I want to know how best to invest the money that my mother has just inherited. She is 69 years old and her current source of income is mainly SSI. I want to make sure that the investment is such that she would get monthly returns to be added to her SSI.Thanks,
If you want monthly income, the obvious is fixed income, as in GNMAs or bonds. It is also possible to get monthly income by buying stock and selling a few shares each month; if the market goes against you, the possibility of running out of the investment is very real. Bonds are the easiest. CDs are another possibility your monther may like; dividing the money in three, investing 1/3 now, 1/3 next month and 1/3 the month after that and having CDs that pay interest quarterly would produce monthly income, and if you choose the bank well she may get over 7%. Good luck, Chris
donyaf, you asked:<< I want to know how best to invest the money that my mother has just inherited. She is 69 years old and her current source of income is mainly SSI. I want to make sure that the investment is such that she would get monthly returns to be added to her SSI. >>There's really no way for anyone to be able to give you an appropriate response as there are many different things that need to be know. For example:Just what are you mother's income needs?Just how much inheritance did she receive (this is a key issue as it relates to your mothers income needs)?If the inheritance is not all that much . . . what are the plans and/or feelings about how Medicaid is to be use . . . or not used (should she buy long term care coverage)?Does principle want to be preserved?What is her life expectancy (is she in good health or are there any health issues - also taking into consideration family health histories)?Questions like these are VERY important to know before deciding on just "how best to invest" her money and work out a plan that is acceptable to HER.
Will this inheritance affect the amount she gets from SSI? I thought SSI was for people with little assets.
Without knowing things such as: health/life expectancy, amount inherited, monthly income need, long term desires/wants, it's hard to give advice. But here goes.Two things to consider, life expectancy and inflation. If your mother is in good health and has a family history of longevity, she may easily life another 15-20 years. At an inflation rate of 4%, your money's buying power will be cut in half in about 20 years.That said, some money, maybe 20% needs to be in some form of equities/stocks. The simplest would be an S&P 500 index fund. The rest you could put in 6 month or yearly CDs staggered to mature one a month.JLC
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