InheritedIRA's recent activity
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentI am not retired unfortunately, just haven't been able/needed to work in about a decade.I am not retired unfortunately, just haven't been able/needed to work in about a decade.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentFae, we've interacted elsewhere here on my main account. I take you and your statements to heart. If you have anything you wish to say, please feel free to do so. Was out running errands, so...Fae, we've interacted elsewhere here on my main account. I take you and your statements to heart. If you have anything you wish to say, please feel free to do so. Was out running errands, so didn't get to see what was said.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentLargely metaphorical. I get out, moving to a place I could do so was one of the reasons for moving, but as far as actual "entertainment" in going out to dinner, buying myself a piece of clothing,...Largely metaphorical. I get out, moving to a place I could do so was one of the reasons for moving, but as far as actual "entertainment" in going out to dinner, buying myself a piece of clothing, looking for treasures that make me happy at thrift stores, etc. I've had a budget of $50/month max for a very long time. Anything over that means something like the electricity doesn't get paid or I don't eat for a week or I have to skip getting a prescription refilled.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentI am not a qualified individual and he had already started taking RMDs, but hadn't taken all of it this year so I have to take out the minimum that he was required to do so already per my case...I am not a qualified individual and he had already started taking RMDs, but hadn't taken all of it this year so I have to take out the minimum that he was required to do so already per my case worker at the investment firm.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentI fully intend to discuss with a financial advisor, my father had one he trusted his entire life and has offered his services to me as well. This post is partially to gather info that I do not...I fully intend to discuss with a financial advisor, my father had one he trusted his entire life and has offered his services to me as well. This post is partially to gather info that I do not know/have not googled so far so I know what I am talking about when I talk to a financial advisor soon. For example the VITA mentioned elsewhere and your specification of "fee-only fiduciary financial planner" are things I wasn't aware of to look for, so thank you.
What I do know so far:
I have to extract it all within 10 years.
Since it is a Traditional IRA, I will have to pay normal income tax on it, but not the early withdrawal penalty.
I do have to take an RMD since he had already been required to do so at his death.
I have zero intention of taking it out in any lump sum, am not a tax professional, but the back of the napkin math difference between taking it out all at once and taking it out in $50k increments is $100k in taxes. -
Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
InheritedIRA Link ParentWill look into those, thank you. Unfortunately, not touching it isn't an option as I have no other income and it has to all be removed within 10 years per US law. There is a Required Minimum...Will look into those, thank you. Unfortunately, not touching it isn't an option as I have no other income and it has to all be removed within 10 years per US law. There is a Required Minimum Distribution that also must be met, but that will not be an issue as my overall expenses exceed the RMD.
Living how I currently do is mostly the plan, but also be nice if taking myself out to dinner once isn't the only "luxury" I get to experience each month. Is a strain on mental health to leave the house one time and not be able to afford to do so at all for the next 30 days.
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Single, solo, poor, woman gets $500k pre-tax, how to make the most of it?
Hello all, long time listener, first time poster. First time poster because this is a throwaway account as it will have more personal info included than I'd like linked to my main account. The...
Hello all, long time listener, first time poster. First time poster because this is a throwaway account as it will have more personal info included than I'd like linked to my main account. The point of this post is to request guidance/advice/ideas from the always incredible, intelligent, and helpful people of Tildes.
The high level points:
- I am a female 40 year old, for lack of a better phrase, starving artist living in the US. I am single, live alone with my cat in an apartment, and have no debt.
- I have not held a steady/normal job in over a decade (mental health being a primary reason), my personal income has come from a couple of very small business ventures where I make things by hand, some freelance graphic design, the generosity of friends, and pet sitting. The latter is dead in the water as all my pets were in another state and I just moved in the last 30 days to a place that is much smaller and simply will not have the customer base to do the same, nor am I all that interested in pursuing it here.
- My primary method of financial support over the last decade was being the homemaker to my now-ex husband up until about two years ago when he informed me he no longer wished to be my husband. Since then my primary financial support was from my now-deceased father, who generously provided me with $2,500 per month to subsist on, with my previously mentioned ventures closing the finances gap as much as possible.
- Over the decade of being in a single income household and for the last two years subsisting off a "guaranteed" income of $30,000 per year I managed to learn to be extremely frugal wherever possible so as to not spend above my means and keep a roof over my head. I eat once per day, my overall health isn't great but I am attempting to address that, and thus far my "retail therapy" budget to give me a little boost of dopamine has been $50 per month that is generally spent in thrift stores. I wouldn't call it living so much as I'd call it surviving and am often unsure why I bother.
The issue/question at hand:
My father has passed away and with him my primary/only means of support, with his passing I have inherited just over $500,000 in a Traditional IRA. So my primary question is how to minimize tax burden and maximize return on his investments to make them last as long as possible while I figure out the next stage of my life.I am not opposed to getting a normal/steady job, but this is more difficult to obtain than one would imagine with a decade long gap in employment and an unwillingness to sacrifice the mental health gains I have made and gestures broadly everything else that is going on. There is also the bit of freedom that this amount of money provides that will perhaps allow me to double down on my small business ventures, investing in them/myself at a level that I was unable to do prior and therefore enabling them to become a primary source of support. So there is a thought of setting a budget, both monetary and time, to allow myself to try to grow my businesses first.
TLDR: Single, solo, poor, woman gets $500k pre-tax, how to make the most of it?
26 votes
No intent to start spending any more than I already do to keep the lights on and a roof over my head. In no rush to pull it out, but will have to do so and looking to do so with the lowest tax burden possible.