Q&A: What to do with $100,000?

A reader sold her condo, now she’s at a loss as to what to do with the money. Here, Gordon Pape weighs in with low risk investment options.


Q – I’m a 76-year-old female and just sold my condo. I got $100,000 and, with this high market, I am at a loss as to what I should invest it in. I’m hoping to build it into something more than 1.5%. Any suggestions? – M.G.

A – At your age, you don’t want be taking a lot of risk with your money. One possibility would be to put the money into an annuity, which would guarantee a life income. Another is to invest in a portfolio of high-quality corporate bonds with terms of no more than five years, which you would hold to maturity. This would provide decent cash flow while protecting you against loss from bond market fluctuations, since you would not be selling before the maturity dates.

These are just a couple of options. You really should consult with a financial adviser who can provide appropriate guidance based on your specific situation. A fee-for-service adviser who does not sell any products would be the best choice. – G.P.

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