Mom's Legacy

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Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Mom's Legacy

Post by Boulous »

Hi Bogleheads
We lost our Mom in August from natural causes, and we miss her a lot, Mom left us a 5 figure cash amount, among other assets, the cash is in a bank account earning 0 interest, we don't need the money, but would like to see it grow to keep Mom's fund from dwindling down, what advise and which , Vanguard instruments to invest in? if this makes any sense?
Thanks for your advise
Truly
Boulous
HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: Mom's Legacy

Post by HomeStretch »

I am sorry for your loss.

For best feedback on how to invest your mom’s legacy to you, consider posting your financial picture in the “Asking Portfolio Questions” format:
https://www.bogleheads.org/wiki/Asking_ ... _questions
Last edited by HomeStretch on Sun Apr 04, 2021 5:22 pm, edited 1 time in total.
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Googliebear
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Re: Mom's Legacy

Post by Googliebear »

I too offer condolences on your loss. My suggestion to make the most of this money your mother passed along to you is to fully fund you and your spouses Roth IRA which will ensure this tax free gift will grow tax free for years to come until you do need it. As for what to invest it in, I'd suggest the S&P500 index fund (VOO) or the Total Stock Market Index Fund (VTI).

If you're interested in learning why these two, I'd suggest you read Simple Path To Wealth by JL Collins and any book written by John C Bogle.
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David Jay
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Re: Mom's Legacy

Post by David Jay »

I agree with Googliebear - if you are not fully funding your retirement accounts i would use the funds for that purpose.

If you have a work 401K, the process is to increase your withholding and then spend the cash for living expenses. This has the effect of “transferring” your Mom’s legacy into your long-term retirement assets.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
PoppyA
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Re: Mom's Legacy

Post by PoppyA »

“Our Mom”. You & your siblings, or you & your spouse?

Are you thinking as a legacy/memorial, or as an investment?

My sincere condolences.
JBTX
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Re: Mom's Legacy

Post by JBTX »

If you want it to grow, put it in a stock index fund, in a retirement or taxable account.

If you want to preserve and not lose much value, consider ibonds on Treasury direct. It may take a couple of years to invest it all due to annual limits.
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arcticpineapplecorp.
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Re: Mom's Legacy

Post by arcticpineapplecorp. »

It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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cheese_breath
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Re: Mom's Legacy

Post by cheese_breath »

Boulous wrote: Sun Apr 04, 2021 4:30 pm Hi Bogleheads
We lost our Mom in August from natural causes, and we miss her a lot, Mom left us a 5 figure cash amount, among other assets, the cash is in a bank account earning 0 interest, we don't need the money, but would like to see it grow to keep Mom's fund from dwindling down, what advise and which , Vanguard instruments to invest in? if this makes any sense?
Thanks for your advise
Truly
Boulous
Who is we, us, and our? If it's you and spouse, that's one thing. You might be able to speak for spouse if it's a joint account. But if it's you and someone else such as siblings, do you have their permission to speak for them?

And what's more important, to see it grow or keep it from dwindling?
The surest way to know the future is when it becomes the past.
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

HomeStretch wrote: Sun Apr 04, 2021 4:35 pm I am sorry for your loss.

For best feedback on how to invest your mom’s legacy to you, consider posting your financial picture in the “Asking Portfolio Questions” format:
https://www.bogleheads.org/wiki/Asking_ ... _questions
Thanks for the suggestion
Boulous
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

cheese_breath wrote: Sun Apr 04, 2021 11:59 pm
Boulous wrote: Sun Apr 04, 2021 4:30 pm Hi Bogleheads
We lost our Mom in August from natural causes, and we miss her a lot, Mom left us a 5 figure cash amount, among other assets, the cash is in a bank account earning 0 interest, we don't need the money, but would like to see it grow to keep Mom's fund from dwindling down, what advise and which , Vanguard instruments to invest in? if this makes any sense?
Thanks for your advise
Truly
Boulous
Who is we, us, and our? If it's you and spouse, that's one thing. You might be able to speak for spouse if it's a joint account. But if it's you and someone else such as siblings, do you have their permission to speak for them?

And what's more important, to see it grow or keep it from dwindling?
It's both my sister and I want to keep Mom's asset from dwindling, thanks for your feedback
Boulous
Topic Author
Boulous
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Re: Mom's Legacy

Post by Boulous »

JBTX wrote: Sun Apr 04, 2021 8:46 pm If you want it to grow, put it in a stock index fund, in a retirement or taxable account.

If you want to preserve and not lose much value, consider ibonds on Treasury direct. It may take a couple of years to invest it all due to annual limits.
Thanks for your feedback, we are leaning towards index funds.
Boulous
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

JBTX wrote: Sun Apr 04, 2021 8:46 pm If you want it to grow, put it in a stock index fund, in a retirement or taxable account.

If you want to preserve and not lose much value, consider ibonds on Treasury direct. It may take a couple of years to invest it all due to annual limits.
That makes a lot of sense to go the index funds way, to keep and hopefully grow Mom's legacy.
Boulous
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

Googliebear wrote: Sun Apr 04, 2021 5:21 pm I too offer condolences on your loss. My suggestion to make the most of this money your mother passed along to you is to fully fund you and your spouses Roth IRA which will ensure this tax free gift will grow tax free for years to come until you do need it. As for what to invest it in, I'd suggest the S&P500 index fund (VOO) or the Total Stock Market Index Fund (VTI).

If you're interested in learning why these two, I'd suggest you read Simple Path To Wealth by JL Collins and any book written by John C Bogle.
Thanks for the valuable info, will do the reading.
Boulous
Gill
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Location: Florida

Re: Mom's Legacy

Post by Gill »

Boulous wrote: Mon Apr 05, 2021 7:32 am
JBTX wrote: Sun Apr 04, 2021 8:46 pm If you want it to grow, put it in a stock index fund, in a retirement or taxable account.

If you want to preserve and not lose much value, consider ibonds on Treasury direct. It may take a couple of years to invest it all due to annual limits.
Thanks for your feedback, we are leaning towards index funds.
Boulous
There's no guarantee that equity index funds won't keep it from "dwindling".
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Topic Author
Boulous
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Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

we have to do something, its better than 0 interest bank bearing account
Thanks
Boulous
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cheese_breath
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Re: Mom's Legacy

Post by cheese_breath »

Boulous wrote: Tue Apr 06, 2021 7:05 am we have to do something, its better than 0 interest bank bearing account
Thanks
Boulous
So is an Ally Bank online account, 0.5% online savings and 0'6% CDs. Another option to keep it from 'dwindling' might be MYGA's (Multi Year Guaranteed Annuities). They're like CDs but are issued by insurance companies. Lots of threads on MYGAs here.

If you go into stocks, even index funds there's always the possibility of 'dwindling'.
The surest way to know the future is when it becomes the past.
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

Thanks, will check the Multi Year Guaranteed Annuities.
Boulous
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JoeRetire
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Re: Mom's Legacy

Post by JoeRetire »

Boulous wrote: Sun Apr 04, 2021 4:30 pm We lost our Mom in August from natural causes, and we miss her a lot, Mom left us a 5 figure cash amount, among other assets, the cash is in a bank account earning 0 interest, we don't need the money, but would like to see it grow to keep Mom's fund from dwindling down, what advise and which , Vanguard instruments to invest in? if this makes any sense?
So sorry for your loss.

Divide the inheritance between you. Then each of you invest your portion per your own asset allocation plan.
It's no longer Mom's money, it's your money now. There's no reason to keep it in an account by itself.

And use it bit of it for you and your sister to go to a nice restaurant together, have a nice bottle of wine, and toast to mom's remembrance. I'm sure she intended for you to enjoy your inheritance.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
RudyS
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Re: Mom's Legacy

Post by RudyS »

JoeRetire wrote: Tue Apr 06, 2021 1:40 pm
Boulous wrote: Sun Apr 04, 2021 4:30 pm We lost our Mom in August from natural causes, and we miss her a lot, Mom left us a 5 figure cash amount, among other assets, the cash is in a bank account earning 0 interest, we don't need the money, but would like to see it grow to keep Mom's fund from dwindling down, what advise and which , Vanguard instruments to invest in? if this makes any sense?
So sorry for your loss.

Divide the inheritance between you. Then each of you invest your portion per your own asset allocation plan.
It's no longer Mom's money, it's your money now. There's no reason to keep it in an account by itself.

And use it bit of it for you and your sister to go to a nice restaurant together, have a nice bottle of wine, and toast to mom's remembrance. I'm sure she intended for you to enjoy your inheritance.
I really like those suggestions.
Topic Author
Boulous
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Joined: Sun May 24, 2020 3:42 pm

Re: Mom's Legacy

Post by Boulous »

Thanks for the thoughtful suggestions, my sister and I went out for a fancy dinner and celebrated Mom's memories, we are leaning towards option of dividing and each investing according to our retirement goals. Our Mom loved real-estate and we though about buying a condo as rental, but decided we cant afford the headaches and management of a property in our retirement age.
Boulous
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