How would you invest 60k right now?

[nOOky]

Hey thanks for the linky!

 

[brianmanahan]

https://www.early-retirement.org/forums/

good site

e-r.org and the bogleheads forums are my go-tos

 

[dullard]

Hmmm another question. I am POA and executor of my brother's will. He has about $350k in his Vanguard 401k that is 60% stocks, 40% bonds. He was gravely ill, now he may stretch it out for weeks or months. I'm wondering if I should move it all into guaranteed interest to avoid any huge ups or downs in the near future. I have the ability to manipulate his finances as I see fit by the will, and his permission right now with access to his accounts. I'm nervous it may take a big hit, and I'd hate to lose a bunch. Ugh.

Sorry to hear about your brother. I hope he is as comfortable as can be in his situation.

I don't see anything major happening to his bonds in the short term (next few weeks or months). But the stocks could certainly rise or fall. If you want to be ultraconservative, there is nothing wrong with a 20% stock and 80% bond/cash portfolio. By doing that, you'd have him cash in on the massive stock market gains that happened the last few years and can put it someplace safe. The 20% stocks is just in case his life stretches out longer than doctors think. Living longer than your money is a risk too.

Vanguard mutual funds VUSXX, VMFXX, and VMRXX are all paying ~5.28% interest right now. That probably pays the same if not more than his bonds and is far safer than his stocks. Consider moving a chunk of the stocks and bonds to one of those funds.

 

[nOOky]

Sorry to hear about your brother. I hope he is as comfortable as can be in his situation.

I don't see anything major happening to his bonds in the short term (next few weeks or months). But the stocks could certainly rise or fall. If you want to be ultraconservative, there is nothing wrong with a 20% stock and 80% bond/cash portfolio. By doing that, you'd have him cash in on the massive stock market gains that happened the last few years and can put it someplace safe. The 20% stocks is just in case his life stretches out longer than doctors think. Living longer than your money is a risk too.

Vanguard mutual funds VUSXX, VMFXX, and VMRXX are all paying ~5.28% interest right now. That probably pays the same if not more than his bonds and is far safer than his stocks. Consider moving a chunk of the stocks and bonds to one of those funds.

A short follow up. In order to inherit his rollover IRA I had to set up a new Vanguard account with a bit over $123,500 in it. Each of his two children gets the same. I intend to take $16,000 to fix our driveway and build a small deck on the house. The rest my understanding is that I can choose how to invest it, but I have to take RMD's and use it up in 10 years. Early next week I will go in and do that. I will have to pay taxes on the 16k, but I might as well leave that amount in there collecting interest for now, then remove it come tax time. I also have to finish paying all of the bills and his taxes next year etc. so I'm leaving a chunk in his checking until I'm sure everything is taken care of. FWIW his IRA has been making roughly 8.9% over the past 5 years and I feel like a week ago was a lucky time to freeze his account.

I feel fortunate as this may allow me to retire earlier than expected in 6 years maybe versus 9 years if I stay on track. The light at the end of the tunnel.