- College 529 plan. Currently, her account is 100% in cash since I was concerned about a market corrrection June 2011, Our daughter's account is trailing her mom's account by 4.4%. If the market continues its decline, I will put the 2012 contribution and a portion of the cash back into stocks.
- UMGA brokerage account. I openned this account several years ago with the intent of investing int CDs. However, since 2010, there the CD rates have been very low and have even gone lower. So the account has a lot of cash. If the markets decline by another 10%, I will buy some quality dividend paying stocks for about 25% of the account.
- Inherited traditional IRA. My mom made her two grandchildren the beneficiaries of her IRAs. The traditional IRA has two stocks and sufficient cash for 6 years for RMDs. I won't add any more stock to this account.
- Inherited Roth IRA. The Roth IRA is the largest account in my daughter's name and it is mostly in cash, like her 529 account. If the stock market declines another 20% from today, I will buy some additional quality dividend paying stocks and value index ETFs with about 50% of the cash.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial or investing advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC