Todd's Tax Service LLC

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A big inheritance may also trigger the need to make investment decisions. Find out who has been managing the decedent's portfolio and consider getting advice from the existing advisor. Be sure to get tax advice to avoid nasty surprises at tax time. And consider Fidelity and Vanguard for your investment needs after you receive funds.

The information and ideas presented on this page should NOT be construed as investment advice.

Life events like a job change, retirement, or major inheritance can trigger the need to make big decisions regarding investments. The different scenarios may overwhelm some, after all, there are so many options.  Here is a step by step guide that can help you with the process.



Job Change/ Retirement - need to roll 401K or other retirement funds over:


Open a Traditional (Rollover) IRA account at your primary bank or credit union. (This is a bank account that is insured up to certain limits and doesn't contain investments).


Establish an amount of your account that you would like to leave intact inside the bank or credit union IRA. Consider laddering some CDs inside the account if you have enough $ to do this.  For example, you could leave $10,000 in the passbook IRA, and buy CDs for $10,000 with 1,2,3,4, and 5 year maturities. ($60,000 left in account as example).


Now decide where you want to transfer the remaining funds for investment.  Fidelity Investments or Vanguard Investments are my top 2 picks for investment firms. Meet with representatives from either firm (Fidelity has offices in Woodbury  (Oakdale) and Edina and Vanguard can meet with you online or by phone and get your account opened and initiate the transfer from your bank IRA to the brokerage IRA at your new investment firm.


Once funds have been moved to the brokerage IRA, contact your broker and get some suggestions on how to invest in a way that is suitable for you. Your brokerage IRA may contain mutual funds, individual stocks, Treasuries, more CDs, etc. Fidelity and Vanguard both have a broad array of low cost funds that would suitable for this purpose.


Set up a systematic  investment schedule if you wish to dollar cost average into certain funds.

Set up a systematic withdrawal from your account if you would like to begin funding your

retirement with the account.


Monitor your account on a quarterly or annual basis and make appropriate changes.