Just inherited some money

MrSeanHiggs · Sep 28, 2012

Was left nearly 90k by a family member.... It is in some kind of account. I will be meeting the person who has been handling 500k of this money next Thursday.

Sort of a broad-strokes here. He had said that if I remove the money, I will be taxed 45%.

I am going to sit down with him and listen to what he has to say. He has shown money making ability during this economy.

My question or questions to the forum are these--

Should I leave it in and roll with it?
Should I take it and take the tax hit?

Should I leave the money in, but move it some other account or investment

How about taking the cash left and buying gold or silver?

Just looking for some advice..

Plus any questions that I should ask this financial advisor.

Thanks for your time

MrSeanHiggs · Sep 28, 2012

Thanks J-Dog.. Besides this 90K, I will also be getting 25K out of an IRA, and possibly another 55K with a sale of a house (not sure what we are doing with that)

besides a mortgage, currently have 6K in credit card debt. I can pay that off out of either a checking account or regular savings.. other than that, no car payments or other outstanding bills.

I was thinking of keeping the 90K in the account, taking the 25 IRA and paying CC off, and using the rest on silver. I just think gold is way to high to buy.

But then again, I am on this forum looking for some advice.

DowntownMickeyBrown · Oct 2, 2012

Silver has gone up more than gold . It would be easier to store gold than silver, you would get a lot more weight in silver. Just make sure you buy the physical, or if you financial advisor can, sell puts and take the delivery if its put to you.

HuskerFan1 · Oct 2, 2012

i dont know about the tax issues (if you rolled it over, what you would be taxed on in the future when you start pulling out money etc)

im obv a huge gold/silver bull so i wouldnt argue about buying that stuff but i really love big divy stocks...get that money working for you.

there is a new exchange traded fund thats yielding between 7-8% ticker symbol is SDIV. if you dont want to do your own research and get diversified into numerous stocks instead of living and dying with a couple this could be a good option...

The investment seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividendTM Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index. The underlying index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world, as defined by Structured Solutions AG. It generally will use a replication strategy. The fund is non-diversified

http://finance.yahoo.com/q?s=sdiv&ql=1

MrSeanHiggs · Oct 2, 2012

Thanks Husker

LineTamer+ · Oct 3, 2012

How old was the original owner of the IRA? You will be required to take distributions from the IRA based on the original owners age....ie must start taking withdrawals at age 70.5...and you will be taxed at your ordinary income tax rate.

Not sure what he is referring to with the 45% tax hit...that may not be on you but rather the estate...I wouldnt touch any of the IRA money unless you need...can roll it over tax free, but withdrawing it will cost you.

MrSeanHiggs · Oct 4, 2012

the original owner was 83..

I was going to leave the 93K in whatever it is now

but i was going to cash out the 25K IRA and pay my CC off (6K) and use the rest on some gold/silver coins