Author Topic: Schwab asset allocation in inherited IRA  (Read 967 times)

olliebass

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Schwab asset allocation in inherited IRA
« on: April 25, 2018, 04:17:40 AM »
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

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Re: Schwab asset allocation in inherited IRA
« Reply #1 on: April 25, 2018, 04:20:14 AM »
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

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Re: Schwab asset allocation in inherited IRA
« Reply #2 on: April 25, 2018, 08:43:14 AM »
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

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Re: Schwab asset allocation in inherited IRA
« Reply #3 on: April 25, 2018, 08:48:49 AM »
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

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Re: Schwab asset allocation in inherited IRA
« Reply #4 on: April 25, 2018, 11:49:44 AM »
Thank you for all your suggestions!