60yo…how to invest $1.3m

[Anonymous]

Just came into a $1.3m windfall. Spouse and I both close to 60 - about 3 years til retirement. We don’t need proceeds from this $1.3m to support our old age needs so really investing for the next gen. Is there a safe, reliable investment vehicle that averages 7-8% annual return. Looking to lock it up min 20 years. I know about the S&P500 but wondering of other options.

[Anonymous]

Could the next gen use some of the $1.3 now or will they inherit close to retirement as well?

[Anonymous]

You'd be crazy not to just park it in the S&P 500 and forget about it if that's really your time frame.

[Anonymous]

Anonymous wrote:Could the next gen use some of the $1.3 now or will they inherit close to retirement as well?

The next gen is working. We will assist financially for milestone events (home purchase, kids college, etc) but they need to work and make their own way. We will make untimely gifts however.

[Anonymous]

What account will this be in? You might need to think about taxes for you and your heirs.

[Anonymous]

large cap growth index EFTs. Park it in a few and forget it.

[Anonymous]

Anonymous wrote:large cap growth index EFTs. Park it in a few and forget it.

Op here. Thanks. Any ETF recommendations and specifically those that minimize cap gains?

[Anonymous]

all EFT's minimize capital gains compared to mutual funds. just go to Schwab or Fidelity or whoever you use as a brokerage, look on their research tools, and select for index EFT's, and look at the tables or graphs for the ones with the best growth over their 1, 3, 5 and 10 year increments.

[Anonymous]

also, if your kids have kids that are still school-age, max out some 529s for them. Tax-sheltered growth. if you're in Virginia, you can have several funds per student/beneficiary and contribute 4000 a year in each, tax free in terms of VA taxes.

[Anonymous]

Anonymous wrote:also, if your kids have kids that are still school-age, max out some 529s for them. Tax-sheltered growth. if you're in Virginia, you can have several funds per student/beneficiary and contribute 4000 a year in each, tax free in terms of VA taxes.

you could also put more money in to the 529s now, and then just carry forward the Virginia tax write offs into future years.

[Anonymous]

Anonymous wrote:Just came into a $1.3m windfall. Spouse and I both close to 60 - about 3 years til retirement. We don’t need proceeds from this $1.3m to support our old age needs so really investing for the next gen. Is there a safe, reliable investment vehicle that averages 7-8% annual return. Looking to lock it up min 20 years. I know about the S&P500 but wondering of other options.

I think we’d all love that! 😀

If looking long term for heirs, I like your SP500 ETF or even combo of US (VTI) and International (VXUS).

Maybe use that windfall to help pay for Roth conversions?