5 Investments to Make with a Lump Sum

How one should invest based on circumstances gets far too little attention. Whether investing periodically, like a payroll deducted 401k contribution; or the opposite, withdrawing payments on a regular basis to fund retirement or a college education; or if investing a single lump sum say from an inheritance or sale of a property or business; all require very different strategies.


Ellen Chang, writing for U. S. News and World Report wrote on the subject with 5 very different recommendations from five different advisors. My recommendation? Look for dividend paying investments. I know, that’s shocking! But lump sum investing incurs a specific market risk. Invest at a cyclical market high and it could take years to realize a competitive rate of return. While dividend paying stocks aren’t impervious to market sell-offs, dividends and specifically stocks of companies that have and are likely to continue to increase their dividends can help cushion market blows.

Bonus. While I personally would not recommend marijuana stocks for a significant lump sum, there is a nice section on them. Since I do get questions about the pot stocks, but don’t follow or recommend them, those that are interested may find an idea or two to look into.

The full article can be found here https://money.usnews.com/investing/stock-market-news/articles/2019-03-21/5-investments-to-make-with-a-lump-sum


1 Response to “5 Investments to Make with a Lump Sum”

  1. 1 Larry Gault April 17, 2019 at 2:30 pm


    Sent from my iPhone


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