Where would you put $70k?
 

Highest priority is safety and then return for my mom who is 76. Step-father passed away, we are cashing in an annuity to cover expenses and will have money left over to re-invest.

Right now 13 week treasury bills are paying around 5.49%. That is where I keep investing any cash that I might need back in a short period of time. Of course you can get treasury bills for anywhere up to one year. And you pay no state taxes on the treasury bills. And you can thank Fint for this information as he is who I got the investment idea from.

For fixed income look at the PIMCO portfolio, a good group that knows the Bonds market.

I invest my play money in online bank savings account . I have used UFB for almost 2 years now and it returns 5.25 % . This is a traditional savings account so your $$$ is not tied up long term in case of emergency . The interest is paid monthly .

I can access the $$$ via a debit card or can electronically transfer to my local bank . And the funds are FDIC insured . Hard to go wrong in my opinion . It's at least one option to consider .

Personally, I have an investment grade corporate bond portfolio with a coupon rate of over 7% ... average maturity of 18 years. But that's me, and not my parents .... Nope!

I have them in online brokerage offered CDs (from name banks) that pay more than treasury bills and aren't short term .... 3-5 years. I opt for Call Protected ones (less yield) and rates have come down a bit.

Current rates on Fidelity offerings ... CP.
3 years 4.6%
5 years 4.3%

Same FDIC protections and a sure thing ... and liquid.

As rates come down, the price on my corporate bonds and these CDs will increase ... and liquid.

Check them out for your mom.... shorter durations will beat treasuries usually and offer higher rates, but I don't want short term stuff ....

And rates will fall within a few months for treasuries, CDs, money markets, and online savings ... what then?

You'll wish you had "locked in" in 2 or 3 or 5 years imo. Build a "ladder" mebbe...???

This advice is worth .03 .... inflation adjusted :D

This.
It's about the safest, most stable investment out there and you don't have to lock your money up for a long period of time. For the past year 4-8- and-13 week T-bills have been yielding well. At her age, assuming she is going to need access to the money at various times, short term T-bills is where I would go.

https://www.barchart.com/economy/interest-rates

Those T bills are no safer than CDs with FDIC protection imo. Bunch of stuff can yield 5+% right now... rates WILL come back down .... hopefully not to near zero .... FrED had done a pretty decent job of threading the needle.... but I suspect FED rates will be around 4% a year from now.

I like locking in the returns .... YMMV.

Locking in returns locks you away from your money. I'm assuming, at her age, she is not investing to build a portfolio, but to get the best return on money that will be for her own needs over the next months and years. I could be wrong. Shawn did not mention what her goals were, so all advice here must be based on assumptions.

I may be mistaken, but I'm under the impression that it's state income taxes that Treasury bills are exempt from. Maybe we have a tax lawyer or a CPA on board who could clarify?

Bitcoin :D

NOPE! It absolutely does not "lock you away from your $$$" ... that's utter nonsense :(.

Individual corporate bonds, Brokerage offered CDs (from lots of banks), and even treasuries have secondary markets that are traded daily ... just like equities. The coupon rates are guaranteed until the maturation date, and if Fed tightens their rates .... and they will start, but I have no crystal ball... then they can be sold for more than they are worth today. Meantime all future purchases will not have the same yields as today. Short term is attractive now.... won't be as attractive a year or so from now.

HTH ....

One Bitcoin :D...

LOL ... you beat me to it ;)

Another thing to consider if looking for liquidity...money market funds that you can write checks on. (edit) Right now, their treasury money market fund is paying 5% or so.

https://money.usnews.com/investing/funds/articles/the-best-vanguard-money-market-funds

Lots of money market offerings have no FDIC or other protection ... fwiw.

Here's an example of an online CD I purchased for my parents (one of many)

A 5 yr CD ($20K purchase) from Morgan Stanley, purchased back in Nov. with a yield of 5% ... it will pay every 6 months until maturity. I could sell it all (or some ... in 1K increments) at any time on a moments notice.

It's value today $20,756 .... and has no bearing on the dividends payouts.

As the Fed drops Fed rates... it will increase ...

Long term individual corporate bonds are no different .... I tend to buy below Par value, but sometimes I pay more...

Buy high ... sell higher ;)

But I could sell my whole bond porfolio for significantly more than when I purchased them..... it was a 15 month buying spree fwiw.

Yeah .... I like 7% dividends .... guaranteed for nearly 2 decades, and still liquid if I need to access it... I probably won't... but who nose :).

Fixed income with a nice yield.... works for me, but I would NOT expose myself to bond "funds" .... even Pimco's. The "herd" inflow/outflow can bite ya .... and I do my own thingy.....

Investigate and research Shaun ... best advice I can offer :)

KC -
The OP's level of sophistication is such that he is on a car enthusiast board looking for a safe investment for his 76 year old mother - and you would have him trading corporate bonds on the secondary market?
He needs something simple and easy or he needs a paid consultant, maybe both. Sorry to say, Shaun is in the wrong place; too many people here trying to show off how much they know and not enough real help.

Crypto

Yep. Ignore every suggestion for research that I posted. It was only based on my experience of things learned while spending nearly 1/2 century investing.

Really...I know nothing!

Don’t know how long lived your family is. But something like long term care insurance might be the best idea.

Ally Bank has a nifty 4% no-penalty CD. We have a couple we roll over, advantages: you can get to the cash easily, no hassle, safe. All on line. Simple.

Thank you. That is what I do with the cash portion of my portfolio, but you do pay Fed taxes on the return, just no state or local. I hope I did not post that incorrectly before. Sometimes I am a bit dyslexic when I type these days.

I ladder mine. If I had $70K to invest, I would keep it simple and invest it in 13-wk bills as well. The first month, $30K (3 $10K bills), the second, $20K (2 $10K bills) and the third, $20K (2 $10K bills). On the 4th month, the first $30K will mature and each $10K bill will return about $135 at the current rate (you purchased the bills at about $9865) and they mature at $10K. If you have selected them to reinvest, they will do so (at about $9865 again) and the $135 for each goes into your checking account. Since you have 3, this is an income of about $405. The next two months, if you do the same, the income is $270 each month and then the cycle begins again with a return of $405.

You could do any size bill (say one $30K or 30 $1K bills... or the entire amount in a $70K bill for one month and reinvest each month...or your choice), but I like to have the ability (every month) to let one or two mature and not reinvest if I need money for something. If I only need $10K or less, just one...but I could do more if necessary. If you project a larger need, all will $70K will mature over 3 months. If you want, you can reinvest your returns in smaller bills ($100 or more).

The only bad way to do this is to leave the money in a checking or savings account and pass up on about $3500 risk-free interest each year. Obviously, as KC points out...rates may not always stay this high (or they may rise). If you believe they are going down, you might want to try to lock in the higher rates for a longer period.

I have NOT suggested bonds for Shaun ... exactly the opposite. I would not have my parents in bonds, nor should he. I've just suggested brokerages offered CDs which have total FDIC protection, are absolutely liquid upon demand and offer attractive rates ... better than treasuries for the longer periods 3,4,5 years out....

Shaun ain't no dummy .... he can read and understand what I've posted.... you have made some factually incorrect posts and I tried to explain why ;)

Hope I've helped him with what I've posted or mebbe someone else. Lots of ways to earn 5% right now.... it will not always be this easy.

Thanks FrED :)

Put most of it in treasuries and dividend stocks. Then maybe $1k in crypto.

My mom could not tolerate losses on her monthly statements when her advisor had them in a variable annuity. Equites and crypto volatility would keep her awake at night ... so I just put them in CDs ... which they understand and have little of that. She didn't need to lose any more sleep... and I've got their backs anyways :).

You are correct. I was a little quick with the typing this morning. I edited my original post to reflect the correct information.

Thanks everyone, I appreciate the input. I like the 13 week treasuries in that they offer a good interest rate and more importantly time to find and talk with a proper advisor.

No doubt T-bill laddering will generate steady, completely safe income in the low 5% range right now. Expect this rate to drop once the Fed decides to start interest lowering. As part of my diversified income portfolio, I have been quite happy with JP Morgan Nasdaq Equity Premium Income ETF (JEPQ). Safety risk is medium-low, return is around 9% and dividends are paid monthly.

You won't go wrong with treasuries.... down the line it will be harder to get current returns at these Fed rates .... best of luck and please let me know how to find a "proper advisor" :D.

Fiduciary responsibilites ... LOL

Bitcoin FTW!

Although I have no need for the steady dividend payouts.... I have mine structured so they are almost the same amount each month too.

"Just because" .... and because I have issues :)

Wise choice. As secure as there is....if the feds default, nothing will matter anyway for us too old to go into survialist mode.

Methinks FDIC backed accounts and CDs are just as secure. If the SHTF .... none of it is gonna matter ... except guns and liquor :D

My only concern with FDIC insured is that the feds will take their sweet time paying...and possibly pay only the initial purchase price...no interest.

Possible ... but recent bank failures have displayed the FDIC stepping in quickly. My main concern was my mom's "comfort zone" (as my dad used to handle all of their stuff, but is sorta diminished and "out of it" now). She could NOT handle volitility with their variable annuities ... back in Dec of 2018, "I'm a tariff president" caused a market crash of 20% and her monthly statement showed a sgnificant loss (in her mind) .... "we're going to go broke" :( .... Naw, not even close mom ;). She just can't handle losses....

They both know and understand old fashioned CDs from their local bank .... not annuities, not treasuries, just simple accounts.

I put her in her comfort zone with Fidelity offered CDs, from banks she mostly recognizes by name, and opted for longer durations of 3,4, & 5 years. All of these CDs offer higher rates (as do the shorter terms of months) than treasury bills and they offer easy access to their cash at any time. Not a thing risky about any of them imo.... unless ???.

Shaun would not go wrong with either one .... I went with the higher rates, and "gambled" that the Fed tightening monetary policy was ending. A year or two from now I will not regret what I have mom invested in, nor will she. Though they don't need it, and likely never will, she does like her fixed income stream now...

I love mine ;)

Happy mom .... happy me :)

Marcus by Goldman Sachs.

Or CapitalOne Online Savings Acount.

5%. Not the highest but also among the top 5-6 banks with less danger of going under.

I can watch it for you Shaun. No charge.

^^^^ Can't trust this guy Shaun.... I can guarantee results tho' :D

2 lbs of physical gold.

You could put the money in a classic 911. I have two and would sell either for the $70K.

With FDIC protection, banks "going under" is a non-issue imo ... it happens a lot.

I'm back on this thread because one of the CDs I purchased for my dad a couple of years ago is maturing soon (50K from Citibank). Need to purchase something ....

I like call protection and the higher rates that CDs offer verses Treasuries, along with more access to cash, etc. and more flexible (able to sell all, or in 1K increments), should a need arise. I know the consensus here is for T-bills ... nothing wrong with that, but after looking again this morning ... I will purchase dad another 3-5 yr CD ;).

I see where the Fed is going... just not exactly "when" ...

The money market, online bank accts. and others have been attractive as of late.... but I would not have significant $$$ in them going forward when flexible online CDs are "better" .... at least from my perspective.

Someone needs to 'splain it to me .... and please type slow :D

Rate of returns, flexibility, access to $$$, no volatility, along with US backed security .... those are my criteria for my parents.

I'm willing to learn ;)

But am slightly stubborn :D

To maximize income, I would use SVOL. This puppy will yield 30 cents a share every month, currently trading at $22.64. So $70k would generate $927/month. That is 16%/yr yield!