Estate Cash investment?

[Monterey298sc]

My Father passed and I inherited about 300,000 in cash. Hate to let it sit in a money market , however with the current market I am thinking it’s not a bad idea for a while. Only about 48,000 will be taxable to me next year.
What would you do ?

 

[target2019]

I'd pay off any loans, and put the rest in a CD. There is a long thread about 2020 CD and MM rates.

 

[DrRoy]

Start dollar cost averaging in to your established AA.

 

[Stormy Kromer]

Start dollar cost averaging in to your established AA.

Sorry for your loss.

 

[RetireBy90]

My Father passed and I inherited about 300,000 in cash. Hate to let it sit in a money market , however with the current market I am thinking it’s not a bad idea for a while. Only about 48,000 will be taxable to me next year.
What would you do ?

Sorry to hear of your loss.

I inherited from mom last year and did the merge into my AA over about 6 months, after paying off a mortgage. No knowing where market will be in short or mid term for me so I’m planning on the longer term goals.

I also found that some of what I inherited was taxable so make sure you set aside enough for fed and state taxes if you will owe them.

 

[pb4uski]

...What would you do ?

At a minimum open a couple online savings accounts and park the money there... they currently yield 1.4-1.7% these days.

 

[RunningBum]

Sorry for your loss. Normally I'm a proponent of putting any new money to work immediately to your AA target. With our economic future looking very uncertain, I can definitely see the case for leaving it in cash now, or investing it over time.

I don't follow this statement:

Only about 48,000 will be taxable to me next year.

Is this because of an inherited IRA RMD, or what? Usually you get a stepped up basis on taxable investments.

 

[Monterey298sc]

Money was in a annuity, With gains of about 48,000 .

 

[RetireBy90]

Money was in a annuity, With gains of about 48,000 .

That was my situation also and although I had taxes withheld it was not enough so a bit of surprise for me.

 

[OldShooter]

Start dollar cost averaging in to your established AA.

+1

 

[Monterey298sc]

I want 1099 so I keep cash working for me until I pay next April

 

[pb4uski]

I want 1099 so I keep cash working for me until I pay next April

Can you elaborate on this?

 

[Scrapr]

I inherited a good lump sum that was distributed in cash. I already had a pile of cash. After sitting on it for a couple months I started DCA into the market. I decided to divide it into 18 months. Which would get past the election. I was feeling stupid for not lump summing in October-November...and really smart when my designated day to DCA was the Dow 18k or thereabout. Ehhh..it will all turn out OK

Good luck. I'm also soory that you are inheriting this sum

 

[Starsky]

My Father passed and I inherited about 300,000 in cash. Hate to let it sit in a money market , however with the current market I am thinking it’s not a bad idea for a while. Only about 48,000 will be taxable to me next year.
What would you do ?

I'd follow your first instinct and hold it for awhile. With all the uncertainty, cash is king right now. If you really have to spend it; I'd look for distressed assets, not distressed investments.