Author Topic: Help with where to invest balance of settlement  (Read 2283 times)


  • 5 O'Clock Shadow
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Help with where to invest balance of settlement
« on: October 27, 2012, 03:39:31 PM »
Hello!  I've been lurking here for a few months and see there are many knowledgable people around here.  I would like to ask some advice, if I may. 

First, a little of background about me.  I'm 36, DH is 39.  We have 3 kids, 13, 11 and 9.  We live in a relatively low COL area.  Our combined gross income is about $72K.  We also have a rental home that brings in $675/month.  We now own both the rental home (value approx. $85k) and our primary residence (value $225k) free and clear.  The only exception is a grant that we got many years ago to fix up the rental that we will need to pay back if and when we would sell that house.  That grant is 27k.  We have no other debt.  We also own our 2 vehicles free and clear, and replaced both of those in the past year, so we should be OK in that department for a while.

Due to my DH's work injury in 2007, and subsequent personal injury settlement we received, we now have about $195k sitting in a savings account and we are trying to research the best ways to invest it.  We do have a rolled over IRA at Edward Jones, $16k, and 2 of the kids have very small 529s (about $1500 each).  DH has his 401k set max out for this year, 75% of his gross until year's end.  Next year, he is planning on setting at 28% in order to max it out and still benefit from his company's 3% match.  We also have a HSA plan with a $3k deductible, which his employer pays.  We plan to contribute to the max of that also, which for 2012 would be an additional $3250.

Additionally, we do know that we want to take $10,000 ($5k for each of us) each year and put it in a Roth IRA from this year forward.

I know we are in a pretty good position.  I am somewhat risk averse, but DH is a little more aggressive for growth.  We would so appreciate any advice or direction.  We don't want to screw this up, and it's making me crazy to have all of that money sitting out there earning .4%.

Thanks to all of you Mustachians!


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Re: Help with where to invest balance of settlement
« Reply #1 on: October 30, 2012, 08:26:17 PM »
What do you want to do with it? Do you want to FI someday? Do you have any debts that need paid off?


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Re: Help with where to invest balance of settlement
« Reply #2 on: October 30, 2012, 08:36:07 PM »
Start with high interest debt, then keep a emergency fund (potentially, depending on your situation). If you want to invest it, as implied in the title of the thread, I'm of the opinion that a windfall shouldn't be any different than any money you're regularly saving, other than it may open up other opportunities you wanted to do, but didn't have enough for (admiral funds, real estate, etc.)

So, bottom line: dollar cost or value cost average it into your desired asset allocation.  Simple (but maybe not easy).
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