Q&A: "I'm Receiving $100,000. I'm 76 Years Old. How Should I Think About Making Good Use Of The Money?"Investment Retirement Income
Question and background:
I'm receiving $100,000. I'm 76 years old. While I figure out what to do with it, what type of account should I put it in and where? How should I think about making good use of the money?
You'll want to keep the money in a safe "parking spot" while you decide how you're going to put it to use. That implies either a savings or money market account with your bank or credit union. In the current environment, the interest you earn will be hardly enough to buy a candy bar, but that'd be safest.
In terms of "making good use of the money," I'd encourage you to think through questions like these to arrive at what's best for you:
- Do you anticipate needing any of these funds to support you in your retirement? If so, do you need a regular, consistent income (monthly, for example) or just occasional withdrawals as needed?
- Do you already have a "rainy day" fund for unexpected expenses or should you allocate a portion of this $100,000 toward that?
- Do you already have either sufficient resources or insurance that will pay for any potential long term care expenses in the event you need it?
- Do you have any need or desire to make improvements to your home or replace your car, etc?
- If all your own needs are covered, do you have a desire to help children with financial matters, or grandchildren with college expenses, or charitable causes that are important to you?
Whatever you decide to do with the money, you'll want to be sure it's in harmony with the rest of your financial picture and your priorities.
Hope that helps. All the best!