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Asking advice on what to do with inherited cash gift


bluesbreaker's Avatar
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AZ

08-08-16, 02:41 PM   #1 (permalink)  
Asking advice on what to do with inherited cash gift

My sister died several months ago and left me a cash gift from her revocable trust. Amount is 0$ to $15,000. I know that I don't have to pay Federal or Arizona income or inheritance tax on it. But I would have to pay tax if I start earning interest income from it. Can anyone suggest some type of tax-free investment account to deposit it into?

 
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Norm201's Avatar
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08-08-16, 02:49 PM   #2 (permalink)  
You need to contact a financial advisor or go to your local bank for advice. Asking for this type of advice in a forum such as this is almost as bad as sending a Nigerian Prince the money with the promised of gold in return.

 
Tolyn Ironhand's Avatar
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08-08-16, 07:34 PM   #3 (permalink)  
Sorry about your sister.

Of course asking your financial advisor is your beat option because everybody's financial situation is always different.

Depending on your age, and how your retirement portfolio is, here is a couple of things to think about:

If your employer has a 401k, you could max that out and supplement the "missing" income with the money.

You could open or add it to an already existing IRA. That money will then earn interest but you would only pay tax on it when it is withdrawn. That way the money will earn more because of compounding. There are max contributions you can make per year so you might have to spread it out over a few years.

You could buy gold and hope it continues to go up.


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bluesbreaker's Avatar
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08-09-16, 08:54 AM   #4 (permalink)  
Ok. Thanks. I'll talk to my credit union. I put an inquiry on this website, because I'm familiar with some of the members who have a lot of life experience. Don't worry. I'll think it over carefully.

 
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08-09-16, 10:01 AM   #5 (permalink)  
My first thought was Roth IRA, assuming you qualify to have one and have not already maxed out your contribution for the year, but that would not cover the whole amount you have anyway.

 
bluesbreaker's Avatar
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08-10-16, 10:30 AM   #6 (permalink)  
Yeah. Roth IRA looks promising

 
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