Now that jimrac has given an example, I understand the point he is trying to make. However, there's a couple of things he doesn't consider. IF you took an inheritance as cash, and IF you kept it as cash, then yes, you could spend it down without incurring income tax. However, if you take that money and invest it, you will pay taxes upon your gains. But you do get that Âstep up basis jimrac is depending upon. But of course, if you allow the account to compound over time without spending principal, you run the risk of incurring estate taxes for your own heirs. You could also buy an annuity, which has some limited tax advantages. Conversely, inheriting an IRA is different. You do not have to cash out an inherited IRA, in fact you should always roll it over into an FBO account in your and the deceasedÂs names. IF the owner was taking distributions, heirs also have to take distributions  but they can take the minimum distribution (Required Minimum Distribution, or RMD) which at young ages is a very modest amount indeed. If the owner was not taking distributions, the IRA can be left intact until age 70-1/2 for the heir. And in the case of an inherited Roth IRA, there is NEVER any income tax, for owner or heirs. Because the gains in the Roth compound tax-free, they win hands-down over any taxable account. The biggest issue is the salary restrictions (higher wage earners are barred from contributing to a Roth, although in 2010 only they can convert any amount they wish to pay income taxes on now) and the low annual contribution amount (although I expect Congress will probably increase those at some point). As my ex-boss, a respected CFP, used to say, "Don't let the tax tail wag the dog!" Tax planning should be looked at in a holistic fashion. Somebody's going to pay taxes, it just depends on who that is, and how much. Frankly, if you had a $1M mutual fund account - and I know quite a few people who do - if you were that concerned about your heirs paying income taxes, you'd set up an ILIT (Irrevocable Life Insurance Trust) for your immediate heirs, and a Bypass or QTIP trust for the future generation heirs.

USAA has a good rep so I don't think it should be a problem for you to leave it there for a while. SmartMoney's website I believe is free for access, but I could be wrong - I'm a WSJournal subscriber and the two are owned by the same company so there's a lot of cross-links on the websites. It isn't easy finding an good independent fiduciary advisor, but for people who need help developing a comprehensive financial plan (which is not the same as earning a high ROI on investments), I think it's essential. Most middle-class folks would find it helpful to talk to a neutral third party who can ask the hard questions and analyze your total financial picture. One thing for everyone to be aware of is that when I refer to financial planning, this is not only a legal term, it actually refers to creating a 'road map' that takes you from your current financial situation to achieving your short, medium, and long-term goals. It is aiming for a moving target, so any life-changing events - life, death, marriage, divorce, change of job - means some fine-tuning may be needed to your plan. To produce a good plan requires time spent in not only gathering all your financial info and analyzing it, but defining your goals. Some will be achievable and some will not be. Only you can define and prioritize them, and a good advisor will help if needed. You can get a financial plan, separate from investing advice, from any certified fiduciary advisor. Cheaper ones are computer 'plug in the numbers' produced, so always make sure you understand the base assumptions, and have multiple scenarios run to be sure you're covered for any contingencies/emergencies you haven't foreseen. Establish the total cost of meeting, gathering info, analyzing, and producing the plan(s) up front before signing anything. It takes time to do a financial plan, and anyone promising you it will be easy and fast isn't going to do a comprehensive job. It's an advantage for the fiduciary to be an insurance agent OR to be very familiar with insurance analysis, because many people could use advice on how to use different types of insurance to mitigate risk in various areas of their life. At a minimum you should contact at least three fiduciary advisors, obtain references, and investigate them thoroughly, before working with one. Even if all you need is a financial plan, do the research, but confine the requested references to clients who received a financial plan at least three years ago and are willing to discuss its usefulness. It is not uncommon for people to pay for a financial plan and then follow the suggested actions on their own; e.g., do their own investing, etc., without engaging the advisor to handle their portfolio. OTOH, a financial plan that goes unimplemented is just a useless piece of paper. We used to have to gently 'nag' our clients that they still hadn't completed certain checklist items on their plan, so it depends on how good you are at doing tasks that many people put off....until it's too late.

Update: Before the install, I did wind up modifying the track in the air handler for the 1-inch air filter. I used 2 pieces of steel banding, 2 inches wide, cut to length, and placed them over the manufacturer's track using a few dabs of automobile body putty (Bondo) to keep it secure. It is now a smooth track for the filter to slide on. Goodman used the track as part of the frame of the air handler so it had some crimpings in it and the filter would not easily slide in. I also trimmed away some foil faced insulation that prevented the filter from seating properly. A 20"x24" filter now fits perfectly. I am glad that I did these minor mods as I would have been fighting this monthly when I change filters. The unit was installed Friday, 6/22, after I had it for about 5 weeks waiting on the installers. It took two guys 8 hours. I fed them both breakfast and lunch (I treat my installers well). The old supply air plenum and the plenum after the air handler had to be replaced to match the new unit. The old 5/16" liquid line had to be replaced with a new 3/8" line. 3 holes were cut into the finished ceiling and 1 in the wall so that the new line could be run. I'll repair the holes when I get a chance - no big deal. The TXV sticks out about 8 inches from the air handler. Looks funky and I have to be careful not to hit it while moving things around in that area. The old outside unit had sunk about 4 inches into the ground. I filled the hole with soil that I was saving, packed it down, put a plastic condensor mounting pad on the dirt, and used 3" thick brick to elevate the outside unit (which is huge in size compared to the old 7 SEER unit; 14 SEER = more coils = larger unit). The outside unit is much more quiet as expected but the new mult-speed air handler is also a little more quiet than the old one. The fan is set on low speed and I'm not sure of the setting of the old unit as the lables on the motor had worn away after 21 years. The sheet metal in the new air handler is flimsy and the track for the air filter can be improved by Mr Goodman. The outside unit looks decent. These comments were also noted by the installers. I plan on taking the outside and inside coils to a local scrap facility and sell the copper. Maybe I can get a few $$ for a couple cases cases of my favorite beer. I can now start saving 40% on the cooling and heating part of my energy bill and use this to combat the 65% increase in electric rates in the State of Maryland. All in all, I thought that I got a good value for the money spent (only time will tell if I made the right choice with Goodman). I got a 14 SEER system with Copeland scroll compressor, thermo-expansion valve on the air handler, hard start capacitor, 15 kw heat strip kit, bypass humidifier, and 10 year parts warranty for $2477 from a local HVAC supply shop. I paid $1200 for a pro install (needed the pro install for the warranty). Total cost was $2k less than...

Hi Annie, Yes... you'd need to establish a self-directed IRA and utilise a custodian familiar with real estate transactions for such (there are plenty... use Google to find them or ask me offline... they're just not the same custodians you trade stocks with.) You cannot "self-deal" though... so for you to buy your husband's real estate MAY be a prohibited transaction. Check with your tax advisor on that. BTW... getting financing for investment real estate being bought and owned by a qualified plan (not an individual) can be very tough... and many folks do not have that much cash in their qualified plan to toss on the barrelhead to buy real estate.... SO.... the alternative strategy is for the IRA to buy the CONTROL of the real estate with a longterm OPTION (which can be done for a few hundred to a few thousand dollars,) then use IRA funds for the improvements... and either collect rents cashflows into the IRA... or turn around & sell the same existing OPTION to a financeable individual buyer for the profit (which, knock on wood, could be tens of thousands of dollars.. if done right, and with the wind to your back, sun on your brow, low sodium and good teeth! ;~) Luck! Dave Donhoff Leverage Planner