Help with investing
Today I heard you on WGN saying we should not pay financial advisors, go fee based if we have to. Sadly many of us don't even know where to begin like myself. I found a fee based one from your recommended site but other than that how does the average person go about moving money from an inherited account into an inherited IRA without any knowledge of what they are doing? thank you!
Terry Says
OK, let's sort a few things out. First of all, you need advice on how to handle an inherited account -- whether inside an IRA or not. If the account is stocks or mutual funds held OUTSIDE an IRA, then you have a very valuable benefit. The "value" of the account is the price on the date of death -- either the individual stocks or the mutual fund. So be sure to ask the broker to give you -- in writing -- the value as of the date of death. If the account of the4 deceased is INSIDE an IRA, then you have some important choices to make. Definitely do not take the cash! Depending on your relationship to the deceased, you may have the option of rolling this account into your own IRA (if a spouse, depending on age and whether the deceased had started taking distributions) or leaving it in an inherited IRA, subject to some distribution requirements -- but "stretching" out the tax-deferred growth of the account over a good portion of your lifetime. That's a real benefit to you. If this account is an IRA, the custodian should be able to advice on your choices -- before you do anything with the account. If this is a non-IRA account, you will need to provide the death certificate and the account will be transferred into your name. Remember to get the values as of the date of death. Only then should you start worrying about what to do with the investments -- whether to keep them, sell them, or otherwise use the money. That's when a financial advisor comes into the picture.. There are two types. A financial planner will advise you on your entire financial situation -- including estate planning, insurance, and investments.An investment advisor -- or broker -- will deal specifically with investments. Not all have your best interests at heart. Learn more at http://www.campaignforinvestors.org/do-i-need-a-financial-advisor/.
