Just sold ~$300K of municipal bonds. What should I do with the money?
I think he was asking if he should put it in stocks or bonds or what have you. That’s not what I answered. I said:
Buy a house in Portland!
My dad is 74 years old and not quite as spry as he was even a year or two ago. He’s still in pretty good shape for a 74 year old, but gets worn out much easier than he used to. He’s cut short several long trips recently (including one to Europe) because he was tired.
My mom is 66 and plans to work another 6 years (this is a change from her earlier plan to die mid-lecture). She doesn’t have to be in the Midwest in the summer as she can work from anywhere. My father has always had a lot of wanderlust, so they’re used to living apart for lengthy periods of time. I suspect their marriage works a bit better that way, in fact.
We don’t know how much money they have saved overall, but we believe it to be quite a lot. My dad’s lived his entire life like Jacob at Early Retirement Extreme and he’s made sure my mother has saved extra as well. He’s never been afraid of the stock market. We also suspect it isn’t enough to say, buy a house in the SF hills.
He asked if I meant Portland, ME or Portland, OR.
Obviously I meant Oregon. Our family has a West-coast bias.
My parents both grew up in Northern CA. Northern CA is very expensive these days and doesn’t quite have the same vibe it did back in the 1970s. We understand that vibe has moved up North to more affordable Oregon.
On top of that, global warming should be making Portland’s weather better every year. I went to a talk that said it would be like Santa Barbara about a century from now if things trend as predicted.
So buy that retirement home. Use it as your new base. Spend summers there. Travel up and down the West coast. Go hiking.
That’s what I recommend.
What would you recommend my father do with $300K of recently liberated retirement money?