Investment option for small trust account w/o yearly income

[Fielding]

I have a small ($15k or so) trust account that I want to productively mothball. Right now it is earning pennies in a checking account.

I'm looking for an investment option that will be productive in the long term, but which does not throw off yearly investment income so I don't have to bother filing taxes on it. Figure 5-20 years before I might touch it again.

Equity or fixed income would both be fine, I can fit both into the AA. I'm a generic Boglehead for the most part, have access to Vanguard and a Treasury Direct account for the trust, but could set up something else if warranted, so long as there is no yearly maintenance involved.

Looking forward to your suggestions.

 

[GrayHare]

dividend-free Berkshire Hathaway stock

 

[JBTX]

Ibonds if just held do not generate interest until sold. Real rates are 1.2% real which is pretty good. Also agree with the Berkshire Hathaway stock if you want more risk. Maybe 10k ibonds and 5 k Berkshire Hathaway. .

 

[Canoeboy]

dividend-free Berkshire Hathaway stock

+1

based on 5-20 year timeframe

 

[pb4uski]

It would have to be something with little income since you have to file a 1041 if income is over $600, which would be 4% for $15k. For 5-20 years BRK.B sounds like a decent option.

My question is though for such a relatively small amount, why are you bothering vs just distribute it now and be done with it.

 

[Fielding]

My question is though for such a relatively small amount, why are you bothering vs just distribute it now and be done with it.

Although retired, I still have a lot of income and have ~50% effective tax rate. I would rather push this income into future, likely leaner years. And should I need to pay for a certain class of minor expense, it could be useful to have cash in this trust.

I had thought of BRK.B and I-bonds, good to get confirmation from you all.

 

[pb4uski]

So how would keeping it in the trust differ from taking a $15k distribution from the trust today and investing the proceeds in BRK.B or I-Bonds or muni bonds.

From what you wrote I assume there are no tax consequences of receiving the $15k from the trust.