Quote:
Originally Posted by Esel Mann
Yorkie,
First, anytime one encounters a 'windfall' of ka-ching, the first recommendation from anyone with investment experience would be to park it for 6 months to a year. By park it I mean in multiple FDIC insured CD's with maturities for example in the 3,6,9, or 12 month windows. Will she make a bundle? Absolutely not, but it will be safe for the time being and principal will be preserved. Nobody ever jumped off a bridge because they missed the market up-side. Market down-side though is a different story....
Why do this? because it is within that window which folks are most vulnerable to losing their 'windfall', beit from hookers-n-blow or stocks and bonds. The window also provides folks time to contemplate purpose/use of the 'windfall' as well as seek additional advice.
As to where she can seek additional advice, there are financial planners as well as financial advisors out there. With the money parked in CDs she will have plenty of time to seek advice out. As to where to start, you mention she has a 401(k), while said 'windfall' is not 401(k) monies, it wouldn't hurt to talk with someone from the 401(k) custodian. Second, everyone knows at least one person who has ka-ching but doesn't show the bling-bling. She should have a private conversation with that person as well. Not so much for raw advisement but to help point her in the right direction.
|
I like this advice. Ladder some CDs, think about it while they cook. Give yourself time to adjust to the new life, visit a FEE ONLY investment advisor, then decide whether to reinvest them in the market, real estate, more CDs, hookers and blow, etc. I do like I-Bonds one year maturity, backed by full faith and credit, but you can only buy $10,000 worth a year.