Investment Advice for After Recent Death of Spouse

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DCh2911
Posts: 1
Joined: Sun Apr 15, 2018 12:31 pm

Investment Advice for After Recent Death of Spouse

Post by DCh2911 » Sun Apr 15, 2018 12:45 pm

I'm posing this question for a family member whose spouse was the main financial provider and recently passed away. Basic details are below.
  • 60 year old female. She lives in a low cost small town.
  • About $108k currently in a Roth. I'm unsure of the funds it is invested in.
  • $1500-2000 in monthly expenses
  • Net $400/mth commercial lease income after expenses/maintenance
  • Net $550/mth part time job, currently looking for more work.
  • No house payment, no car payment. House is worth $150k. Will need some upcoming maintenance (about 40 years old).
  • About $80k lump sum from life insurance payment after expenses, etc.
I'm interested in what would be the best use of the life insurance payment from an investment/security standpoint? Vanguard index, funds, etc? I've recommended $12k in an emergency fund.

Thanks.

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Watty
Posts: 14564
Joined: Wed Oct 10, 2007 3:55 pm

Re: Investment Advice for After Recent Death of Spouse

Post by Watty » Sun Apr 15, 2018 3:40 pm

DCh2911 wrote:
Sun Apr 15, 2018 12:45 pm
I'm interested in what would be the best use of the life insurance payment from an investment/security standpoint? Vanguard index, funds, etc?
There is a wiki on how to manage a windfall, probably the best thing to do would be to put most of the money into an ultrasafe investment like a CD while they get used to their loss figure out more about what their long term plan will be.

https://www.bogleheads.org/wiki/Managing_a_windfall

Sometime the hardest thing to do is "nothing" and there will be an urge to do "something" but there is no hurry so she can wait six months or a year and that is OK.

When she is ready to figure out more she can do a post in this suggested format(more or less) to get better suggestions.

viewtopic.php?f=1&t=6212

Two important pieces of information that are missing from your post are;

1) What are her options for Social Security benefits? She may want to go into the Social Security office to get that information from them. I would not delay doing this since she may have some options for things she can do now with survivors benefits.
DCh2911 wrote:
Sun Apr 15, 2018 12:45 pm
Net $400/mth commercial lease income after expenses/maintenance
2) What is this property worth and how long does the lease run?

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