My Father-in-law passed away recently, and my MIL will be receiving $50K from a life-insurance payout that we need to figure out what to do with. She has not dealt much with the family finances, and knows nothing about investing, and is happy to get suggestions and advice. So what to tell her??
She has no other savings, but also no other debt, no mortgage. She doesn't expect to need the money until 3-4 years from now, when she will retire and possibly move to be nearer the grandkid. Or, she may not even need it then, depending on how her expenses settle out these next few years while she's working. From what we can see, it looks like she'll have nearly $1000 more in income each month than expenses, which she can use for larger expenses like the property taxes, large home repairs, etc., and save any that's left over. At retirement, she will be getting enough in SS and pensions to cover her currently modest expenses.
My idea is to put the $50K in a savings account or money market for a few months while her expenses settle out, just to make sure we know where she's at, and then put some or all of it into something like a Vanguard Target Retirement fund and leave it alone till she needs it.
Thoughts on this?
She has no other savings, but also no other debt, no mortgage. She doesn't expect to need the money until 3-4 years from now, when she will retire and possibly move to be nearer the grandkid. Or, she may not even need it then, depending on how her expenses settle out these next few years while she's working. From what we can see, it looks like she'll have nearly $1000 more in income each month than expenses, which she can use for larger expenses like the property taxes, large home repairs, etc., and save any that's left over. At retirement, she will be getting enough in SS and pensions to cover her currently modest expenses.
My idea is to put the $50K in a savings account or money market for a few months while her expenses settle out, just to make sure we know where she's at, and then put some or all of it into something like a Vanguard Target Retirement fund and leave it alone till she needs it.
Thoughts on this?