Quote:
Originally Posted by iX nOOky
I know we have a bunch of financial savvy folks here. I have an inherited IRA currently sitting in a Vanguard account. It is over and above what I have already been saving for retirement, so more of a gift to me than an actual need, although it is nice.
If I take it all it puts us into an 8% higher tax bracket, so taking it all at once is out. I don't have to take any until the end of this year, so I can leave it in there and make some adjustments to how it is invested and let it ride. I don't have to take it all out at once as I have 10 years, but from what I have found I cannot convert it into anything else without paying the tax on it. If you're wondering how much I won't say, but it is not that much, about the cost of a new X5M.
I could also use it as an emergency fund. Ideally I'd just like to leave it alone and let it grow, Thoughts?
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****Depending upon which Vanguard account it should do well. Since it is inherited I assume there is a step up basis involved so that is very beneficial. If you have your own investment accounts with another broker, one can sometimes transfer it over broker to broker into either a new separate account and let it grow, and not take the tax hit from withdrawal into your account and then to the broker... It may bypass some of the tax liability but it depends upon what kind of IRA, etc..
Best to speak with an advisor for your particular situation. In terms of what to invest it in - if you do not need the money in the near future - there are *plenty* of great funds that have the potential to do quite well over time.
My favorites that have done me well are below. In addition consider VGT, BRK-B, and FXAIX which I have a significant amount of in another account and have made me real (not gas station) sushi money and then some these past 5 years or so.
Cheers and congrats.