Q: I’m in my late 40s with no biological children. I have assets of about $400,000. I’d like to allocate $100,000 in a portfolio with a well-known investment management firm that I have dealt with for many years and am happy. But, I’m also looking to buy a home with cash. My question is: Should I choose the diversified conservative growth? What should I do?
A: You really need to seek the advice of a financial adviser. Even if I could tell you how to invest $100,000, I would not do it in this forum. That’s because when investing you have to look at the big picture. You have a great nest egg, but you need a plan to go along with that money. Here are just a few questions you need to ask yourself (and put to an adviser):
• Where do I want to live?
• How much do I want to spend on a home?
• Should I use some of my savings to pay off any debt that I have? (Hint: Yes; if you have credit card debt, car loan or student loans, pay them off).
• How much do I want to save for retirement?
• When do I want to retire?
• How much will I need in retirement, based on how I want to live?
You asked how much risk to take with the $100,000, but that is up to you, not me. The question of how you invest depends on when you need the money and how much risk you are willing to take.
So, take some of your money and hire a fee-only financial planner to help you come up with a grand plan for your financial life.