Hey Sup Forums I'm 18 and without getting into too much detail I just inherited a $300,000 IRA...

Hey Sup Forums I'm 18 and without getting into too much detail I just inherited a $300,000 IRA. Is this considered a lot for a retirement account? Pretty new to this.

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Put at least 100K into your own personal IRA and forget it's there until you're old enough to retire. Not sure about inheritance rules, but if you withdraw before the legal retirement age you have to pay taxes on it.

damn

Yeah its a 10% fee each time, I already opened up my own personal Roth IRA and have maxed it out for the year. So now im 18 with two IRAs, lol.

Buy bonds then. If you look at all the c-level management of financial advisor companies, they all just buy 7 year bonds and don't even fuck with their own products. But yeah, depending on how much you expect to spend in retirement, you should hit just about any reasonable goal you set.

I cant just put 100k in my own ira, I own (inherited) one traditional IRA with the 300k and I just opened another roth ira. The roth ira has a maximum contribution of $5500 each year.

as it sits currently, the majority of my portfolio is invested in mutual funds as well as a couple big companies.

At such a young age, it may be worth it in the long run to take the 10% hit and reinvest a portion of it into something more aggressive for the time being and switch over to more stable funds when you are closer to retirement.

Mutual funds are kinda dogshit for growth. Talk to your advisor (or whoever is managing your account) and see if you can shift the portfolio into growth funds or stocks and transition to mutual funds when you're older.

I mean assuming I get at least an 8% return each year ill be a millionaire by the time I'm 30, and that just blows my mind

I will take note of this.

Einstein said compound interest is the eighth wonder of the world...He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe.

Strong words.

The biggest thing is to just pretend like you don't have this money. Completely forget you have it and know that you don't have to worry about retirement and you are head and shoulders above your peers. And be grateful.

thanks for the advice, and while I'm not planning on it (currently) I feel like taking a bit of money out to help pay for the down payment on a house or something along those lines wouldn't be too bad?

Nah dude, forget about it. Any amount you take out impacts the effectiveness of the compounding interest effect. Just get a mortgage and/or a jorb like you don't have it.

After doing some more math, assuming I just let this sit until retirement ill have around 10 million not even counting my other roth ira? Jesus christ.

Really? I'm attending college this fall, hopefully I get into a good enough job where I can just pretend this money isn't there. Only time will tell. Thanks again for the response.

Just don't treat it like a piggy bank. I had a friend in a very similar situation as yours and instead of continuing to go to school and work, he lived off the inheritance. It lasted less than ten years and the IRS was always on his dick.

That's a damn shame, lots of potential wasted there. Definitely not going to go down that path.

richfag

Wow. All this talk about money and im over here worried about this damn 40 dollar payment in a few days. Sucks how this 1 life we get, some get the live to its extent, and others are forced to do what they can to survive.

damn.

Headed to bed boys. thanks for the responses.