Where to store an inheritance.
September 29, 2012 6:53 PM Subscribe
How in invest inherited money?
posted by anonymous to work & money (7 answers total) 4 users marked this as a favorite
I inherited about $75k from my grandparents, which was recently transferred to me (I'm 25). I have a Roth IRA which I just opened and has been maxed out for this year ($5000). I have an emergency savings account of $10k, and I'm currently temping so I have somewhat unstable employment and generally expect to make about 28-35k a year (hopefully not forever, but realistically probably for the next couple of years).
I'm wondering how I should handle this money. I would like to max out my IRA for the next couple of years, and I can't do that on my current income. Does it make sense to set aside some of this recently acquired money as liquid assets to feed the IRA for the next few years? Or will it waste potential if it sits as cash instead of being invested?
I probably won't look into buying a home for ~10 years, but I may want to get a graduate education within the next five years or so. I don't know anything really about the tax penalties for liquidating invested money, so I'm not sure how much of this to invest, in what kinds of stocks/bonds/whatever, and at what risk profile.
If you were me, what would you do with this money?