Inherited IRA in Cash Position

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Joined: Wed Jan 11, 2017 1:27 pm

Inherited IRA in Cash Position

Post by newhousejim » Wed Jan 11, 2017 1:45 pm


I recently inherited a couple of IRA's totaling $150,000 and a brokerage account with $50,000. These were in Edward Jones, but I transferred in kind to Vanguard as soon as I got control. Most of the money is in a cash position (the IRA's were split amongst inheritors, so maybe they had to liquidate some? -I also sold all of the C-shares). So, I have about $150,000 in cash (money market) with Vanguard.

I am planning on investing these in VTSAX, VTIAX and VBTLX. My question is, should I do this ASAP or should I wait for the market to have a small or large correction? I think the strategy for monthly and smaller investments is to go ahead and make the purchase and not wait for a dip, but what about a larger sum? Because of the time it took to get the accounts in my name, I missed out on the recent market uptick in the last few months.

I am 44 and also have an additional $450,000 in 403b's and 529 accounts, also with Vanguard.

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Re: Inherited IRA in Cash Position

Post by livesoft » Wed Jan 11, 2017 2:16 pm

Invest half now and the other half in 5% increments over the next 10 months unless the market drops. If the market drops invest 10% that month. If the market drops twice in the same month, then invest 15% that month. Be done in 10 months or less.

But read this thread, too: viewtopic.php?t=173433
You may decide to invest all 100% without waiting after reading that and the links therein.
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