re: Large Inheritance at the age of 62, WWYD??

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How much dividends would $400,000 get you?

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You can put together a package yielding about 5 to 6 percent, with a low risk profile. And I'm thinking in her case, she's not going to have much other income, so keeping the taxes low is the same as growing the money at this point.

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I would put it in very low risk stuff like CDs and/or Bonds.

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Any inflation at all is going to eat these gains. Tax free munis would have a nice tax profile, but are any of them paying more than Squat/2?

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I would also stay with some liquidity for emergencies.

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If she buys mid-cap and blue chip dividend stocks with a reputable brokerage (or her bank) - that's as liquid an investment can be - my only caution is that we're at market highs and she might have to ride out a 20% downturn (which is why I would stay away from big board indices with her time window to retirement) - but there is risk in everything. There is risk in doing nothing with the money or at least opportunity costs.

$400k - buying $20 stocks with $1 dividends, even completely flat for the 4 years puts about $80k more with that and ends up generating a permanent income of about $2k a month (give or take) - closer to $3k if she draws it down to age 80 or so.

Not bad for money that just fell out of the sky.

I mean, she can spend it on shite with the quickness, but if she wants it to make a permanent difference in her life, I would invest in some sort of equity - and keeping the risk profile low, bigger companies that reliably pay a dividend in the 4 to 6 percent range is a smart way to go.