{"id":1040004,"date":"2026-09-03T02:22:29","date_gmt":"2026-09-03T02:22:29","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1040004\/"},"modified":"2026-09-03T02:22:29","modified_gmt":"2026-09-03T02:22:29","slug":"i-feel-shoehorned-my-father-funded-my-800000-roth-ira-does-that-give-him-the-right-to-say-how-i-invest-it","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1040004\/","title":{"rendered":"\u2018I feel shoehorned\u2019: My father funded my $800,000 Roth IRA. Does that give him the right to say how I invest it?"},"content":{"rendered":"

\""Should<\/a> “Should I keep the entire $800,000 in stocks and accept the risk of a major downturn, in part to honor my father’s wishes?” (Photo subjects are models.) – Getty Images\/iStockphoto Dear Quentin, <\/p>\n

I’m 56, and my partner is 59. Together, we’re worth about $2.3 million. My Roth IRA is worth $800,000, and I’ve had it since Roth IRAs were first introduced. My generous parents have funded it every year, and, following my father’s advice, I’ve kept 100% of it invested in stocks. <\/p>\n

Now that I’m 56, I’m wondering whether it makes sense to add some fixed income to the mix. My father strongly disagrees. He believes I should stay fully invested in stocks because of their long-term growth potential \u2014 “You’re going to need the money!” \u2014 and points out that any market crash will eventually be followed by a recovery. <\/p>\n

Most Read from MarketWatch <\/p>\n

His argument is essentially that, since my parents provided the money for the Roth, they have a say in how I invest it: “We gave you the money, and this is what we prefer.” I understand and appreciate everything my parents have done for me. But it is now my money, and I’m trying to decide what level of risk makes sense for my own circumstances. <\/p>\n

He also reminds me that I will likely inherit substantial assets when he and my mother are gone \u2014 my best guess is somewhere between $1 million and $2 million. At age 65, I expect to receive a pension of about $5,000 a month, and I’d like to delay claiming Social Security until I turn 70. I currently don’t earn any income, and my partner supports me. My partner plans to retire around age 65.\u00a0 <\/p>\n

Should I keep the entire $800,000 in stocks and accept the risk of a major downturn, in part to honor my father’s wishes? Or, given my age, lack of other assets and upcoming transition into retirement, does it make sense to diversify and add some fixed income \u2014 even if that means giving up some potential long-term growth? <\/p>\n

I’m grateful for what my parents have given me, but I feel shoehorned into an investment strategy that may no longer fit my circumstances.\u00a0 <\/p>\n

Grateful, But Shoehorned <\/p>\n

Don’t miss: <\/strong>‘My main goal is to help people’: I’m single, 74, with $10 million burning a hole in my pocket. What should I do?<\/a> <\/p>\n

\"Tell<\/a> Tell your dad: “I’m the one who has to live with this decision and sleep at night.” – MarketWatch illustration Dear Grateful, <\/p>\n

I agree with your father, to a point, but mostly I agree with you.\u00a0 <\/p>\n

If you have a strong constitution and are willing to ride the peaks and valleys of the stock market, and you’re not retiring for another 10 years, then sure, keep 100% of your Roth in stocks. Does that tally with what the experts say? Nope. But everyone has their own unique approach. It’s your retirement, after all. <\/p>\n

Story Continues <\/p>\n

The general rule of thumb is to start moving more of your portfolio into safer vehicles, like bonds, as you get closer to retirement. Some say you should subtract your age from 100 to get the percentage you should have in stocks (44%, in your case), with the rest in bonds and cash equivalents. Others say to subtract your age from 110. But none of these rules are set in stone. They’re more like wooden signposts.\u00a0 <\/p>\n

If you are less than comfortable having 100% invested in equities, there’s nothing wrong with starting to diversify now. I believe you are right when you say it’s your retirement fund and your retirement and, also, your peace of mind. That last part is critical, and is worth mentioning in any conversation with your father. You are the one \u2014 not your father \u2014 who has to live or die by your investment decisions. <\/p>\n

The S&P 500 SPX, Dow Jones Industrial Average DJIA and Nasdaq COMP have been on a tear for the last decade \u2014 give or take a few periods when events rattled traders, among them the pandemic and President Donald Trump’s trade war. The idea is to avoid having to start taking distributions from your portfolio during a downturn. That will deplete your funds fast. <\/p>\n

But you have a buffer: your expected inheritance and your $5,000-a-month pension starting at age 65, in addition to your Social Security starting at 70. What’s more, you don’t have required minimum distributions with a Roth IRA, so you are not obliged to take your distributions at the age of 75 come hail or shine (bear market or bull market). <\/p>\n

Don’t miss: <\/strong>My mother, 91, has dementia. Every bank says I need her signature to unlock her $100,000 stock certificate. What can I do?<\/a> <\/p>\n

Framing the conversation <\/p>\n

Tell your dad: “I’m the one who has to live with this decision and sleep at night and \u2014 although you funded my Roth IRA, something I’m very grateful for \u2014 it would mean a lot if you could allow me to steer the ship and make my own decisions. A gift with strings attached does not feel like a gift. It feels like, well, a lot of strings.” No one wants to be a Roth IRA marionette.\u00a0 <\/p>\n

There are all kinds of diversification. You can mix up the kinds of stocks you own: technology versus consumer goods, for example, or overseas versus U.S. companies. At a time of market and economic uncertainty, analysts recommend healthcare, utilities and consumer-staples stocks for the medium and long term, in addition to mid- and small-cap equities, bonds, cash and non-U.S. equities.\u00a0 <\/p>\n

While no one knows what will happen next with the stock market, your fears are not unusual. Earlier this month, the European Central Bank warned that “the rise of AI has driven a blistering rally in the tech sector, bringing stock market valuations to levels last seen during the dot-com bubble.” <\/p>\n

US Bank recently weighed the risks<\/a>. The S&P 500 SPX reached an all-time high in August on the heels of swings tied to the Iran conflict and higher energy prices, it said. “The rebound has not eliminated the risk of a market correction, but it shows that investors continue to weigh geopolitical uncertainty against economic growth and corporate profits.” <\/p>\n

But market corrections and recessions come in all shapes and sizes. Some take years to recover from. Others regain what was lost in months or even weeks. A market correction generally means a decline of at least 10% from a recent high, while a drop of 20% or more defines a bear market. Markets are fickle and can react quickly to the news cycle. <\/p>\n

I hope that helps to ease some of your concerns about the immediate future. Your father is thinking about the long game, and so are you. You are both on the same team, aiming for the same result \u2014 a secure retirement with, hopefully, a healthy seven-figure Roth IRA. Try to approach him from a place of gratitude and mutual understanding, rather than conflict. <\/p>\n

Don’t miss:<\/strong> <\/a>‘The estrangement isn’t about politics’: My daughter hasn’t spoken to me for 4 years. Do I leave her a monthly annuity?<\/a> <\/p>\n

More columns from Quentin Fottrell:<\/strong> <\/p>\n

‘There is considerable tension’: My grandmother, 99, wants to cut my mother out of her will. Should I intervene?<\/a> <\/p>\n

‘We are committed Christians’: Our son and daughter-in-law cut us off over politics. Should we change our $3 million will?<\/a> <\/p>\n

‘The relationship quickly deteriorated’: My friend’s lawyer settled his injury case without his consent. What can he do?<\/a> <\/p>\n

Most Read from MarketWatch <\/p>\n","protected":false},"excerpt":{"rendered":"“Should I keep the entire $800,000 in stocks and accept the risk of a major downturn, in part…\n","protected":false},"author":3,"featured_media":1040005,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[15],"tags":[49468,63940,381533,64,416220,416219,255,85948,1439,67,132,68],"class_list":["post-1040004","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-49468","tag-63940","tag-381533","tag-business","tag-dear-grateful","tag-im-56","tag-personal-finance","tag-roth","tag-u-s","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1040004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1040004"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1040004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1040005"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1040004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1040004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1040004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}