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How should I use and invest $400,000 in a better way to secure my retirement?

I'm 46 years old, female, single, and I have a son who is in college. I have total assets worth $700,000. I have paid off all of my mortgage and car loans. I work in real estate and plan to keep working till age 60. My average annual income is between $60,000 and $80,000. I have no retirement account or any other investment vehicles except my two rental properties that have a ROI of 11 percent. I'm expecting to receive gift money from my parents in the next three years totaling about $400,000. How should I use and invest the money wisely to secure my retirement and have a quality life?

Debt, Financial Planning, Retirement, Estate Planning, Women & Money
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March 2019


What a kismet! I just helped a female realtor, similar age and similar income, with her tax return.  She also has a rental property without any retirement plan.  When we finished her return, I was able to show her the differences on the tax payments.  Had she had a retirement plan, she would have saved a few thousands of dollars.  So, the question becomes: what’s your priority? Reducing tax, saving enough for retirement, or both.

You mentioned there could be a windfall coming in the next three years.  If it’s in the form of gift, you don’t even have to pay gift tax.  Then, what’s your plan for that?  Growing it and withdraw it later to supplement your retirement, or use it to purchase more investment properties?

Also, just because you’re debt-free and kid’s college expenses being taken care off, it doesn’t mean you’re retirement-ready.  There are 19 retirement risks to consider, thus getting together with an expert to learn about those hidden risks and run various “what-if” scenarios to see if you’re on track to your retirement age and goals. You still have the time and resources to make the change, and I wish you the best!

March 2019
March 2019