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Reader Comments

  1. Keesha says

    I am 53. Currently no debt. 26 year old who is on her own but who I help slong the way. House is paid for. Will keep the house unless my father needs it for income for his health. He’s 84. I live with him. House willed to me. I’m a teacher but I began late and will only make it to 20 years if I work 4 more years, 25 if I work 9 more years. I am physically exhausted and burnt out from the profession. 30 years is the maximum for teacher retirement. No way I can teach 14 more years, so I will be lucky to get fourty percent of my now 60k year salary which could increase to 70k. I will receive that monet at age 60 if I live to see it. My social security will be cut in half because my employer no longer pays into it, so if I am lucky I will get 500 month. And you know the rules with age pertaining to when you take social security benefits. In addition to that I have 600k in the bank that I have wasted money on my whole life because I am so conservative, don’t know how I should invest, and I don’t trust people. I am exhausted and burnt out and want to work to live and not live to work. My question is, if I can make it to 60 and work 6 or 7 more years, how can I live off 500k by investing it, and how should I invest it? I would appreciate any advice you can give. Thank you.

    • Jeff Rose says

      Hi Keesha – $600k is a lot of money, and too much to be sitting in the bank collecting low interest. If you invest the money adequately you should be able to retire at 60, or thereabouts. I’d sit down with a financial advisor, one who comes with personal recommendations. There’s no way to tell you how to invest without knowing all your financial details, so you’ll have to share those with that person, and be ready to accept his or her recommendations.

  2. JPW says

    I am coming into a large payoff. Why don’t you mention real estate investing?

    • Jeff Rose says

      Hi JPW – It’s really an investment category all its own. It’s also more “hands on” than most people are comfortable with. Real estate investing in individual properties is part investment, part business, so it’s not as simple or easy as most think.

  3. Vince Kalem says

    Hi there.

    I just came into $500K. I want to know the best way to invest it and maximize my return.
    Please help!

    • Jeff Rose says

      Hi Vince – If you have no idea whatsoever, you really need to sit down with a qualified financial advisor. You need to determine your goals, requirements and risk tolerance. It isn’t a question that can be answered by a blog comment. The answer is different for everyone based on personal considerations. The tips in the article are just suggestions, but if you don’t know for sure, you need direct advice.

  4. Evelyn Rojas says

    I have a little bit of a different question. I’m thinking about selling my house and not buying a new one but renting for a while instead and buying a house later. After commission, taxes, etc my profit will be 363k. My question is in the tithe, do I tithe 10% of that? I want clear about tithing from the “increase.” Thanks

    • Jeff Rose says

      Hi Evelyn – You need to pray about that, and read the Bible verses that pertain to the tithe. But the Bible does say that the tithe is to be based on your increase. That comes from a lot of different sources, not just wages and salary. (In biblical times, the “earnings” were often crops, livestock or fish, so it’s actually a lot more general.)

      I’d be careful about selling the house unless you have definite plans for the money. You don’t want to do anything that will risk losing that kind of money, especially since it probably took a lot of years to build it up.

  5. Dd says

    I just came into 2 checks 1for 140k and another for 570k. I never really invested before and always lived well day to day working. I am really lost having this money cause I feel I will blow it making bad decisions. Any advice

    • Jeff Rose says

      Hi Dd – You’ll want to invest the money in a diversified portfolio. Since you are new to investing, you could try using a robo advisor, like Betterment or Wealthfront. If you want more personal attention, you could also try using a full-service broker. They will appoint an investment advisor who will manage your investments for you though the management fee will be higher.

  6. Dorothy says

    My daughter has a student loan of about $50,000. I inherited an annuity. It’s slightly less than $300,000. I’m a senior pensioners, plus reasonable soc.sec. Payment, so I’m not destitute; by no means well off. Would you advise paying off her student loan or leaving it as her inheritance

    • Jeff Rose says

      Hi Dorothy – It depends on how well you’d be without the 50k. Since it’s inherited, you’ve obviously been living without it, so giving it to your daughter now could really help improve her financial situation. You can parcel it out to her over 3-4 years if you aren’t sure. Just make sure that giving her the money now won’t leave you short-handed. One of the best things you can do for your daughter is to not be a burden to her. If paying off her loan will force you to depend on her financially, you may be replacing one obligation with another. But that’s an attempt to look at both sides of the question.

  7. Michael Kison says

    Great article Mr. Rose. Outline, structure, and finish. Good info and easy to understand. Thank you.

  8. Robert says


    Why do you not recommend annuities as good, stable investments? Is it because they do not represent good, stable investments?



    • Jeff Rose says

      Hi Robert – First, annuities are complicated investments. Second, some of them have provisions that don’t work to the investor’s benefit. Third, they generally charge very high fees. Fourth, some of the people who sell them are less than reputable (they don’t fully disclose what the annuity involves or charges). Fifth, annuities aren’t right for everyone.

      That said, there are some good annuities, that when properly structured can do exactly what investors want them to do. Those are the good kind, and they’re out there too, at least for the right kind of investor. They certainly aren’t an investment for the average person.

  9. joaovitor says

    Hi, Im 54 year and my wife is 52 we both not working , apllied to ssdi due to physical ilness, i have over half a million on 401k two rental properties paid for and a good size of equity in my own home, we need 6k net as monthly income to support our monthly expenses, without income from working , how can we get to that point, I was thinking in selling our property and use equity to put down in several properties, to live in one and rent the others adding to our rental income portofolio, and also also rollover our 401k to a roth ira or something similar where we can get the interest paid to us monthly( dont know if its possible), any help on this issue would be apreciated.

    • Jeff Rose says

      Hi Joaovitor – You’ve got a pretty involved financial profile, so I think it would be good for you to sit down with a financial advisor and consider your options. Without knowing you personally, I’d be hesitant to provide direct advice. Plus you’ve got some variables to consider, like how much will SSDI be, and how much rental income can you receive on the rental properties. You may also need ongoing advice as your situation develops. But overall I think you’re in a good position to get the income you need, based on what you’ve written here.

  10. steve says

    i am very surprised,or i missed, max out retirement accounts!! fully fund you IRA’S, if you continue to work, max the 401k’s. take advantage of every pre-tax investment you can.

  11. shelagh says

    I have $500,000, as I sold my house and am renting for one year. In that year, the plan is to buy a house, so I’ll need the money any time. What investment would work for me? I’m 76 yo, pensioner, and dumb about investment. I must buy in a year, or lose my pension. My super is zero.

    • Jeff Rose says

      Hi Shelagh – Since you must buy a house within a year, and risk losing your pension if you don’t, then you can’t take chances with the money. Have it on deposit with a local bank, invested in money markets funds or very short term certificates of deposit. Your biggest concern is protecting the principal value of the money, not earning a large return on it.

      With $500,000, you’ll exceed the $250,000 FDIC insurance limit, so you should split the money evenly between at least two banks that way you’ll be covered.

      Hope that advice helps!

  12. Natalie @ Financegirl says

    Right Cat! Hahah. I have no problem knowing what to do with $500k. It would be gone tomorrow. $124k to my student loan debt, a couple hundred in retirement, a house, and some investing. It would go fast.

  13. [email protected] says

    Right now our student loan balance is about $500,000 between the two of us since hubs went to med school and I got a graduate degree. If we got an inheritance of that size we’d probably put most of it toward paying off those student loans.

  14. Money Beagle says

    Great advice and it’s laid out very well. No wonder you are so successful, I’m sure your clients appreciate your approach. One thing I would do if I were in this situation is automatically pay down the mortgage. My reasoning for this is that it increases your cash flow by your mortgage amount. This, in turn can lead to other opportunities. Say you’re unhappy in your job and want to make a career switch, but you would have to start off at a lower salary. With a binding mortgage payment, this might be out of the question, but if you suddenly don’t have to make that payment, you now have the flexibility to consider that leap.

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