I apologize if this is the wrong group for this type of post in advance - if so please redirect me. My mother has ~300k in a traditional IRA, 90k in an annuity and 60k in a low interest bearing bank account. She is still working and earns ~10k a year. No debts, owns her own home. She was complaining to me that the only reason she has so much in her low earning bank account is because she had to take the RMD from her traditional IRA and didn't really have the need for the money so just put it in her bank account. She is worried about liquidity and high risk so has not sought out any other investments. I tried telling her to use a Vanguard account to at least find something that earns more but claims she has been told by her financial planner that those are "high risk" so she shouldn't use them. It seems to me this financial planner is only out for his commission on her accounts so is steering her away from anything that might cut into that. I had suggested - since she is still earning - that she can even actually open up a Roth IRA to start moving her money out of the bank account into the Roth. I know there is a 5 year rule but in her case it would only affect the earnings - no penalties involved since she is over 59 1/2. And if she isn't using the money now for anything and is generally healthy I expect she can leave it untouched for the 5 years. Am I off base here? Am I not understanding something and if I am not off base - how do i convince her?
Submitted December 01, 2019 at 08:13PM by P4c3r https://ift.tt/2YaDGHB
