I am about to receive around $8000.00. Is there somewhere safe where I could invest it where creditor's could not access it and drain the funds, but w..." I am about to receive appox. $8000.00, is there a safe place I could place this that would keep it safe from creditor's, but where I could access it in case of emergencies?
I have looked online without much success so far.
Hello and thank you for your question.
1) Keep it in cash and use a safe (place). This assumes that the risk of losing $8,000 does not warrant your potential investment earnings.
2) A Roth IRA may be another good choice, especially if your taxable income is currently down. These funds could be held onto in the case of BK (11 USC Sec 522(d)(12)) and could also remain accessible should you need them. Within a Roth IRA your investment options will include most traditional investments. In addition you may be able to claim a tax credit (see IRS Form 8880) and account earnings won't be subject to income tax if you do not withdraw them for a period of 5 years. Keep in mind that the amount you contribute to a Roth IRA may be distributed back to you without being further taxed.
Owner of a CPA firm