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Started By
Message
Inheritance what to do
Posted on 2/17/15 at 8:31 am
Posted on 2/17/15 at 8:31 am
Before I start, I am OT poor.
Now back in 08 my mom passed away and left my brother and I $250k in a beneficiary Ira. I have been taking minimum distributions since then each year since she was 60 years old when she passed.
Question is if I want to take all the money out, other than ordinary income tax would I have to pay a penalty as well?
I know smart thing to do is invest it and continue to take the minimum distribution each year. This is a hypothetical question.
Also, my maw maw just passed and will have another $300k in assets. Stock we will sell as well as the house. Thinking of parking this in a vanguard mutual fund just to get something more then savings account interest.
Any money I would take out of the mutual fund I would pay short term capital gains?
also, would it make sense to pay my house off or just continue to pay the note? Seems to me no brainer to pay it off. Owe about $150k at 4.75% interest. Have about 20 years left on 30 year note.
Now back in 08 my mom passed away and left my brother and I $250k in a beneficiary Ira. I have been taking minimum distributions since then each year since she was 60 years old when she passed.
Question is if I want to take all the money out, other than ordinary income tax would I have to pay a penalty as well?
I know smart thing to do is invest it and continue to take the minimum distribution each year. This is a hypothetical question.
Also, my maw maw just passed and will have another $300k in assets. Stock we will sell as well as the house. Thinking of parking this in a vanguard mutual fund just to get something more then savings account interest.
Any money I would take out of the mutual fund I would pay short term capital gains?
also, would it make sense to pay my house off or just continue to pay the note? Seems to me no brainer to pay it off. Owe about $150k at 4.75% interest. Have about 20 years left on 30 year note.
8
Posted on 2/17/15 at 8:40 am to Weaver
Withdrawing that money is about as bad a fiscal decision as you can make.
Why would you sell the stocks? What are they? Do they pay dividends? Could be another terrible decision.
It sounds like someone (not saying it's you) is dying to get their hands on that pile of cash. I don't want to be overly critical but...
Why would you sell the stocks? What are they? Do they pay dividends? Could be another terrible decision.
It sounds like someone (not saying it's you) is dying to get their hands on that pile of cash. I don't want to be overly critical but...
Posted on 2/17/15 at 10:38 am to VABuckeye
quote:
Withdrawing that money is about as bad a fiscal decision as you can make. Agreed just asking.
Why would you sell the stocks? What are they? Do they pay dividends? Could be another terrible decision. Phone company stock. My grandmaw had these when she worked for south central bell. We do get dividends. Just thought mutual fund would be better. This is for my retirement. I know mutual funds are risky as well.
It sounds like someone (not saying it's you) is dying to get their hands on that pile of cash. I don't want to be overly critical but... Just wanted to see opinions on things
This post was edited on 2/17/15 at 10:43 am
Posted on 2/17/15 at 10:38 am to VABuckeye
what kind of return is it giving you right now?
Posted on 2/17/15 at 10:45 am to Lsujacket66
The stock? Not sure. My grandmaw wanted to keep them. She donate some to my brother and I years ago that I sold after hurricane Katrina to pay off a loan.
Posted on 2/17/15 at 10:48 am to Weaver
Ok.
My take is that you have a pile of assets that can help to give you financial freedom in the future and go a long way to ensure that you have stability when you get older.
Or you have a pile of money that is not working for you and is a depreciating asset because you're spending the money.
If you take any money use it to better yourself and your potential to earn. Learn to live off of what you earn and stop taking withdrawals off of the money.
Let your money work for you. Don't work for your money.
My take is that you have a pile of assets that can help to give you financial freedom in the future and go a long way to ensure that you have stability when you get older.
Or you have a pile of money that is not working for you and is a depreciating asset because you're spending the money.
If you take any money use it to better yourself and your potential to earn. Learn to live off of what you earn and stop taking withdrawals off of the money.
Let your money work for you. Don't work for your money.
Posted on 2/17/15 at 10:50 am to VABuckeye
While I agree, can you answer my questions? That would help me out.
Posted on 2/17/15 at 12:56 pm to Weaver
He's trying to help you out . . .
quote:
If you take any money use it to better yourself and your potential to earn. Learn to live off of what you earn and stop taking withdrawals off of the money.
Let your money work for you. Don't work for your money.
Posted on 2/17/15 at 1:03 pm to Weaver
quote:
Stock we will sell as well as the house. Thinking of parking this in a vanguard mutual fund
Why are you selling the stock? How do you know a vanguard mutual will make more money than the stocks you inherited?
Posted on 2/17/15 at 1:04 pm to Weaver
quote:
I know smart thing to do is invest it and continue to take the minimum distribution each year.
For the love of God, you have been given a precious gift that most of us will never have. Reinvest all of that money and you will be SET for retirement.
Posted on 2/17/15 at 1:37 pm to I Love Bama
Sell the house since it can't be split. Split the stock evenly or however is stated in the will. Put that money away (after doing something that your ancestor would appreciate with part of it) and pretend it doesn't exist and let it grow.
Posted on 2/17/15 at 1:50 pm to ynlvr
I agree but this is vague.
Posted on 2/17/15 at 1:51 pm to Zach
I think I can do better. That is all. Plus we could just about break even with a stepped up basis.
Posted on 2/17/15 at 1:52 pm to Weaver
Is there a serious need to use some of the money now? If not, leave it be as others have said.
Posted on 2/17/15 at 1:54 pm to yellowhammer2098
So I should not pay my mortgage off? I plan on investing it the rest if not all if I don't pay it off.
Posted on 2/17/15 at 2:00 pm to hbuc88
Just thought that paying off my mortgage was a no brainer. According to you all it appears not. Thanks for the advice.
Posted on 2/17/15 at 2:01 pm to Weaver
I would pay it off. 4.75% guaranteed isn't bad.
Posted on 2/17/15 at 2:06 pm to I Love Bama
I am not one to go blow money on hookers and blow. Also I will be working till I die for no other reason then not working is boring. I am not married nor have any kids. My only weakness is I love cars. Yes I realize it is a depreciable asset. I have some people I can contact thru work about investing.
Posted on 2/17/15 at 2:07 pm to Weaver
You think you can do better? Seriously? Do you have any experience at all investing that isn't spending other people's investments that you inherited?
Honest questions.
Honest questions.
Posted on 2/17/15 at 2:11 pm to Weaver
quote:
My only weakness is I love cars.
Which is all the more reason to do the exact opposite of what you've talked about doing.
Mortgage. If what you are inheriting is earning more than 4.75% then I would personally hold on to it. If it pays dividends then reinvest them (DRIP) and let them grow.
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