Nate, what's your age? If you know you have it to invest (vs. needing it in less than 5 years), certainly Vanguard is an excellent, low cost way to go. If you are unsure of where to invest it, they're phone folks are some of the best in the industry. They can guide you - good luck.
Nate - Sounds good. Consider looking at a "moderate allocation" fund for the long-term. Vanguard is a great place for lower fees that can have a real negative iimpact.
Nate, I like Vanguard and their funds. They are low cost and offer a variety of options. As long as you are willing to stay in the market for 3+ years, then I would invest there. Also, spread it out over a few different funds for diversity.
Nate, vanguard is a terrific choice and depending on your age and time horizon, they have a great educational section on the site. Maybe a balanced fund or their old tried and true Wellington fund, depending on your age. Good luck.
Alright planners, I'm going to post the last two questions from Ronald and Terry. Feel free to weigh in on either/both!
Terry, I understand why this is such a tough decision. With so much on the line, I agree with Bonnie, this is not a one answer question and almost impossible to answer in a forum such as this. Hire a CPA or a financial adviser and good luck. You are smart to be so cautious on this move.
Terry, a Roth conversion can be a nice gift to your heirs, especially in your financial situation where you can afford to pay the tax outside of the conversion. About 10% of the amount that you convert will not be taxed, since you have non-deductible contributions. You may want to consider talking to a CFP® professional or your tax advisor for more specific calculations.
Ronald - Did anyone get you your question?
I don't believe so, Randy.
Ronald, real estate is an investment in your financial assets. It is different though because it has costs associated with it as well as upkeep and taxes upon sale. So, it can be a part of your retirement plan, just be cautious on the values you assign to them.
Ron, real estate can provide income but not liquidity. It can be helpful to determine if the rentals are cash flow positive, and if not, you may want to talk to your tax professional or a CFP® professional to determine the tax consequence of selling the real estate.
Ronald - Retirement is all about income. If you have assets that produce the income from varied sources, then your properties should work well. I've found real estate is not so much a question of to have it or not. It's a question more of whether you enjoy it or not. If you do, and it produces good income, it's a good choice.
Ah. I see Ronald's question now - yes, you can certainly bank on these - do you want to keep the rental income or sell and invest the proceeds? You have successfully used a traditional way to amass wealth. Real estate, used well, will likely always be a solid path to wealth.
And there's often a tipping point with real estate that Wendy alluded to - when the expenses and hassle outweigh the receipts, it's often time to sell
Thanks, all. Some great advice for Ronald. Randy, great point about whether you enjoy it or not.
I have to leave now, enjoyed the time with you all
Me too, thank you for all of your questions. And thanks for hosting!!
A HUGE thank you to Rich, Deborah, Bonnie, Wendy and Randy for helping out today. I’m always so impressed by your advice!
Thanks, Kiplinger. Always an interesting chat.
Thanks for invitation to participate.
Had fun. Thanks for the invite.
And thank you, readers, for all of the great questions.
We'll be hosting one more live chat with NAPFA planners this year on Thursday, December 13, 1pm to 3pm ET (same time, same place!).
Nate, what's your age? If you know you have it to invest (vs. needing it in less than 5 years), certainly Vanguard is an excellent, low cost way to go. If you are unsure of where to invest it, they're phone folks are some of the best in the industry. They can guide you - good luck.
Nate, I like Vanguard and their funds. They are low cost and offer a variety of options. As long as you are willing to stay in the market for 3+ years, then I would invest there. Also, spread it out over a few different funds for diversity.
I'm having a hard time deciding whether to convert my IRA to my Roth IRA. I'm 61, opened Roth 10+ years ago, have 300k in IRA, with 30K of those non-deductible contribution (8606 basis). I'm unemployed (worked 1 month this year) so my income this year would be low (including 6 months of unemployment insurance and some dividends to declare). I have the $ to pay the conv. tax w/o dipping into my retirement accounts. And i have enough $ to cover my expenses 'till 70 at which time i plan to take Soc. Security at max. benefit. What should I do?
Terry, a Roth conversion can be a nice gift to your heirs, especially in your financial situation where you can afford to pay the tax outside of the conversion. About 10% of the amount that you convert will not be taxed, since you have non-deductible contributions. You may want to consider talking to a CFP® professional or your tax advisor for more specific calculations.
