My dad is in his mid 50s right now, and he has ~500,000 in his savings account. He has approximately 1 million in his 401k. He feels bad that he missed out on the rally of the past 9 years and wants my help to invest the 500k he currently has in cash.
I'm a bit hesitant to tell him to throw it all in equity-based index funds (mainly because he's coming very close to retirement) so I'm a bit confused as to what advice to give him.
Also, judging by the fact that he hasn't invested this money already, he's probably on the more risk-averse side of the scale.
I've been thinking about recommending that he look into real estate and maybe get a condo to rent out? I don't have too much experience with that though, so I'd appreciate any pointers on the pros/cons with that strategy. Also thinking about recommending CDs. What do you guys think about other investments? Munis? Corp Bonds?
Would appreciate any other ideas/investments that would suite his risk profile. Thanks!