Dear Dave: What is an executor and what role does he play in someone’s will? —
Think of someone you know who is trustworthy, conscientious, and good at talking to people. This person must also be mature, able to handle life events with composure and have an honest heart. You should also think about where your potential executor lives, as they may end up spending a lot of time working with the courts in your area. If you’re already thinking of someone who meets all of the personal qualifications, but lives out of state, research your state’s requirements for locating an executor. Virtual meetings could be a possibility.
The time required for an executor to attend to your affairs while you are away can be enormous. Depending on the complexity of your estate, this could take months or even years. Once you’ve chosen someone as your executor, be honest with them about all the responsibilities that come with the job.
Dear Dave: What’s the best way to invest a one-time lump sum of $2,500? My plan is to leave the money alone and let it grow for a long time. —
When it comes to investing, I consider 10 years or more to be a long time. That being the case, I would suggest a growth stock or growth and income mutual fund with a solid 10-20 year track record.