Selling a home and placing the proceeds in a good Managed Fund that makes monthly distributions can be great idea for many senior retirees. n a managed fund, your money is pooled together with other investors. An investment manager then buys and sells shares or other assets on your behalf. You are usually paid income or 'distributions' periodically. The value of your investment will rise or fall with the value of the underlying assets.
I don't think I would put all my eggs in one management basket. There have been so many problems with the economy and investments going belly up, until I would really hesitate. My dad is a tax attorney who has spent his adult life in a variety of stocks and investments, and he doesn't even feel safe playing the markets any longer. The CD rates keep dropping as well. It sort of feels like a crap shoot doesn't it @Lon Tanner ? You are a financially successful man. I'm sure you've held your breath a time or two in the past couple of decades.
When one initially puts money into a QUALITY Managed Fund you are asked questions about your tolerance for risk and based on your response the suggestions would be for a certain percentage of bond & stock mix. 100 % Stock is High Risk--40% Stock/60%Bonds Moderate Risk I am a Conservative Investor and my Managed Funds have performed well over the years and I have not lost any $$$ because I have been happy with 4 to 12% returns.
Investing takes research to find what works best for the amount you have and of course risk tolerance. It helps if having 30 to 40 years to build what each considers sufficient for their needs. Of course it's even better if the investments you decided on work well enough and allows for buying wants. Starting young enough to build inside a traditional IRA & a self directed IRA can work if doing due diligence or better said taking time to understand the changes that affect any investment. Hopefully a managed fund manager does that, even that takes research. The good news about IRA's is the money residing in those accounts isn't taxable until taken out. Even the the Roth IRA's can benefit someone younger. Unlike me are past the age & ability to start an IRA. Like Lon getting percents that exceed the draw when living expenses are low almost seems like cheating. By that I mean continuing to put in more than comes out builds tax free.