Note: I have read the prime directive and windfall wikis.
My mother-in-law recently passed away (age 56) and left approximately $630k in 2 IRAs and a Roth IRA to my husband and his brother. They will get an even split.
My husband and I want to be smart about what is done with this sudden and large amount of money. He’s going to take a one-time lump sum from one of the IRAs of $20,000 plus $4,000 in taxes automatically paid to the IRS. This is for him to buy a car (we’ve been sharing one vehicle since I’ve been tele-working), upgrade his computer, and take a vacation (when it’s safe to do so).
That leaves us approximately $291k the majority in 2 IRAs (pre-tax). We are wanting to invest it/put it into retirement accounts. We have no idea where to start or what would be the optimal plan. In the next 2-4 years we’d like to use some as a down payment on a house.
We have met with his mother’s “financial advisor” who has vaguely explained the portfolio, given us a lecture on pre-tax versus post-tax investments, and then shoved a cash value life insurance in our faces. A million red flags on the last part. But she currently is the person controlling the money. I would like to get away from her influence and pushy life insurances sales tactics. Don’t know how to do that simply and efficiently.
About me (28) and my husband (32):
My salary: $67k a year government worker
Husband: Lost job due to covid, going to school for IT networking & security, on unemployment
Monthly bills: $3,330 (rent, utilities, phones, car loan, insurance, gas, groceries, pet food & vet sinking fund)
Debt:
$19k car loan (0% interest, 52 months left)
$71k my student loan (5.25% interest normally, IBR, working towards PLF) (I have a PhD as a note don’t come for me) (I don’t want to use his inheritance to pay anything towards this)
Assets:
$6,500 in Emergency Fund Savings (putting in $1,000 a month currently)
My 401(a): $4,200 (government plan, no matching, contribute 6% currently increases with age)
A pension that my employer pays into, essentially if vested 10 years it calculates time worked by average yearly wage times a percentage to get a monthly benefit.
My husband has zero retirement.
- How should we invest the $291k? Considering the plan to use some towards a down payment in 2-4 years.
- How do we get away from his mom’s bad “advisor” without severe penalty or issue?
Edit: formating
Submitted February 12, 2021 at 11:56PM by tabby_kat https://ift.tt/2OApEhV
