Should I invest in a Roth IRA or something else with money from an inheiratance?

[Guest chrisjns]

I have money coming to me soon and I am 53 years old. I don't have much in savings for my retirement. I know it is really late, but I would like to have something to look forward to. I have a 401K at my work and it is only a couple thousand in that. My work only gives 25% but better than nothing. I don't want to chance this money I will be getting soon into anything too risky. I am a low income individual.

What does anyone recommend I do? I have been checking out magazines and Suze Orman shows and I even thought of CD's. Any help sure couldn't hurt.

[Guest alexisgross]

The only problem with magazines and shows are that they only give you information; you aren't able to give them information about your specific situation. Depending on the amount of money you are to receive, you may just want to go talk to a certified financial planner. Not only can they help you with the money you are to receive, they can also help you with allocating savings through your current income. (Don't make the mistake I did and just chose some person that sold mutual funds to take a trip to the Bahamas...)

[John G]

You have asked a good question. I can probably give you a better answer if I have some additional information.

About what year do you think will be the start of your retirement? Can I assume that your health is OK and you will have an average life expectancy?

Have you gone to Social Security to get some idea of what your SSN payments might be? If not, you should do this.

Are you likely to have a pension upon retirement?

What is the rough amount of the lump sum you are expecting? You are likely to chose different options if it is under $20,000, or under $50,000.

Would you like to grow these funds until a certain date and then take monthly amounts for living expenses?

I am assuming that the reference to 25% is the match in your 401K.

One of you options is to invest $3,500 each year in a Roth as long as you have earned income and otherwise qualify. This amount and any additional funds could be invested mutual funds, CDs, or bonds. There are many many choices. Post again and I will try to respond.