| How should I apply an inheritance towards my retirement |
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Hush
First Time Poster
Cash: $ 0.25
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Joined: 18 Jun 2013
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| How should I apply an inheritance towards my retirement |
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Recently, an uncle passed away and left me some money. It is not a lot, just a few thousand. But I wanted to put it towards my retirement. My parents recommend that I should move it into my IRA. But I've had an IRA for years now that I've been putting into - and I've always been told it is best to diversify. What other good options are there? I don't want to do something risky, like play the stock market. My two retirement funds that I have now are my IRA and my 401k through work.
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Tue Jun 18, 2013 7:10 pm |
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oldguy
Senior Member
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Location: arizona
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quote:
and I've always been told it is best to diversify
Yes, stay diversified. And you can do that within your IRAccount, you can own stocks, index funds, bonds, CDS, cash - whatever you like.
quote:
I don't want to do something risky, like play the stock market.
You're right, don't play the market - but invest in the market. 'Risk' is a requirement, most investments have risk, it is a matter of how much. A savings account is 'low risk' - but you can't build wealth because your savings only grows at the same speed as inflation, maybe slower. And buying/selling stocks is 'high risk', you will probably lose your money and have to start over.
That leaves "moderate risk". Invest monthly, never sell, just continue to accumulate for your working life. Buy an Index Fund that contains most of the major stocks in the US (that gives you a wide diversification). The 'moderate risk' will give you a return that outpaces inflation and builds wealth.
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Tue Jun 18, 2013 11:46 pm |
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No-Brainer
Senior Member
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Location: Oregon USA
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I am retired now and the best place I put my money was in Real Estate. I bought a commercial building that my own company rented and now I carry the contract from selling it and get an extra $1,100 a month for my retirement income.
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Wed Jun 19, 2013 1:35 pm |
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Anton Martin
Full Member
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Joined: 23 Nov 2012
Location: Florida, USA
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All advices you got are very nice and helpful for you, I would like to suggest you to invest money in stocks. As you mentioned you don't want to risk your money and it is true that there is risk in stock investments but it will also diversify your portfolio and if you do it smartly then you will never loose, actually you can earn good profits.
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Thu Jun 20, 2013 9:18 am |
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