How do I invest my daughter's life insurance money?
How do I invest my daughter's life insurance money?
My daughter dies last month and I had a $10,000 life insurance policy on her. (only because is was a basic offer with my own policy.) Anyway, I want to invest this money for her little sister so when she gets older she will either be set for life or at least be able to live off the intrest. Does anyone have any ideas about how to go about doing this.
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9 Responses
1.31.2010
Best Answer – Chosen by Voters Fidelity Select Mutual Funds$2000 in each of the followingAerospaceBiotechnologyTelecommunicationsPharmaceuticalWorld CurrenciesMy condolences o the loss of your daughter Source(s): Father of two
1.31.2010
If the child is a minor, you can set up a Uniform Transfer to Minor, with you as the custodian. It will be invested in a mutual fund portfolio with returnd based on your desired risk factor. Or you can also set up a Decedent trust account . Talk to a PRIVATE investment advisor rather than one that works for a brokerage firm, so that you can get the best deal, rather than "product of the week". Ask your friends and coworkers for referrals. Source(s): Exec assistant to a private advisor.
1.31.2010
to be safe check out Cd's at your local bank and shop around,sorry about your lose.good luck.
1.31.2010
Open a brokerage account at Zecco and buy the ETF IOO.This means you will have shares in the 100 largest companies in the World.$10,000.00 invested in 2003 are now over $20,000.00I don't know how old she is but she will have at least $100,000.00 in a few years.If you buy at least one share ($80.00) for her each week then she will have at least $1,000,000.00 in a few decades.Here are some of your holdings:AIG, BP, Chevron, Citigroup, Exxon Mobil, General Electric, HSBC, Microsoft, Procter & Gamble, Total and many more.
1.31.2010
As you know $10,000 isn't a lot of money. You can invest it in an index fun and earn an average of 8-11% a year, which is about $1,000/year. Not exactly a living wage.I think your best bet is to invest it into an educational IRA. Or some sort of tax deferred education account. This will reduce the tax burden on that money. Although $10,000 isn't alot of live on, it's definately alot of help in paying for education. That's my 2 cents.
1.31.2010
Im sorry to hear about your loss.I assume you are the beneficiary. If you want to invest it to your other daughter. Maybe you should bring her in, maybe she can help you pick. It might help with closure. She might pick Gap or whatever. But she will feel it either way.If she is too young and its about investment. Gold is pretty good right now. If you take oil I would sell short.Safe bet, they companies you know. Mcdonalds, Google, Apple ect. Source(s): series 3 license
1.31.2010
Listen to Michael F. His advice is by far the best. You can't go wrong with Fidelity.
1.31.2010
First, ten grand isn't going to set her for life. Using the 7-10 rule money at 7% doubles in ten years. So in 20 years she'd have $40 grand. Maybe enough to help for college but not to make her a millionaire. At 10% it doubles in 7 years, better but not much different.If she is young, put it in an education IRA invested in stocks so it will grow tax free.
1.31.2010
Well, after the funeral you should only have $5,000 or less. Choose a good no load mutual fund like VanGuard or Tiaa Cref, and open the account with $1000. Keep the remainder in a savings account. Every month transfer $500 into your checking and add it to the Growth Fund. You are dollar cost averaging. That way you will take advantage when the market goes down because you will be able to buy more shares. I'm sorry about your daughter.