Inheritance
My sister used to listen you on the radio and suggested your website to me. She passed away at 71 in 2020 leaving me $1.5 million (1/3 Trad IRA, 1/3 investments – both with Vanguard, 1/3 savings bonds). I am 58, my husband is 69, debt free, no kids, live in TN and live on his pension and social security just fine. Have left the investments as is. Her IRA is in the Star Fund and I have only taken out $75,000 so far and am reinvesting it back into a new Star Fund at $500 a week. Have been cashing in her bonds as they are more than 30 years old but will be caught up at the end of this year. Started to put that money in a Vanguard municipal bond fund (VWIUX) to keep safe but all it has done is lose money. Also have $300,000 sitting in a MM waiting for CD rates to rise. Have been reading your columns and you’ve suggested an income/equity fund (such as VEIRX) and/or Treasury bills. Do you think either is a good place to put this money in for the future? (This money was intended for my “golden years” – a nice nursing home.) Thank you for any advice you can give me.
Terry Says
OK, this is too complex for me to answer in a blog post. BUT, I do think you could use some personalized financial planning from an advisor you can trust — a FIDUCIARY, FEE-ONLY advisor. Find one at www.Wealthramp.com –or read this from my website to see how it works.
You need to understand rules around RMDs from her IRA- and have some time left for that since she died in 2020 before new rules came into effect, and likely had not started taking her own RMDs.
Don’t be in a big hurry to put that cash to work in the stock market. Leave it in a MM fund.
And ALL bonds are losing value– prices dropping — because when interest rates rise, bond prices fall. Search my columns for “beware of bonds” –I’ve written that explanation several times.
In fact, bonds have been worse performers than stocks so far this year!!
