How should I apply an inheritance towards my retirement
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.
Tue Jun 18, 2013 7:10 pm
oldguy Senior Member
Cash: $ 750.85
Posts: 3651
Joined: 21 May 2006
Location: arizona
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.
Tue Jun 18, 2013 11:46 pm
coaster Senior Advisor
Cash: $ 1626.30
Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
quote:Originally posted by oldguy ... don't play the market - but invest in the market. ...Invest monthly, never sell, just continue to accumulate for your working life....
Very wise advice. If you can master the difference between "playing" and "investing", and if you use the principle of "accumulation", then over your life time you have a very, very high probability of being a very wealthy person, especially if you master just one more principle and add it to the two above: always live on less than you make.
Best wishes and good luck (though if you follow oldguy's advice you probably don't need the luck)
~Tim~
Wed Jun 19, 2013 4:50 am
No-Brainer Senior Member
Cash: $ 78.85
Posts: 964
Joined: 29 Dec 2005
Location: Oregon USA
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.
Posts: 73
Joined: 23 Nov 2012
Location: Florida, USA
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.
