My oldest sibling is my sister who unfortunately has a learning disability. She is 40 years old but is mentally around a 10 year old. She does however have a very strong work ethic and has been working away for the last 20 years. She has lived with my parents the entire time and therefore doesn't have any expenses. I didn't know what my parents were doing with her finances but I was very disappointed to hear that her life savings -- $130k -- has been sitting in a checking account this whole time. Big oof.
So I volunteered to help invest it and help her money work for her. My plan is to keep $20k liquid for any emergency funds she would need and do the following for with her other $110k:
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Open a roth IRA and contribute $6k in December 2021 and $6k in January 2022. $12k in next 30 days.
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Buy $10k in 7.2% yielding Government Series I bonds in December 2021 and $10k in January 2022. $20k in the next 30 days.
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Open a brokerage account and transfer the last ~$80k into SPY, VTI, and SFY to grow over the next 20-25 years.
Does this plan sound like it would work well for someone in my sister's shoes? Is there another investment vehicle to consider? Any advice on what I could be doing with her regular paychecks as they come in? Just keep throwing them into the ETFs?
Any insight would be greatly appreciated!
Submitted December 08, 2021 at 09:43AM by wsbmoo https://ift.tt/3pK9KR4
