Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > Dockside Chat
Reload this Page >

Mutual funds or rental properties? Dad passed

Notices

Mutual funds or rental properties? Dad passed

Old 09-02-2015, 05:00 AM
  #1  
Senior MemberCaptains Club Member
Thread Starter
 
Join Date: Nov 2007
Location: South Mississippi
Posts: 1,516
Likes: 0
Received 2 Likes on 2 Posts
Default Mutual funds or rental properties? Dad passed

and passed along some mutual funds to me, his only heir. I've allways been 100% into rental properties and have accumulated about 9 that I own free and clear. I've been thinking the market is about at the top and feel I should sell all the funds but I'm more of a tin hat guy, that's why I'm here asking......What would you do?
Old 09-02-2015, 05:22 AM
  #2  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,576
Likes: 0
Received 1,333 Likes on 714 Posts
Default

You have lots of experience with rental properties and no current experience with mutual funds. In your place, I'd move that money to investments I understand.
Old 09-02-2015, 05:24 AM
  #3  
Admirals ClubCaptains Club Member Admiral's Club Member
 
nicecast's Avatar
 
Join Date: Apr 2007
Posts: 1,631
Received 1,091 Likes on 647 Posts
Default

100% in anything is foolish. You already have 9 rental properties. Diversify!
Old 09-02-2015, 05:26 AM
  #4  
Senior Member
 
Hagar TH's Avatar
 
Join Date: Mar 2013
Location: Central Fl
Posts: 4,421
Likes: 0
Received 11 Likes on 9 Posts
Default

Originally Posted by nicecast View Post
100% in anything is foolish. You already have 9 rental properties. Diversify!
Yes, talk to a good financial guy. If your dad had a good one and was successful I would start with him/her
Old 09-02-2015, 05:31 AM
  #5  
Admirals Club
 
Ronn Burgandy's Avatar
 
Join Date: Oct 2010
Location: Where the wild things are
Posts: 15,157
Received 106 Likes on 70 Posts
Default

Sorry to hear about your loss.
Old 09-02-2015, 05:31 AM
  #6  
Senior Member
 
Join Date: Jun 2011
Location: Folly Beach, SC
Posts: 1,808
Likes: 0
Received 70 Likes on 44 Posts
Default

Originally Posted by nicecast View Post
100% in anything is foolish. You already have 9 rental properties. Diversify!
I think this is great advice.
Old 09-02-2015, 05:47 AM
  #7  
Senior MemberCaptains Club Member
 
Join Date: Jun 2003
Location: Panama City Fl
Posts: 1,471
Received 66 Likes on 41 Posts
Default

Originally Posted by Trollin4Tuna View Post
I think this is great advice.
BS, you'll kick yourself in 3 years when you see the paltry returns on the funds.
Old 09-02-2015, 05:51 AM
  #8  
Senior Member
 
Join Date: Feb 2002
Location: NJ & MV
Posts: 4,223
Likes: 0
Received 2,129 Likes on 1,151 Posts
Default

Sorry to hear about your dad.

In many ways, mutual funds are better than rental property. No calls at 3 AM about loss of heat, no chasing tenants for payment, no evictions required, etc.

Do you think there are tops in the real estate market and then sell all of your rentals?

If you are inclined to keep the mutual funds you need to look at the expense ratios, much the same way you would do for a rental property.
Old 09-02-2015, 05:52 AM
  #9  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2009
Location: Tarpon Springs, FL
Posts: 8,794
Received 4,113 Likes on 2,342 Posts
Default

Actually good advice on both sides, diversification is important but not if you diversify into something that doesn't make decent returns or where you have no expertise. No clue about how much money you're getting but buying some land and building a storage rental facility might be an option.
Old 09-02-2015, 05:54 AM
  #10  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,576
Likes: 0
Received 1,333 Likes on 714 Posts
Default

It's also possible that the recent market retreats, coupled with the basis reset done in an estate settlement will yield capital losses for the OP if he sells the funds. He can deduct some/all of those on his Federal income taxes.
Old 09-02-2015, 05:55 AM
  #11  
Senior Member
 
crazybeard's Avatar
 
Join Date: Aug 2013
Location: Tropico
Posts: 6,120
Received 1,894 Likes on 1,089 Posts
Default

Sorry for your loss.

I would diversify personally. But also you need know what you're investing in. Also understand your position (time to retirement, current liquidity desires, current workload on existing rentals, etc) to look at what your goals are.

I don't know the answer to this since I haven't ever been in the spot but will those funds be liquidated? Were they in a tax deferred account and now you'll be inheritance taxed?

what is the rest of your tax scenario? Would you benefit from an ira contribution to save some taxes? Talk to your tax guy too.
Old 09-02-2015, 06:02 AM
  #12  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,576
Likes: 0
Received 1,333 Likes on 714 Posts
Default

Originally Posted by crazybeard View Post
I don't know the answer to this since I haven't ever been in the spot but will those funds be liquidated? Were they in a tax deferred account and now you'll be inheritance taxed?
In my experience, the executor has the option of liquidating the funds or passing the funds on to the heir. Sounds like the heir is getting the funds.

Inheriting a tax-deferred retirement account from someone who died after age 71 gets a bit complicated, but, yes, that money is subject to income taxes when taken out of the tax-deferred account and there is no basis adjustment.
Old 09-02-2015, 06:50 AM
  #13  
Senior Member
 
Join Date: Oct 2013
Location: southeast, PA
Posts: 1,373
Likes: 0
Received 4 Likes on 3 Posts
Default

Originally Posted by swampu View Post
and passed along some mutual funds to me, his only heir. I've allways been 100% into rental properties and have accumulated about 9 that I own free and clear. I've been thinking the market is about at the top and feel I should sell all the funds but I'm more of a tin hat guy, that's why I'm here asking......What would you do?
With 9 rental properties I am guessing you are doing okay financially. I would sell the Mutual funds and go on an awesome vacation you only got one life and one chance to see everything you want to.
Old 09-02-2015, 06:58 AM
  #14  
Senior Member
 
Join Date: Jun 2010
Location: Stuart, Fl
Posts: 1,061
Received 708 Likes on 290 Posts
Default

Talk to a trusted financial guy and tell him where you want to be in the future, how you want to handle things with your heirs. Everyone's life is different from each others and there are numerous factors to consider. Get some advice before doing anything. Sorry for your loss.
Old 09-02-2015, 06:58 AM
  #15  
Senior MemberCaptains Club Member
 
Join Date: Oct 2007
Location: Fort Lauderdale
Posts: 12,908
Received 1,454 Likes on 662 Posts
Default

I like the diversification answers.... All eggs in one basket is a dangerous scenario ..

my assets as follows;

50% in Real Estate ,,,, 10% in Hard Money Loans,,,, 30% Stocks,,, 10% Bonds/cash (worthless) ...
Old 09-02-2015, 07:05 AM
  #16  
Senior Member
 
crazybeard's Avatar
 
Join Date: Aug 2013
Location: Tropico
Posts: 6,120
Received 1,894 Likes on 1,089 Posts
Default

Originally Posted by triplenet View Post
I like the diversification answers.... All eggs in one basket is a dangerous scenario ..

my assets as follows;

50% in Real Estate ,,,, 10% in Hard Money Loans,,,, 30% Stocks,,, 10% Bonds/cash (worthless) ...
Don't forget to get some gold teeth too, just in case.
Old 09-02-2015, 07:12 AM
  #17  
Senior MemberCaptains Club Member
 
Join Date: Oct 2007
Location: Fort Lauderdale
Posts: 12,908
Received 1,454 Likes on 662 Posts
Default

Originally Posted by crazybeard View Post
Don't forget to get some gold teeth too, just in case.
My parents kept Gold Kruggerrands in the house .. I mean a pile of them ... Not sure what gold was in the 70's - they are worth some serious coin now

Old 09-02-2015, 07:33 AM
  #18  
Senior Member
 
Join Date: Oct 2008
Location: SEC Penna
Posts: 8,859
Received 348 Likes on 211 Posts
Default

I say Vanguard mutual funds but then again, I'm very biased.
Old 09-02-2015, 07:34 AM
  #19  
Admirals ClubCaptains Club Member Admiral's Club Member
 
Join Date: Mar 2007
Location: Lighthouse Point
Posts: 5,700
Received 1,159 Likes on 763 Posts
Default

Rick Ferri is a pretty good guy on investing. This is what he says to do with a lump sum. http://www.rickferri.com/blog/invest...ng-a-lump-sum/
Old 09-02-2015, 07:36 AM
  #20  
Senior Member
 
Join Date: Nov 2010
Posts: 6,341
Likes: 0
Received 493 Likes on 249 Posts
Default

Crude futures

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.