How do I invest my daughter's life insurance money?

Question

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.

Answer 1

Fidelity Select Mutual Funds

$2000 in each of the following

Aerospace
Biotechnology
Telecommunications
Pharmaceutical
World Currencies

My condolences o the loss of your daughter

Answer 2

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.

Answer 3

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.

Answer 4

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.

Answer 5

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.

Answer 6

confident you're able to purchase assurance and a reductions plan together. All of those solutions are sturdy ones. in my opinion a term assurance assurance is a minimum of a nicely-known existence, to no longer point out while the term is over it relatively is OVER! for a baby an fairness listed nicely-known existence is an extraordinarily sturdy reductions/ existence assurance. you come back to a selection how long you prefer it to final. enable's basically say your baby receives clinically determined with sickle-cellular or diabetes at a youthful age, quickly after she would be able to be the two uninsurable or rated so fairly that it would be ridiculous to purchase yet another term existence plan. The nicely-known existence will enable you to dictate how long you prefer the assurance for. The fairness listed nicely-known existence will grant an excellent/risk-free return on your investment and ask if a assured Insurability Rider is attainable, this would insure that your daughter, no remember her destiny well-being, would be assured the choice to extend the assurance at her attained age, and not her modern well-being. A 529 plan is sturdy provided which you're making lots money each year that your baby won't have loans, provides, financial help afforded to her. if it relatively is so then initiate one ASAP if no longer then a fairness listed nicely-known existence is the perfect assurance on your baby on the marketplace on the instant. Oh, and via the way existence of the Southwest has the #a million merchandising fairness listed nicely-known existence on the marketplace. P.S. finished existence and term assurance are a waste of time for young little ones. finished existence is meant for burial assurance while your retiring and term assurance is barely designed to guard your loved ones or your households wellbeing. they don't seem to be designed for young little ones. youngster's term Riders are surprisingly much the authentic comparable fee as a stand-by myself coverage for one baby. A quote with LSW with each bell and whistle, as mentioned above assuming well-being is sturdy for $50,000 would be $25.00 A MONTH and she or he would have assured assurance to age 70. Now for the reductions, you're able to look into an an listed annuity (risk-free)for risk-free speedy enhance or a competent nicely balanced mutual fund (medium-danger)for speedy enhance and an excellent return, devoid of lots better assured interest fee. with a bit of luck this variation into helpful!

Answer 7

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.

Answer 8

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 $20,000.00

I 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.

Answer 9

Listen to Michael F. His advice is by far the best. You can't go wrong with Fidelity.

Answer 10

to be safe check out Cd's at your local bank and shop around,sorry about your lose.good luck.