Jill on Money with Jill Schlesinger How to Manage Inherited Money
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Nov 19, 2025 Steve, a retired small-business owner, inherited $500,000 in CDs and seeks advice on managing this windfall in light of his retirement plans. They discuss whether to invest or keep it liquid for peace of mind. Jill emphasizes a balanced withdrawal strategy, encouraging Steve to preserve his Roth IRA while considering municipal bonds for better tax efficiency. They also address the importance of financial comfort with advisors and the need for a second opinion on investment choices. Ultimately, it's about protecting his financial future while ensuring a safety cushion.
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Prioritize Traditional Withdrawals First
- Do prioritize withdrawing from traditional IRAs before touching Roth accounts in retirement.
- Set up planned periodic distributions from traditional accounts to cover living expenses and reduce future RMD pain.
Caller’s Income Sources In Retirement
- Steve retired from a small insurance agency and still receives final annual payouts for one more year.
- He also has a lifetime joint annuity that pays about $1,300 monthly and they both collect Social Security.
Create A Planned Distribution Strategy
- Do plan your distribution strategy (monthly or lump sums) from traditional accounts to ensure steady retirement income.
- Coordinate distributions with tax planning to avoid unnecessary bracket spikes.