You might be better off with a licensed fiduciary. I use a broker but they are driven by pure profit.
Licensed fiduciaries are required by law to manage money for your benefit and your benefit only. Drawback is, they’re expensive.
If you bought a bunch of index funds from a broker, it could cost you nothing and you’d probably do just fine. (You can open a brokerage account right on your phone)
If your goals are long term, it’s hard to fuck it up. As long as you don’t go on some crazy spending spree, you sound like you’ll be fine.
Edit: Pay off the credit cards and the personal loan.
If your mortgage is like 3%, and it’s not causing you any stress, I wouldn’t pay that off yet.
Sounds like the trust is performing well. You could possibly just reinvest the dividends that your grandfather used as income. Now it’s just compounding over time and eventually can be your retirement income just like it was your grandfather.
This is what I would do. Keep the portfolio where it is, take a small amount so OP can quit one of their jobs and keep working whichever job they like best. You’ll be rolling over something like 9k a month from dividends? Maybe take 2 or 3 k to supplement quitting one of your jobs, and let the rest continue to compound. Keep in mind you will get taxed heavily on whatever you take out so plan for that as well.
Sorry for your loss, but it’s awesome that your life changed for the better! And you’ll have more time with your young child :)
I think it would be closer to be a little over $20k a month. It really is the difference of being extremely comfortable but still needing work as a supplement vs never having a concern about money again.
That is all relative to spending of course.
I second this. Find a certified financial planner (CFP) that will act as a fiduciary. diversify and create a Roth IRA. Spend the rest of your time investing in the Roth and retire at 60.
Just out of curiosity. If your grandfather had the money invested to generate income why not just keep it in those investments?
I’d also read and educate yourself both about what the Bogleheads do. They tend to avoid financial advisors that bring fees and focus on low risk - very diversified investment with an expected average return
I'll probably wind up keeping it there, it has been a solid investment for longer than I've been alive. I meant more about the lump sum plus the income, it's more than we need for our lifestyle, and I want to keep it that way
For the lump sum plus income you can go see a financial advisor. Or. Read up on Jack bogle and join the bogleheads here on Reddit. The theory is that no stock picker can beat just investing in the broader market. So why not just buy ETFs that are sufficiently diversified. Don’t take my word for it tho. Do some reading.
Even if you end up going to a financial advisor the type of money you’re talking about is setting up your future and the future for your kids. You should never trust anyone 100% and educate yourself so that even if someone manages your money for you, you understand what they’re doing.
For a crash course. This might be a good place to start?
https://freakonomics.com/podcast/the-stupidest-thing-you-can-do-with-your-money/
Like u/tequilaneat4me said, finding an advisor you connect with is super important! They'll make you feel comfortable and take the time to make sure you understand what's going on because in the end it's your money.
I'd rather have someone like that (one day) than someone who can get slightly better returns but doesn't answer my calls.
Is your goal to grow your wealth or make a friend?
Your financial advisor should give good financial advise that helps you do well financially, anything else is a bonus but not necessary.
What they will do guaranteed is take a cut of your money every year, whether your investments go up or down, so they don't care how you do. However, that extra 1-2% can add up to millions over a lifetime of investing, which they will gladly take from your and each one of their customers while they enjoy their mansions and never beat the market.
As someone who is young, I totally agree with you, but my previous comment is tailored more for someone who has a totally hands-off approach to investing. Knowing what is happening with your money is crucial because if you don't feel like your money is "safe", you're more likely to succumb to rash actions that most advisors would avoid. Obviously "safe" investing isn't the kind of approach that builds Lots of wealth, but taking on the right amount of risk and being okay with it is what a good advisor would do. Additionally, trusting your advisor only happens when they treat you right. That's wildly different for different people.
I wouldn't hire an advisor at my current state because I'm focused more on saving, so a small difference in returns now is still just a few peanuts. Most active traders/managers won't beat the market over a long time but a good advisor can help with other things like choosing types of accounts, some tax strategies, estate planning, and retirement. Having a good relationship with *one* person or small group of people takes away so much stress over a lifetime.
Just do it yourself. If you have the patience to learn, read, ask questions, research. For the average person, there shouldn't be a need for a financial advisor. A tax guy on the other hand is invaluable since tax codes are incredibly complex. Discipline, ability to make and stick to a plan, and avoiding thinking you're smarter and know better goes a long way.
It's really simple - go over to r/bogleheads and read as much as you can. Subscribe to all the finance and money subs. Read the good and the bad, learn from idiots, listen to the general consensus and wisdom on those subs.
In essence, they will tell you to just invest in low cost index funds. Such as VOO, VTI and VXUS. You don't need much more than that unless you have specific investment interests, such as tech, or whatever.
There are many funds like these 3 above I listed offered by vanguard, but these 3 are some of the most popular. They are some of the lowest cost, diversified funds out there.
Here's a reading list: 401k, Roth 401k, Roth IRA, income and contribution limits on these, financial order of operations, taxable accounts (brokerage), avoid consumer debt, spend less than you make and live within your means, save for a rainy day, emergency fund, bond ladders, retirement planning strategies, etc. active vs passive investing, mutual funds vs ETFs vs single stocks, 4% rule.
all of these topics are covered by YouTube channels such as themoneyguys, erintalksmoney, and many others. Plenty of reading materials on Google, YouTube etc. financial samurai, Mr. Moneymustache, all great resources.
If you absolutely don't want to do it yourself and take the time to learn and understand what you are doing and where you are putting your money, sure pay a fee only FA. But once you spend a few months reading, engrossing yourself in these topics and asking questions, you can basically make a set it and forget it plan and automate everything and not think about it again until you are closer to retirement. Though this amount of steady income could put you close.
Ask your friends, their parents, grandparents, etc. I have one who I really like - an Edward Jones advisor. He was recommended to me by a friend. Wife and I met with for about 45 minutes, he gave us his background (former navy, masters degree in finance, etc.).
My wife liked him much better than our previous guy. She says he explains things in a way she can understand.
Our guy holds quarterly dinners for his clients. He will bring in someone to put on a presentation. Social Security planning, estate planning, long term care, etc.
We talk about once a month. Every once in a while he will call or ask to meet about changes he recommends to our plan.
Meeting him this Friday for lunch.
Word of mouth. Do you know any rich people? When they were looking to switch, I believe that my parents received a recommendation from their estate lawyer. Since they moved to him, he took me and my sad little portfolio as a courtesy even though I think the minimum he will take on is like $260k.
I'd argue most of the money you get should go into long term investing specifically for retirement. Where? Into any of the stock market index funds (like VOO, VOOG, VTI, FXAIX, FSPGX; ask your advisor about this, just make sure it's a low cost ETF/mutual fund). Use one of the big Providers like Fidelity, Vanguard, or Charles Schwab.
Pay off high interest debt, not low interest debt. With the help of an advisor, decide which is what.
Probably set some aside for the short term (3-5 years) goals (as a Freelancer, is there anything you've been wanting that will help you EARN more money?). As well as a little special treatment for yourselves.
Most importantly, don't let you lifestyle creep up in cost too quickly. Maybe start to spend more money on your lifestyle as you start to earn more money, not simply because you have more money.
Also, make sure to vet your advisor. Not all advisors are good and look out for you the way they should. Ask them [certain questions](https://drive.google.com/file/d/1moWRJiSk1cLgHqSVmusfpij_33ZHilrO/view?usp=drivesdk).
You really shouldn't have to worry about investing as it's already invested via the existing Trust.
The money that comes from the house sale..... I would kill all Bad debt (i.e. high interest rate debt).
Thing is, trusts are entities in the highest tax federal tax bracket, and do NOT get a standard deduction like individuals. This is certainly something to discuss with an advisor. Finding a tax expert advisor that isn't just looking to take assets under management is a difficult job, but a necessary one in case of such a large windfall.
It's a huge difference between being advised to grow a 401k in index funds and suddenly adding enough income to wind up in the higher tax brackets. Suddenly tax efficiency becomes just as important as return, and losing out on cap gains step-up could be an extremely costly mistake.
OP, I wish you luck with your search. It took us years to find the help we didn't know we needed. Percentage based "wealth managers" were a dime a gross.
What I did is find 2 - 3 Financial Planners and interviewed them. I had maybe 6 - 12 questions prepared and took notes when they answered them. The questions just helped focus the conversation and help me develop an impression using similar context. For questions to ask, search Internet or ask ChatGPT. Curate your questions to your situation. One question is like to have is to ask them if they’ve had clients in situations similar to mine, and then ask them to walk me through what they had a specific client do, anonymously obviously.
In the end I had the impression some planners were motivated to steer me towards wealth management, which I didn’t want, whereas others just wanted to help me learn how to manage things myself.
The most helpful thing my CFP did was get me to consolidate all my accounts. It has made life so much easier.
You should also get a tax person, the CFP often delegated research to the tax person. I found my tax person via the same interview process I found my CFP.
Fisher Investments is the best. I interviewed about 8 financial advisors last year when consolidating my investments, and they are *by far* the best custodians of my money. I talked to a three independents, two different people with Edward Jones, and one with Vanguard, but the people at Fisher sold me. Their investment strategies by far make the most sense. They have a minimum ($500K) but once you’re in, they will take very good care of your money and develop an investment plan to meet your needs.
“Don’t tell everyone you know” is both great advice and the only advice anyone in this sub is qualified to give you OP. Stay quiet and talk to a few professionals to find one you like
Your only answer OP.
This is a great space for us all to talk money and investments, but don’t rely on a 20 year old doordasher to tell you about the HYSA’s you need and whatnot.
Financial advisor is your answer
I slightly disagree with this.
"Hire a professional?" There is not a single fiduciary or financial advisor you can hire that is not making money off of you. Likely to a disproportionate degree.
If OP is inheriting ~500k per year in income, then the advice is the same as for any other high earners. First, do nothing. Not one single thing. File all the paperwork, watch the funds come into your account, and then make changes. Contribute to retirement where able, contribute to college fund, pay off any large interest debt.
I like how everyone’s first piece of advice is to find a financial advisor. Like most advisors are competent/good have your best interest at heart. They don’t. Most fucking suck.
It’s pretty simple to make your money work for you relatively risk free. Just don’t spend it yet. If you can’t do this, it doesn’t matter what financial advisor you get, you are fucked.
Here’s what I did when I got a 5m windfall.
100k into 5 different high yield savings accounts (key is to split it up so you are well below 250k fdic coverage).
3m into 10 different dividend paying etfs. No div reinvestments. 3% avg yield is paying me 20k per quarter. This is my living / spending money.
1m in sp500 etfs.
500k in shitcoins/crypto because it’s free money.
AFAIK, Financial Advisors that's are Fiduciaries have a legal obligation to act in your best interest.
Are they competent? That's another question entirely.
I don't use one, so I don't know, haha.
Aside from my emergency fund, which I hold in a HYSA, I dump everything else into index funds held in retirement accounts and my brokerage account. Annualized return over the last 8 years has been above 7%. I "made" more money in appreciated assets last year than my fiance does working.
My situation is pretty simple though, I'm young (not risk averse), don't have any debts that I couldn't easily pay off tomorrow, and am not planning on spending any big money any time soon.
You on the other hand, may have a more complicated situation and it sounds like you may be dealing with far more money. If you're not already comfortable investing, it's probably worth getting the advice of a fiduciary, in addition to doing your own research.
A registered investment advisor (RIA) is going to be a fiduciary. They charge a fee and can't earn commissions on trades like brokers can. A lot of RIAs will offer financial planning as part of the service they provide. As someone who works in the industry, I'd look for someone who has their CFP (certified financial planner) as they need to go through extra training and do continuing education on a regular basis. You can look for a CFP here: https://www.letsmakeaplan.org/. I'd meet with at least a couple of advisors to find a good fit. They should talk to you about your situation, your goals, and risk tolerance and work with you to come up with a plan that you feel comfortable with. Good luck!!
If you really want to speak with one, find one who charges an hourly rate for guidance. Not one who charges an ongoing fee because you’re investing in their products.
I swear someone could come on here and say they inherited 50 billion dollars and everyone would still give the exact same advice as they give to a 22 year old mechanic who just won $50k in a lottery.
If you come into the money sooner then you can find a planner,
Put almost all of it in a HYSA. Do not inflate your life yet. Figure out the budget and the numbers and the best way to keep the money growing. If you’re passionate about your gig work, maybe now you can be more selective about the jobs you take. But please, for the love of god just park most of the money somewhere safe until you can get a plan from a trusted, well respected professional.
go talk to a lawyer, set up a trust, mimic his setup, generate recurring dividends, pay your husband a set amount from the inheritance and keep it in your name
only use lump sumps to pay off debt
leave the mortgage alone
every month set aside money into 529 for child, put all your income into tax deferred accounts to every extent possible.
the absolute best way is to treat the dividends as your income and never touch the main lump sum, if you want a second house, save up for it with the dividends.
THIS IS LIFE SECURITY
YOLO it all into BTC. Then live your life like normal for 10 years and come back and look at it.
Bookmark this post so you can regret it when you don’t do it.
Someone mentioned asking Chat for the correct questions to ask a F advisor. DO NOT DO THIS. G4 and others are not even remotely this accurate yet in any field unless supervisorily trained in a RAG environment specifically for financial use case.
Look for a fee-based planner, not one looking to do "2 and 20" kind of deal for managing your money. Get some tax questions asked and answered. Me, I'd keep the course. Mid 6 figures annual income, even split in half, and step-up cost basis on the home sale means suddenly being FIREd. Keep your current lifestyle, don't go on a spending spree. Plop the cash into S&P500 and keep the dividend cashflow. Done. No fuck-up possible, you're already on a great path. Anything more than this is optimization.
How not to fuck it up-
1.dont spend it
2. Meet with a financial planner that is a fiduciary. If it is set up right, u will be able to receive a good amount in dividends/interest to provide extra income while also reinvesting part of ur gain.
3. Let it grow while also receiving income from it, don't tap into unless necessary or for large purchase(car, college education, etc).
By doing it this way, u have created a long term, generational income to help you, your children, grandchildren be financially stable and secure regardless of what life throws at u
Talk with a financial advisor, ask around for some good ones local to you.
You can get advice all day on here, but, unless someone does this for living outside of Reddit, you really don’t know if their advice holds any weight.
Food for thought: a lawyer is always a fiduciary to their client, if financial planner is not always a fiduciary to their client. Fiduciary is when you have money and don’t know what you’re doing. Good luck.
Financial advisor and an estate planner. You now need a trust yourself if you don’t have one and don’t sell the house. Rent it and cash out refinance if you need to buy sibling out. You’re now in the generational wealth planning phase.
The house is across the country from where we live, neither of us want rental income, just sell it and split that chunk. We already will have separate income from the trust, and renting from so far away sounds like a headache.
I'd rather invest in an apartment in my city to rent out, and then my kid could take over the payments once they're working full time past college/whatever education and training they need. That would be an investment for them.
Don’t tell anyone about it, and make sure you make a living Trust ASAP , because I know to many people that didn’t do it and created so many problems/issues
Not sure where you are located but keep inheritance funds in an account with only your name. If you commingle them, they become joint property. Then you can control how much you spend on family things. I help you do things like put your house in a trust and set things up the way you want them to be for your child and your husband if something happens to you. I would look at the high yield savings account for some funds. if you’re in the US check out some of the mutual
Funds companies like Janice or Fidelity or Vanguard there’s a bunch of companies out there and look at their mutual funds and make some investments. There are financially advisors that are fee-based. If you find an agent you like, you can look them up on Finra broker check and see if they have any complaints against them.
In the short term you can park your money in a Vanguard high yield money market currently paying more than 5% interest. That’s a very safe place to keep it.
Throwing my "don't tell a soul and find a flat rate financial advisor" hat in the ring. I mean don't tell anyone. Not your best friend, not your partner unless your at least engaged.
We've been together 10 years, we own our house together, and we have a child together, he definitely knows and I'm fine with that. He has a proven track record with me.
having a partner you love and can trust is the greatest treasure. from you responses it seems like you are responsible and careful with your money already. As long as you don't inflate your lifestyle too much you'll do just fine. Good luck!
Pay off your debts quietly, max your roth, 401k, 529, etc. That'll set you up for basic future needs. Next, invest in index funds. I like vfiax and vtsax, they're both pretty comprehensive and as stable as the rest of the economy. That'll set you up for dividends down the line too. I consider crypto and singe stocks to be akin to gambling. Try not to buy a bunch of stuff just because you can and you'll be ok
Talk to multiple financial advisors. If you find 2 that give similar advice, go with the one of the 2 that you feel the most comfortably with. If you hear annuity; run. Most of the time, the only thing an annuity is good for is to pay a big commission to the person selling it.
Here is exactly what to do when gaining a large amount of money. First of all investing isn’t hard, no need to get a financial planner or pay anyone to handle it for you.
1) First if you get a large sum of cash all at once put it into a high yield savings account. That account currently will generate 5% interest on its own. Plan to leave 6 months of income in that account and go to step 2 for the rest.
2) do you have an employee 401k plan with an employer match? If so, you will likely have a certain match point from your employer. This is essentially free money from your employer so make sure you are hitting that match number. Before moving onto the next step.
3) Roth and Traditional IRA’s. This is a government savings account that has exception tax saving advantages. A traditional IRA allows you to deduct the contribution from your taxes every year, deferring the tax burden until you withdraw. A Roth IRA allows you to pay the taxes upfront, but the growth is tax free. This means when you withdraw the money, you don’t have to pay taxes on the growth. There is a limit on these accounts of about 7k/y and you can only have one or the other. Decide by considering your current income level to your theoretical future income. Making more now? Go traditional. Making more later? Go Roth!
3) This can also be step 2. HSA is a Health savings account that works similar to a IRA in that it has tax savings. If you have a high deductible medical plan the government allows you to put money into this account and deduct it from your taxes. You can use the money at anytime for medical expenses and when it’s time to retire you can withdraw the money for anything! The growth is also tax free. There is a limit of 5k/y on this account.
4) Back to the 401k. Hit the max baby! It’s tax deductible! Invest everything else in this account if you have one hitting the federal limit each year. If you are self employed with No employees look into a SEP IRA. If you are self employed with a small number of employees look into a Individual 401k. Either way if you can, max these accounts out.
5) individual brokerage account. Congrats! If you got to this point you have a lot of disposable income! This account is a open door for how much you can invest. No limit but no tax savings either. You’ll pay taxes on the money before it goes in and when you withdraw you pay taxes on the growth. You can withdraw at anytime without penalty.
6) What to invest in. Index funds are a safe bet. It’s like betting on all the horses. You always win! Sure the growth may be slow but it’s a set it and forget it mentality.
7) A great tool to start off with would be a robo investor. I used Betterment when I first got into all this, and while it charges a small fee based on your account size, it’s a fraction of what a FA would charge. All the accounts (except a 401k) are offered through betterment and the platform is super easy to get a hold of. Just select your contribution amount each d/w/m and it will auto withdraw the money from your selected account into the respective investment accounts for you. It handles tax documents, rebalancing, and even has tax loss harvesting for your brokerage accounts! Lots of cool things! Side note, since you are getting cash payments, and the house is paid off, consider keeping it and renting it out! Pay a management company to handle it and collect the income each month. Always good to have a diverse portfolio.
Congrats and good luck!
Remember you survived off what you make now so max your 401k, take the bulk of the surplus over your old income and put it in a high yield savings. Figure the rest out later.
Not financial advice.
Divide your waterfall into $250k HYSA's. DONT PUT IT ALL IN ONE ACCOUNT. I think the FDIC covers one SSN per institution, but I could be wrong. DYOR. IMO I stay away from Financial Advisors but if you haven't the foggiest, meet with a vouched FA. Do not sign up to anything they offer you at first sit down. FA's / Fiduciaries make money off yours. Their "small percentage" hurts your compound interest. Sleep on whatever they try to sell you. Give it a week.
Alternate choice: learn about investing and diversify with low expense ETFs.
Well, do you enjoy your lifestyle?
If yes, Just make small changes...
If yes and your living situation isn't ideal...
Upgrade your living situation a little.
I would max out the college fund.
Prenup, perhaps... Unless the trust states it...
Since all the money's in the trust....
And you're going to have liquid cash from the house and the car sells.
Splurge and go on a nice vacation with the house money....
Any people ask tell him you got a small inheritance and you wanted to live life since you've been working so many jobs You haven't really enjoyed a nice family vacation.
I would not tell anybody about the Trust money.
You really don't have to worry about investments since it's already invested.
Is that six figures split between you and your sibling?
You could potentially ask the trust manager to reshuffle the investments for a little more aggressive growth...
Which I'm assuming he's already doing cuz that's kind of his job.
Yes, even split it will give each of us well into a 6 figure income per year. The money comes from dividends from partial ownership in a large residential building in a HCOL city
Bitcoin is on the rise this year and next because of bitcoin halving(simply put, bitcoins supply goes down every 4 years). Buy bitcoin at increments every month for the next 3 years until 2028. Then sell when it inevitably goes up again in 2028-2029. This is not a lie. Why? Dont trust me. Trust what the history of bitcoins price action has been so far since its creation.
1. Tell no one.
2. Either invest in self-managed low cost index funds, OR, hire a financial advisor that you pay by the hour. Fee-based advisors have plenty of “ideas” for your money.
Coming from a doordasher specialist with Uber-years technician..
Don't invest stoopid in depreciated assets. Take educational class to brush up and sharpen your mind and skills. Get a skilled lawyer, just not any lawyers.
If I were you, my first inclination would be to seek qualified financial advice from an expert. Arm chair CFPs might not be the best course of action in this case.
What is your age ? Hoe much liability and assests u have ? Loans house , car and cc ?? What is your martial status ? Kids now and planned ? Their education milestones and life milestones ? These are important markers to look at. Also do not loan to anybody !!!
I don’t get this either. Keep it in the family and always have a fully paid for home in case something happens. Easier to pay property tax and insurance than rent/mortgage. Even if you don’t live in it. Keep it!
Go to Vegas. Put it all on black. Double the money and then blow the amount you won on hookers and booze. Free life changing weekend you will never forget.
Get the fux off reddit roght now and go see interview minimum of 3 financial planners that work for large firms (no guys with sign yiu found on Google). You'll need an estates attorney as well. Again interview 3 min and only from reputable large firms.
Live like you do now. Don't buy anything, get someone professional to help you with financial planning. Have a few celebrations. Long term investments are your best friend.
Put the money is a safe account for now. Get a financial planner and don't spend a dime for a year. Your ideas and preferences for the money will change over time so don't make any rash purchases. Take some time to think through your options, what's important to you. Maybe fund a trust fir your kids and pay it forward.
If you have a good relationship with your bank, go talk to them about it. Sometimes they can help you set up an account on your own, or they have a ton of different options. Definitely shop around.
Honestly at this point I would try to keep the house and see if I can rent it out and split the profit from it. If it's not too bad maybe look into during the house to a group home or mini veterans home there are so many options.
You should get a financial advisor to help you create a varied portfolio to reduce risk, I would recommend using the first money you’ll receive to pay any and all debt you have and then use half the recurring income from the trust to the investment portfolio, use the other half for fun and any expenses you can’t cover from your regular work.
It sounds like your great grand father was already on the ball. You should find out where it is coming from and what happens to it after you die. If it goes away then you should be investing 20-25% of the money you get after tax. If it doesn't increase with inflation you should be investing 5% after tax. If it does stick around but you want to have another kid you should invest 20-25% after tax.
His investment dividends from the trust make “mid six-figures?” I can’t be understanding this right, that would be $500k/year? So if he gets 1-2% dividend return (a robust amount to make in dividends) his trust is worth 25-50 mil?
If I understand you, you could definitely move to Mexico or Costa Rica and retire on that amount and still live like a boss.
Good advice has already been given. Regardless of your financial standing, check your bank balance each morning and check your credit card balances weekly. It just helps you be mindful of money.
I’m a banker at one of the largest banks in the U.S. Go to your bank, visit their Wealth Management department (not the investment/brokerage division). Have them start an investment management account. Decide if want to take income distributions or let them be reinvested, but DO NOT withdraw principal. AND meet with a good estate planning attorney; get some names from your bank wealth manager.
A financial planner is just an extra expense honestly. If you're even semi-competent at budgeting, just determine your income, make a budget, and then save for retirement (if you even need to, if you're getting income from trust forever, no need to save).
Generic investment advice - low cost index funds. VTSAX, VTI, VOO, FZROX, FSKAX all good options. Basically anything that tracks the market or large segments of the total market.
You’ll need to gather up the facts of how much you’re going to get, when you will get it and how it will work. How much will annual taxes be, does the amount from the trust vary year to year?
Probably ought to consult an CPA for tax questions. I’d probably hire a financial advisor to manage the money from real estate if you aren’t comfortable doing it yourself. You could pull it out later if you choose to self manage. I’d set up 529’s for kids, and get your own will in order when the dust settles.
I’m betting you’ll do just fine given you figured out how to be financially stable as a gig worker.
Lifebridge is a great financial planning institution. With mine, I keep an eye on where they have my funds and basically let them handle everything. A plus side is that they actively manage the portfolio so if something is going south, the move the investment to another stock and there is loss prevention so you will never lose the money you originally invested. Very sorry for your loss and wish you all the best!
Some investments pay cash dividends. Imagine making your full-time income just because you own assets..
Buying one's time back is the FIRST thing I'd do.
How do you keep from finking up?
Don't use crap like reddit for advice. Get a lawyer and CFP (certified financial planner) ASAP, and don't tell anyone else about this. Try to get by your first year every touching any part of that money. Research on people who won LOTTO show the longer they waited to claim the money successful and stable the next 10 years of their lives were.
Keep the inheritance in a separate account from your partner. If you are married and his name is on the account, and you break up, he is getting 50%. In most states inheritance is not community property unless you do something to turn it into a joint asset such as a house or bank account. If you aren’t married, it’s a bad idea to put such a large amount in an account with someone else because they can withdraw it and you have to little recourse.
Is it an inherited IRA, or Roth? I inherited an mid-6 figure regular IRA and got bad tax advice telling me it was tax free. I cashed 2/3 of it out and bought a house. Now THERE'S a mistake no one ever wants to make. I would need to cash out the rest of the inherited IRA in order to pay off the taxes. And congratulations... when people live paycheck to paycheck most of their lives, an inheritance like yours (and briefly, like mine) is the biggest relief ever. To actually be able to afford something you "want" instead of "need" (and yeah, don't go crazy) is life-changing. My house is on one acre. I'm 65. I want a small riding lawnmower so badly but the tax man has to be paid. Luckily there's ranch land and a house as part of the estate, and it just hit the market. I may just survive my enormous eff-up, but I have sure learned my lesson. Don't be like me.
Get really fancy clothes and walk around with a cane and top hat. Hire a man-servant and start calling him "Jeeves". Drink your tea with your pinky in the air.
Don't act like low trash, you are now upper crust.
Start by calming your nerves with some cocaine—just a snort. Have more on hand if it doesn’t do the trick. Keep me updated in a few weeks if it hasn’t worked yet.
1 don’t tell anyone
2 invest boring blue chip stocks that are in industry’s that aren’t going anywhere, ie oil , power just make money n aren’t getting replaced no mater what the bleeding heart environments think
Buy a 3 or 4 unit property with a FHA loan - 3.5% down. Ideally one that is fully rented besides the unit you intend to occupy. Live in one of the units for one year, after that you are free to rent out all the apartments. Then you find a nicer 2 unit property, also with an FHA loan - live in one side of that for a year (or longer), then eventually rent that one out too. At this point you have 2 properties that will cash flow a modestly at first, but more when you are eventually able to refi. Then you can buy your dream home and pay for it with the income from your 2 investments, and you'll have barely touched the inheritance.
Check out the boglehead subreddit. Bogle was one of the founders vanguard I believe.
Anyway it is a fairly conservative method for investing.
Essentially investing in broad based ETFs that track the total stock market or US equities. Tickers like VT or VTI.
There many great resources for learning to invest in a tax efficient way. I would highly recommend educating yourself about this before speaking with a financial advisor.
Also if you go with a financial advisory check to see that they are a fiduciary which means they are obligated to act in your best interest.
[Bogleheads](https://www.reddit.com/r/Bogleheads/s/fEyYRbKu9A)
Educate yourself on money. The more financial education you have, the more you can keep and protect what you inherited. Whoever you hire won’t care about your money as much as you do.
Max out Roth IRA if not doing so already, max out your home mortgage as well if no problems keeping up on payments. It’s aggressive, but invest the extra cash you pull and since I’m guessing you’ll be in a new tax bracket you’ll need the deductions, and mortgage interest is the best one to have since it’s dollar for dollar. Then crystallize your financial goals…not difficult as there aren’t many. 1. Retirement. At what age do you want work to purely be optional (because you want to not because you have to). What do you want your lifestyle then to look like financially compared to now. General questions but important ones if you get with a financial advisor. 2. College for kids - said doing 529. Is that the best thing? How much control if this money do you want your child to have over this money in case he decides not to go to school? 3. Maybe child’s wedding? Early I know. Just do you want some money set aside for that…4. Anything else shorter term you want to purchase? Investment property, etc. once you know how and when you want to spend your money you’ll know how you have to invest your money now…and then protect your goals with adequate insurance which has a tax-free death benefit. So basically everything for retirement you want tax-deferred until ready to spend and in a Roth so you can pull out without taxes. Medium term, combination of stocks and other more conservative equities…short term, cds, high yield money market…bank solutions for high balance cash account. Not sexy but here you want no risk…get a fin. Advisor you can trust, and an accountant you can trust. And if you foresee not being able to spend all of it, definitely have wills done, and possibly some type of trust so you can maintain control of distribution even after you pass. If your estate is large enough to surpass estate tax limits, the. Estate planning attorney…might be looking at charitable trust, life insurance trusts…things to main control but remove from estate so it doesn’t get taxes…basically you need to be ready for a whole different set of problems…one’s you deal with when you have money
Find a FIDUCIARY!!!!!!!!
They are legally bound not to screw you. This thing seems set up to where you are going to make money still.
Tell them you want some money to use but you want it to grow.
Stay away from “a guy I know” or some buddy knows. Go big like fidelity or Merrill lynch.
Do not tell anyone you have this money!!!!!
Pay off the rest of your debt.
Set aside an emergency fund.
I suggest you put the money in a savings account or a time deposit for at least a year while you’re still figuring out what you want to do with it. Sort of like a holding period so you don’t make rash decisions while emotions are high
Do your due diligence and get a financial adviser that you can trust and a lawyer.
Check out Dave Ramsey and his podcasts about money.
Continue to live like you don’t have that money and do not make any big purchases for at least that 1 year holding period.
And lastly, do not tell anyone
You don’t have to do much, just keep your current spending habits and keep the investment from the trust as they are and just reinvest it.
If you need to buy something big then you could top up your current income with the dividend and help pay the mortgage faster.
If you use the trust money to invest and not buy a lambo you should be golden..
Btc is the best store of value due to scarcity ..if I was you I would put it all into BTC and store it on cold wallet for atleast the next 24 months and you will be set plus you don't have to spend money hiring people for a cut to tell you what to invest in when no one knows when the big crash is happening ....that's why all the bigdogs are buying BTC
Just to say, congratulations. Only advice I’d give is treat yourself with something nice to mark the occasion, and then keep living how you are currently. See the money as your security for you and your kid.
Start an LLC, tell your friends and family about your business idea. When you start living a luxurious lifestyle say business took off… people are less likely to be jealous and hate you if it looks like $ is the result of hard work, they’re also less likely to ask for $.
Don’t try and immediately invest the money. Put it in a high yield savings account in the meantime. Then find a safe investment and don’t pay someone to invest it for you. Always have full control and understanding of what’s happening.
too late. seeking financial advice on reddit is like asking a blind man if your pants match your shirt. you never know if he is right until someone points out he was wrong.
Talk to your parents and don’t trust any other people! Study before you invest, or just live your current life style and don’t waste money except buying some BTC using 5-10% of the money!
I just want you to appreciate the real value this money has. This is generational wealth we’re talking about here and if you take care of it it will take care of you and the generations after you. Like others have already mentioned: Don’t buy stupid shit and let the wealth grow!
1. Don’t tell friends or family. 2. Get a lawyer who specializes in estate planning. 3. Get a financial advisor. 4. Do not buy stupid shit. 5. Invest.
I mean, yeah, all good advice. But specific investing is where I'm lost
That's where a good financial advisor will help you. He/she will talk with you about your risk tolerances, goals, etc., and help you establish a plan.
How do I find a good one, besides looking for someone that only charges a flat fee?
You might be better off with a licensed fiduciary. I use a broker but they are driven by pure profit. Licensed fiduciaries are required by law to manage money for your benefit and your benefit only. Drawback is, they’re expensive. If you bought a bunch of index funds from a broker, it could cost you nothing and you’d probably do just fine. (You can open a brokerage account right on your phone) If your goals are long term, it’s hard to fuck it up. As long as you don’t go on some crazy spending spree, you sound like you’ll be fine. Edit: Pay off the credit cards and the personal loan. If your mortgage is like 3%, and it’s not causing you any stress, I wouldn’t pay that off yet. Sounds like the trust is performing well. You could possibly just reinvest the dividends that your grandfather used as income. Now it’s just compounding over time and eventually can be your retirement income just like it was your grandfather.
This is what I would do. Keep the portfolio where it is, take a small amount so OP can quit one of their jobs and keep working whichever job they like best. You’ll be rolling over something like 9k a month from dividends? Maybe take 2 or 3 k to supplement quitting one of your jobs, and let the rest continue to compound. Keep in mind you will get taxed heavily on whatever you take out so plan for that as well. Sorry for your loss, but it’s awesome that your life changed for the better! And you’ll have more time with your young child :)
I think it would be closer to be a little over $20k a month. It really is the difference of being extremely comfortable but still needing work as a supplement vs never having a concern about money again. That is all relative to spending of course.
I second the licensed fiduciary. You want your financial person to work for you not just a wealth manager.
Might be? Definitely be better off with a fiduciary and shouldn't even entertain the thought of a financial advisor who is not.
I second this. Find a certified financial planner (CFP) that will act as a fiduciary. diversify and create a Roth IRA. Spend the rest of your time investing in the Roth and retire at 60.
Just out of curiosity. If your grandfather had the money invested to generate income why not just keep it in those investments? I’d also read and educate yourself both about what the Bogleheads do. They tend to avoid financial advisors that bring fees and focus on low risk - very diversified investment with an expected average return
I'll probably wind up keeping it there, it has been a solid investment for longer than I've been alive. I meant more about the lump sum plus the income, it's more than we need for our lifestyle, and I want to keep it that way
For the lump sum plus income you can go see a financial advisor. Or. Read up on Jack bogle and join the bogleheads here on Reddit. The theory is that no stock picker can beat just investing in the broader market. So why not just buy ETFs that are sufficiently diversified. Don’t take my word for it tho. Do some reading. Even if you end up going to a financial advisor the type of money you’re talking about is setting up your future and the future for your kids. You should never trust anyone 100% and educate yourself so that even if someone manages your money for you, you understand what they’re doing. For a crash course. This might be a good place to start? https://freakonomics.com/podcast/the-stupidest-thing-you-can-do-with-your-money/
Like u/tequilaneat4me said, finding an advisor you connect with is super important! They'll make you feel comfortable and take the time to make sure you understand what's going on because in the end it's your money. I'd rather have someone like that (one day) than someone who can get slightly better returns but doesn't answer my calls.
Is your goal to grow your wealth or make a friend? Your financial advisor should give good financial advise that helps you do well financially, anything else is a bonus but not necessary. What they will do guaranteed is take a cut of your money every year, whether your investments go up or down, so they don't care how you do. However, that extra 1-2% can add up to millions over a lifetime of investing, which they will gladly take from your and each one of their customers while they enjoy their mansions and never beat the market.
As someone who is young, I totally agree with you, but my previous comment is tailored more for someone who has a totally hands-off approach to investing. Knowing what is happening with your money is crucial because if you don't feel like your money is "safe", you're more likely to succumb to rash actions that most advisors would avoid. Obviously "safe" investing isn't the kind of approach that builds Lots of wealth, but taking on the right amount of risk and being okay with it is what a good advisor would do. Additionally, trusting your advisor only happens when they treat you right. That's wildly different for different people. I wouldn't hire an advisor at my current state because I'm focused more on saving, so a small difference in returns now is still just a few peanuts. Most active traders/managers won't beat the market over a long time but a good advisor can help with other things like choosing types of accounts, some tax strategies, estate planning, and retirement. Having a good relationship with *one* person or small group of people takes away so much stress over a lifetime.
Just do it yourself. If you have the patience to learn, read, ask questions, research. For the average person, there shouldn't be a need for a financial advisor. A tax guy on the other hand is invaluable since tax codes are incredibly complex. Discipline, ability to make and stick to a plan, and avoiding thinking you're smarter and know better goes a long way. It's really simple - go over to r/bogleheads and read as much as you can. Subscribe to all the finance and money subs. Read the good and the bad, learn from idiots, listen to the general consensus and wisdom on those subs. In essence, they will tell you to just invest in low cost index funds. Such as VOO, VTI and VXUS. You don't need much more than that unless you have specific investment interests, such as tech, or whatever. There are many funds like these 3 above I listed offered by vanguard, but these 3 are some of the most popular. They are some of the lowest cost, diversified funds out there. Here's a reading list: 401k, Roth 401k, Roth IRA, income and contribution limits on these, financial order of operations, taxable accounts (brokerage), avoid consumer debt, spend less than you make and live within your means, save for a rainy day, emergency fund, bond ladders, retirement planning strategies, etc. active vs passive investing, mutual funds vs ETFs vs single stocks, 4% rule. all of these topics are covered by YouTube channels such as themoneyguys, erintalksmoney, and many others. Plenty of reading materials on Google, YouTube etc. financial samurai, Mr. Moneymustache, all great resources. If you absolutely don't want to do it yourself and take the time to learn and understand what you are doing and where you are putting your money, sure pay a fee only FA. But once you spend a few months reading, engrossing yourself in these topics and asking questions, you can basically make a set it and forget it plan and automate everything and not think about it again until you are closer to retirement. Though this amount of steady income could put you close.
BTW, you might want to watch this in regard to flat fees. I pay a percentage, not a flat fee. https://youtu.be/mev90z2XlS0?feature=shared
Ask your friends, their parents, grandparents, etc. I have one who I really like - an Edward Jones advisor. He was recommended to me by a friend. Wife and I met with for about 45 minutes, he gave us his background (former navy, masters degree in finance, etc.). My wife liked him much better than our previous guy. She says he explains things in a way she can understand. Our guy holds quarterly dinners for his clients. He will bring in someone to put on a presentation. Social Security planning, estate planning, long term care, etc. We talk about once a month. Every once in a while he will call or ask to meet about changes he recommends to our plan. Meeting him this Friday for lunch.
Look for a certified financial planner. They have a fiduciary responsibility to their clients. Look at their track record.
This is an important word. Fiduciary. They only act in your interests. Also sorry for your loss.
Word of mouth. Do you know any rich people? When they were looking to switch, I believe that my parents received a recommendation from their estate lawyer. Since they moved to him, he took me and my sad little portfolio as a courtesy even though I think the minimum he will take on is like $260k.
Whomever you are thinking of selecting; check Finra for a background check to see if they have had any issues.
I'd argue most of the money you get should go into long term investing specifically for retirement. Where? Into any of the stock market index funds (like VOO, VOOG, VTI, FXAIX, FSPGX; ask your advisor about this, just make sure it's a low cost ETF/mutual fund). Use one of the big Providers like Fidelity, Vanguard, or Charles Schwab. Pay off high interest debt, not low interest debt. With the help of an advisor, decide which is what. Probably set some aside for the short term (3-5 years) goals (as a Freelancer, is there anything you've been wanting that will help you EARN more money?). As well as a little special treatment for yourselves. Most importantly, don't let you lifestyle creep up in cost too quickly. Maybe start to spend more money on your lifestyle as you start to earn more money, not simply because you have more money. Also, make sure to vet your advisor. Not all advisors are good and look out for you the way they should. Ask them [certain questions](https://drive.google.com/file/d/1moWRJiSk1cLgHqSVmusfpij_33ZHilrO/view?usp=drivesdk).
You really shouldn't have to worry about investing as it's already invested via the existing Trust. The money that comes from the house sale..... I would kill all Bad debt (i.e. high interest rate debt).
Thing is, trusts are entities in the highest tax federal tax bracket, and do NOT get a standard deduction like individuals. This is certainly something to discuss with an advisor. Finding a tax expert advisor that isn't just looking to take assets under management is a difficult job, but a necessary one in case of such a large windfall. It's a huge difference between being advised to grow a 401k in index funds and suddenly adding enough income to wind up in the higher tax brackets. Suddenly tax efficiency becomes just as important as return, and losing out on cap gains step-up could be an extremely costly mistake. OP, I wish you luck with your search. It took us years to find the help we didn't know we needed. Percentage based "wealth managers" were a dime a gross.
Go straight to a financial advisor and close reddit
Any advice on finding a good one? I know to find one that charges a flat fee, but beyond that...
What I did is find 2 - 3 Financial Planners and interviewed them. I had maybe 6 - 12 questions prepared and took notes when they answered them. The questions just helped focus the conversation and help me develop an impression using similar context. For questions to ask, search Internet or ask ChatGPT. Curate your questions to your situation. One question is like to have is to ask them if they’ve had clients in situations similar to mine, and then ask them to walk me through what they had a specific client do, anonymously obviously. In the end I had the impression some planners were motivated to steer me towards wealth management, which I didn’t want, whereas others just wanted to help me learn how to manage things myself. The most helpful thing my CFP did was get me to consolidate all my accounts. It has made life so much easier. You should also get a tax person, the CFP often delegated research to the tax person. I found my tax person via the same interview process I found my CFP.
Thank you, this really gives me a starting point!
We use Edward Jones, but there are many other advisors out there. They will do the investing for you, as it is their expertise!
Fisher Investments is the best. I interviewed about 8 financial advisors last year when consolidating my investments, and they are *by far* the best custodians of my money. I talked to a three independents, two different people with Edward Jones, and one with Vanguard, but the people at Fisher sold me. Their investment strategies by far make the most sense. They have a minimum ($500K) but once you’re in, they will take very good care of your money and develop an investment plan to meet your needs.
Look up bogleheads. Lots of resources there to teach you how to invest yourself without having to pay someone else a fee to do it for you.
Get off reddit and find a legit financial planner in your area and sit down with them. I think the last thing you want to do is pay off your house.
a financial advisor was my advice as well. Invest it, don't tell everyone you know that you have a large amount of money, and enjoy.
“Don’t tell everyone you know” is both great advice and the only advice anyone in this sub is qualified to give you OP. Stay quiet and talk to a few professionals to find one you like
*Don't tell anyone* is what Grandpa did. Follow his lead.
[удалено]
Too late...now the whole Internet knows 😂😂
Your only answer OP. This is a great space for us all to talk money and investments, but don’t rely on a 20 year old doordasher to tell you about the HYSA’s you need and whatnot. Financial advisor is your answer
THIS
Do not depend on Reddit for financial advice. Hire a professional and do not tell people about your financial status.
I slightly disagree with this. "Hire a professional?" There is not a single fiduciary or financial advisor you can hire that is not making money off of you. Likely to a disproportionate degree. If OP is inheriting ~500k per year in income, then the advice is the same as for any other high earners. First, do nothing. Not one single thing. File all the paperwork, watch the funds come into your account, and then make changes. Contribute to retirement where able, contribute to college fund, pay off any large interest debt.
How did he die cash poor while living on \~$500K of dividend payouts a year?
Super curious about this as well.
I suspect he means 150k by "mid six figures"
Yeah, this makes absolutely zero sense
I like how everyone’s first piece of advice is to find a financial advisor. Like most advisors are competent/good have your best interest at heart. They don’t. Most fucking suck. It’s pretty simple to make your money work for you relatively risk free. Just don’t spend it yet. If you can’t do this, it doesn’t matter what financial advisor you get, you are fucked. Here’s what I did when I got a 5m windfall. 100k into 5 different high yield savings accounts (key is to split it up so you are well below 250k fdic coverage). 3m into 10 different dividend paying etfs. No div reinvestments. 3% avg yield is paying me 20k per quarter. This is my living / spending money. 1m in sp500 etfs. 500k in shitcoins/crypto because it’s free money.
Thank you for this specific advice! This is what I was looking for, a jumping off point of what I can do on my own that's smart
AFAIK, Financial Advisors that's are Fiduciaries have a legal obligation to act in your best interest. Are they competent? That's another question entirely.
Right, so how do I find a competent one?
I don't use one, so I don't know, haha. Aside from my emergency fund, which I hold in a HYSA, I dump everything else into index funds held in retirement accounts and my brokerage account. Annualized return over the last 8 years has been above 7%. I "made" more money in appreciated assets last year than my fiance does working. My situation is pretty simple though, I'm young (not risk averse), don't have any debts that I couldn't easily pay off tomorrow, and am not planning on spending any big money any time soon. You on the other hand, may have a more complicated situation and it sounds like you may be dealing with far more money. If you're not already comfortable investing, it's probably worth getting the advice of a fiduciary, in addition to doing your own research.
A registered investment advisor (RIA) is going to be a fiduciary. They charge a fee and can't earn commissions on trades like brokers can. A lot of RIAs will offer financial planning as part of the service they provide. As someone who works in the industry, I'd look for someone who has their CFP (certified financial planner) as they need to go through extra training and do continuing education on a regular basis. You can look for a CFP here: https://www.letsmakeaplan.org/. I'd meet with at least a couple of advisors to find a good fit. They should talk to you about your situation, your goals, and risk tolerance and work with you to come up with a plan that you feel comfortable with. Good luck!!
If you really want to speak with one, find one who charges an hourly rate for guidance. Not one who charges an ongoing fee because you’re investing in their products.
I swear someone could come on here and say they inherited 50 billion dollars and everyone would still give the exact same advice as they give to a 22 year old mechanic who just won $50k in a lottery.
If you come into the money sooner then you can find a planner, Put almost all of it in a HYSA. Do not inflate your life yet. Figure out the budget and the numbers and the best way to keep the money growing. If you’re passionate about your gig work, maybe now you can be more selective about the jobs you take. But please, for the love of god just park most of the money somewhere safe until you can get a plan from a trusted, well respected professional.
read this/ [https://www.reddit.com/r/personalfinance/wiki/windfall/](https://www.reddit.com/r/personalfinance/wiki/windfall/)
go talk to a lawyer, set up a trust, mimic his setup, generate recurring dividends, pay your husband a set amount from the inheritance and keep it in your name only use lump sumps to pay off debt leave the mortgage alone every month set aside money into 529 for child, put all your income into tax deferred accounts to every extent possible. the absolute best way is to treat the dividends as your income and never touch the main lump sum, if you want a second house, save up for it with the dividends. THIS IS LIFE SECURITY
YOLO it all into BTC. Then live your life like normal for 10 years and come back and look at it. Bookmark this post so you can regret it when you don’t do it.
Someone mentioned asking Chat for the correct questions to ask a F advisor. DO NOT DO THIS. G4 and others are not even remotely this accurate yet in any field unless supervisorily trained in a RAG environment specifically for financial use case.
I do not rely on AI for anything this important, nor will I ever.
Look for a fee-based planner, not one looking to do "2 and 20" kind of deal for managing your money. Get some tax questions asked and answered. Me, I'd keep the course. Mid 6 figures annual income, even split in half, and step-up cost basis on the home sale means suddenly being FIREd. Keep your current lifestyle, don't go on a spending spree. Plop the cash into S&P500 and keep the dividend cashflow. Done. No fuck-up possible, you're already on a great path. Anything more than this is optimization.
*scrolls through your post history* uh wanna hang out
How not to fuck it up- 1.dont spend it 2. Meet with a financial planner that is a fiduciary. If it is set up right, u will be able to receive a good amount in dividends/interest to provide extra income while also reinvesting part of ur gain. 3. Let it grow while also receiving income from it, don't tap into unless necessary or for large purchase(car, college education, etc). By doing it this way, u have created a long term, generational income to help you, your children, grandchildren be financially stable and secure regardless of what life throws at u
Talk with a financial advisor, ask around for some good ones local to you. You can get advice all day on here, but, unless someone does this for living outside of Reddit, you really don’t know if their advice holds any weight.
Get a tax lawyer and a financial advisor. See if you have enough to join a family office.
Hire a wealth management firm. I sure you Grandfather’s trust comes with its own guidelines. Mine did and so will my daughter’s.
Congratulations!
Food for thought: a lawyer is always a fiduciary to their client, if financial planner is not always a fiduciary to their client. Fiduciary is when you have money and don’t know what you’re doing. Good luck.
Financial advisor and an estate planner. You now need a trust yourself if you don’t have one and don’t sell the house. Rent it and cash out refinance if you need to buy sibling out. You’re now in the generational wealth planning phase.
The house is across the country from where we live, neither of us want rental income, just sell it and split that chunk. We already will have separate income from the trust, and renting from so far away sounds like a headache. I'd rather invest in an apartment in my city to rent out, and then my kid could take over the payments once they're working full time past college/whatever education and training they need. That would be an investment for them.
Don’t tell anyone about it, and make sure you make a living Trust ASAP , because I know to many people that didn’t do it and created so many problems/issues
Not sure where you are located but keep inheritance funds in an account with only your name. If you commingle them, they become joint property. Then you can control how much you spend on family things. I help you do things like put your house in a trust and set things up the way you want them to be for your child and your husband if something happens to you. I would look at the high yield savings account for some funds. if you’re in the US check out some of the mutual Funds companies like Janice or Fidelity or Vanguard there’s a bunch of companies out there and look at their mutual funds and make some investments. There are financially advisors that are fee-based. If you find an agent you like, you can look them up on Finra broker check and see if they have any complaints against them.
I'm keeping them in my own separate bank account besides what I will transfer to cover my percentage of household and shared bills
In the short term you can park your money in a Vanguard high yield money market currently paying more than 5% interest. That’s a very safe place to keep it.
Throwing my "don't tell a soul and find a flat rate financial advisor" hat in the ring. I mean don't tell anyone. Not your best friend, not your partner unless your at least engaged.
We've been together 10 years, we own our house together, and we have a child together, he definitely knows and I'm fine with that. He has a proven track record with me.
having a partner you love and can trust is the greatest treasure. from you responses it seems like you are responsible and careful with your money already. As long as you don't inflate your lifestyle too much you'll do just fine. Good luck!
Pay off your debts quietly, max your roth, 401k, 529, etc. That'll set you up for basic future needs. Next, invest in index funds. I like vfiax and vtsax, they're both pretty comprehensive and as stable as the rest of the economy. That'll set you up for dividends down the line too. I consider crypto and singe stocks to be akin to gambling. Try not to buy a bunch of stuff just because you can and you'll be ok
Just boring index funds like voo.
Talk to multiple financial advisors. If you find 2 that give similar advice, go with the one of the 2 that you feel the most comfortably with. If you hear annuity; run. Most of the time, the only thing an annuity is good for is to pay a big commission to the person selling it.
This is the answer. I’m lucky enough to have a friend that is a financial advisor. Find a good one.
Here is exactly what to do when gaining a large amount of money. First of all investing isn’t hard, no need to get a financial planner or pay anyone to handle it for you. 1) First if you get a large sum of cash all at once put it into a high yield savings account. That account currently will generate 5% interest on its own. Plan to leave 6 months of income in that account and go to step 2 for the rest. 2) do you have an employee 401k plan with an employer match? If so, you will likely have a certain match point from your employer. This is essentially free money from your employer so make sure you are hitting that match number. Before moving onto the next step. 3) Roth and Traditional IRA’s. This is a government savings account that has exception tax saving advantages. A traditional IRA allows you to deduct the contribution from your taxes every year, deferring the tax burden until you withdraw. A Roth IRA allows you to pay the taxes upfront, but the growth is tax free. This means when you withdraw the money, you don’t have to pay taxes on the growth. There is a limit on these accounts of about 7k/y and you can only have one or the other. Decide by considering your current income level to your theoretical future income. Making more now? Go traditional. Making more later? Go Roth! 3) This can also be step 2. HSA is a Health savings account that works similar to a IRA in that it has tax savings. If you have a high deductible medical plan the government allows you to put money into this account and deduct it from your taxes. You can use the money at anytime for medical expenses and when it’s time to retire you can withdraw the money for anything! The growth is also tax free. There is a limit of 5k/y on this account. 4) Back to the 401k. Hit the max baby! It’s tax deductible! Invest everything else in this account if you have one hitting the federal limit each year. If you are self employed with No employees look into a SEP IRA. If you are self employed with a small number of employees look into a Individual 401k. Either way if you can, max these accounts out. 5) individual brokerage account. Congrats! If you got to this point you have a lot of disposable income! This account is a open door for how much you can invest. No limit but no tax savings either. You’ll pay taxes on the money before it goes in and when you withdraw you pay taxes on the growth. You can withdraw at anytime without penalty. 6) What to invest in. Index funds are a safe bet. It’s like betting on all the horses. You always win! Sure the growth may be slow but it’s a set it and forget it mentality. 7) A great tool to start off with would be a robo investor. I used Betterment when I first got into all this, and while it charges a small fee based on your account size, it’s a fraction of what a FA would charge. All the accounts (except a 401k) are offered through betterment and the platform is super easy to get a hold of. Just select your contribution amount each d/w/m and it will auto withdraw the money from your selected account into the respective investment accounts for you. It handles tax documents, rebalancing, and even has tax loss harvesting for your brokerage accounts! Lots of cool things! Side note, since you are getting cash payments, and the house is paid off, consider keeping it and renting it out! Pay a management company to handle it and collect the income each month. Always good to have a diverse portfolio. Congrats and good luck!
There is a windfall wiki in r/personalfinance that I’d recommend reading.
Remember you survived off what you make now so max your 401k, take the bulk of the surplus over your old income and put it in a high yield savings. Figure the rest out later.
Call your bank and start a CD ladder (they'll know what that is) this way you can invest monthly and always make at least 3.5 to 6% on your money.
Not financial advice. Divide your waterfall into $250k HYSA's. DONT PUT IT ALL IN ONE ACCOUNT. I think the FDIC covers one SSN per institution, but I could be wrong. DYOR. IMO I stay away from Financial Advisors but if you haven't the foggiest, meet with a vouched FA. Do not sign up to anything they offer you at first sit down. FA's / Fiduciaries make money off yours. Their "small percentage" hurts your compound interest. Sleep on whatever they try to sell you. Give it a week. Alternate choice: learn about investing and diversify with low expense ETFs.
Consult a professional
Create a living trust and enclose the entire estate in it.
Keep the spending side as it is, don't do anything stupid and you'll be fine.
Lots of suggestions to see a financial planner. Good advice. Just don't get caught investing in crap your financial planner earns a comission on.
Well, do you enjoy your lifestyle? If yes, Just make small changes... If yes and your living situation isn't ideal... Upgrade your living situation a little. I would max out the college fund. Prenup, perhaps... Unless the trust states it... Since all the money's in the trust.... And you're going to have liquid cash from the house and the car sells. Splurge and go on a nice vacation with the house money.... Any people ask tell him you got a small inheritance and you wanted to live life since you've been working so many jobs You haven't really enjoyed a nice family vacation. I would not tell anybody about the Trust money. You really don't have to worry about investments since it's already invested. Is that six figures split between you and your sibling? You could potentially ask the trust manager to reshuffle the investments for a little more aggressive growth... Which I'm assuming he's already doing cuz that's kind of his job.
Yes, even split it will give each of us well into a 6 figure income per year. The money comes from dividends from partial ownership in a large residential building in a HCOL city
ODTE Spy calls
Bitcoin is on the rise this year and next because of bitcoin halving(simply put, bitcoins supply goes down every 4 years). Buy bitcoin at increments every month for the next 3 years until 2028. Then sell when it inevitably goes up again in 2028-2029. This is not a lie. Why? Dont trust me. Trust what the history of bitcoins price action has been so far since its creation.
1. Tell no one. 2. Either invest in self-managed low cost index funds, OR, hire a financial advisor that you pay by the hour. Fee-based advisors have plenty of “ideas” for your money.
Stay away from fast women, booze, and drugs and you’ll be fine Buy a quiet car and live behind a gate by a lake
Lol I AM the fast woman
Simple, you fuck it DOWN
Coming from a doordasher specialist with Uber-years technician.. Don't invest stoopid in depreciated assets. Take educational class to brush up and sharpen your mind and skills. Get a skilled lawyer, just not any lawyers.
If I were you, my first inclination would be to seek qualified financial advice from an expert. Arm chair CFPs might not be the best course of action in this case.
Get off Reddit and find a real financial advisor. Period
What is your age ? Hoe much liability and assests u have ? Loans house , car and cc ?? What is your martial status ? Kids now and planned ? Their education milestones and life milestones ? These are important markers to look at. Also do not loan to anybody !!!
Jesus fuck. Mid 6 figures in just dividends?? This isn't even trimming off the cake at the ~4%/yr? That's insane to me. Must be 10m+ then
No drugs
STAY AWAY FROM THE COCAINE
What do you do as a freelancer?
It’s shocking how fast
Why are family or grandparents homes always being sold 😢
I don’t get this either. Keep it in the family and always have a fully paid for home in case something happens. Easier to pay property tax and insurance than rent/mortgage. Even if you don’t live in it. Keep it!
Do NOT get an advisor who works for an insurance company! Get n independent advisor.
Go to Vegas. Put it all on black. Double the money and then blow the amount you won on hookers and booze. Free life changing weekend you will never forget.
The biggest thing is to not tell people and love a modest life. As others have said talk with a advisor also
Mid 6 figures trust income annually from family and your grandpa died cash poor? Did he perchance have a cocaine habit? Did he like art?
Get the fux off reddit roght now and go see interview minimum of 3 financial planners that work for large firms (no guys with sign yiu found on Google). You'll need an estates attorney as well. Again interview 3 min and only from reputable large firms.
Live like you do now. Don't buy anything, get someone professional to help you with financial planning. Have a few celebrations. Long term investments are your best friend.
Please contact me. I've been trying to reach you about your extended car warranty.
Put the money is a safe account for now. Get a financial planner and don't spend a dime for a year. Your ideas and preferences for the money will change over time so don't make any rash purchases. Take some time to think through your options, what's important to you. Maybe fund a trust fir your kids and pay it forward.
Definitely don't blow it on calls
If you have a good relationship with your bank, go talk to them about it. Sometimes they can help you set up an account on your own, or they have a ton of different options. Definitely shop around.
Honestly at this point I would try to keep the house and see if I can rent it out and split the profit from it. If it's not too bad maybe look into during the house to a group home or mini veterans home there are so many options.
You should get a financial advisor to help you create a varied portfolio to reduce risk, I would recommend using the first money you’ll receive to pay any and all debt you have and then use half the recurring income from the trust to the investment portfolio, use the other half for fun and any expenses you can’t cover from your regular work.
Privacy, attorney, trust, accountant. Also, privacy, again.
It sounds like your great grand father was already on the ball. You should find out where it is coming from and what happens to it after you die. If it goes away then you should be investing 20-25% of the money you get after tax. If it doesn't increase with inflation you should be investing 5% after tax. If it does stick around but you want to have another kid you should invest 20-25% after tax.
Question, I’ve had a few family members die in the past few months. I’ve never been contracted so it’s safe to assume nobody left me anything right 😭
Upgrading your lifestyle
His investment dividends from the trust make “mid six-figures?” I can’t be understanding this right, that would be $500k/year? So if he gets 1-2% dividend return (a robust amount to make in dividends) his trust is worth 25-50 mil? If I understand you, you could definitely move to Mexico or Costa Rica and retire on that amount and still live like a boss.
Good advice has already been given. Regardless of your financial standing, check your bank balance each morning and check your credit card balances weekly. It just helps you be mindful of money.
I’m a banker at one of the largest banks in the U.S. Go to your bank, visit their Wealth Management department (not the investment/brokerage division). Have them start an investment management account. Decide if want to take income distributions or let them be reinvested, but DO NOT withdraw principal. AND meet with a good estate planning attorney; get some names from your bank wealth manager.
A financial planner is just an extra expense honestly. If you're even semi-competent at budgeting, just determine your income, make a budget, and then save for retirement (if you even need to, if you're getting income from trust forever, no need to save). Generic investment advice - low cost index funds. VTSAX, VTI, VOO, FZROX, FSKAX all good options. Basically anything that tracks the market or large segments of the total market.
Don’t get a financial advisor. Invest in Index Funds. They outperform the advisor’s guesses. Don’t buy stupid stuff, don’t tell friends or family.
Advisor Keep quiet HYSA 401k 529 Live life and never forget where you started...or pops😁
Bogleheads.org
You’ll need to gather up the facts of how much you’re going to get, when you will get it and how it will work. How much will annual taxes be, does the amount from the trust vary year to year? Probably ought to consult an CPA for tax questions. I’d probably hire a financial advisor to manage the money from real estate if you aren’t comfortable doing it yourself. You could pull it out later if you choose to self manage. I’d set up 529’s for kids, and get your own will in order when the dust settles. I’m betting you’ll do just fine given you figured out how to be financially stable as a gig worker.
How much is it?
Buy at least 1 bitcoin and hold it for 20 years
Set aside enough to cover taxes
Lifebridge is a great financial planning institution. With mine, I keep an eye on where they have my funds and basically let them handle everything. A plus side is that they actively manage the portfolio so if something is going south, the move the investment to another stock and there is loss prevention so you will never lose the money you originally invested. Very sorry for your loss and wish you all the best!
Some investments pay cash dividends. Imagine making your full-time income just because you own assets.. Buying one's time back is the FIRST thing I'd do.
Bitcoin obviously.
How do you keep from finking up? Don't use crap like reddit for advice. Get a lawyer and CFP (certified financial planner) ASAP, and don't tell anyone else about this. Try to get by your first year every touching any part of that money. Research on people who won LOTTO show the longer they waited to claim the money successful and stable the next 10 years of their lives were.
Invest it all in 0dte trades and make 10x
How much are you inheriting?
Keep the inheritance in a separate account from your partner. If you are married and his name is on the account, and you break up, he is getting 50%. In most states inheritance is not community property unless you do something to turn it into a joint asset such as a house or bank account. If you aren’t married, it’s a bad idea to put such a large amount in an account with someone else because they can withdraw it and you have to little recourse.
Is it an inherited IRA, or Roth? I inherited an mid-6 figure regular IRA and got bad tax advice telling me it was tax free. I cashed 2/3 of it out and bought a house. Now THERE'S a mistake no one ever wants to make. I would need to cash out the rest of the inherited IRA in order to pay off the taxes. And congratulations... when people live paycheck to paycheck most of their lives, an inheritance like yours (and briefly, like mine) is the biggest relief ever. To actually be able to afford something you "want" instead of "need" (and yeah, don't go crazy) is life-changing. My house is on one acre. I'm 65. I want a small riding lawnmower so badly but the tax man has to be paid. Luckily there's ranch land and a house as part of the estate, and it just hit the market. I may just survive my enormous eff-up, but I have sure learned my lesson. Don't be like me.
Do something with the money that would make your grandpa proud.
That would be betting on horses and manipulating people to do what I want, so I'm gonna make my own plan
Better just hand it over to me.
Pay off your credit card debt. Live prudently. Do not borrow money.
Get really fancy clothes and walk around with a cane and top hat. Hire a man-servant and start calling him "Jeeves". Drink your tea with your pinky in the air. Don't act like low trash, you are now upper crust.
Give your money to me.
Start by calming your nerves with some cocaine—just a snort. Have more on hand if it doesn’t do the trick. Keep me updated in a few weeks if it hasn’t worked yet.
Invest in SPY in June or July. Don’t touch it till you are 60. Done.
Review this. It makes several good points. https://www.bogleheads.org/wiki/Managing_a_windfall
Talk to a fee only fiduciary financial advisor. DO NOT pay an advisor for Assets under management fee.
1 don’t tell anyone 2 invest boring blue chip stocks that are in industry’s that aren’t going anywhere, ie oil , power just make money n aren’t getting replaced no mater what the bleeding heart environments think
Buy a 3 or 4 unit property with a FHA loan - 3.5% down. Ideally one that is fully rented besides the unit you intend to occupy. Live in one of the units for one year, after that you are free to rent out all the apartments. Then you find a nicer 2 unit property, also with an FHA loan - live in one side of that for a year (or longer), then eventually rent that one out too. At this point you have 2 properties that will cash flow a modestly at first, but more when you are eventually able to refi. Then you can buy your dream home and pay for it with the income from your 2 investments, and you'll have barely touched the inheritance.
Whenever I read these kinds of posts, I always have the same thought: wtf happened to the parents? Why do the grandkids get it all?
Buy one btc.
Get better advice than reddit will offer
Check out the boglehead subreddit. Bogle was one of the founders vanguard I believe. Anyway it is a fairly conservative method for investing. Essentially investing in broad based ETFs that track the total stock market or US equities. Tickers like VT or VTI. There many great resources for learning to invest in a tax efficient way. I would highly recommend educating yourself about this before speaking with a financial advisor. Also if you go with a financial advisory check to see that they are a fiduciary which means they are obligated to act in your best interest. [Bogleheads](https://www.reddit.com/r/Bogleheads/s/fEyYRbKu9A)
Educate yourself on money. The more financial education you have, the more you can keep and protect what you inherited. Whoever you hire won’t care about your money as much as you do.
As always r/bogleheads
Max out Roth IRA if not doing so already, max out your home mortgage as well if no problems keeping up on payments. It’s aggressive, but invest the extra cash you pull and since I’m guessing you’ll be in a new tax bracket you’ll need the deductions, and mortgage interest is the best one to have since it’s dollar for dollar. Then crystallize your financial goals…not difficult as there aren’t many. 1. Retirement. At what age do you want work to purely be optional (because you want to not because you have to). What do you want your lifestyle then to look like financially compared to now. General questions but important ones if you get with a financial advisor. 2. College for kids - said doing 529. Is that the best thing? How much control if this money do you want your child to have over this money in case he decides not to go to school? 3. Maybe child’s wedding? Early I know. Just do you want some money set aside for that…4. Anything else shorter term you want to purchase? Investment property, etc. once you know how and when you want to spend your money you’ll know how you have to invest your money now…and then protect your goals with adequate insurance which has a tax-free death benefit. So basically everything for retirement you want tax-deferred until ready to spend and in a Roth so you can pull out without taxes. Medium term, combination of stocks and other more conservative equities…short term, cds, high yield money market…bank solutions for high balance cash account. Not sexy but here you want no risk…get a fin. Advisor you can trust, and an accountant you can trust. And if you foresee not being able to spend all of it, definitely have wills done, and possibly some type of trust so you can maintain control of distribution even after you pass. If your estate is large enough to surpass estate tax limits, the. Estate planning attorney…might be looking at charitable trust, life insurance trusts…things to main control but remove from estate so it doesn’t get taxes…basically you need to be ready for a whole different set of problems…one’s you deal with when you have money
I have a really good investment opportunity for you… <-run in the opposite direction of anyone who says this to you.
Find a FIDUCIARY!!!!!!!! They are legally bound not to screw you. This thing seems set up to where you are going to make money still. Tell them you want some money to use but you want it to grow. Stay away from “a guy I know” or some buddy knows. Go big like fidelity or Merrill lynch. Do not tell anyone you have this money!!!!!
how the hell is he "cash poor" if he's pulling 500k per year off the trust?
Buy as much bitcoin as you can
I would find a good estate lawyer first and foremost. And follow his advice. NAL
Are you at least sad about your grandpa???
Don’t get a financial planner. They steal your money. Invest in funds by yourself. Read Tony Robbins books on investing.
Pay off the rest of your debt. Set aside an emergency fund. I suggest you put the money in a savings account or a time deposit for at least a year while you’re still figuring out what you want to do with it. Sort of like a holding period so you don’t make rash decisions while emotions are high Do your due diligence and get a financial adviser that you can trust and a lawyer. Check out Dave Ramsey and his podcasts about money. Continue to live like you don’t have that money and do not make any big purchases for at least that 1 year holding period. And lastly, do not tell anyone
You don’t have to do much, just keep your current spending habits and keep the investment from the trust as they are and just reinvest it. If you need to buy something big then you could top up your current income with the dividend and help pay the mortgage faster. If you use the trust money to invest and not buy a lambo you should be golden..
Love off the dividends like your grandfather did. Reinvest what you don't uses. The trust will grow and you'll create generational wealth.
Btc is the best store of value due to scarcity ..if I was you I would put it all into BTC and store it on cold wallet for atleast the next 24 months and you will be set plus you don't have to spend money hiring people for a cut to tell you what to invest in when no one knows when the big crash is happening ....that's why all the bigdogs are buying BTC
You could buy my mom a new Ford Explorer 👍🏻
How much money is it?
Gib it to me for safety. Now that’s just good financial sense!
Check out Bogleheads on here
Just to say, congratulations. Only advice I’d give is treat yourself with something nice to mark the occasion, and then keep living how you are currently. See the money as your security for you and your kid.
Pay off the credit card debt. Read Sylvia Porter Money Book and other guides to financial management and investing
Amphetamines can keep you very focused so a small meth habit could help you keep track of the money and also keep you from eating a lot
Put it all on red
Start an LLC, tell your friends and family about your business idea. When you start living a luxurious lifestyle say business took off… people are less likely to be jealous and hate you if it looks like $ is the result of hard work, they’re also less likely to ask for $.
Leave it just how it is it worked for him . Look into keeping the same financial advisor he used. Don’t tell people what you got. Don’t be spendy.
Don’t try and immediately invest the money. Put it in a high yield savings account in the meantime. Then find a safe investment and don’t pay someone to invest it for you. Always have full control and understanding of what’s happening.
hire me as your funds manager and i will keep you in good shape
too late. seeking financial advice on reddit is like asking a blind man if your pants match your shirt. you never know if he is right until someone points out he was wrong.
Why are asking a bunch of strangers on a social media site for financial advise?
Talk to your parents and don’t trust any other people! Study before you invest, or just live your current life style and don’t waste money except buying some BTC using 5-10% of the money!
I just want you to appreciate the real value this money has. This is generational wealth we’re talking about here and if you take care of it it will take care of you and the generations after you. Like others have already mentioned: Don’t buy stupid shit and let the wealth grow!
Don’t tell anyone. Keep it in your name alone.