No. of Recommendations: 7
Hi downisland,

Dealing with sudden money, especially large sums of sudden money, is difficult for most of us. My first recommendation to anyone with sudden money is to let it sit for a few months: as long as it takes for it to become your investment portfolio, rather than a bunch of loot to play with. While it's sitting, spend some time reading from the following:

Fools School:
http://www.fool.com/school.htm

An interesting discussion we had on sudden money:
http://boards.fool.com/Message.asp?mid=22015091&sort=whole

Another discussion on sudden money:
http://boards.fool.com/Message.asp?mid=23845884&sort=whole

Beginning Investors FAQ:
http://boards.fool.com/Message.asp?mid=11107803

Also would people here reccomend that I go into blue chip dividend paying mutual funds or individual dividend paying stocks. Thanks

I don't like individual stocks, because of their lack of diversity, and because I'm not a stock picker. Chances are, since you're asking the question, that you recognise that you aren't, either. So, that brings us to the question of what do you mean by "blue chip dividend paying mutual funds". If you mean managed funds, then I don't like those, either. Buying a managed funds is more the case of buying the manager. I don't feel comfortable buying stocks, and for the same reason, I don't feel comfortable buying a manager.

My suggestion is always either Index Funds or Index ETFS, depending on the amount of money you have to invest, and which you feel more comfortable with. Before you start actually converting any of these bonds, be sure that you get a good understanding of the asset classes available for investment, and make a personal investment plan that includes the selection of asset classes that fit your risk tolerance and personal preferences. There are ETFS and Index Funds that cover all of the asset classes. The great thing about them is that they are comprised of a large number of stocks (or bonds), and thus are well diversified.

Good luck, whatever you do, and welcome to a new set of challenges in your life.

Hedge
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement