UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76079  
Subject: Re: Need Help With the Parent's IRA! Date: 9/2/2003 12:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Right now its the tech stocks that are recovering the best. So if they still own tech stocks, it is tempting to keep them. They are going up faster than anything else. Technology stocks are once again in the Business Week top performing sector funds list. The only thing better seems to be gold stocks (precious metals) at the moment.

Some diversification may be in order. I agree with the previous poster, your fathers fund manager seems to be doing a good job. He is worth what you are paying him. But let him know of the desire to diversify. Yes, yield investments can be untimely due to possible rises in interest rates, but it certainly sounds like the Fed is not going to raise interest rates any time soon. So perhaps the risk is not huge at least for a while.

Your father should be doing some overall financial planning. With a large IRA, he needs to work out when best to take distributions to avoid mandatory distributions. In other words, he will want to time his distributions to minimize income taxes if he can. It looks like their combined income prevents a Roth conversion. Besides they are not usually adviseable for large accounts. Roth conversion work best when your income tax rate is low. For a large account, that often means never--unless stocks fall and you do it when the market is down.

His assets are large enough, the assistance of a professional like a financial planner may be in order. His estate appears close to the Federal estate tax exemption. So that too could be something to think about as the details change every year under the current law. And your state's probate laws should also be considered.

Best of luck to you.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement