Reply To: Best use 250,000
Check out the target date retirement funds from Vanguard or Fidelity. They’re very low fee and widely diversified. Each is based on the approximate year of your expected retirement, so with an average risk tolerance, you’d probably want one of the 2015 funds like this: https://personal.vanguard.com/us/funds/snapshot?FundId=0303&FundIntExt=INT.
The funds start off aggressively, with a 90/10 split between stocks and bonds, and grow more conservative as you approach and pass retirement age. The 2015 funds are currently about 50/50 between stocks and bonds.
You can easily increase or decrease your risk by picking one of other other target dates. For example, there’s nothing stopping you from getting a 2060 target retirement fund instead, which would currently have the 90/10 stocks to bonds split, if you were ok with a lot of risk and looking for gains.
Or you can get one that no longer has a date and is labeled something like “income”, for investors already in retirement and looking for less risk, like this one: https://personal.vanguard.com/us/funds/snapshot?FundId=0308&FundIntExt=INT#tab=2 It’s currently 30/70 stocks to bonds.
If you want absolutely no risk at all with the freedom to withdraw at any time, then you’d want an FDIC insured savings account. Ally.com offers almost 1% interest on theirs. But the limit on FDIC insurance is $250,000, so you may have to put some of your money in a different account at a different institution to keep it all insured.