At $ 70 I have $ 500,000 shares and $ 220,000 savings. How do I invest my wind of $ 130,000?

I’m 70 and I’m getting a $ 130,000 inheritance right now! My $ 500,000 house is paid, I have $ 70,000 for stairs and $ 150,000 in a high -yield savings account, plus $ 500,000 in shares and mutual funds. I am single and get enough social security to live. I don’t bother leaving anything to heirs as they are well cared for.

How do I invest this money?

Cautious and excited

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Your task now is to plan the three U – the unexpected, unwanted and unanswered problems that life can throw you. And focus on Q word – quality of life. You have accumulated a lot of money throughout your life, which has given you peace of mind for retirement. But it is also important to enjoy your life while you have your health and mobility.

You have enough to live, you have no debt, you have no heirs to worry about, and you have enough investment and money to supplement your social security income if you want to take a vacation or take a new hobby as golf. So your $ 130,000 should be used to fill the gaps in planning your properties, especially items such as long -term care.

At your age you can pay $ 3,000 a year for long -term care insurance. This is not cheap, but given that the home health fee can start at $ 6,000 a month and nursing can cost you from $ 8,000 to $ 14,000 a month, depending on where you live, it can be something worth considering. Medicare and private health insurance do not pay for long -term care.

The Center for Pension Research at Boston College estimates that only one fifth of the 65-year-olds will die without requiring long-term services and support; One quarter will have difficult needs; 22% will experience minimum needs; And 38% will have moderate needs. “The majority who needs support is likely to receive it from relatives,” says the Boston College Center.

“Although some may require years of day care in an institution to cope with dementia, others may simply need accidental help from relatives to recover from diseases and injuries,” the study adds. “In most cases, receiving support will not require years of care facility; only 12% of pensioners will spend 4 or more years in a nursing home.”

As Alicia Munnel, a market retirement colonist and senior councilor at the Retirement Retirement Center, wrote: “For those who need care, costs can be stunning. Current national estimates put the annual nurses at home at $ 108,000 and $ 61,000 in home health.”

“Faced with the exhaustion of their assets for long-term care-by pocket costs or cost to obtain qualification for Medicaid-some people have chosen private insurance with long-term care. In fact, LTC insurance looks as a suitable product when the risk of extreme need is about 25% and the costs are extremely high.”

But Munnel said the elderly underestimate their mortality rate, and the number of LTC insurance companies has decreased: “The combination of underestimation of expenses and the overallization of revenue means that premium interests are significantly less than to maintain policies.

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The good news is that if you want to invest a part or all your winds of $ 130,000, you are a conservative investor, given that 44% of your assets are in cash (CD or high -saving savings accounts). Since you have enough to live with social security, you will not be forced to withdraw money from your portfolio of $ 500,000 while market down.

You can leave one -third of your wind aside for entertainment activities and quality of life – remember that this is a large part of retirement. You can pick up a cruise or travel while you can still, or make a vacation in your own yard and build a swimming pool or future proven in your home with a new bathroom and/or upgrade the insulation for the winter to reduce your electricity bill.

Leave another third for a rainy day like a cash pillow. Advisers recommend that you have at least two years of emergency retirement expenses, and although you have relatively liquid funds in CD stairs and high-navy savings accounts, it will not hurt to have some additional cash (that is, in your bank account).

By accepting a conservative approach, you can also put a third in the FTTRX intermediate bonds Fund, which invests in Dollars denominated, investment bonds and maintains an average weight of a dollar weight; Vanguard VicBX intermediate bond index, which invests about 50% of assets in corporate bonds and 50% in US government bonds; and/or Ishares Core US Acgregate Bond ETF AGG.

Here is the conclusion: In the 70’s, it’s important to think about spreading and to afford more than a little fun and enjoyment, so you can do things in retirement you have always dreamed of. You have enough to live in the next 20 years, so you think how you want to spend your (1.) healthy years and (2.) declining years, assuming you have one.

“As an assessment, they seek to withdraw no more than 4% to 5% of your savings in the first year of retirement, and then adjust this amount every year for inflation,” Fidelity says. “Your sustainable withdrawal rate will vary depending on the things you cannot control (how long you live, inflation, market return) and things you can (your retirement age and investment mix).”

Make sure you have made decisions now when you can experience cognitive decline or even dementia. This applies to all of us temporarily hired people. You are not alone in planning such a possibility. Therefore, consider hiring an older care lawyer and creating a lasting power of attorney for both your financial and health needs.

Another reason is that it is good to have money in high quality bonds and the stock exchange is to protect yourself from inflation. Here is a dumb theoretical scenario: with an average of 3% inflation, your $ 130,000 will lose about 36% of your purchasing power and cost more to $ 83,700 in 15 years. So you get a “discount” by spending money on this project or cruise today.

At 70, investing in itself is the name of the game.

Related:

My husband will inherit $ 180,000. I think we need to invest the money. He wants to pay off his $ 168,000 mortgage. Who is right?

I live with my daughter and her lazy boyfriend. She wants to buy the house.

I’m 51, earn $ 129K and I have $ 165K in my 401 (k). Can I afford to retire when my husband, 59, attracted social security to 62?