Surprise Additional Funds

[KBCB]

I am about 40 with a hubby and small kids.
I am clueless when it comes to money and although i am reading the simple path to wealth i am still stuck on what to actually do with this amount of money. (Even though reading the book it seems straightforward). My gut says just put it into the managed IRA because I really don't know how to even pick the right investments. All the banks seem to have similar fees. What bank is best and how do i get the most from this money...
Would other info be helpful? Let me know!

[Raenia]

Vanguard used to be the go-to recommendation for where to invest, but these days I think Fidelity has just as low fees and better customer service. As far as what investments to pick, until you feel more comfortable with your choices, a total market index fund and a bond index fund are the go to choices. What ratio to choose depends on your risk tolerance - Simple Path to Wealth should help you decide.

Take the research as slowly as you need to, and gradually you'll feel more comfortable taking charge of your wealth. Enjoy the journey!

[Sibley]

Go to Fidelity or Vanguard, open an IRA, setup a portfolio of low cost index funds (stock market, bond market, etc whatever your comfort level is). And keep learning. You can reallocate as you learn and figure out what you actually want to do.

J Collins Stock Series is a good beginner's guide to investing, just google it.

[RWD]

[...] because I really don't know how to even pick the right investments.

It's surprisingly simple. Start here:
https://jlcollinsnh.com/stock-series/
...and here:
https://www.bogleheads.org/wiki/Getting_started

[Sandi_k]

As I understand it, an inherited IRA/401(k) cannot be rolled into your existing 401(k), unless you are the surviving spouse.

So that leaves a managed or unmanaged IRA, titled as Inherited IRA FBO YourName. There is NO WAY I would liquidate it and pay 40% plus in taxes.

- If I were in your shoes, I'd move it to Fidelity, as they have physical branches you can go to if you want a face-to-face appointment.

- If you're confused as to what to invest it in, I would say you must first decide your asset allocation. At age 40, 80% stocks and 20% bonds/cash is about right, IMO.

- I would choose low cost/no cost ETFs or mutual funds.

At Fidelity, the portfolio I would create would be:

* 70% SPY (S&P 500 Indexed ETF)
* 20% ACWX (iShares MSCI ACWI ex-U.S. ETF)
* 10% cash or Treasury bonds (USFR)

[zolotiyeruki]

I'm pretty simple when it comes to my investing.  I'd roll it into my IRA, invest it in VTI, and forget about it.

If you're looking at retiring soon-ish, you may want to allocate 20% into a low-cost bond fund, as others have suggested.

Go to Fidelity or Vanguard, open an IRA, setup a portfolio of low cost index funds (stock market, bond market, etc whatever your comfort level is). And keep learning. You can reallocate as you learn and figure out what you actually want to do.

J Collins Stock Series is a good beginner's guide to investing, just google it.

[Nutty]

Inherited IRAs have special rules.  Make sure you do your research.

I put mine in an inherited IRA and in S&P 500 Index fund.  No worries.