I suppose more info as others have suggested would help get more granular advice, but I think there’s already enough here. You’ve already said you want to “collect interest” and be “relatively safe”. No mention of growth or legacy goals. To me this means a combination of cash and short term bonds, maybe some intermediate. What that cash/bond mix is depends on the individual and what “relatively safe” means to you. Likewise, whether in taxable or municipal depends on your tax bracket. But regardless of the details, I think the answer to the question as you’ve asked it is probably a combination of cash and short term bonds.
As other posters are saying, the answer depends on a lot of factors you haven’t shared, and may not want to share on a public forum. This is a case where a session with a fee for service financial planner, operating as a fiduciary, would be well worth the money. There is information on this site on how to find one.
In order to answer this question fully, we’d need to know all your other assets and income, and expenses, along with your experience as an investor. However, not knowing that, I will say:
If you know little about investing, and just want absolute safety, then 4-week Treasury bills with auto-roll will fit the bill. You’ll get about 4% with no state income tax.
If you feel comfortable with investing, and are willing to give up some safety, a corporate bond ETF might be worth looking at, assuming it would kill you in taxes.
If you are more skilled as an investor, a conservative portfolio of 80% dividend stocks and 20% preferreds would give income and some growth.
To put it simply, but consider the comments from Mark and DrLefty, you could purchase municipal bond funds and earn about $1500 a month in tax free income and pretty securely preserve the $500,000 for future use.
As Mark said, it depends on what your overall situation is, and what your goals might be for that money:
Do you want to grow/preserve it as a nest egg in case you have long-term care expenses you might need to fund?
Do you want to leave it as a legacy for family or charity?
Do you want/need it to supplement your regular income/expenses?
Your choice of savings/investment vehicles would vary depending on your goals.
If you’re already pretty comfortably fixed and this is extra money, at 77 I’d have some fun with it, depending on what “fun” looks like for you these days!
I understand this is an important decision for you! To get helpful advice from others, you’d want to share a bit more about your situation. Things like whether you need income from this money right away, what “relatively safe” means to you personally, whether you have other income sources, and if you might need access to any of it soon would all make a big difference in what someone might suggest. Everyone’s situation at 77 is different, so what works well for one person might not be right for another. The more context you can provide, the better guidance folks here can offer you.
Good for you 😁 Start flying first class!
I suppose more info as others have suggested would help get more granular advice, but I think there’s already enough here. You’ve already said you want to “collect interest” and be “relatively safe”. No mention of growth or legacy goals. To me this means a combination of cash and short term bonds, maybe some intermediate. What that cash/bond mix is depends on the individual and what “relatively safe” means to you. Likewise, whether in taxable or municipal depends on your tax bracket. But regardless of the details, I think the answer to the question as you’ve asked it is probably a combination of cash and short term bonds.
As other posters are saying, the answer depends on a lot of factors you haven’t shared, and may not want to share on a public forum. This is a case where a session with a fee for service financial planner, operating as a fiduciary, would be well worth the money. There is information on this site on how to find one.
In order to answer this question fully, we’d need to know all your other assets and income, and expenses, along with your experience as an investor.
However, not knowing that, I will say:
But we really need more information.
To put it simply, but consider the comments from Mark and DrLefty, you could purchase municipal bond funds and earn about $1500 a month in tax free income and pretty securely preserve the $500,000 for future use.
I would not suggest that unless Roger is in a high tax bracket.
A valid consideration.
As Mark said, it depends on what your overall situation is, and what your goals might be for that money:
Your choice of savings/investment vehicles would vary depending on your goals.
If you’re already pretty comfortably fixed and this is extra money, at 77 I’d have some fun with it, depending on what “fun” looks like for you these days!
I understand this is an important decision for you! To get helpful advice from others, you’d want to share a bit more about your situation. Things like whether you need income from this money right away, what “relatively safe” means to you personally, whether you have other income sources, and if you might need access to any of it soon would all make a big difference in what someone might suggest.
Everyone’s situation at 77 is different, so what works well for one person might not be right for another. The more context you can provide, the better guidance folks here can offer you.
Excellent reply.