Author Topic: Annuity Inheritance  (Read 2169 times)

Roamer

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Annuity Inheritance
« on: December 16, 2015, 12:51:54 PM »
My mom passed away and there are several kids that will be getting her an annuity for about 9 years. The split is about $600/month for each of us. What is the best way for me to invest/save this? I was thinking of just having it go straight to Vanguard, but I am not sure what fund I would choose. Any ideas?

Mighty-Dollar

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Re: Annuity Inheritance
« Reply #1 on: December 18, 2015, 02:44:42 AM »
Invest in a stock index fund and a bond index fund. How much you put in one versus the other depends on such things as your age and appetite for risk.

VOO and AGG come to mind.

TomTX

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Re: Annuity Inheritance
« Reply #2 on: December 18, 2015, 11:02:51 AM »
Invest in a stock index fund and a bond index fund. How much you put in one versus the other depends on such things as your age and appetite for risk.

VOO and AGG come to mind.

I wouldn't bother with a second fund until total invested is in the $50k-$250k range. I like VTSAX.

Roamer

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Re: Annuity Inheritance
« Reply #3 on: December 22, 2015, 04:02:03 AM »
Still waiting on my packet of info from Alianz (boy are they slow!) but they did say I would have 4 options to choose from. So I'm guessing there will be a lump sum option as one. I was under the assumption that the annuity would have to stay with monthly payments so we'll see what the other options are.
Anyway, I will post the options when I get them.

arebelspy

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Re: Annuity Inheritance
« Reply #4 on: December 22, 2015, 04:58:01 AM »
Sorry to hear about your mom.  :(

My mom passed away and there are several kids that will be getting her an annuity for about 9 years. The split is about $600/month for each of us. What is the best way for me to invest/save this? I was thinking of just having it go straight to Vanguard, but I am not sure what fund I would choose. Any ideas?

So you're getting an extra $600/mo.

That's no different than the money you're getting from your job.  What if you got a $600/mo raise (and yes, this is going away in 9 years)?  Allocate this the same way as savings from your job is currently being allocated. Whether that's paying off debts, increasing a 401k contribution to max it out, sending to taxable cause you've maxed tax advantaged accounts, whatever.  There should be no difference with this, as the source of it is irrelevant for your purposes.
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