Fund to hold onto forever
I'm cashing in a JS VUIL that DW and I took out when the kids were small. The mortality cost was small and it has actually grown nicely. But now the kids are grown with education paid for and I don't want to pay for life insurance anymore. It has a surrender value of $220,000 and I've paid in $120,000 in premium so I'm preparing to pay about $20,000 in taxes on the gain and investing the rest with Vanguard. (The only advice I have on life insurance is buy a lot of term and invest the difference yourself, but that's a whole different topic than my question and I think I'd be preaching to the choir.)
Here's my real question. My intent for these funds is to hold onto it forever and leave it in our estate, just like we would have used the Life Insurance cash value and death benefit. We should have enough other income where we don't need to tap into it or ever sell a share. I'd like to put it in a growth fund that doesn't generate a lot of taxable dividends, and just let it grow. (Kind of like a Berkshire Hathaway concept) I know diversification is important, but so is simplicity. If I had to do it today I'd put the whole $200,000 into Vanguard S&P 500 index fund and forget about it.
Any other suggestions ? Thanks.