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Follower ○○

What to do with $600,000 cash

Hi

-I sold my rental for $722,000 free and clear, after paying capital gains, I should have $600,000 leftover.

-I am 70 years old and healthy, I collect $1761 per month from Social Security, I need a minimum of additional $1500 -ideally $2000-  My goal is a monthly income of $3000.

$600,000 is my nest egg.

- I am debts free-

How should I invest $600,000 for a 3-4% withdrawal rate?

Thanks

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8 Replies
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Frequent Contributor

Re: What to do with $600,000 cash

My guess is you will be setting this money up in a taxable brokerage account?

You could begin investing in high yield stocks. It would be hard to get much yield from bond funds and keep a handle on risk.

My way for doing it would be to invest for growth, investing in equity. Given your immediate time frame, I would look to safe short term investments for a portion of your money. I would assume you would wish to keep some part of this highly liquid. Given this, some cash into online savings accounts for next few years.

I would suggest Vanguard and looking into funds like VWINX along with something like an S&P 500 fund, VFIAX for starts.

I cannot say you would yield 4%, but if you did, it would be partly from principle.

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Frequent Contributor

Re: What to do with $600,000 cash

             All PIMIX.

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Follower ○○○

Re: What to do with $600,000 cash

Is that not a $1 million minimum requirement to start?

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Contributor ○○○

Re: What to do with $600,000 cash

I hope that you figure out the tax consequences already. 

Since this is the base for your living, conservative investment (i.e., preserving principal with steady and regular income) is the way to go.

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Participant ○○○

Re: What to do with $600,000 cash

I consider VTINX (Target Retirement Income) to be one of the cheapest, most diversified and least risky ways to achieve your goal. 

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Frequent Contributor

Re: What to do with $600,000 cash


@Seeker101 wrote:

Hi

-I sold my rental for $722,000 free and clear, after paying capital gains, I should have $600,000 leftover.

-I am 70 years old and healthy, I collect $1761 per month from Social Security, I need a minimum of additional $1500 -ideally $2000-  My goal is a monthly income of $3000.

$600,000 is my nest egg.

- I am debts free-

How should I invest $600,000 for a 3-4% withdrawal rate?

Thanks


Not enough information.  What is your volatility tolerance? what is your max loss from any last top? Do you care to leave something for heirs? Do you want to max returns? 

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Participant ○

Re: What to do with $600,000 cash

No need to worry or look any further.  I will send you a postage paid self addressed envelope.  Just mail your cash and checks to me.  No more worries.

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Follower ○○○

Re: What to do with $600,000 cash

Open an account at Vanguard.  Put $500k in PIMIX, $90K in VWIAX, or VCOBX if risk adverse, and $10K in VUBFX for seed money, and direct all dividends to that fund for spending money.  Should give you your desired income.  

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