For a conservative investor with a $6,000,000 inheritance, which investment strategy would be best?

For a conservative investor with a significant amount of capital such as a $6,000,000 inheritance, the focus is on preserving capital while generating some level of income. The selected strategy, which allocates 50% in equities, 25% in state municipal bonds, 15% in Treasury bonds, and 10% in a money-market fund, is well-balanced and aligns closely with a conservative investment approach.

Investing half in equities provides not only potential for growth but also introduces some level of risk that can be acceptable for a conservative investor looking for appreciation over the long term. The inclusion of state municipal bonds contributes to income generation while offering tax advantages, particularly since the interest earned on municipal bonds is often exempt from federal taxes, making it a suitable option for someone in a higher tax bracket.

Treasury bonds add an extra layer of safety, given they are backed by the government and typically viewed as very low-risk investments. By allocating 15% to these bonds, the investment mix benefits from stability and lower volatility, which is crucial for preserving capital.

Lastly, the allocation to a money-market fund ensures liquidity and provides a cash reserve that can be accessed when needed, enhancing financial flexibility and security.

Overall, this strategy provides a diversified approach