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$500K Tax Free Windfall - recommendations on investments, structured annuity?

Started by Aonisaibushi, November 01, 2018, 11:31:31 AM

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Hi, community this is my first post. I've been a long time follower of the site and am hoping for some recommendations to help me in my decision process.

My wife and I received $500K in tax-free money from a settlement and we are running scenarios on what to do with the money. We used all of our income to fund the past 5 years of care and are looking to replenish our cash reserves and invest for short and long term.

Currently, we are thinking:
- $250K in a structured annuity to pay out $50K every 10 years and then $2850 per year for life for 51 years the IRR is between 3.6 - 4% on the annuity.
- $100K into a down payment to buy a $500K house
- $100K in cash reserves to create an emergency fund and buffer for medical and other expenses
- $50K for other unmarked investments

We are wondering based on the below items does it make sense to put more into the annuity, are there thoughts on other investment vehicles that can match that return long term?

Thanks for your thoughts and support.