I just want to say first I am so, so sorry for your loss. Losing a parent is the hardest thing to go through, on top of having to manage the complexities of the money situation while you're still grieving.
I also want to say that I think you are doing an incredible job handling this and managing things exactly how your dad would have wanted. You already are re-framing things in a positive way (like seeing this as your father’s final gift). Let’s make sure you do things right to honor that gift.
Dealing with the Fidelity advisors first.
You already have good instincts with this and I’ll try to just expand. Yes Fidelity advisers are going to recommend Fidelity funds but this doesn’t really make them bad, it’s just how the industry works. That said, this means they are not really working for you and looking after your interests the way an Independent adviser would.
A 1%+ fee on a large inheritance would really affect you in the long term and is something you SHOULD consider - not saying it's a definite NO, but just something to think about. I went into more detail in my last newsletter, if you want to read more.
I think you need two separate people right now:
You can usually find fee-only financial advisors and CPAs here:
And then, ask your financial advisor for the name of a CPA, once you’ve established a financial advisory relationship.
One-time or occasional consulting makes the most sense when your situation is fairly simple, and you’d feel comfortable managing the investments yourself once a plan is created. You’d just need assistance with the initial set-up and periodic reviews.
Ongoing management makes the most sense when your situation is more complex. Like you may have multiple streams of income, or own your own business and/or have significant issues to resolve with your dads estate plan. A sizable inheritance with an accompanying IRA may require a more in-depth review of IRA distribution rules, especially if the inheritance includes a business. BUT the review may not require an ongoing relationship.
My honest rec would be to consult a fee-only fiduciary CFP to get a more complete understanding of your situation and the IRA distribution rules, as well as to create an appropriate investment plan. You can always decide if you want to maintain an ongoing relationship or an annual review relationship.
There are tons of factors around distribution rules for inherited IRAs (it's kinda confusing and complex).
The short of it is - the SECURE Act changed the rules, and if your dad passed after 2020, as a non-spouse beneficiary, you must withdraw all the funds from the inherited IRA within 10 years. Of course, there are exceptions to this rule and there may be tax implications for taking withdrawals, especially if your dad had a traditional IRA or a Roth IRA.
This is where a knowledgeable CPA makes their money. The decisions you are making this year will matter a lot in the years to come.
Take your time and get the right people. And just know that being careful and thoughtful with this is the most honoring thing you can do in honor of your dad.
Hang in there, sending you all my love xx
I just want to say first I am so, so sorry for your loss. Losing a parent is the hardest thing to go through, on top of having to manage the complexities of the money situation while you're still grieving.
I also want to say that I think you are doing an incredible job handling this and managing things exactly how your dad would have wanted. You already are re-framing things in a positive way (like seeing this as your father’s final gift). Let’s make sure you do things right to honor that gift.
Dealing with the Fidelity advisors first.
You already have good instincts with this and I’ll try to just expand. Yes Fidelity advisers are going to recommend Fidelity funds but this doesn’t really make them bad, it’s just how the industry works. That said, this means they are not really working for you and looking after your interests the way an Independent adviser would.
A 1%+ fee on a large inheritance would really affect you in the long term and is something you SHOULD consider - not saying it's a definite NO, but just something to think about. I went into more detail in my last newsletter, if you want to read more.
I think you need two separate people right now:
You can usually find fee-only financial advisors and CPAs here:
And then, ask your financial advisor for the name of a CPA, once you’ve established a financial advisory relationship.
One-time or occasional consulting makes the most sense when your situation is fairly simple, and you’d feel comfortable managing the investments yourself once a plan is created. You’d just need assistance with the initial set-up and periodic reviews.
Ongoing management makes the most sense when your situation is more complex. Like you may have multiple streams of income, or own your own business and/or have significant issues to resolve with your dads estate plan. A sizable inheritance with an accompanying IRA may require a more in-depth review of IRA distribution rules, especially if the inheritance includes a business. BUT the review may not require an ongoing relationship.
My honest rec would be to consult a fee-only fiduciary CFP to get a more complete understanding of your situation and the IRA distribution rules, as well as to create an appropriate investment plan. You can always decide if you want to maintain an ongoing relationship or an annual review relationship.
There are tons of factors around distribution rules for inherited IRAs (it's kinda confusing and complex).
The short of it is - the SECURE Act changed the rules, and if your dad passed after 2020, as a non-spouse beneficiary, you must withdraw all the funds from the inherited IRA within 10 years. Of course, there are exceptions to this rule and there may be tax implications for taking withdrawals, especially if your dad had a traditional IRA or a Roth IRA.
This is where a knowledgeable CPA makes their money. The decisions you are making this year will matter a lot in the years to come.
Take your time and get the right people. And just know that being careful and thoughtful with this is the most honoring thing you can do in honor of your dad.
Hang in there, sending you all my love xx