Good one jmitchell.
My take on the $250K is:
1. High/Medium Risk: Invest half in a 500 Index fund and the other half in good quality companies that stand to gain on a market up turn. There are still a lot of under priced stocks. This is a good time to pick some winners if you can afford to put the money at risk.
2. Meduim Risk: Buy utility stocks for the dividend income. Some down side principal risk but more stable than most. Do not go only for the highest dividend. Take a good look at earnings per share and other assets the company owns that could affect stock price.
3. Safe: Government Bonds/Notes. 10 Year currently about 2.74 %.
Remember the high interest rates usually go along with high inflation. Low interest rates are not a bad thing unless you are stuck there and inflation takes off. I would be happy at 1% if inflation was the same.
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