Q: I am about to receive an inheritance from my mother’s estate. The amount is enough to pay off a condo that I own as an investment (it is currently rented out). I am torn between doing that and starting a tax deferred annuity or other investment option.
I do not have a pension as my employer does not offer one. I do have investments including IRAs, Roth IRAs and a Simple IRA from a former employer. I know that I will loose the ability to deduct the taxes and interest that I pay on the condo, but I would own it outright and would no longer worry about losing it if I could not rent it out. Any money that I receive from the rent of the condo would be invested in an IRA instead of being used to pay off the mortgage as it is now.
Is there an advantage to using the lump sum to jump-start a tax-deferred annuity? I am 54 and plan to work until I am 65. I own a home and it will be paid off before I turn 65.
A: If the rent you’re receiving …
Read the original article at Miamiherald
