Hello!
Unfortunately I need help with an issue I never thought I’d have to deal with this early in my life (38). I’m not sure how much information to share initially so I am sharing it all ☺ I figure if anyone sees something in the info they want to comment on, please do! Thanks to anyone who reads and provides a response!
My husband and I started following MMM and the forum a handful of years ago. We pretty much fell in love with the whole idea, read the posts and forum religiously, and talked and planned obsessively. It was fun and exciting! We even got a little smug about retiring early. ☺ Anyway, a good distractor from work some days, that’s for sure.
We had our son a little over a year ago and were planning on retiring in a few years (around 40/45). Unfortunately tragedy struck earlier this year. All three of us were in a terrible accident, which took my husband. I am now not only heart-broken but a single, disabled parent. Thankfully our son had minor injuries and is perfectly fine. I’m also hopeful my disability will not be a forever thing. It will for sure be a long-term recovery.
I am extremely grateful for had knowing my brilliant husband, having a cool little 1-year-old, and being surrounded by a network of amazing people. I’m also grateful we took saving seriously and have money in investments.
I’d really appreciate help navigating my options regarding the estate – in particular how to transfer accounts solely in his name to my accounts.
I will list an overview of my information first, followed by a list of the accounts requiring a decision. Let me know if you need anything else.
- I am the sole executor of the estate. The only marriage he had was ours, his only child our son.
- Our combined investments run roughly a million.
- ~$315,000 in my bank account.
- I expect to receive $100,000 for me, and $100,000 for my son from insurance. The latter will be placed in an account to pay for his college. (Any advice on what kind of account? 529?)
- I’ve already collected life insurance, which is included in the bank account total above.
- I receive monthly Social Security checks ($1,300) from my husband’s SS account since I’m our son’s caregiver (until he's 18).
- My salary is $77k. I currently max out retirement accounts. My monthly net paycheck is $2,500.
- I just bought a house in town for $275k, changing my commute time from 25 min to 5-10 min (yay!). I will be placing my current home, which should have roughly $122k in equity, on the market soon. I am putting $125k down on the new house and taking out a conventional 15-yr loan (at 3.25%) for the remaining $150k. I will “pay myself back” once I sell the old home. Monthly mortgage at the new home is $1,300.
- I’m interested in the Roth conversion ladder but have to wait to start that until I quit my current job (to roll my 403b into a Traditional IRA).
- I enjoy working at the moment and don’t want to quit. Perhaps in another 5 years. Because of my injuries, I’m only working on average 15 hours per week for now. I'll be running out of leave soon so will have to take a cut in pay based on the number of hours worked.
-Daycare is $800/mo.
- I am strongly considering hiring an accountant to make sure my final decisions are sound. (Advice?)
I’d really like general advice on how to move the money and what to do with it. One question is whether to ASSUME or INHERIT. And, of course, I want to minimize tax implications.
Here’s info regarding my husband’s accounts requiring a decision:
-$125k in a 401/403b
-$5k in a taxable account
-$137k in a Roth account
-$63k in a 457b
-$19k in a 403b (I’m listed as the beneficiary)
Note: It’s possible I’m listed as beneficiary on more than the one noted below but I don’t know yet.
There’s also ~30k in Lending Club. $10k taxable / $10k Roth / $10k Traditional. So far, I’ve established my own accounts at Lending Club (taxable, Roth and traditional) to transfer the money to but can only collect the money as the notes are satisfied. I’m not interested in continuing with Lending Club simply because I don’t have the time right now (I'm not sure how to get out, actually).
Any input is appreciated! Even regarding disability and single-parent options or advice.
Thank you so much!