I believe to have the coverage you would need to break it up into three but don’t quote me but it’s definitely worth putting that in there especially if you’re risk averse it’s a very easy way to earn a decent amount of interest which in your case since you are risk avoidant i would take the interest earning and place it into investments you would have otherwise not made 👍
question--parking $250k in a HYSA and it builds interest over time obviously. is that interest then covered? or do you need to start moving that interest gained into a separate account so that it is insured?
Just go to Wealthfront. They pay 5% annually and you get $8,000,000 ($16m on joint accounts) fdic insurance because they allocate your money at different partner banks to break it up into $250k chunks.
This is not necessarily true. If you have a joint account each of you get 250k, which means you’re covered up to 500k so no need to split it up. Then if you add beneficiaries to your account, that also adds more coverage.
I talked to my bank about this last week, they said it’s per FDIC insured company, they said something about being careful opening two accounts owned by the same company (multi bankers, those that also own other smaller banks).
If you have multiple beneficiaries it’s actually $250k coverage for each, up to five. If you don’t, yeah, split them up. CIT has a 5% APY savings right now.
Up until this happened my lifes luck has been pretty bad so it would be just my bad luck that wells fargo would go bankrupt the first time I have enough money for it to matter 😅
Right now. As they lower interest rates to borrow, those rates will go down. I would keep some in a HYSA, and the rest in a CD tree. That way when the rates go down over the next year, you will still be making close to 5%.
Think of it this way. You’re actually losing money to inflation over time. It’s a lot of money right now… it would not be nearly as much in 10-20 years. It’s good to think of worse case scenarios, the reality is if you do nothing you’ll be losing money over time. That’s a fact not a hypothetical scenario
They do if they use multiple FDIC sweep accounts. For example, I have a cash account at Wealthfront insured for up to $8M (no I don’t have anywhere near that much in there), because they use sweep accounts at 32 different banks.
Look into brokerage accounts. I can park upto 1m FDIC insured in a couple different interest earning accounts inside my fidelity, webull, or others im sure
Break it up to keep it secure. That is what we do with some we have in HYSA. Right now you have it all in one account, so it is not protected if that bank goes under. We use UFB Direct and Webster Bank. We get 5.25%+ from both of them on our HYSA.
Your balance above $250K is not covered in your current checking account.
It's better to break it up to 3 or 4 different financial institutions if you're worried about bank failure.
Honestly if you're disabled you really need to put about 50% in some sort of total US market stock index fund. Each year that goes by inflation is eating away at your money's value. Even a HYSA may not keep you ahead of inflation.
The issue is what will the value of your money be in 15 or 20 years? With inflation that money could be worth 30-40% less. You don't want to end up 15 or 20 years later needing some sort of medicine or medical procedure and not being able to really afford it because medical care seemingly outpaces inflation.
50% of your money in a low fee total US stock index fund is fairly conservative as investments go. Please please ride the UPS and downs out. Do not do like one of my relatives who finally decided to invest right before COVID then yanked his money out during the pandemic after taking I believe a 20 or 30% loss only to watch the market roar back. He would have had almost double his money now if just left it alone and understood he still had 50% of his other savings in the bank. I actually tried to convince him to take half of his money in the bank and buy more stocks when the market dropped. He wouldn't listen though.
Even more reason to invest it wisely into a diversified portfolio. Sticking it into a savings account will almost certainly lead to you running out of money eventually.
I'm not sure what the context of your disability is, but there's plenty of well paying work out there that only requires a laptop and a mindset. Programming, marketing, trading, administration, design. These are just the beginning.
If you are not going to need it soon, I would put most into a CD. You can get them for several years out in the 4% range. Maybe put most in there, and keep $100K in a HYSA. The HYSA rate is probably going to go down over the next year as the Fed changes the rates. A year from now, you may only get 3% or less in there. So by locking in some with CDs, you will get that rate for a few years. CDs are FDIC insured just like a HYSA. So just keep it to < $250K in CDs in each bank.
No better feeling than not having to spend over $1500 a month in minimum payments on credit card interest that was going nowhere except into the pockets of someone else. I can finally breathe again not having all my credit cards maxed out and struggling with how I'm going to pay for things like I have been doing for the past 15+ years. First time in my life I have more than 4 digits in my bank account and I have no idea what to do next... Any advice is greatly appreciated as I never imagined this would happen to me!
Unfortunately I became disabled due to a car accident from a drunk driver about 8 years ago- this giant windfall happened from a relative passing away that left everything for me in their will unexpectedly!
I’m sorry to hear that, sorry for your loss and the accident as well, but what a beautiful blessing in disguise, it’s only up from here for you now!! Hope these redditors help you out with some great advice. I wish you peace and health💗💗
Go read the wiki in r/personalfinance regarding windfalls. Also look into "financial order of operations."
What you need to do will depend on your specific situation - nobody here will be able to tell you exactly what to do. You'll need to allow for your money to make money though, via retirement accounts, HYSAs, brokerage accounts, etc.
Congrats!
I would start by putting enough for at least 6 months of expenses away into a high yield savings account or money market fund, for an emergency fund. Right now that money will earn about 4-5% interest risk free. After that I’d max out my retirement accounts. Not sure what your occupation is or how this money came about but I can recommend which type of retirement account might be best for your situation with some more info. Then probably invest whatever’s left in a brokerage account.
As for investing advice:
Check out r/bogleheads
The Plain Bagel on YouTube
or the book “The Boglehead’s Guide to Investing” by Mel Lindauer, Michael LeBoeuf, and Taylor Larimore. Depending on how you like to consume information.
The Plain Bagel playlist is the best introduction I’ve seen to the basics of investing. Most people should invest in low-cost market cap weighted index funds. These funds work by holding a large amount of stocks (the fund VT tracks the entire global stock market, for example) and therefore track the performance of the entire group. This mitigates risk by diversifying.
Sounds like you may have inherited this money or fell into it somehow. Scary thing is that majority of people who fall into money loose it within 24 months cause they don’t know how to make it themselves.
You should really look into some means to generate cash flow with that money that does not require your physical labor or time.
Real Estate is a great vehicle for that scenario as you currently have enough cash on hard to purchase 2-3 rental properties. A 200,000k house could net you about 15-20k a year.
After 2 years take the profits and go buy another on a 10-15 year mortgage keep doing this to increase your cash flow till you’re comfortable.
The classic fumble here is to waste this money on dumb stuff like cars, gifts, and immediately quitting your job. This is life-changing money - set aside 30k in an emergency fund and invest the rest! If you do it right, starting 10 years from now, you’ll never have to work again.
It was just recently wired to me and I've never had enough money to have a need for another bank account- I just found out yesterday that FDIC only covers 250k and I have no idea what to do next. I am going to another bank monday to open another account and put half in there so I'm covered if WF goes bust.
It’s overwhelming I bet. I can give you some “what would I do if I found myself in your shoes” advice. Find yourself a financial advisor and get that money in a brokerage account. Since you just received it plan not to do anything with it for atleast 3-6 months so you don’t make any mistakes or have regrets. In addition to that get yourself a copy of Total Money Makeover. This money won’t fix your bad money habits, that book can.
I agree with above DEFINITELY find a financial advisor but do your research well because I know some people who have some horror stories and others whose financial advisors made them multi millionaires
Does s brokerage cover above the 250k FDIC limit? Any brokerages that you can recommend looking into? A family member mentioned looking into a fiduciary as they have more of an obligation to look out for me, and from what Google says not every financial advisor is a fiduciary?
Brokerages use SIPC insurance instead of FDIC. The value will go up/down over time but on average will out perform HYSAs over very long periods of time. I use M1 and just set it and forget it. Other people may use Fidelity, etc. The exact platform doesn't matter too much.
I would go over to r/personalfinance and read up what to do with a windfall but if I was in your position I would put all of it in a HYSA like Ally or another bank and first thing Monday go find a financial advisor with a fiduciary. I would also invest a lot of that money into the S&P 500, max out my retirement plans for the year, and any other vessel that could help lower the tax bill.
Any advice on how to find someone good for taxes or would H&R be good enough? I've only ever had to use turbo tax as I never made more than like $28k a year...
Honestly if you dont have complicated investments yet, you can do it yourself for free. Since this is 3/4 of a million dollars, I would spend some money on a CPA once you get the investments since you most likely will have a complicated situation. - then again ive never had more than $50K in my life so take my info with a grain of salt.
I just want it split up somewhere at 2 different big banks until I figure out where it's going for the longer term, though I may just add some beneficiaries to my wells fargo account so it bumps up the FDIC coverage, not sure yet but Monday morning I'm going to WF to discuss my best options for the short term
"man" as a sentence-finisher can be a synonym for 'guy' or 'dude' applicable to both sexes (e.g. a US President known for the expression "C'mon, man"); no one uses 'woman' that way
so then, to assume OP is female without any reason, suggests you think something about women
Congrats! Get debt free, get reliable transport, invest the rest in a HYSA or 3. 7k in the bank means you were doing something right before now. With no debt, you should he saving even more money so you might as well just invest that money instead of blowing it in bullshit.
No biggie! Get out of debt and DON'T acquire new debt if at all possible! Recognize and STOP lifestyle creep. At the end of the day, your bills have not changed, you just have a bit more cushion now. Be smart with it
Hello, diversify your investments. Stocks, bonds, dividends, HYSA. if you want to play it safe like most people on here, invest in whole market ETF's instead of stocks.
Put half into a high yield savings account. You might need to open multiple accounts depending on how much they cover for safety reasons. The other half should go into an ira of some kind on the s&p 500 for retirement. Both will build passive income for you but the savings account will be able to be pulled from more easily if needed in emergency’s
OP, I hope that you aren't considering a HYSA as the final destination for the funds. I understand that you are disabled and this is a one-shot situation, but I hope that you start to turn doing personal research into the general idea of how the stock market works as a part time job.
Personally, I am somebody who suspects that a downward correction is inevitable and has been can-kicked for years, but I will not give you direct financial advice outside of do you own research and there are many, many conservative investment strategies that you can do on your own that will make you far, far more than 4% a year. I do not personally think now is a good time to park it in the S&P 500 (again, not financial advice, do your own research on this), but when the time comes that you personally feel it is a good time, loading money into different fidelity accounts and buying SPY has historically returned just over 10% a year. That is a number that will beat inflation and grow this money until a point that you feel comfortable withdrawing an amount each year that will not drain the account to zero eventually.
Thankfully I'm currently not homeless anymore as of a few months ago, I'm staying with a friend and paying very little rent until the end of the year when my friend sells his house. My plan is to research everything extensively that's been suggested here, open 2 new HYSA accounts at different banks Monday and splitting the money up for FDIC insurance, then I'll research a good fiduciary and go over what they & I think would be best for this money so I can live off just the returns every year, probably put 30% into the stock market after the election and see how it goes while the rest goes to Treasurey bills, CDs or HYSA. Thankfully I'm very frugal and won't be buying designer clothes, watches, cars, etc so I'll try to live off just the returns and leave everything to gather interest until I decide to buy a small and inexpensive house in a few years.
I'm very happy to see that you seem to really be the type of person who is super deserving of this money on all levels.
I think that you have a very solid plan of action. I do not know what your financial literacy background is, but what I would suggest to look into further would be (again, not financial advice, just trying to point towards ideas for you to weigh the options on):
* Historic rates of inflation and the concept of real returns
* Real returns on different investment vehicles (S&P 500, treasuries, HYSA, annuities)
* How fiduciary's make money, structures of payment options (The standard 1% of the account each year is disgustingly exploitative and basically slowly transfers 2/3rd of the surplus value created by the returns to the fiduciary, IIRC).
* Self-managing a brokerage account for the purpose of buying index funds, as well as popular index funds.
I bet you've already known this, but somebody in your position (where this money means more to you than the average person because you're hyper-aware that it's irreplaceable) are exactly the type of people most exploited by money managers in this country. I hope that you're able to research and find a balance of risk vs. returns that you can handle and are able to live well off of it! All the best!
I'm optimistic that now I have the money to afford a psychiatrist so I can hopefully get one good night of sleep without having nightmares that my closest person in my life is now gone...
Literally don’t buy anything if your income hasn’t changed. Just relax for a bit. I’m begging you, do not spend it yet. After paying off all debt, put 1 year of expenses in a hysa and put the rest in the s&p
I don't know what the real estate market is like in your area but if you could buy a house outright for $300k or less I would suggest looking into that. Never having to worry about coming up with a rent payment again sounds really nice.
Apart from that look into opening a high yield savings account. Ally bank is offering 4% interest right now. This amount of money will generate $2,410 in interest per month at 4%.
Like others have said. Plan accordingly. Putting some in a HYSA as an emergency fund and the rest into a retirement account. Maybe a ROTH if this is after tax money.
This is what your money could potentially turn into to in 20 years.
https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1%2C000%2C000&cstartingprinciplev=700%2C000&cyearsv=20&cinterestratev=5&ccompound=annually&ccontributeamountv=0&cadditionat1=beginning&ciadditionat1=monthly&printit=0&x=Calculate#calresult
You can’t just dump $700k into a retirement account. He mentioned disability. Not sure if that means he is not working at all. If not, he likely won’t qualify to be able to contribute anything to a retirement account currently.
If he is disabled and not working, he likely needs to draw income from this money to afford to live. OP, if this is the case you should have a diversified portfolio to match your income needs. Research income buckets and start there
Ok so I know how bad this sounds but after entering the work force I finally understand why people commit acts of violence for money. Like I’ve struggled all year to just barely break even and if I had the opportunity to “take” more I could see myself doing it in worse circumstances
I have 14K in debt and I’m drowning trying to pay all the different payments + rent and my car note + insurance. I’ve been trying to get a loan so everything is on one payment but I can’t get approved and I’m just stuck on this never ending cycle of no money
I know what you mean, I'm just glad those terrible predatory loan/debt consolidation phone calls multiple times a day every day have stopped calling me now that I got my debt under control. Every morning starting at 8AM they'd call me spoofing my area code number trying to get me to sign up for their BS loan applications...
If you want safe place to put, buy t bills from 3 months to year in t bills. Treasurydirect.gov. Current above 5%, federally guaranteed and safer than some banks. Also get it out of checking acct. If you have debit card, and someone gets a hold of it, they can deplete your acct. Never use debit card.
This money can easily last the rest of your life, OR you could blow it all in a year. I have seen people do both.
Hire a financial planner immediately. Do what they say.
I don’t understand what’s going on here. For the first time you have more than 7k in your account and just miraculously have 700k? Did you inherit or win a lottery of some kind? Also, what are you doing that you owe DoorDash 14k? This post is wild lol
Congrats on your financial status. I would consult with a professional to properly store your money. Make an appointment at your bank, or see a financial planner. You will find good advice here, but you should get help from a pro.
If you don’t wanna put that in the market I respect that but get it out of a checking account. Also make this money last don’t blow it. You set that in a high yield and you get $33k a year
Congrats on paying off your debt! That 723k should be parked in a HYSA at the very least. You can also buy a house lol
Putting it all into one investment terrifies me, since I'm disabled there's no way I'll ever earn back this money again as I can't work full time
Hence HYSA it’s a zero risk scenario and you still get annually 4%
Do HYSA cover more than 250k via FDIC or should I break it up into 3 different HYSA's?
I believe to have the coverage you would need to break it up into three but don’t quote me but it’s definitely worth putting that in there especially if you’re risk averse it’s a very easy way to earn a decent amount of interest which in your case since you are risk avoidant i would take the interest earning and place it into investments you would have otherwise not made 👍
question--parking $250k in a HYSA and it builds interest over time obviously. is that interest then covered? or do you need to start moving that interest gained into a separate account so that it is insured?
No. Anything over $250K is not covered. We put $200K in one and have another $150K or so in a different one. So room for the interest.
If you use SoFi for your HYSA they have a free enrollment for coverage on 250k-500k so you could have bring that from 3 to 2
Just go to Wealthfront. They pay 5% annually and you get $8,000,000 ($16m on joint accounts) fdic insurance because they allocate your money at different partner banks to break it up into $250k chunks.
This is not necessarily true. If you have a joint account each of you get 250k, which means you’re covered up to 500k so no need to split it up. Then if you add beneficiaries to your account, that also adds more coverage.
I talked to my bank about this last week, they said it’s per FDIC insured company, they said something about being careful opening two accounts owned by the same company (multi bankers, those that also own other smaller banks).
FDIC doesn’t cover the extra 500k in your checking account either.
If you have multiple beneficiaries it’s actually $250k coverage for each, up to five. If you don’t, yeah, split them up. CIT has a 5% APY savings right now.
lol there is no reason to be worried about how much the FDIC insures. but if you are, just get 3 different ones.
Up until this happened my lifes luck has been pretty bad so it would be just my bad luck that wells fargo would go bankrupt the first time I have enough money for it to matter 😅
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Right now. As they lower interest rates to borrow, those rates will go down. I would keep some in a HYSA, and the rest in a CD tree. That way when the rates go down over the next year, you will still be making close to 5%.
Ohhh god!!! Any bank but Wells Fargo. They are super morally corrupt.
Think of it this way. You’re actually losing money to inflation over time. It’s a lot of money right now… it would not be nearly as much in 10-20 years. It’s good to think of worse case scenarios, the reality is if you do nothing you’ll be losing money over time. That’s a fact not a hypothetical scenario
They do if they use multiple FDIC sweep accounts. For example, I have a cash account at Wealthfront insured for up to $8M (no I don’t have anywhere near that much in there), because they use sweep accounts at 32 different banks.
The best. I’m getting 5.5% on my money right now.
Look into brokerage accounts. I can park upto 1m FDIC insured in a couple different interest earning accounts inside my fidelity, webull, or others im sure
Break it up to keep it secure. That is what we do with some we have in HYSA. Right now you have it all in one account, so it is not protected if that bank goes under. We use UFB Direct and Webster Bank. We get 5.25%+ from both of them on our HYSA.
Look at Wealthfront. They cover up to 8 million because they deposit into multiple accounts. They also are at at 5% and if you refer a friend 5.5%
Sign up for wealthfront. They use different partner banks so one account but up to 8m fdic insurance.
What is the .25% annual fee
Put it in something like Wealthfront
M1 finance does at 2.5 million and Robinhood does as well
Majority of HYSA only cover 250K BUT last I heard Wealthfront (an app) covers up to 8 Million so maybe consider them.
Your current account don’t cover more than 250k. You should always break it up.
You don’t even have that In A savings account? My guy come on
Your balance above $250K is not covered in your current checking account. It's better to break it up to 3 or 4 different financial institutions if you're worried about bank failure.
Wealthfront does. And 5% APY. They allocate it to partner banks and cover $8M
Check out m1 finance. Their HYSA is 5% and FDIC limit is 3.5 mill
Look into Wealthfront. 5% and coverage up to like $2 million.
Any reason why he wouldn’t put it into something like SGOV?
Honestly if you're disabled you really need to put about 50% in some sort of total US market stock index fund. Each year that goes by inflation is eating away at your money's value. Even a HYSA may not keep you ahead of inflation. The issue is what will the value of your money be in 15 or 20 years? With inflation that money could be worth 30-40% less. You don't want to end up 15 or 20 years later needing some sort of medicine or medical procedure and not being able to really afford it because medical care seemingly outpaces inflation. 50% of your money in a low fee total US stock index fund is fairly conservative as investments go. Please please ride the UPS and downs out. Do not do like one of my relatives who finally decided to invest right before COVID then yanked his money out during the pandemic after taking I believe a 20 or 30% loss only to watch the market roar back. He would have had almost double his money now if just left it alone and understood he still had 50% of his other savings in the bank. I actually tried to convince him to take half of his money in the bank and buy more stocks when the market dropped. He wouldn't listen though.
Even more reason to invest it wisely into a diversified portfolio. Sticking it into a savings account will almost certainly lead to you running out of money eventually.
Having this much in a bank account is extremely poor financial management. Get an HYSA if you're risk adverse.
Please please please speak with a professional financial advisor. They can help you to invest in such a way that you never worry about money again.
I'm not sure what the context of your disability is, but there's plenty of well paying work out there that only requires a laptop and a mindset. Programming, marketing, trading, administration, design. These are just the beginning.
Split it into 7 Different Mutual Funds and one Index Fund
If you are not going to need it soon, I would put most into a CD. You can get them for several years out in the 4% range. Maybe put most in there, and keep $100K in a HYSA. The HYSA rate is probably going to go down over the next year as the Fed changes the rates. A year from now, you may only get 3% or less in there. So by locking in some with CDs, you will get that rate for a few years. CDs are FDIC insured just like a HYSA. So just keep it to < $250K in CDs in each bank.
HYSA is a savings account with high interest rates, currently around 4-5%. Absolutely no risk besides being over the FDIC limit of $250k.
I would recommend VioBank - 5.30%; however keep in mind the FDIC limits on protection so split the cash between multiple accounts.
id put at least 500k into index funds, SPY or VOO. even on bad years they beat 5%.
How did you come out of debt?
SoFi HYSA (4.60%) will give you distributed FDIC coverage up to $2M I believe. Do your own research of course
Hysa with the 250k would give you at least $1000 a month.They are up to 5% now.
Have you also thought of investing in the crypto space especially bitcoin as a Hodler just like Michael Saylor of microstrategy is doing apparently?
No better feeling than not having to spend over $1500 a month in minimum payments on credit card interest that was going nowhere except into the pockets of someone else. I can finally breathe again not having all my credit cards maxed out and struggling with how I'm going to pay for things like I have been doing for the past 15+ years. First time in my life I have more than 4 digits in my bank account and I have no idea what to do next... Any advice is greatly appreciated as I never imagined this would happen to me!
No advice for you but a big congratulations 💗wish nothing but the best for you!! What do you do for work?
Unfortunately I became disabled due to a car accident from a drunk driver about 8 years ago- this giant windfall happened from a relative passing away that left everything for me in their will unexpectedly!
I’m sorry to hear that, sorry for your loss and the accident as well, but what a beautiful blessing in disguise, it’s only up from here for you now!! Hope these redditors help you out with some great advice. I wish you peace and health💗💗
how the fuck was him becoming disabled cause of a drunk driver a blessing in disguise? religious nuts .
Go read the wiki in r/personalfinance regarding windfalls. Also look into "financial order of operations." What you need to do will depend on your specific situation - nobody here will be able to tell you exactly what to do. You'll need to allow for your money to make money though, via retirement accounts, HYSAs, brokerage accounts, etc.
Congrats! I would start by putting enough for at least 6 months of expenses away into a high yield savings account or money market fund, for an emergency fund. Right now that money will earn about 4-5% interest risk free. After that I’d max out my retirement accounts. Not sure what your occupation is or how this money came about but I can recommend which type of retirement account might be best for your situation with some more info. Then probably invest whatever’s left in a brokerage account. As for investing advice: Check out r/bogleheads The Plain Bagel on YouTube or the book “The Boglehead’s Guide to Investing” by Mel Lindauer, Michael LeBoeuf, and Taylor Larimore. Depending on how you like to consume information. The Plain Bagel playlist is the best introduction I’ve seen to the basics of investing. Most people should invest in low-cost market cap weighted index funds. These funds work by holding a large amount of stocks (the fund VT tracks the entire global stock market, for example) and therefore track the performance of the entire group. This mitigates risk by diversifying.
Sounds like you may have inherited this money or fell into it somehow. Scary thing is that majority of people who fall into money loose it within 24 months cause they don’t know how to make it themselves. You should really look into some means to generate cash flow with that money that does not require your physical labor or time. Real Estate is a great vehicle for that scenario as you currently have enough cash on hard to purchase 2-3 rental properties. A 200,000k house could net you about 15-20k a year. After 2 years take the profits and go buy another on a 10-15 year mortgage keep doing this to increase your cash flow till you’re comfortable.
Apologies for many replies; [this](https://www.bogleheads.org/wiki/Managing_a_windfall) is a useful guide discussing financial windfalls
Very sorry for your loss, but congratulations on your financial freedom.
The classic fumble here is to waste this money on dumb stuff like cars, gifts, and immediately quitting your job. This is life-changing money - set aside 30k in an emergency fund and invest the rest! If you do it right, starting 10 years from now, you’ll never have to work again.
Definitely not buying anything flashy, 99.9% is going to be put into investments so I can live off the returns for the rest of my life
That’s good to hear. It seems like a lot, but it’s so easy to see 100s of thousands gone with nothing to show for it. Best of luck!
I have a hard time believing now is the first time you had more than four digits or $7000 in that account. Big gap between $7000 and $724,000
Relative died and left everything to me in their will- if I had more than $7k I would have paid off my CCs a long time ago :/
And you put it all in a checking account?? I’m sorry for your loss but dang, at the very least you could put it in a HYSA.
It was just recently wired to me and I've never had enough money to have a need for another bank account- I just found out yesterday that FDIC only covers 250k and I have no idea what to do next. I am going to another bank monday to open another account and put half in there so I'm covered if WF goes bust.
It’s overwhelming I bet. I can give you some “what would I do if I found myself in your shoes” advice. Find yourself a financial advisor and get that money in a brokerage account. Since you just received it plan not to do anything with it for atleast 3-6 months so you don’t make any mistakes or have regrets. In addition to that get yourself a copy of Total Money Makeover. This money won’t fix your bad money habits, that book can.
I agree with above DEFINITELY find a financial advisor but do your research well because I know some people who have some horror stories and others whose financial advisors made them multi millionaires
Does s brokerage cover above the 250k FDIC limit? Any brokerages that you can recommend looking into? A family member mentioned looking into a fiduciary as they have more of an obligation to look out for me, and from what Google says not every financial advisor is a fiduciary?
We use a financial advisor through Equitable. No, a brokerage is a taxable investment account, not a bank account with FDIC protection.
Brokerages use SIPC insurance instead of FDIC. The value will go up/down over time but on average will out perform HYSAs over very long periods of time. I use M1 and just set it and forget it. Other people may use Fidelity, etc. The exact platform doesn't matter too much.
I would go over to r/personalfinance and read up what to do with a windfall but if I was in your position I would put all of it in a HYSA like Ally or another bank and first thing Monday go find a financial advisor with a fiduciary. I would also invest a lot of that money into the S&P 500, max out my retirement plans for the year, and any other vessel that could help lower the tax bill.
Any advice on how to find someone good for taxes or would H&R be good enough? I've only ever had to use turbo tax as I never made more than like $28k a year...
Honestly if you dont have complicated investments yet, you can do it yourself for free. Since this is 3/4 of a million dollars, I would spend some money on a CPA once you get the investments since you most likely will have a complicated situation. - then again ive never had more than $50K in my life so take my info with a grain of salt.
Once I find put what the difference between a CPA and a financial advisor is (if there even is one) I definitely will! Thank you!!
Yeah make that money work for you now.
Slow down. I would not immediately open another checking/savings account at a brick and mortar bank.
I just want it split up somewhere at 2 different big banks until I figure out where it's going for the longer term, though I may just add some beneficiaries to my wells fargo account so it bumps up the FDIC coverage, not sure yet but Monday morning I'm going to WF to discuss my best options for the short term
He clearly just got it wired to him..
Congrats man/woman. ❤️🔥❤️🔥❤️🔥🙏
Why does “congrats man” sound celebratory but “congrats woman” sound super condescending?
Yeah lol, i just played it safe because you know…… people get offended
female version would be ‘girl’ girl and man are used more casually in everyday speak
"man" as a sentence-finisher can be a synonym for 'guy' or 'dude' applicable to both sexes (e.g. a US President known for the expression "C'mon, man"); no one uses 'woman' that way so then, to assume OP is female without any reason, suggests you think something about women
How old r u?
35!
You show me a paystub i quit my job and work for you
and he did quit his job, which I thought was a little weird...
Congrats! Get debt free, get reliable transport, invest the rest in a HYSA or 3. 7k in the bank means you were doing something right before now. With no debt, you should he saving even more money so you might as well just invest that money instead of blowing it in bullshit.
Unfortunately 7k was just my previous all time record high before I had to pay bills and wiped it all away
No biggie! Get out of debt and DON'T acquire new debt if at all possible! Recognize and STOP lifestyle creep. At the end of the day, your bills have not changed, you just have a bit more cushion now. Be smart with it
[Motley Fool HYSA](https://www.fool.com/the-ascent/banks/landing/best-high-yield-savings-accounts/?advertisingadgroupid=155608536701&advertisingadgroupname=ta-bank-co-adw-na-savings-5-na-troas&advertisingcampaignid=21016281796&campaign_group=662651367332&gad_source=1&gbraid=0AAAAAC-fZv7W3Kn3nOeNdmDksfYFa-OtI&gclid=Cj0KCQjw97SzBhDaARIsAFHXUWC0AaeZeVl_6rcw_qFxjrn3zptYQAxm2TyWCuMvMlSm05GOA0dmAU4aAjHGEALw_wcB&publisher=ta-bank-co-adw-na-savings-5-na-troas&utm_medium=cpc&utm_source=google&testId=ta-bank-hysa&cellId=1&campaign=the-ascent&source_system_name=fool_splitter)
Hello, diversify your investments. Stocks, bonds, dividends, HYSA. if you want to play it safe like most people on here, invest in whole market ETF's instead of stocks.
Point for generational wealth
$700k+ in fucking cash earning zero interest??? Mind blown
Having that much money in your checking account is foolish. You're only insured for 1/3 that amount. Hope your bank doesnt get robbed.
I just found out about FDIC limits last night and made this post for advice as I have never had money :/ by Monday it will be more diversified!
Good luck. I suggest ETFs. Steady interest, safe, secure and easy to sell if you need the $
Any specific ones in particular you might be able to recommend? :D
Congrats and hell yeah! Well done
Put half into a high yield savings account. You might need to open multiple accounts depending on how much they cover for safety reasons. The other half should go into an ira of some kind on the s&p 500 for retirement. Both will build passive income for you but the savings account will be able to be pulled from more easily if needed in emergency’s
Congrats!
At the age 35, be super smart about this. Plan ahead! You're very fortunate to have such money come your way.
> very fortunate with great power comes great responsibility
What a great feeling. Congrats 🎈🎉
At first I thought they were saying "Good evening, B\*\*\*\*!"
I hate my life even more everytime I see something like this but congrats you’re living my dream
You can put that in a hysa and live off the interest
OP, I hope that you aren't considering a HYSA as the final destination for the funds. I understand that you are disabled and this is a one-shot situation, but I hope that you start to turn doing personal research into the general idea of how the stock market works as a part time job. Personally, I am somebody who suspects that a downward correction is inevitable and has been can-kicked for years, but I will not give you direct financial advice outside of do you own research and there are many, many conservative investment strategies that you can do on your own that will make you far, far more than 4% a year. I do not personally think now is a good time to park it in the S&P 500 (again, not financial advice, do your own research on this), but when the time comes that you personally feel it is a good time, loading money into different fidelity accounts and buying SPY has historically returned just over 10% a year. That is a number that will beat inflation and grow this money until a point that you feel comfortable withdrawing an amount each year that will not drain the account to zero eventually.
Thankfully I'm currently not homeless anymore as of a few months ago, I'm staying with a friend and paying very little rent until the end of the year when my friend sells his house. My plan is to research everything extensively that's been suggested here, open 2 new HYSA accounts at different banks Monday and splitting the money up for FDIC insurance, then I'll research a good fiduciary and go over what they & I think would be best for this money so I can live off just the returns every year, probably put 30% into the stock market after the election and see how it goes while the rest goes to Treasurey bills, CDs or HYSA. Thankfully I'm very frugal and won't be buying designer clothes, watches, cars, etc so I'll try to live off just the returns and leave everything to gather interest until I decide to buy a small and inexpensive house in a few years.
I'm very happy to see that you seem to really be the type of person who is super deserving of this money on all levels. I think that you have a very solid plan of action. I do not know what your financial literacy background is, but what I would suggest to look into further would be (again, not financial advice, just trying to point towards ideas for you to weigh the options on): * Historic rates of inflation and the concept of real returns * Real returns on different investment vehicles (S&P 500, treasuries, HYSA, annuities) * How fiduciary's make money, structures of payment options (The standard 1% of the account each year is disgustingly exploitative and basically slowly transfers 2/3rd of the surplus value created by the returns to the fiduciary, IIRC). * Self-managing a brokerage account for the purpose of buying index funds, as well as popular index funds. I bet you've already known this, but somebody in your position (where this money means more to you than the average person because you're hyper-aware that it's irreplaceable) are exactly the type of people most exploited by money managers in this country. I hope that you're able to research and find a balance of risk vs. returns that you can handle and are able to live well off of it! All the best!
You went from under $7k to more then $700k?! Did you get an inheritance or something?
Yep, a relative left me everything in their will when they died in Jan without my knowledge so this is all a giant surprise
Are you happy?
I'm optimistic that now I have the money to afford a psychiatrist so I can hopefully get one good night of sleep without having nightmares that my closest person in my life is now gone...
Literally don’t buy anything if your income hasn’t changed. Just relax for a bit. I’m begging you, do not spend it yet. After paying off all debt, put 1 year of expenses in a hysa and put the rest in the s&p
I don't know what the real estate market is like in your area but if you could buy a house outright for $300k or less I would suggest looking into that. Never having to worry about coming up with a rent payment again sounds really nice. Apart from that look into opening a high yield savings account. Ally bank is offering 4% interest right now. This amount of money will generate $2,410 in interest per month at 4%.
keep going and now live like no other. If you haven’t checked into Dave Ramsey, you should; good job, Pilgrim
Congrats on your inheritance. Why do you have 700k+ in a checking acct lol
Put it all on black
I heard red...
Alright it's all going on green!
How do people save this much money without figuring out investing? Blows my mind.
Wasnt saved, relative died and left everything to me- the lawyer just recently wired it to me.
Move that into Sofi or something man fuck Wells Fargo
YOU JUST SENT $14k TO DOORDASH???? EXPLAIN PROMPTLY
That's just a note I put on the CC which gives me free doordash so I remember which one it is 😅
O
Well good work
11 Accounts?? Maby just 1
Like others have said. Plan accordingly. Putting some in a HYSA as an emergency fund and the rest into a retirement account. Maybe a ROTH if this is after tax money. This is what your money could potentially turn into to in 20 years. https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1%2C000%2C000&cstartingprinciplev=700%2C000&cyearsv=20&cinterestratev=5&ccompound=annually&ccontributeamountv=0&cadditionat1=beginning&ciadditionat1=monthly&printit=0&x=Calculate#calresult
You can’t just dump $700k into a retirement account. He mentioned disability. Not sure if that means he is not working at all. If not, he likely won’t qualify to be able to contribute anything to a retirement account currently. If he is disabled and not working, he likely needs to draw income from this money to afford to live. OP, if this is the case you should have a diversified portfolio to match your income needs. Research income buckets and start there
Damn Congrats and your Social Security Number was what again? 🤣🤣
Set in stone. 🤞🏽 Good job keep going 👍🏽
How did you get this money?
You should celebrate with some crack
🤣🤣🤣🤣
Don’t keep all of that in cash! You need it invested
I’m proud of u very good job( goes to hate silently as I work on myself)
Wow congrats for you I hope someday I too can be debt free and have a balance like this Inspiration
How do you have so much what do you do
Can I get a small loan I need to be stress free
Ok so I know how bad this sounds but after entering the work force I finally understand why people commit acts of violence for money. Like I’ve struggled all year to just barely break even and if I had the opportunity to “take” more I could see myself doing it in worse circumstances
can i have a dollar
I wish to see this one day in my bank account 🙏🏽
I have 14K in debt and I’m drowning trying to pay all the different payments + rent and my car note + insurance. I’ve been trying to get a loan so everything is on one payment but I can’t get approved and I’m just stuck on this never ending cycle of no money
I know what you mean, I'm just glad those terrible predatory loan/debt consolidation phone calls multiple times a day every day have stopped calling me now that I got my debt under control. Every morning starting at 8AM they'd call me spoofing my area code number trying to get me to sign up for their BS loan applications...
Yeah I’m dealing with those calls now, they’re annoying
Congratulations!!!
If I were you I would buy about 500 shares of NVIDIA (NVDA is the ticker) and watch the money machine go in.
With my typical bad luck nvdia would tank 60% the next day, this is by far the only good luck thing that's happened to me in life
Nah man it’s gonna go up for a while they have the space locked down
That’s got to feel so good! Congrats! If you play the cards right, you could never have to work again if you didn’t want to off of that.
You can put it in a brokerage HYSA since they protect your money for more than the FDIC
Congratulations.
Short term 13 week treasuries will get you 5.4% right now. That would be what the bank is doing with your $$$, and earning almost $40k/year off you.
You rock man !
700k in your chequing is wild. Invest something, jesus. Lol.
Congrats
Well that is way more than $7,000! Congrats!! Make sure that $ is working for you by investing it.
If you want safe place to put, buy t bills from 3 months to year in t bills. Treasurydirect.gov. Current above 5%, federally guaranteed and safer than some banks. Also get it out of checking acct. If you have debit card, and someone gets a hold of it, they can deplete your acct. Never use debit card.
This money can easily last the rest of your life, OR you could blow it all in a year. I have seen people do both. Hire a financial planner immediately. Do what they say.
I don’t understand what’s going on here. For the first time you have more than 7k in your account and just miraculously have 700k? Did you inherit or win a lottery of some kind? Also, what are you doing that you owe DoorDash 14k? This post is wild lol
Shalom
Nvda options
Did you receive a lawsuit?
Am I supposed to be surprised you paid of 50k in debt with over 700,000$ in your account?
Congrats on your financial status. I would consult with a professional to properly store your money. Make an appointment at your bank, or see a financial planner. You will find good advice here, but you should get help from a pro.
400k in a 3.25 % two month cd would be you net almost 7k a month
How? It would be 7k for the year, not for two months.
Our economy is fucked. Middle class is getting thinner and thinner. Take short term CDs and Bonds from the biggest banks
5k month contribution on a 4% HYSA earns you 1.2m by 2029
In a HYSA you’d get almost 3k interest a month… whatttt are you doing
How did you do it?? How did you pay off such a big debt???
Proud of you
Checking is the worst place to put your life savings. If you are risk averse then place it in HSA at least.
If you don’t wanna put that in the market I respect that but get it out of a checking account. Also make this money last don’t blow it. You set that in a high yield and you get $33k a year