Mailbag: Investing Extra Income and Handling an Inherited IRA

In this mailbag episode, David answers two practical listener questions about managing unexpected financial opportunities. One listener recently paid off their mortgage and now has an extra $3,000 per month to invest, while another is navigating the tax implications of inheriting an IRA. David walks through several potential options for putting extra cash to work- ranging from CDs and brokerage accounts to fixed annuities- while also clarifying the complex withdrawal rules tied to inherited retirement accounts.

Here’s some of what we discuss in this episode:

🏠 Ideas of what to do with extra monthly cash after paying off your mortgage
📈 Investment options beyond retirement accounts, including brokerage accounts and ETFs
🏦 The pros and cons of CDs, money markets, and fixed annuities
🧾 How inherited IRAs are taxed and the potential impact of the 10-year withdrawal rule
⚖️ Why timing withdrawals carefully could help reduce your overall tax bill

Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products