We have an annuity that provides about $25K a year that we use just for taxes. And so far the value of the annuity continues to increase. As to other investments, it depends on what risk you are willing to accept and what return you want. When we sat down with our financial advisor I told him that we wanted investments that paid dividends and were in fields people couldn't live without. So we are invested in energy, pharmaceuticals, paper products, and healthcare stocks which gives us about 4%. We do have some other investments but the stocks are the major portion. The market can swing all over the place and those dividends just keep rolling in. Admittedly this is a zero-risk, low return scenario but that's what we like.

If you can buy real estate it's very difficult to go wrong. Buy and rent. It does take a bit of managing which is work but you have a steady monthly income that keeps up with inflation and is in demand. Interest rates are starting to rise so cash buyers are extra attractive to sellers. I guess you are looking to roll your money as to not take a tax hit?

I don't know how much you have to invest but the real estate market is starting to relax a little and again with interest rates starting to rise a bit it's a good time to keep your eyes open for a good buy. Rentals are still hot. There are certain things you will need to do to protect yourself with renters and there are no guarantees but you can reduce your risks with credit check, references, deposits, and a well written lease.

I'm speaking from experience.

I wasn't aware of it, but I must be a finance pro myself.



I tend to agree with Andrewh, I've also been eyeing those "I" bonds.

zero risk.... there is no such animal...

Monday April 18 Wall Street Journal has an unusually comprehensive article about I Bonds on page A13.

I had read about them several times before, but this article had at least 3 “tricks” I was ignorant of.

Diversify.

Learn about the widely misunderstood
“regression to the mean”
scientific principle that was first proven in genetics,
and was surprisingly proven in investments by Vanguard founder “Jack Bogle”, a college friend of my father.

Okay, "low risk".

I know nothing about renting out.

Too many variables of countless things that could go wrong.

Then again, maybe I watch too many landlord/tenant disputes on Judge Judy to count?

I do know there’s money to be made there, IF one is very educated and experienced in such things.

That being said, how to protect against the great unpredictables?

Case in point, SO many landlords got seriously goosed on the COVID federal mandate prohibiting evictions.

Back to the OP’s topic, lots of good info already posted.

Best I can offer without more OP specifics is: Pay off all interest bearing debt, have a 8 to 12 month rainy day, easy accessible account.

Then, off to investing. A low cost S & P index fund is an excellent choice. If you are talking serious money, you may want to “dollar cost average” your way in. Fidelity FSKAX is an excellent choice.

Beyond that, a lot has been mentioned about global insecurity across multiple fronts. So very true.

My only advise is DIVERSIFY as much as possible.

My own investments are pretty much across the financial spectrum.

If I say I’m tilted in favor of anything in particular, it’s the defense sector (FSDAX), utilities (primarily AEE and NÉE). Telecom (T and recently spun off WBD… mainly as dividend holds), QCLN (a renewable energy play which has not done me well since purchase, but I still have long term hopes).

All my other stuff is scattered all over, one broker managed (an inheritance), the rest self managed. I’d say 50/50. Stocks, bonds, mutual funds, ETF’s, cash, etc.

On the other end of the spectrum.. I hold a fair amount in (gasp!) laddered CD’s. Hard silver and gold, and even old EE US Savings Bonds.

I often explain to wifey how even simple cash can burn you. Hello Inflation? 1940’s Germany anyone?

People often ask my financial advise. Like another poster said earlier..: I hold no formal financial title, but have read and learned a ton. Many thanks to my now deceased father, a career CPA and self investor.

I no longer give specific advise in these complicated times. Other than DIVERSIFY, DIVERSIFY, DIVERSIFY!

It’s all I know to do right now…

A lot depends on you age. My first thought would be to put it in a Roth IRA. That way every penny you make on the investment will be tax free and you can invest it anyway you like. Can't withdraw until 591/2 or add to after 701/2. No RMD and doesn't add to medicare income limit.

to answer a few questions I'm 68 an the amounts involved is outside IRA guidelines no that i would likely go tere at this time anyway.
Zero debt
Don't want the hassle of renting, but it is attractive but NO way Jose, I've had enough BS in the last 20+ years with employees to last the rest on my life.
there's enough liquidity to go quite some time unless something totally goes astray.

thanks you all for your inputs. they have been VERY helpful. I have to find the time to do some additional reading Time is in short supply right ow
Any additional input is welcomed and Thanks again

The people that are recommending indexed annuities are probably the people selling them, since those are the people that benefit the most from them.

anytime u want something 'guaranteed' , u will pay for it... nobody will guar anything for free...

I understand if you don't want to deal with rental/rentals. You can have someone manage properties for you to lessen your hassle and cover your needs and lower your risks. But again, I do understand not wanting this responsibility.

They are very hot now as I've mentioned though, and you can turn down the higher risks and while yes every investment has issues, real estate has proven to be one that is low risk/high return for many, many decades.

Rental property is quite different between Commercial & Residential.
A buddy of mine has done very well with Comm, regardless of the economy, for the past 40+ years including currently.
It does require due diligence in checking the property's history (EPA) and whether a city/county/state actually owns or has some land rights or encumbrances.
Res is more problematic with renter's rights, and for me, being a "control enthusiast", it was frustrating when a tenant didn't take care of the property as I did.
It was more frustrating because I'd moved to CA and the Res property was in HI; couldn't exactly stop by. I had a good deal with a manager but in the end made no money, partly due to a market value drop, when I decided to sell.
My buddy's been stung on a Res rental, but has made a LOT on Comm, with very few problems.
His son has also done very well leasing & subletting Comm properties.

interesting... i remember back in jan 2009 at the wynn in vegas having dinner with a friend of a friend from denver who came to vegas to try and collect some back rent from his comm. rentals...
when u think u outsmarted the man, is when u r in trobu;e

I got into residential real estate because of my dad. He invested mostly in residential for 40 years and made a good living with it and convinced me to save and put money there. Yes there are renter's rights and the necessity of eviction in cases, but overall I've done very well by following good advise I mentioned. Requiring renter paid for credit checks, references, good deposits, well written leases, and picking my tenants carefully. You have to deal with some difficult situations but that's what the monthly income is offsetting. I won't put my cash anywhere else, especially in this terrible economy. The percentage of return is far greater than anything I have researched or experienced.

And I knew a guy who bought stock and......and I knew a guy who had an annuity and.....and I had an Uncle that put everything in an IRA and ran out money.....

You have to have a large sample size to put credibility into any stories.

Good question... 2 year t-bills at 2.4-2.5%. Maybe that gets you by until interest goes up. I do good stocks that have paid dividends for 40-50 years and never missed, and supply stuff people need, food, fuel, drugs stuff like that, but I am a little younger. Problem is prices are high. Rentals suck unless you live right next door like I do, even then fk sometimes. Nothing is risk free but ponder this, there is about 18 trillion in savings, backed by the fdic, if one mega bank like Wells Fargo, or Bank America goes under it nearly wipes out the fdic fund....so are cds or banks safe, or does the sign just make us feel good. I am in the same boat, no debt ever, lots to invest, but not enough time to remake it if I lose it. Being the tail end of the boomer generation really sucks for retirement. My small business is the gold for me, zero debt, until I can't run it anymore.

That's fine if you are willing to take the current period tax hit on converting from traditional to a ROTH. It's not just float 100% to a ROTH and now it becomes tax free on witrhdrawl.

Is it in an IRA or tax deferred pre-income tax plan now? If it is, there should be no real restriction on moving to self directed IRA. Not know what the actual investment vehicle is, same as another comment I saw early...

I'm in California, what's wrong with my truck transmission?

Way too much missing info to make any kind of suggestion. You mentioned it was in an IRA, then say it is above IRA limits. If already in an IRA, the limits that are allowed for contributions don't apply because it's a transfer.

Short the RV stocks (already down 40%) or any toy stock for that matter. Lazy? Just buy bitcoin and wait.