Question about inheritance money

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schwarm
Posts: 709
Joined: Sun Oct 28, 2007 1:17 pm
Location: Lower Alabama

Question about inheritance money

Post by schwarm » Sat Feb 28, 2009 7:40 pm

My mother recently came into a small(ish) amount of inheritance money, a little over $50K.
She is not really a saver/investor and is looking for advice on what to do with the money. The money would basically be "emergency" money for non-routine expenses.

She is currently 64 years old and plans to work for a few more years,
and is planning to meet monthly expenses with SS.

I suggested that she open an account at Vanguard or Fidelity and buy conservative funds. She seemed most interested in putting the money in CD's.

One other thought was opening a Roth IRA and starting to put the money there ($6K at a time).

Thoughts?

chaz
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Joined: Tue Feb 27, 2007 2:44 pm

Post by chaz » Sat Feb 28, 2009 7:48 pm

CD's would be OK.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

GG
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Joined: Mon Nov 17, 2008 8:09 pm

Post by GG » Sat Feb 28, 2009 7:51 pm

You could do Roth or invest in a mix of funds, but she's probably comfortable in CDs. I would keep it simple and she'll be happy

GG

schwarm
Posts: 709
Joined: Sun Oct 28, 2007 1:17 pm
Location: Lower Alabama

Post by schwarm » Sat Feb 28, 2009 7:57 pm

OK, if she put the money in CD's, would it make sense to do it though VG or Fidelity? Seems like they might have more competitive rates than a random local bank. BTW, the Roth account was her idea... not trying to force it on her.

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Steelersfan
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Post by Steelersfan » Sat Feb 28, 2009 8:26 pm

It's worthwhile checking with your local banks to see what their rates are. I don't go around chasing rates, but the bank I have my checking account at has CD rates that are about twice what Vanguard is currently offering. I'm not a regular CD investor, but I've bought three of them over the last 18 months when I had some extra money I wasn't ready to invest at the time.
Last edited by Steelersfan on Sun Mar 01, 2009 7:17 am, edited 1 time in total.

Ken Reckers
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Joined: Fri Apr 20, 2007 9:52 am

Post by Ken Reckers » Sat Feb 28, 2009 11:26 pm

You could look for CD rates at bankrate.com. We use State Farm Bank, which gives higher rates than the local banks, but not the highest rates available. I just ladder them and forget about them, letting them renew automatically.

CAP
Posts: 374
Joined: Mon Oct 06, 2008 11:10 am

Post by CAP » Sun Mar 01, 2009 9:25 am

I have some laddered CD"s. They are safe.. The rates are pretty low right now though. Maybe some IBonds if she is interested in those.. Your mother should feel comfortable with whatever choice she makes. .

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