Where should you invest an extra $50,000 in your 60s?

Someone who is in or nearing retirement has many ways to invest a financial windfall. Here’s how to ensure the money serves you well.

I wrote this article for the Qualified Advice column of MoneySense, the online Canadian personal finance magazine.

 

Qualified Advice is written by members of FPAC (the Financial Planning Association of Canada), a MoneySense content partner. Working closely with governments, regulators, financial planners, academia, vendors and the general public, FPAC’s goal is to set standards and principles that will allow financial planning to evolve into a knowledge-based profession that ultimately commands the credibility, public awareness and respect afforded to other advisory professions.

 

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I’m 62. Where would you advise that I invest $50,000 for retirement and savings?
—Ty

 

Where to invest a large sum of money when you’re in or nearing retirement

Congratulations on having $50,000 available to invest, Ty. You do not say how you came into that money or describe your current financial situation. For some, it could be considered quite a windfall. Let’s consider a few different situations first and then move on to possible recommendations.

Do you have debts?

Investing a lump sum of $50,000 sounds great. However, receiving an investment return of 5% is not going to do much for you if you are carrying a balance on a credit card that is charging you 20% interest. Paying off high-interest debt will provide you with a greater net return than you are likely to receive from any long-term investment.

 

Read the rest of this article here.

 

 

This is the 183rd blog post for Russ Writes, first published on 2023-02-06

 

Originally published in MoneySense on 2023-01-23.

 

Qualified Advice is written by members of the Financial Planning Association of Canada (FPAC).

 

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Disclaimer: This blog post is intended for general information and discussion purposes only. It should not be relied upon for investment, insurance, tax, or legal decisions.

 

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