Mom's Legacy

[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]

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

[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.

[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.

[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]

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.

[arcticpineapplecorp.]

sorry for your loss. read more here:

https://www.bogleheads.org/wiki/Managing_a_windfall

and here:

https://www.bogleheads.org/wiki/Investm ... _statement

[cheese_breath]

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?

[Boulous]

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

[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

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

[Boulous]

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

[Boulous]

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

[Boulous]

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]

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

[Boulous]

we have to do something, its better than 0 interest bank bearing account
Thanks
Boulous

[cheese_breath]

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'.

[Boulous]

Thanks, will check the Multi Year Guaranteed Annuities.
Boulous

[JoeRetire]

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.

[RudyS]

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.

[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