<p>We are exploring the possibilities of getting annuities, but with the current interest rate it may not be that great an idea. We are also checking out where to invest in the stock market–EFTs with Schwab. Have not figured it out, but will continue to work at it. Putting things into a CD while you decide can be a useful strategy, keeping liquidity while you make a plan that you are satisfied with.</p>
<p>So much depends on your financial needs. It’s good to sit down & think about all of those–any credit card debt? Loans? Mortage(s)? Other debt? College and/or other educational expenses? Healthcare expenses for you or loved one? Would try to factor those in as well.</p>
<p>Buy a stable consumer staple/blue chip stock that pay divedends(ex.KO, AAPL, MMM, GS) and sell covered monthly calls. This is the best and safest way to earn about 20% with small (under 10MM) amounts of money.</p>
<p>I could see setting up a retirement account with the high dividend/covered call strategy, but in a taxable account you’d take quite a hit, wouldn’t you?</p>
<p>Do you typically write calls well out of the money?</p>
<p>Yes, I try to go about 3-8% out of the money, so it becomes a win-win. I am not loosing money if the stock is down a bit, I am flat, it it is up its not a big deal as I have made 5% on the trade which is great! Stocks that have weekly options are also great for people selling options.</p>
<ol>
<li> $15,000. Upgrade primary residence in preparation for sale in 12-18 months</li>
<li> $15,000. Short term CD for vehicle replacement fund</li>
<li> $80,000. Accelerated payment on retirement home mortgage</li>
<li> $75,000. Vanguard Total Stock Market Index Fund (VTSMX)</li>
<li> $25,000. Vanguard International Index Fund (VTIAX)</li>
<li> $90,000. Vanguard Intermediate Term Tax Exempt Fund (VWITX)</li>
</ol>
<p>In other words, use 10% for short term cash needs with less than 5 year horizon. Use 27% to accelerate principal payments on the mortgage. Invest the rest in stocks and bonds in proportion to our desired asset allocation unique to our retirement goals, age and risk profile.</p>
<p>Wow, you guys have some great ideas! I like the upgrade primary residence to sell within 18 months. If I had that kind of money, I would definitely buy a new, smaller house, since we now have an empty nest.</p>
<p>Also, replace the existing vehicles.</p>
<p>We got a very small inheritance from husband’s wealthy uncle a long time ago. I remember how great it was to walk into the car dealership and pay cash for a car. Not having monthly car payments for four to five years allowed us to save towards our son’s schooling.</p>
<p>Fix my leaky roof!
Repair deck and siding. Have my house painted, new carpet, furniture, etc. and professionally decorated. Fix up my yard. Hire a maid. Save for kids’ college.
Go on a vacation. Save for retirement</p>
<p>50k pay down mortgage
50K pad annuity
50k pay off both kids college loans/ give each down pymt. on decent car
100k total reno on this 50 year old house being held together with duct tape and bubble gum
50k give it away</p>
<p>oooo -yes! Pay off house, pay off new car, install new floor upstairs and new shower, replace two windows… fully contribute to ROTH IRA, give each kid $10,000, and invest the remaining $150,000 in TIAACREF funds.</p>
<p>I always dream about has my own retail store, like coffee shop or deli or soup shop. </p>
<p>Or maybe I will move offshore, with 300K cash, I can live like a queen in some countries.</p>
<p>Or I will buy a huge land, somewhere in south American or china, farm something organic.</p>
<p>Or I will put all the money on housing market, buy condo/apt near Stanford, rent out to students. I heard the profit is more than 10%. I will be a good landlord I promise.</p>