Also, don't expect 'a nice income' from a six-figure investment. If you're determined not to go into the stock market (an uninformed and unwise decision), you might get a 1% interest rate in a CD. 1% of $500,000 is $5,000 a year. You will be much better of to reinvest the earnings to compound those earnings. Again, an independent financiall advisor can explain that to you and show how the patience of compounded re-investment pays off.
uninformed 22 years old + six figure $ = T R O U B L E
Since it appears that you have not been educated about finance, I STRONGLY suggest you get a financial advisor (flat fee based!).
By eliminating stocks & real estate you have severely restricted your options and you'd be leaving yourself open to significant losses if you invested only in bonds or annuities. Keep in mind that the price of bonds moves inversely (opposite) to interest rates. As interest rates rise (and they WILL) the value of those investments DECREASES! The average return on the stock market is approximately 7.5% since 1950. Even though you are clearly risk-averse, you could still get into a few relatively low risk mutual funds. By diversifying your investments you reduce your risk, although you can't reduce the risk equated with being in the stock market in the first place. If you're looking for income and (relative) safety, consider dividend paying blue chip stocks and utilities.
Like I said, get a financial advisor, but one who charges a flat fee and doesn't scalp a percentage off the top or sell only proprietary funds. Look for Vanguard funds, which have low expenses and good track records.
At 22 years old, consider this: If you were to invest $100k for 30 years and reinvest any dividends, at an average annual return of 7.5% in 30 years you'd have: 100,000(1.075^30) = $875,495 !! Put that together with your retirement savings and you could retire early! I seriously suggest you reconsider your position on investing in stocks.
Good luck! (Sorry if I came off as being harsh, I didn't intend to be. I find it very frustrating that our current educational system totally fails to educate young people about personal finances!!)
Put something away into 401k plan so you can take advantage of company matches. Get yourself a Roth IRA as well
7 things besides stocks to invest into are lending club, real estate, side business, angel investing, bonds or bond funds, commodities
I didnt list CDs because I dont invest into CDs due to these accounts do not keep up with inflation. I obtain inflation protected I-savings from treasurydirect.gov
Best of luck
Despite what you say, you should consider putting the money into some funds - look at the Hargreaves Lansdown site and choose several of the safer dividend funds to get a regular monthly income. It is wise to spread your money across several funds and geographies to give you the best overall protection, with some chance of growth.
do you have a job? if so, does the job have a 401k plan? if so, contribute the maximum to it.
that being said, with your inheritance (to avoid real estate and stock), you can invest in longer term bonds or longer term c d's to get higher rates than just 1%. ally.com is a good site for the c d's. fidelity or schwab has good portfolio of bonds to select.
you need to establish a portion of your inheritance in something that will have growth, not just income. over time, the s&P index funds will do that. re consider that.
I love these questions where people want a "nice income" or return on their investment but refuse to invest in anything like stocks that are the best and least risky way to earn income and return. Good luck to you.
I will be receiving a large sum of money (six figures) very soon. I am 22 years old and I want something that will give me a nice monthly income, but also be able to have access to it if need be. I want to avoid the stock market and real estate altogether; and the banks have horrible cd rates right now. What would you suggest I invest in?