The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: CrewDallahan on March 29, 2015, 06:37:56 PM
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I’m 26, married, about to become a dad, buying a yurt and embarking on a 10 year experiment that I’m going to call “My Entire Financial Future.” I received an inheritance of $52K from my uncle (GOD BLESS HIM!) which I was encouraged to place in an American Funds Beneficiary IRA. I’m convinced that Vanguard would have been a better option, but I knew nothing at the time and decided to trust the Dave Ramsey crew on this one. We’re going to keep it, BUT now that I’m a slightly more learned, albeit wet-behind-the-ears, Mustachian… I want to set up a second investment account based on MMM’s advice: either a “two lump-sum purchase of Vanguard’s Total Stock Index and Total International Funds” or a Betterment account (http://www.mrmoneymustache.com/2014/11/04/why-i-put-my-last-100000-into-betterment/)
This second account is the one I will invest my monthly savings into as well as a $4K jump-start. I’m content to let American Funds manage my inheritance but I want to take a more mature and calculated approach to this second account which will consist of my hard earned savings. I hope to contribute $1000/mth
Q: Do I…
1. Start a Vanguard account and try to mimic my American Funds portfolio, thereby guaranteeing a higher yield (same or similar investments, less fees)
2. Start a Vanguard account and make a “two lump-sum purchase of Vanguard’s Total Stock Index and Total International Funds”
3. Start a Betterment account
4. Something else
THANKS!
-Drew
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Why are you keeping the American Funds account? If roll that over to vanguard immediately to stop the crazy fees you are probably paying.
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I am sorry to hear about your loss. Also, congratulations on the impending parenthood.
Putting it in the beneficiary IRA was the correct decision. I hope that you chose the stretch option. You will be able able to stretch out this IRA over your lifetime. I assume that you are aware that you are receiving distributions from the beneficiary IRA since you are a non-spousal beneficiary.
Are you contributing to and/or maxing out your retirement accounts such as 401ks and IRAs? That should be the first priority.
If you are already doing the above, then I would do Option 2 listed by you.
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