Neighbor chat being, brief overview.......Married couple assured of having a net inheritance this year of about $500,000. Both age 70, one still employed, both have Medicare, one receiving SS, likely forthcoming sale of a business (that may or may not provide a sale profit), clear ownership of a 8 unit apartment with positive cash flow (don't know how much annually), both have T-IRA's (total less than $50,00) and clear ownership of their house.
A side note to them regarding taxation: The fact that many actively managed equity funds have been seeing redemptions has exacerbated capital gains tax bills for many investors, jacking up tax-cost ratios.
The obvious to me, is for them to invest in etf's, index funds or tax managed mutual funds,and perhaps some muni bond exposure. Their account will likely be with Fidelity, which would offer them many path choices. I will also suggest to them a 30% exposure to U.S. equity. I don't know at this time whether they may choose to place the balance in CD's or other similar. The wife has some knowledge about the investing markets; while the husband does not. My suggestion thoughts for equity would be: SP-500 (12 U.S. sectors), perhaps QQQ etf (more growth equity, although some overlap with SP-500) and perhaps a large cap blend for international exposure. I don't expect any "exotic" type of holdings for them.
The below link will be provided for them, to help have a better understanding for tax reduction, while still having exposure to equity investing. M* write
outlining keeping taxes to a minimum, in a taxable account; and possible choices.
Thank you for your thoughts, regarding this subject; as I've likely omitted something.