Schwab asset allocation in inherited IRA

[olliebass]

I recently inherited an IRA with 70k in it. I had it transferred to Schwab. That is where i have a Roth IRA.  I am 42 years old.
I was planning on structuring the inherited IRA like this:

Schwab Total Stock Market Index Fund 50%
Schwab Small-Cap Index Fund 20%
Schwab International Index Fund 30%

I appreciate any suggestions or insights on if this sounds like a good plan?
Thanks

[MrUpwardlyMobile]

I recently inherited an IRA with 70k in it. I had it transferred to Schwab. That is where i have a Roth IRA.  I am 42 years old.
I was planning on structuring the inherited IRA like this:

Schwab Total Stock Market Index Fund 50%
Schwab Small-Cap Index Fund 20%
Schwab International Index Fund 30%

I appreciate any suggestions or insights on if this sounds like a good plan?
Thanks

What does your investment policy plan call for?

[MustacheAndaHalf]

You are probably required to take distributions from an inherited IRA - you should do some research online - schwab's website and irs.gov both have information about it.  There may also be books at the library if you prefer that method.

If you must take distributions, you might want a bond allocation to better handle market drops.  When stocks drop, and you're forced to withdraw money, the impact is greater than if you had a portion allocated to bonds (which tend to drop less during stock corrections).

You can take a look at Schwab target date funds for sample allocations.

[Interest Compound]

I recently inherited an IRA with 70k in it. I had it transferred to Schwab. That is where i have a Roth IRA.  I am 42 years old.
I was planning on structuring the inherited IRA like this:

Schwab Total Stock Market Index Fund 50%
Schwab Small-Cap Index Fund 20%
Schwab International Index Fund 30%

I appreciate any suggestions or insights on if this sounds like a good plan?
Thanks

I can confirm it's not a BAD plan. But without knowing more about you and your goals (specifically your Willingness, Desire, and Need to take financial risk), none of us can say if it's a GOOD plan for you.

Personally, I'd skip the small cap and go 50/50 US/International.

[olliebass]

Thank you for all your suggestions!