[USER]

If you had $950k from a life insurance policy fall into your hands today, would you invest it immediately and where would you park it?

Mid 30s, $60k annual income, low cost of living area.

[Cody]

What are your personal objectives?
I’d invest it based on its purpose and when I intend to use it.

“Give every dollar a job and a use-by date.”

[Frank]

I would not be in a big rush, but yes, I would get it invested before year end or have a plan at least.

What you really should do is start max funding 401ks and Roth IRAs every year for at least the next decade — even better if your 401k has a Roth option.

You would use some of this money to live on while you are doing that max funding.

Make sure you avoid investing in (1) businesses, including real estate unless you already do that; and (2) illiquid things like land, art, collectibles or insurance products.

Everyone and their mama is going to want to entice you into some “can’t miss whiz bang thing.” But at the end of the day, you want most of this money parked in retirement accounts in index funds and index funds in a regular brokerage account.

If you want a mental note, only 100K should go to things that are NOT on that short list.

[Cris]

I would add it to my investments, leaving a chunk in cash to do something in the near future to honor the person who passed.

[Erica]

Assuming this is from the death of a loved one, I would put it in a couple savings accounts and take 9-12 months to grieve and settle on next steps.

Otherwise, I’d stick to my plan. Whether I have $50, $5k or $500k “extra” this month, I believe in our goals and plan to get there.

[Rick]

My experience over a few decades…
You will not time the bottom. Not even close.
You will miss most of the snap backs.

Decent drawdowns are so often followed by fast snap back ups. The bigger the drawdown usually the bigger the snap back.

Not always at once. Some times with half baked attempts. Meaning….you will not time the snaps backs either.

So, decide…which will bother you more…buying and seeing it fall more…. or not buying and watching it rise a lot more.

[Tristan]

It depends on your goals for the money how/where to invest. Figuring that out before you invest it is important as it can make or break a plan.

So, it’s not something I’d rush (but also don’t bury head in the sand and forget about it).

Also taking time to grieve (assuming here) before jumping to do something is also important.

Meet with a few advisors (not insurance salespeople) if you don’t feel confident in what they plan may be if you need to

[Jacob]

I’d do what I could to invest in your Roth IRA for last year’s and this year’s asap.

You have until the 15th to get it done.

[Tony]

I would wait for at least 1 week of this tariff mess to slow down. Dow futures are already down another 5% for tomorrow.

[Author]

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