Re: $100,000, where would you invest?
I agree-- 4-6 months of average expenses, and the rest into a high yield money market until you can make an informed decision. If there is any other debt (credit card, car, etc) I would pay them outright and be 100% debt free first.
I believe the investment into mutuals should vary depending on the age of your mom and how much risk tolerance she can take. I think a good choice is FFNOX (Fidelity Four in One).
FFNOX has four index funds inside of it:
~55% Fidelity Spartan (S&P 500)
~15% Fidelity Spartan Extended Market Index
~15% Fidelity Spartan International Index
~15% Fidelity US Bond Index
This fund has .2% expense ratio. very cheap!
What I would do to adjust the risk level is take 125 minus your moms age... Allocate that number as a percent to FFNOX, then allocate the rest into another bond fund.. So if she was 50, you would allocate 75% to FFNOX and then allocate 25% to a bond fund. (in a sense this means she would have approximately 40% in bonds if you include the ones from ffnox)
Hope this helps!
umo
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