Please help with retirement mess!

[retirementdummyae]

And convincing DH to do something. I am posting under an AE because this is embarrassing and I don't want financials linked to my real account.

When DH started working as a teen, FIL began funding IRAs for him. He continued to fund these IRAs (at first a traditional and then switched to a ROTH). DH now has at least $80,000 in the IRAs. He is in his mid/late 30's.

While FIL was very generous to fund all this money for DH, there were "strings". DH hasn't been allowed to touch this money until now. Therefore, they have been sitting in super low interest bearing CDs. So, yes, probably close to 20 years worth of practically NO compound interest and NO growth. The money might as well have been sitting in our checking account.

I keep trying to explain that DH needs to do something with this money because it is not providing any benefit at this point. This is nearly all his retirement savings. FIL doesn't seem to care anymore if DH pulls the money out of the bank and moves it somewhere else. DH is not motivated to do anything and I can't seem to get it through to him that this is a big deal.

FIL seems to think he is a financial genius, but he made his money when banks were paying 16%+ interest back in the 80's. Yeah, it is pretty easy to think you are smart about money when you don't have to do anything to get a huge return. I think this is why FIL insisted on leaving this money in the bank for so many years.

Oh, DH also likes to think he can play the stock market. I gave him control of one of my ROTH accounts (about $13k). The account is now worth less than I put in while everyone else's accounts are up like 15% for the year. I will be taking this account back and putting it into a fund instead.

So, what can I say to DH to make him motivated? And what should we do with the money? Retirement-year type mutual fund?

[SJ]

Is your DH still contributing money to his Roth? Where is the money held now- at a bank, correct?

I would open up a new IRA and a new Roth IRA for DH. Good options to look at are Vanguard or Fidelity. You will then transfer the funds from the old bank IRA to the new brokerage IRA and transfer the funds from the old bank Roth IRA to the new brokerage Roth IRA. The new custodian will help you walk through the transfer process (it is very simple and straightforward).

Then I would set up automatic investments and begin to invest the funds. Depending on your comfort level, I would use a mix of index based ETF's or funds, but the retirement-year type ones aren't bad either. I personally use Vanguard's target date fund in one of our accounts.

[makingithappen]

Is the money in an actual CD or is it in an IRA? It sound like he just needs to do a target date retirement fund ie Target date 2040 and just let them sit. No "playing the stock market" with retirement savings. It's for long term growth.

[phunluvin82]

I'm not sure I understand why he is unmotivated to do something with his retirement money...yet eager to 'play the stock market' with your retirement money?

I getting both of your retirement monies into target date funds seems like it would be a good first step.

How to get your DH to agree to do so, if he doesn't want to or care, I'm not sure!

[dochas]

I don't understand why you are upset that he left the money in cash. If you don't know what you are doing, it is the best option.

It doesn't really sound like either of you know what you're doing in this area. And that's okay - find a professional to guide you! What are you doing with your retirement funds? Why are you so concerned with his? Do you have 401K offered through your employer?