[USER]

I really only got into personal finance and retirement savings when my dad passed in 2020 and I became in charge of all my mom’s finances. I was overwhelmed by everything at first and switched into a Fidelity Managed account because I had zero knowledge of anything.

Recently I took about 25% (100k) from the managed care and put into a self directed account to see if I can really do it myself (I don’t know why I’m doubting the tried and true of investing in low cost index funds but here we are).

Basically the purpose of this money will 90%+ be investing for the long term as an asset that will pass to me and my brother. So hive mind, where would you put this money knowing it won’t be touched for hopefully another 15-20 years.

Side note, there is a separate Roth IRA (think 50k) would you be more aggressive or have a different strategy knowing there’s long time before withdrawal, tax deferred, so there is the ability to recover if my strategy doesn’t pay off.

If it makes a difference, my mom is 74, lives off SSN and small pension, and saves about $500/mo after all her expenses, so no real need for additional cash etc. Even with her RMD the last 2 years, we’ve done Roth conversions to maximize the benefit coming to us.

I’ve learned a tremendous amount from this forum and podcast! Hoping for just a little reassurance in my thought process as I venture out on my own with bigger $$ to invest.

[Ron]

I agree…I would invest the Roth aggressively. I am 73 and that is exactly what I do. I hope I never have to spend it down and that my kids will get it.

As for a portfolio for the rest, I would wait at least 6-months to invest. I think we will slip into recession over the next 6-months. I would wait for 3500 on the S&P and then start feeding money regularly into the mkt over the next year. This recession may be steep. Do not lose heart.

Me? I would put 75% in VTI (total mkt index) and 25% in VUG (Growth)

[St Patrick]

You followed a very sound approach by having someone manage it when you did not have the bandwidth to do so yourself. That was the best choice then, and managing it yourself is the best choice now. Kudos to you!

For the long-term investing, I would just dump it into a low-cost index fund at Fidelity or Vanguard. For the Roth IRA, you might consider a low-risk, low-reward investment as you are more likely to access that money sooner.

When you are in a place to think about it, you may also wish to consider doing some Medicaid planning in the event your mom needs additional care at some point in the (hopefully distant!) future.

[Author]

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