Author Topic: Vanguard Inherited IRA - guidance on investment picks, please!  (Read 1936 times)

caitlinxvx

  • 5 O'Clock Shadow
  • *
  • Posts: 1
I now have a Vanguard inherited IRA with a balance of $175,000 and roughly $40,000 of that is in AT&T stock.

I am a frugality master but haven't a clue when it comes to investing.  Here is my picture...

Spouse: 403b as a teacher, $5,000.  He has it in a low risk option that guarantees 2.5% return.
Myself:  TD Ameritrade Traditional IRA (rollover from my last job): $7,900 -- ($4,700 VDIGX/large blend, $1,000 Homestead small stock blend/HSCSX, and the rest in cds)
            TD Ameritrade Roth IRA: $11,000 -- (5k in small blend bond fund/MWTRX, $3,000 in PRWCX/large blend stock fund, the rest in cds)

I will likely roll over the TD accts in Vanguard but would really like some advice on fund picks for a balanced portfolio in the inherited IRA.  I know the boglehead basic formula out there but would like to know what you all think is the wisest.  Also, don't know what to do with those AT&T stocks, and realize I am missing any international funds.

Thank you!

MDM

  • Walrus Stache
  • *******
  • Posts: 9847
Re: Vanguard Inherited IRA - guidance on investment picks, please!
« Reply #1 on: June 24, 2014, 10:25:48 PM »
I am a frugality master but haven't a clue when it comes to investing.  ...
I know the boglehead basic formula....

caitlinxvx, welcome.  And, sympathies to you for the passing of the person from whom you have inherited.

Note that the second sentence quoted above contradicts the first.  This is a good thing.  Believe it or not, if the second sentence is true, you are well ahead of many.

Not exactly what you asked for, but here's a suggestion: use what you do know to develop a proposal, post it, and then let people critique it.  In the long run that will be better for you than letting others fill a blank page with random ticker symbols and percentages for you.

One short term item: familiarize yourself with "inherited IRA" regulations.  E.g., see http://www.irs.gov/publications/p590/ch01.html#en_US_2013_publink1000230538

matchewed

  • Magnum Stache
  • ******
  • Posts: 4345
  • Location: CT
Re: Vanguard Inherited IRA - guidance on investment picks, please!
« Reply #2 on: June 25, 2014, 05:19:34 AM »
Assuming you didn't inherit it from your spouse you won't be able to roll it over into your own IRA. But that doesn't mean you can't change the investments within it. Treat it as part of your overall portfolio and invest it based on your chosen asset allocation.