"Jane" <googlemail2003[at]yahoo.com> wrote in message
news:16b3d5d8-3aa4-46c0-b85f-5bfbf1f684d1[at]t3g2000yqa.googlegroups.com...
- quote -

Sorry for your loss... we are going thru the same transition
with my wife's parents recently...

There is another thread above - $230k payout - asking the same type of
questions.

BTW - Just wondering which specific John Hancock funds,
along with which Vanguard funds ?

Also - just found out that the life insurance money transfers tax free,
but the money from the parents investments and IRA's does not...

So - we received some checks last year, and then received the 1099-R for
taxes.

honda.lioness[at]gmail.com wrote:


- quote -

Also, if she's sure she will eligible for 2009 as well, she can go
ahead and make that contribution at the same time.



Brian

--
Day 49 of the "no grouchy usenet posts" project

On Mar 19, 11:05 am, Jane <googlemail2...[at]yahoo.com> wrote:
- quote -

Suze Orman has a valid suggestion about "grief money".
Let it sit in CDs or something something else safe for a year
while emotions sort themselves out. Otherwise people have a
tendency to invest it wrongly.

- quote -

Normally and assuming a person meets the other requirements, a person
has until April 15th 2009 to make a contribution for tax year 2008. I
advise the OP to check her eligibility and make a $6k contribution to
her Roth IRA by April 15th of this year, putting it in a money market
fund. Worst case, she can always pull it out without penalty. At some
later point, she can decide how she wants to invest the extra $6k in
the Roth IRA.

I also wonder whether her husband had a Roth, too. Presumably it is
now or will soon be in the OP's name. If her husband did have a Roth,
may the OP arrange a contribution for tax year 2008 to her husband's
IRA? This occurs to me because, for one thing, I expect she is filing
MFJ for 2008.

I would ask this question at misc.taxes.moderated as well.

On Mar 19, 1:05*pm, Jane <googlemail2...[at]yahoo.com> wrote:
- quote -

Thank you all so much for the advice.

Jane


======================================= MODERATOR'S COMMENT:
Please trim the post to which you respond. "Trim" means that except for a line or two of the previous post to add context, the previous post is deleted. Thank you.

On Mar 21, 10:44*am, Ron Peterson <r...[at]shell.core.com> wrote:
- quote -

I have excellent health insurance. Its' a retiree benefit from a
previous employer. This year I pay less than $100/month which
includes Rx coverage. When I'm eligible for Medicare they will become
my secondary insurers.


======================================= MODERATOR'S COMMENT:
Please trim the post to which you respond. "Trim" means that except for a line or two of the previous post to add context, the previous post is deleted. Thank you.

On Mar 19, 12:05*pm, Jane <googlemail2...[at]yahoo.com> wrote:

- quote -

How's your health insurance?

- quote -

The fund is doing OK and should do better when the economy recovers.

- quote -

You can put in $6,000.

- quote -

Yes.

- quote -

Yes.

- quote -

Don't quit your job. If you're healthy postpone taking SS in your
account as long as possible, but check with SS to see what you can get
from your husband's account.

When you get to be 65, sign up for Medicare.

--
Ron

I think that you already have a superb allocation of capital for your
needs and income. You or whoever did it, did a very good job. I would
not alter it by too much, and the simplest route to take would be to
put the windfall into those Vanguard balanced funds.

On 2009-03-19 10:05:43 -0700, Jane <googlemail2003[at]yahoo.com> said:

- quote -

During that period of time where you are making no decisions, you might
consider reading a couple of books on personal finance, maybe something
like "Investing for Dummies." and also learning more from the internet
in newsgroups like this one. That might give you a head start when it
comes time to make decisions. The best decision could turn out to be:
Just leave the money in the accounts where it is now. Good luck.

John A. Weeks III wrote:
- quote -

Doing this may cost you pennies over the next months, but a move made in
haste can cost you dearly. John's advice is right on target. We'll all
be here for you when you are in a better frame of mind.
Joe

In article
<16b3d5d8-3aa4-46c0-b85f-5bfbf1f684d1[at]t3g2000yqa.googlegroups.com> ,
Jane <googlemail2003[at]yahoo.com> wrote:

- quote -

This would suggest that you put the money into a safe place like
a money market account, and sit on it for a while. After 6 to
9 months, you will feel like revisiting this subject. Park the
money, don't worry about it, and come back to it when you are
ready.

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * * *john[at]johnweeks.com
Newave Communications * * * * * * * * * * * * http://www.johnweeks.com
================================================== ====================

On Mar 19, 1:05*pm, Jane <googlemail2...[at]yahoo.com> wrote:
- quote -

My condolences on your loss.

- quote -

Assuming you meet the income limitations (almost certainly) you can
put in $6000.

- quote -

Yes. But the catch up takes the annual limit from 16,500 to 20,500
which is probably much higher than your employer's plan would allow on
26,000 gross income.
- quote -

It doesn't look like you will be in a very high tax bracket anyway, so
the tax deferred compounding may not be worth that much to you. But
the downside is similarly small. There is a penalty for withdrawing in
the first five years, but it seems like the chances of you having to
do that are remote.

- quote -

I think the best advice I have heard for people in your situation is
to do nothing for 60 days. Don't talk about or think about money for
that time. Given the situation you have described you have the
wherewithal to do that. At least the advice sounded good to me, but I
have never been in that situation personally, so pardon me if I am
talking through my hat.

The only thing you would need to do sooner than that would be if you
wanted to make a contribution to an IRA for the 2008 tax year.

On Mar 19, 10:05*am, Jane <googlemail2...[at]yahoo.com> wrote:
- quote -

My condolence for your loss. As you said, you are overwhelmed right
now. My one advice to you is this, take a deep breath, put the money
in a bank CD for 1 year. Don't make any major decision about money at
this time. There's plenty of time to put it in a Roth account if you
want to. Eventually, say in a couple of months, when you are ready,
talk to 2 or 3 financial advisors before you make the decision as to
what to do with your money. Financially you are in a stable place
right now. You have a place to live. Don't worry too much about the
job.

My husband died a few weeks ago. He had about $40,000 in life
insurance.

I have about 350k in John Hancock "fixed" funds and another 220k in
Vanguard balanced funds (66% bonds, 34% stocks)

I have about 60k in US I Bonds.

I currently have a part time job, but who knows for how long. I earn
26k a year. As long as I have this job I do not expect to need to
touch my savings except for major household or dental expenses. I
have very good medical insurance. I live in a condo and have no
mortgage.

I am 63 and as you can see I am VERY conservative. Even so, I've lost
about 15% of my Vanguard account this past year.

Some of my Vanguard money is in a ROTH. I was thinking of putting
some of the insurance money into that ROTH account. How much can I
put in?

I have a 401k at work. Is there some kind of "catch up" that I can
do?

I have plenty of liquid money in the I Bonds so I'm thinking a ROTH is
a good idea.

I'm so overwhelmed right now with all the awful stuff that goes with a
death that I'm at a loss to give this much thought.

Any suggestions would be greatly appreciated.