissinglink said:

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What other assets/sources of income will she have during her retirement?

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She's selling her business and other real estate. Prob around $2M from that. Plus SS.

2004FIGHTINTXAG said:

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My mom has about $300K that she doesn't know what to do with and she doesn't have a financial advisor.

She's nearing retirement, so she needs to put it in a safe, conservative investment. Do y'all have any suggestions?

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What is her expectations with it? I have a fixed interest product that pays 8% monthly.

JamesBREI06 said:

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2004FIGHTINTXAG said:

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My mom has about $300K that she doesn't know what to do with and she doesn't have a financial advisor.

She's nearing retirement, so she needs to put it in a safe, conservative investment. Do y'all have any suggestions?

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What is her expectations with it? I have a fixed interest product that pays 8% apr in monthly installments.

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Ragoo said:

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2004FIGHTINTXAG said:

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themissinglink said:

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What other assets/sources of income will she have during her retirement?

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She's selling her business and other real estate. Prob around $2M from that. Plus SS.

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if she doesn't have a plan for $300k today what is she going to do with $2mm in two years?

If she doesn't have a planner ha e her reach out to fisher investments or similar.

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Thanks. Yeah, that's the problem. She doesn't know what to do with the money and it's so much in one dump that I have no idea either. She just got the 300K, so was curious what y'all would do with it.
I already recommended for her to get a financial advisor.

vmiaptetr said:

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JamesBREI06 said:

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2004FIGHTINTXAG said:

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My mom has about $300K that she doesn't know what to do with and she doesn't have a financial advisor.

She's nearing retirement, so she needs to put it in a safe, conservative investment. Do y'all have any suggestions?

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What is her expectations with it? I have a fixed interest product that pays 8% monthly.

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Insert Joker "And here we go" gif

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Lol. I meant to edit to say apr with monthly payments, but somehow made a new post. We have a debt pool collateralized by the real estate paper that we write to investors.

If it's for "emergencies" hold 3-6 months expenses in an money market and the rest of your answer here:

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S&P 500 index fund.

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I might also look at a high interest fund like VYM, VIG or SDY, which focus on blue chip dividend aristocrats.

Old RV Ag said:

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2004FIGHTINTXAG said:

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themissinglink said:

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What other assets/sources of income will she have during her retirement?

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She's selling her business and other real estate. Prob around $2M from that. Plus SS.

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Guide me here a little - she has a business and real estate worth $2MM (I'm assuming you mean million) and no financial advisors or financial knowledge of her own?

Congrats to her for creating a sound financial retirement.

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Correct. She's never invested in any funds, stocks, etc
Her retirement is all in the sell of her business and a couple real estate properties. She's never had a financial advisor. It's crazy.

So with this additional information, my thoughts:

I like the thought above of keeping 3-6 months expenses in some fixed income, liquid investment. I'd supplement that thought with consideration of what kind of emergency she might need this money for. Are we talking $300k type of emergencies? 100k? 3-6 months of expenses types of emergencies? That might guide me as to how much to have in fixed investments.

For everything else here are some thoughts I've seen reiterated here a few times

ehrmantraut said:

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You should have all your bases covered. Large cap growth & value, mid and small cap growth and value, international large/mid/small growth and value, plus emerging markets. There are mutual funds or ETF's that do this for you so you don't have to worry about it.
Having just the S&P 500 is great, but only gets you exposure to domestic large cap growth and value. You'd be omitting everything else.

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I do like the idea posted above of using the $300k to shop around and test drive an advisor. If you find someone you like then maybe you have them advise you on the other $2 million. However if she just doesn't want to deal with that, having a combination of the above stock investments along with 2-5 years of money in more stable investments, so she always has stable money she can live off while riding out tough market years.

2004FIGHTINTXAG said:

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My mom has about $300K that she doesn't know what to do with and she doesn't have a financial advisor.

She's nearing retirement, so she needs to put it in a safe, conservative investment. Do y'all have any suggestions?

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How much does she need monthly?

RSHMX, safe at about 4% & liquid after 30 days. I have $ here as opposed to a traditional savings acct.
EPD, paying a little over 7% dividend yearly. Currently trading at $24.41, analysts suggest the $30/sh range is the high side.. Paying $.445/sh quarterly, and a buy/hold by most analysts. I'm sure you can do some looking but I've had EPD for over 10 years & it's consistent & forecasted to increase its dividend next year. $300K would generate almost $22K/yr in dividends.

Good luck on your choices & good job by mom!

Minimum investment amount?

South Platte said:

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Minimum investment amount?

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We are around here currently

$250k for 8% note
$100k for 7% note

Open a trading account, buy XOM. It's paying 6% divs as of today's price. So that's +$18k annual mailbox money - regardless of the price of the stock (which will likely increase.) Not the best return, but it's more than a savings account.

foolproof strategy

XOM is at the same price it was in 2004, sounds like good advice.

Personally I would Buy 1 bitcoin and 5 ETH. The other $250k in a index fund if she doesn't need it for another 5+ years.

Yea. Put $300k in one company to earn 6%. I wonder what could go wrong??? If you are looking for a safe way to earn dividends go buy a vanguard dividend fund.