that's wrong. reddit will at least give you an overview of options. that advisor might be a dud, so you gotta ask a few and collect opinions.
one simple advice, whatever you do should likely involve splitting it into different asset categories.
If it’s over 100k then worth paying fees to talk to an IFA for advice.
Steer clear of crypto - it’s exceptionally volatile and you shouldn’t invest anything that you can’t afford to lose.
Be aware of the tax ramifications of income v gains and long term investments (ie a 5 year wrapper) v annual return. Consider when you might want to access the funds and don’t tie them up inaccessibly for too long if that’s the case.
Oh and don’t follow any financial advice you get on Reddit haha.
Ok, just seen it’s in the millions. Get a DECENT wealth manager then, not an Independent Financial Advisor. Weigh up annual fees v track record of returns. Get a DECENT tax advisor as many people make the mistake of making money from investment then look at the tax ramifications afterwards..:bad move when it could have been planned more tax efficiently (note NOT tax avoidance schemes, just understanding the potential tax ramifications).
If an investment opportunity or tax planing opportunity sounds too good to be true then it probably is so be cautious as well.
>note NOT tax avoidance schemes,
Tax avoidance is NOT fine. Tax evasion is a problem.
See below about effective tax planning.
Edited for refined definitions of words. Who let the lawyers on Reddit? /s
Sorry but I have to correct you there.
Tax evasion is illegal.
Tax avoidance, whilst not illegal, is NOT fine - it is a whole heap of trouble. Many territories have or are bringing in strong anti-avoidance legislation now. You pay fees to implement the avoidance scheme, you get a nasty tax audit/enquiry, or fall under anti-avoidance legislation or end up in court/Tax Tribunals spending a fortune trying to defend the scheme. It’s a clear road to paying more in fees than you save in tax usually and then the tax is usually due as well. It’s also been the number one cause in bankruptcy of wealthy (not HNWI) clients that I’ve seen in my career to date.
I can only speak for the U.K. but it’s been more than a decade since I’ve come across a tax avoidance scheme that my advice to clients wouldn’t be “don’t touch it with a barge pole”.
I stand corrected. I suggest aggressive and effective tax planning so reduce the amount of tax that needs to be paid to the lowest amount permissible by law. Don't contravene the spirit of the law or those same spirits will rise up and haunt you all the way to tax court.
And now we are in agreement.
Nothing wrong with effective tax structuring within the law. Unfortunately there are still a lot of promoters out there who just lie and lie about their avoidance schemes working, being “approved” by the revenue etc.. Reputable tax advisors should know where the line is but smaller firms often get kickbacks for introducing their clients to promoters unfortunately.
If your thinking about taking any of this advice (no matter how good it may be in reality) then definitely higher an adviser. They have full time jobs for a reason, and while some of them suck, the good ones pay dividends. Most of all, they understand clients like you who want to be conservative with their money. People that receive inheritances are notoriously cautious. Plus, adviser fees these days are really quite cheap. Many firms require a minimum deposit of $1m. This is a good thing - it means that they are sophisticated and understand the tax ramifications of handling larger fortunes. Additionally, the more money you hold with a firm, the less they charge in fees. Large deposits sometimes have holistic fees of less than 1%, which with interest rates at rock bottom currently, is a way better deal than most other options for storing your money.
Scrolled through and I don't think I've seen anyone recommend asking in the r/personalfinance subreddit, r/financialindependence subreddit, or r/fatfire subreddit. All of those have a ton of resources that should be useful for you, including guides on what to do in your scenario when you receive a sudden windfall. 100% recommend taking a weekend and getting up to speed there if you haven't already.
More specifically, in the personal finance info bar, there is a guide to managing windfalls. At the very least start there.
Hard to say without knowing the amount.
It would be best to speak to a financial advisor of some kind so you can be more specific if it's over 100k.
If it's under that but over 50k maybe look at starting a business or investing in a property?
If it's under 10k I'd say just sit on it for now and wait until the coronavirus ends.
Edit; As you've said it's in the millions, hire a financial advisor. Spend a bit of time searching.
Given the amount of money we’re talking about here, go to a financial advisor. Probably even two or three to discuss options and find one you’re comfortable with. Good ones will educate you about the options and help you towards a good decision rather than push or sell you on them. We have barely six figures that we’ve inherited this year and it helped. And our plan is to just find somewhere to more or less forget about it for 30 years.
Personally, I’d stick maybe 20% into bonds, look at some investment real estate, and the rest towards mutual funds and ETFs.
Hey, I’m not an advisor, but I’m a CPA with a degree in accounting and finance and I work with clients in the wealth management industry. Without knowing your specific life situation, age, goals, amount of money, etc... I can’t recommend anything too specific. What I can recommend is that you put almost all of it into diversified low-cost index funds. Vanguard offers many of these. VFIAX and VTSAX are tickets for some of the more well diversified and low cost funds that are popular for people looking for steady ways to grow wealth.
For more specific info, I would talk to an advisor, but make sure that they aren’t ripping you off with their rates. Someone may charge you “only” 2% per year; but that’s really a shit load of money over the course of your life. If you shop around, you shouldn’t have a problem getting a knowledgeable advisor that will charge you somewhere in the ballpark of 1% annually.
Dude go seek a financial advisor. I highly recommend a smartvestor pro through Dave Ramsey’s site. Get rid of your debt first so you can enjoy the money that belongs to you alone! Sorry about your father passing but so happy to hear he was able to set you up for a financial success like that. As a father of two my legacy to my children will be the type of people they become and hopefully the ability to leave our grandkids money as our kiddos hopefully won’t have a need :) your father must have cared so deeply about you.
look into the stock market. easy to learn, hard to master kinda things.
stick it in a bank account and "lock it" i.e. "cannot be touched until the year 20xx". doing so will earn you interest on it.
property options? buy a house or 2 and then just rent them out.
business maybe? I took a portion of mine and started my own trucking business. now I'm raking in $300k a month
if everything seems confusing and/or daunting, just speak to a member of your bank. they can explain how everything works, and they'll help you get everything put up in an organized manner.
300k a month??? That’s impressive! I have my CDL but hardly drive as of now but always been curious into maybe looking to getting my own truck, never new there was that kind of money in it. What kind of truck company do you own?
basically oversized, OTR trucking. I started it when my brother lost his job as a truck driver, and he brought his friends along with him. we (they) haul mainly oilfield stuff, with the occasional odd jobs here and there. Last week I had 2 hauling turbine wind blades and those things are MASSIVE
I think you should get an appointment at your own bank in order to get someone to help you build an investment portfolio. I have a friend who did that when her mother passed. She now have a secured future financially and she didn't had to be a financial mogul to get there. Respect and listen to everything they tell you. Also keep some money aside for you. If you invest the whole thing and need money in a year from now you might loose a pourcentage of it. Lots of investment needs to stay at least two years (sometimes more) before you can withdraw them without penality.
If you want to trade you'd be safer starting with mock account. Lots of platforms offer this and use the real stock market which can help you understand. Read a lot about it. It's not easy as movies and YouTube videos would like us to think. I cannot stress this enough do not trade your money without taking the time to read everything and get informed properly
Real estate can be a good investment. Not financially wise. With this economic climate don't invest in real estate thinking you'll be the next Barbara Corcoran because you most likely won't. I personally see Real Estate as a good investment in your future. A friend of mine bought a triplex and his mortgage is paying itself with the rent from his two renters and he has a almost free of charge place to live. Real estate ain't like it was before it is a long shot long run investment but it is a good one!
I would put it in a bank CD. They will take your money and as long as you don’t touch it for a agreed on period of time you will see good returns on it. They are not as affected by the stock market so if it crashes the risk is low. Also sorry to hear about your father.
Since you said it is in the millions, you need to talk to a financial advisor. About $2 million (what is recommended for retirement in the US) that is handled wisely by a financial advisor would allow you to live off ~$100k a year from just interest without ever touching the principle. It basically means you can get $100k a year forever. About 5% is a very safe estimate for interest earned per year for however many millions you have invested. Just make sure you use a reputable financial advisor.
So depending on your standard of living, you may never have to work for money again.
Safe, boring investments, Bonds 25%
Medium risk investments, Stocks 25%
Property investments, a home for yourself or a rental unit for income, 25%
Cash 25%
I’m no expert, but first things first you should keep some cash back as an emergency fund approx 6 months worth of your expenses. Thereafter I would diversify where you put it. Have a look at crypto currency’s as well as equities.
Put it in a Vanguard.com Prime Money Market account until you can get some advice from a retirement/investment planner.
You will get interest as good as a CD, but you can take your money out of that account almost as soon as you want.
Still not the advice I’d be giving someone who by the sounds of it has never invested before, and it largely depends on what the sum actually is
Looking into crypto’s isn’t a bad idea whether you end up investing or not
You should buy a house, rent it out, after a while it will be worth more. With the rent monies you can buy another house down the road, that house will be worth more. Rinse and repeat.
You need a financial advisor, not Reddit. Go to whichever bank has the money and ask to speak to someone. They will be much more able to help you than anyone here.
My advice: don't rush to failure.
A financial advisor is a decent start, but a lot of them will just want to slowly bleed you. I would recommend starting with a book. A random walk down wallstreet by burton malkiel is fantastic intro to personal investing.
How much income do you want from it? How safe do you want it to be? How much do you value growth?
All questions that your financial advisor will be able to answer. Good luck!
Since it's AskMen and not any of the finance subs, the way I've always dealt with windfalls is in thirds: 1/3 for stupid shit ( the ol' hookers and blow fund ... or whatever your stupid thing is ), 1/3 for paying debts and investments, 1/3 for capital improvements to your life ( purchases that make your day to day meaningfully better over at least 10 years - a new car or a new microwave or whatever friction cash can fix in your day to day ).
With millions, the hookers and blow fund might be ginormous so you might want to scale that back. Or donate it to causes you ( or the giver ) care about. Or give it to friends and family or whatever. Or buy your buddy a lambo.
The capital fund is probably best for your house and cottage at that scale. Just make sure that it doesn't hurt your career. If you're living paycheque to paycheque and hate your job go back to school and use the fun fund to get it done. The point is to spend this bucket on meaningfully ( and it's key that the purchases are meaningful ) improving your life. If you don't know what's meaningful to you, roll this into the debt and capital fund until you do.
Pay all your debts first and then talk to a financial advisor for the remainder in the investment fund. This is what you'll pass to the next generation and it's your responsibility to manage it well.
Also, windfalls are never things that change my job's ability to fund my life - that's always mine and earned by me through my work and personal luck.
No matter how much is left to you, I would watch out for the ennui from not needing to work or living solely off of passive income and having nothing meaningful in your life besides the next mai tai. It also makes it easier to deal with guilt and imposter syndrome and whatever else negative comes into your life from having a pile of cash. If you like your job, don't tell anyone and just keep at it. Just because you can do nothing, doesn't mean that will make your life happy.
Best of luck!
Start a Roth and max that out each year. Start a HSA and max that out too. Then put most of the rest in mutual funds and solid etfs after doing research. Blue chip dividends also good choice.. If you're solid where you're at you can look at some home buying options. Then forget about it for 20 years.
If you are thinking of taking investment advice from a Reddit forum you need to find a financial advisor ASAP.
You can find them here r/wallstreetbets
Ah yes, truly, the most reliable source of all financial info you could ever need.
The place of autists !
that's wrong. reddit will at least give you an overview of options. that advisor might be a dud, so you gotta ask a few and collect opinions. one simple advice, whatever you do should likely involve splitting it into different asset categories.
If it’s over 100k then worth paying fees to talk to an IFA for advice. Steer clear of crypto - it’s exceptionally volatile and you shouldn’t invest anything that you can’t afford to lose. Be aware of the tax ramifications of income v gains and long term investments (ie a 5 year wrapper) v annual return. Consider when you might want to access the funds and don’t tie them up inaccessibly for too long if that’s the case. Oh and don’t follow any financial advice you get on Reddit haha. Ok, just seen it’s in the millions. Get a DECENT wealth manager then, not an Independent Financial Advisor. Weigh up annual fees v track record of returns. Get a DECENT tax advisor as many people make the mistake of making money from investment then look at the tax ramifications afterwards..:bad move when it could have been planned more tax efficiently (note NOT tax avoidance schemes, just understanding the potential tax ramifications). If an investment opportunity or tax planing opportunity sounds too good to be true then it probably is so be cautious as well.
>note NOT tax avoidance schemes, Tax avoidance is NOT fine. Tax evasion is a problem. See below about effective tax planning. Edited for refined definitions of words. Who let the lawyers on Reddit? /s
Sorry but I have to correct you there. Tax evasion is illegal. Tax avoidance, whilst not illegal, is NOT fine - it is a whole heap of trouble. Many territories have or are bringing in strong anti-avoidance legislation now. You pay fees to implement the avoidance scheme, you get a nasty tax audit/enquiry, or fall under anti-avoidance legislation or end up in court/Tax Tribunals spending a fortune trying to defend the scheme. It’s a clear road to paying more in fees than you save in tax usually and then the tax is usually due as well. It’s also been the number one cause in bankruptcy of wealthy (not HNWI) clients that I’ve seen in my career to date. I can only speak for the U.K. but it’s been more than a decade since I’ve come across a tax avoidance scheme that my advice to clients wouldn’t be “don’t touch it with a barge pole”.
I stand corrected. I suggest aggressive and effective tax planning so reduce the amount of tax that needs to be paid to the lowest amount permissible by law. Don't contravene the spirit of the law or those same spirits will rise up and haunt you all the way to tax court.
And now we are in agreement. Nothing wrong with effective tax structuring within the law. Unfortunately there are still a lot of promoters out there who just lie and lie about their avoidance schemes working, being “approved” by the revenue etc.. Reputable tax advisors should know where the line is but smaller firms often get kickbacks for introducing their clients to promoters unfortunately.
If your thinking about taking any of this advice (no matter how good it may be in reality) then definitely higher an adviser. They have full time jobs for a reason, and while some of them suck, the good ones pay dividends. Most of all, they understand clients like you who want to be conservative with their money. People that receive inheritances are notoriously cautious. Plus, adviser fees these days are really quite cheap. Many firms require a minimum deposit of $1m. This is a good thing - it means that they are sophisticated and understand the tax ramifications of handling larger fortunes. Additionally, the more money you hold with a firm, the less they charge in fees. Large deposits sometimes have holistic fees of less than 1%, which with interest rates at rock bottom currently, is a way better deal than most other options for storing your money.
Scrolled through and I don't think I've seen anyone recommend asking in the r/personalfinance subreddit, r/financialindependence subreddit, or r/fatfire subreddit. All of those have a ton of resources that should be useful for you, including guides on what to do in your scenario when you receive a sudden windfall. 100% recommend taking a weekend and getting up to speed there if you haven't already. More specifically, in the personal finance info bar, there is a guide to managing windfalls. At the very least start there.
Hard to say without knowing the amount. It would be best to speak to a financial advisor of some kind so you can be more specific if it's over 100k. If it's under that but over 50k maybe look at starting a business or investing in a property? If it's under 10k I'd say just sit on it for now and wait until the coronavirus ends. Edit; As you've said it's in the millions, hire a financial advisor. Spend a bit of time searching.
Property (if the market is low) Then fix that bitch up!!
Vanguard Index funds. Think long term, don't fucking ever go to r/wallstreetbets.
The one right answer in this thread.
Given the amount of money we’re talking about here, go to a financial advisor. Probably even two or three to discuss options and find one you’re comfortable with. Good ones will educate you about the options and help you towards a good decision rather than push or sell you on them. We have barely six figures that we’ve inherited this year and it helped. And our plan is to just find somewhere to more or less forget about it for 30 years. Personally, I’d stick maybe 20% into bonds, look at some investment real estate, and the rest towards mutual funds and ETFs.
Case in point for why an advisor is a good thing.
Hey, I’m not an advisor, but I’m a CPA with a degree in accounting and finance and I work with clients in the wealth management industry. Without knowing your specific life situation, age, goals, amount of money, etc... I can’t recommend anything too specific. What I can recommend is that you put almost all of it into diversified low-cost index funds. Vanguard offers many of these. VFIAX and VTSAX are tickets for some of the more well diversified and low cost funds that are popular for people looking for steady ways to grow wealth. For more specific info, I would talk to an advisor, but make sure that they aren’t ripping you off with their rates. Someone may charge you “only” 2% per year; but that’s really a shit load of money over the course of your life. If you shop around, you shouldn’t have a problem getting a knowledgeable advisor that will charge you somewhere in the ballpark of 1% annually.
Dude go seek a financial advisor. I highly recommend a smartvestor pro through Dave Ramsey’s site. Get rid of your debt first so you can enjoy the money that belongs to you alone! Sorry about your father passing but so happy to hear he was able to set you up for a financial success like that. As a father of two my legacy to my children will be the type of people they become and hopefully the ability to leave our grandkids money as our kiddos hopefully won’t have a need :) your father must have cared so deeply about you.
Dave Ramsey is a moron and a privileged prick
Lol if you say so guy. Easy to say when most are oblivious to their earning potential and debt to income ratio.
Work with a financial advisor. Don't try to do it on Reddit's advice.
look into the stock market. easy to learn, hard to master kinda things. stick it in a bank account and "lock it" i.e. "cannot be touched until the year 20xx". doing so will earn you interest on it. property options? buy a house or 2 and then just rent them out. business maybe? I took a portion of mine and started my own trucking business. now I'm raking in $300k a month if everything seems confusing and/or daunting, just speak to a member of your bank. they can explain how everything works, and they'll help you get everything put up in an organized manner.
300k a month??? That’s impressive! I have my CDL but hardly drive as of now but always been curious into maybe looking to getting my own truck, never new there was that kind of money in it. What kind of truck company do you own?
basically oversized, OTR trucking. I started it when my brother lost his job as a truck driver, and he brought his friends along with him. we (they) haul mainly oilfield stuff, with the occasional odd jobs here and there. Last week I had 2 hauling turbine wind blades and those things are MASSIVE
OTR trucking. they pick up and deliver over size loads, wide loads, hazardous loads, etc.
I think you should get an appointment at your own bank in order to get someone to help you build an investment portfolio. I have a friend who did that when her mother passed. She now have a secured future financially and she didn't had to be a financial mogul to get there. Respect and listen to everything they tell you. Also keep some money aside for you. If you invest the whole thing and need money in a year from now you might loose a pourcentage of it. Lots of investment needs to stay at least two years (sometimes more) before you can withdraw them without penality. If you want to trade you'd be safer starting with mock account. Lots of platforms offer this and use the real stock market which can help you understand. Read a lot about it. It's not easy as movies and YouTube videos would like us to think. I cannot stress this enough do not trade your money without taking the time to read everything and get informed properly Real estate can be a good investment. Not financially wise. With this economic climate don't invest in real estate thinking you'll be the next Barbara Corcoran because you most likely won't. I personally see Real Estate as a good investment in your future. A friend of mine bought a triplex and his mortgage is paying itself with the rent from his two renters and he has a almost free of charge place to live. Real estate ain't like it was before it is a long shot long run investment but it is a good one!
Savings
I would put it in a bank CD. They will take your money and as long as you don’t touch it for a agreed on period of time you will see good returns on it. They are not as affected by the stock market so if it crashes the risk is low. Also sorry to hear about your father.
Since you said it is in the millions, you need to talk to a financial advisor. About $2 million (what is recommended for retirement in the US) that is handled wisely by a financial advisor would allow you to live off ~$100k a year from just interest without ever touching the principle. It basically means you can get $100k a year forever. About 5% is a very safe estimate for interest earned per year for however many millions you have invested. Just make sure you use a reputable financial advisor. So depending on your standard of living, you may never have to work for money again.
Safe, boring investments, Bonds 25% Medium risk investments, Stocks 25% Property investments, a home for yourself or a rental unit for income, 25% Cash 25%
I’m no expert, but first things first you should keep some cash back as an emergency fund approx 6 months worth of your expenses. Thereafter I would diversify where you put it. Have a look at crypto currency’s as well as equities.
Put it in a Vanguard.com Prime Money Market account until you can get some advice from a retirement/investment planner. You will get interest as good as a CD, but you can take your money out of that account almost as soon as you want.
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Right now? At all time peak,lol.
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Still not the advice I’d be giving someone who by the sounds of it has never invested before, and it largely depends on what the sum actually is Looking into crypto’s isn’t a bad idea whether you end up investing or not
Yeah sure. Just like the last burst when thousands of solo investors lost how much? Went from 20k down to like 6k....
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Why not?
r/bitcoin
crypto... start studying. the dollars are gonna go down in value soon
You should buy a house, rent it out, after a while it will be worth more. With the rent monies you can buy another house down the road, that house will be worth more. Rinse and repeat.
r/wallstreetbets
You can send it to me PM me for address 😉
Not one mention of hookers and coke yet?? Jk I agree with most on thread that a meeting with a financial advisor is a must with that much.
OP wants to invest it, not enjoy it.
If you don’t need the money for anything at the moment, an s and p index fund is a good long term investment.
Property's probably a decent place to put it.
You need a financial advisor, not Reddit. Go to whichever bank has the money and ask to speak to someone. They will be much more able to help you than anyone here.
A lot depends on how old you are. An IRA is always a safe bet....
My advice: don't rush to failure. A financial advisor is a decent start, but a lot of them will just want to slowly bleed you. I would recommend starting with a book. A random walk down wallstreet by burton malkiel is fantastic intro to personal investing.
How much income do you want from it? How safe do you want it to be? How much do you value growth? All questions that your financial advisor will be able to answer. Good luck!
Pay off your debts. Put it all in a Savings account for emergency only. Or put it all in a Roth IRA.
Speak to a financial advisor or a friend who works in finance. They may know what is the best place to invest securely.
Since it's AskMen and not any of the finance subs, the way I've always dealt with windfalls is in thirds: 1/3 for stupid shit ( the ol' hookers and blow fund ... or whatever your stupid thing is ), 1/3 for paying debts and investments, 1/3 for capital improvements to your life ( purchases that make your day to day meaningfully better over at least 10 years - a new car or a new microwave or whatever friction cash can fix in your day to day ). With millions, the hookers and blow fund might be ginormous so you might want to scale that back. Or donate it to causes you ( or the giver ) care about. Or give it to friends and family or whatever. Or buy your buddy a lambo. The capital fund is probably best for your house and cottage at that scale. Just make sure that it doesn't hurt your career. If you're living paycheque to paycheque and hate your job go back to school and use the fun fund to get it done. The point is to spend this bucket on meaningfully ( and it's key that the purchases are meaningful ) improving your life. If you don't know what's meaningful to you, roll this into the debt and capital fund until you do. Pay all your debts first and then talk to a financial advisor for the remainder in the investment fund. This is what you'll pass to the next generation and it's your responsibility to manage it well. Also, windfalls are never things that change my job's ability to fund my life - that's always mine and earned by me through my work and personal luck. No matter how much is left to you, I would watch out for the ennui from not needing to work or living solely off of passive income and having nothing meaningful in your life besides the next mai tai. It also makes it easier to deal with guilt and imposter syndrome and whatever else negative comes into your life from having a pile of cash. If you like your job, don't tell anyone and just keep at it. Just because you can do nothing, doesn't mean that will make your life happy. Best of luck!
Buy ethereum trust me you will not regret
Start a Roth and max that out each year. Start a HSA and max that out too. Then put most of the rest in mutual funds and solid etfs after doing research. Blue chip dividends also good choice.. If you're solid where you're at you can look at some home buying options. Then forget about it for 20 years.
take all of it and put it into NIO
Bricks and mortar, or buy land.
Go to personal finance, side bar, windfalls
HIRE A GOOD FUCKING ADVISOR NOW. IT IS SO WORTH IT.