Investment Advice

[beachny]

My husband and I were left $200000 by a relative.  Actually it was more but after taxes and fees this is what we have left.  My husband is already retired and receiving his SS and Pension.  I don't retire for at least 4 years.  The money is in a money market earning 1.11%.  What is the best way to invest it so it will earn money for us?  We're totally confused when it comes to annuities, stocks and bonds, etc.  Any suggestions would be greatly appreciated.

[RunningintoFI]

Hi Beachny. This might be better asked under "Investor Alley" but a good general place to start is trying to figure out what your needs might be with this money? Do you need it for living on now, or is this something that you are thinking you might use more in the future?  That answer will help people determine what sort of recommendation to give you.  The only advice I can really offer is that you will want to place it in a low cost index fund in the market place since the money market fund is not keeping pace with the rate of inflation so you are actually losing purchasing power over time having the money in that account.  A 60/40 mixture of stocks/bonds might be an option since that will allow your money to continue growing while offering some protection from market downturns.  The issue boils down to how much risk you are willing or able to take with this money so more details may be appropriate regarding the rest of your retirement accounts and cost of living needs.