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Ask Dave

Put Retirement Money In Real Estate Trust?

Joel just got a nice inheritance, but wants to make sure he invests in right.

QUESTION: Joel has inherited $10,000 from his grandparents and he wants to invest.  Should he invest in a Real Estate Investment Trust?  He’s also changed jobs.  What should he do with the money from his old retirement plan?

ANSWER: Fund a couple Roth-IRAs - $6,000 if you’re single, $12,000 jointly if you’re married.  If you have something left, invest in growth stock mutual funds: growth, growth and income, international and aggressive. 

As far as your current retirement, make sure you roll that into a traditional IRA rather than into your current retirement plan.  As a matter of fact, anytime you leave an employer, always roll your Roth-IRA into a traditional IRA.  Your employer’s options are limited, but in the open market you can choose virtually any mutual fund you want.  That way you have a lot more control and a lot more flexibility.