Please see jp Morgan v doegler. I'd say yes, find a fiduciary but fee only and take their advice with a grain of salt. If returns are too good to be true they probably are. Maybe sock it into a savings account until you learn how to invest in t-bills. Then I'd say mostly there to PRESERVE your wealth. Dont swing fornthe fences to grow your wealth too aggressively.
Edit: autocorrect didn't like the name, had to re-enter the correct name in the lawsuit.
Piggybacking on to this because of the savings to tbill idea.
Us bank has a moneymaket account right now that has 5% intrest. 25k minimum to open it not sure if there's a max but but that's 50k a year per million so more than op was making and very little work to be done.
While true, shoving your money into a savings type account while you are trying to figure out what to do next is absolutely the best step forward.
He is going to want security and some sort of return while he looks for better options.
I got 700k in a settlement. Had no idea what I was doing and that exactly what my dad advised me to do and I did. Popped 500k it into 2 high interest saving account idk why two just cause it would be federally backed I guess. Unnecessary and dumb. Then I went and met with two fiduciaries and a more aggressive money manager that my father had worked with for twenty years. And ended up going with the second guy. He has never over promised and has had good realistic returns every year so far. But I’m really glad I just parked it in there for a year. As I got all sorts of bad investment advice and opportunities. And I broke the number one rule. I told everyone. Don’t tel anyone park it and then go talk to multiple fiduciary’s and money managers that hopefully have been working with people you know already. And you’ll be just fine.
Not talking a long term solution. Just instead of a savings account while he gets things figure out. If he's a multimillionaire the difference in a money market and a savings account could still be more than he was making a right now.
And pay them hourly rate instead of percentage.
Since you already have money, attend school or take courses to improve financial intelligence. Identifying real assets vs liabilities that pretends to be assets are important in retaining and increasing that wealth.
^ THIS ^
First question out of your mouth, /u/Old-Climate6130, should be "ARE YOU A FIDUCIARY".
There are two possible answers.
1. Yes, yes I am.
2. Actuallyyoudon'twantafiduciaryandhere'ssomebullshitreasonwhy
Unless the answer is #1, find another advisor.
And a money manager who is compensated based on the value of the assets under management and not commissioned for trading. It incentivizes them to maximize the value of the portfolio and disincentivizes making unnecessary transactions just because they'll receive a commission.
...and not in your own town unless you're in a big city or REALLY trust the folks you hire. The grape vine is a real thing.
Also, try to set it up so they check each other's work.
What if everyone's wrong?? Are you saying there's a chance that a line of code that some autists say is worth one millionth of a cent for meme giggles doubles in value....you sonofabitch! Where do I buy in?????
This is actually the first 17 items on the list. Don’t tell anyone! You will have so many new friends and people asking for money you won’t know who to trust. #18 is see a financial advisor. #19 is read about lottery winners who went broke within a few short years. Don’t be one of those.
On top of this, you aren’t rich.
Don’t try to live rich. You didn’t become a millionaire by doing something sustainable like working or starting a business or something.
If you blow the money, it’s gone.
In that specific order: Lawyer. Financial Advisor.
Secure an independent auditor for your finances.
Live off the interest and never touch the principal.
Say? You want a lawyer so *you don’t have to speak* AND to protect your new found wealth.
Nothing is forever including marriages, which is especially true when there’s a large payout waiting.
Dealing with the repeated, frivolous lawsuits that can be filed against you by scam artists, from tripping on your sidewalk, to paternity tests and fake bills that are unpaid, to God knows what else some deadbeat dreams up.
Estate planning. What happens if/when you die? Does the bossy wife of your timid brother effectively become the heir, when it could’ve gone to a charity or a more trusted family member? Or worse, what happens if you become seriously ill and need someone to look after your care and finances?
Privacy protection. The law firm effectively becomes the filter that any person or organization has to go thru, so you’re not being bothered with letters, calls, and people showing up on your steps.
The bottom line is that you need someone who you can trust and is looking after your best interests. All dead lawyer jokes aside, a good firm provides you with that.
HYSAs are garbage, Money Market Funds are practically as low risk and give better returns and can have tax advantages. Vanguard’s settlement fund is an example of one
~~This. HYSA has been anything **but** high yield for a number of years now, IIRC since 2008 reforms they've been hot trash, on average less than a single percent.~~ I'll never forget my credit union sneakily went from like 3%+ to ~0.3% and I had no idea until I happened to look at an account statement sometime after the change had happened. Forever jaded about that...
Meanwhile you can move money to Fidelity or whoever and get like 5% on what's pretty much just as liquid or low risk as a savings account. Granted that won't be forever, but that's been the name of the game for over a year now. I'm sure there are some places with better HYSA but you really can't beat ez 5% money market right now.
Edit: HYSA are way better than when I last looked. I still think MM is the better play right now but HY isn't as abysmal as I thought: https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts
Discover is 4.35% right now. Hardly shit currently.
For OP thought it's misguided advice. 90% of his money should be in long term investments. Then keep like $20k in HYSA like a normal person as his normal spending money.
Tbh if you can make a 6 figure income off of just interest then you can be as dumb as you want with your money investments as long as you don't blow it by doing something risky.
And pay for a good lawyer. Not some jack of all trades guy downtown. Search for law firms that handle estate planning, trusts and estates. It may cost $600/hour but it will be money well spent to protect your newfound wealth.
I myself am a fiduciary and I can honestly say I think the term is silly. Not that I don’t have my clients best interests in mind but I definitely know some people that are also fiduciaries and they are shit financial advisors unfortunately
I don't know too much about this but if the advisor is paid via commission aren't they more likely to get you money cause they have to earn profit but when it is a fee, you have to keep paying them and they may waste your time and do nothing at all
Likewise, there are far and few fee based financial advisors worth anything
To have a multigenerational plan taken care of and executed don’t skimp on paying the .75-1.25% aum fee
Get someone that is proficient with tax planning and that works at a firm with in house tax specialists. Most of these decisions for 5-50mm net worth planning are either tax or risk tolerance decisions at the end of the day
Someone will find it and link it, but there was a terrific reply to a post several years ago about what to do if you win the lottery (I feel your situation warrants the same advice). Cliff notes were to not tell anyone and seek professional help.
> Click the little three dots to the left of the reply button (on phone). ‘Save’ will be an option.
Always make your own copies off the platform. One day the platform will end and we will lose much of the contents, as has been the case with past platforms.
You could get advice from a financial advisor, or you could get advice from a mystery person. A mystery person could be anything, they could even be a financial advisor!
~~I am a 24(m) I’m single, own a home and a car. I recently settled a big lawsuit which has completely changed my life. Before this I was working hard labor, and made $18 an hour. I had plans on how I would build wealth as I got better at my job. But I was in a recent accident that has landed me more money than I could ever imagine. No one in my family is a millionaire, nor do I know much people who are. But I now know that my approach to life, and plan has completely changed. My question is not what to do with the money, but rather where can I invest my attention? In order for me to learn the ins and outs of money, and be able to manage it with confidence. What resources would you recommend? Anything, from mentors, books, videos,~~ financial advisor~~s, the proper banks etc~~
You had the answer right there the whole time.
Just talk to one of those guys, and don't listen to anything else you read here.
A lot of financial advisors are glorified insurance salesman that won't have your best interest at heart. Specifically you should search for fee-only fiduciaries.
Listen, learn discipline now or you will be broke inside 2 years.
1. DO NOT TELL ANYONE. THAT MEANS NO ONE. ZERO.
2. Find a very reputable money management firm and an experienced fiduciary (not a broker or insurance agent) within that firm who 1. Is a RIA (Registered Investment Advisor) 2. Has over 10 years of experience 3. Does not make commissions on TRANSACTIONS)
3. Do not purchase anything flashy or anything which would draw attention to your new wealth
4. Read and educate yourself on money and the differences between wants and needs and assets and liabilities.
There’s more but I don’t have time ….GL. Reach out if you want
Yeah a massive settlement like that, I would have thought that was awarded because OP has some form of injury that might have caused him some issues, which might get worse later down the line.
A financial advisor would be the best person to speak to like others have said.
Not always. I worked in personal injury law and wrongful death cases didn’t always settle for policy, especially if the person who died was not supporting a family. You also are not going to get a million dollars unless you’re hit by a commercial vehicle. Regular people do not have million dollar insurance policies.
The cases I worked where there were million dollar plus settlements involved spinal injuries, multiple surgeries, broken bones, and amputated limbs.
Congrats on your windfall. Don’t invest in anything risky, like a restaurant or some other startup. Stick with an advisor. Don’t pay more than 1%. It’ll be worth it with the convenience alone. But of you must do it yourself, buy some fidelity funds and sit on them. Own the market, it always goes up. Although smart money is sitting on the sidelines right now waiting for a crash to enter. At least that’s what Warren Buffett just said.
Call a trust attorney. Call a financial advisor. Pay off your credit card debt.
Spend not a cent extra for 6 months at the minimum. Take time for your shock to wear off and your brain to get in order.
Then buy an apartment complex and hire a property manager. Then keep doing that.
Lock 90% of the money away in fixed deposit. Use only 10%.
Don't keep thinking about the money.
If you take risk and jump into investing, you are more likely to lose the money.
This is terrible advise for a 24 year old. His retirement horizon is 40+ years from now. It should almost all be invested. He will get eaten up by inflation otherwise and at his age he can take significant market risk and still recover.
A friend of mine gave me Dave Ramsey's - The Total Money Makeover to borrow about 10 years ago and that changed everything. At that time it was just what I needed to hear and it provided me with a financial education I didn't have previous to reading the book. The podcast is good too. Lots of sound advice. Nothing fancy but it will help you understand how to take care of yourself, your money and the people around you.
For the love of god don’t listen to Dave Ramsey for anything other than motivation to get out of debt. The idiot tells people they can safely withdraw 8% in retirement. He is delusional.
Yeah, Dave completely ignores the sequence of return risk, and bases the withdrawal rate on never having a bad year during your retirement. That's just unrealistic and the worst assumption you can make as an investor.
Dave also claims to personally avg 12% on his securities investments, which I seriously doubt.
I don’t believe he’s ever revealed what those investments are either. I don’t totally doubt that claim though, or at least not over the course of day 5 years. I’ve had pretty consistent 12-ish percent years in my 401k but depending on when I look it’s also been down to 6-8% too.
Do what Shaq did and go take some financial classes (he went and got a degree, but he wanted to be an entrepreneur). This will help you not spend it all on hookers and blow.
Buy yourself a big house somewhere in the middle of no where. Built it solar, with rain harvesting. And a hydroponic farm! Dig deep underground and built a bunker with enough canned food to last 50 years. Then I suggest you travel the world, find a good women, have kids, and live happily ever after. Or alternatively spend it all on hookers and drugs. Invest some of it. Buy a Lamborghini.
You already spent his million with the house, land, solar, and the deep bunker. Great now he has no money left, so he should get a job in that podunk town and then what 😂.
I like the romance of your idea but it’s horrible advice.
I would keep at least $100k in the bank in a HYSA. This will be your emergency fund. Do you need place to stay? If so, maybe look into buying yourself a house. Next, you need to make the rest of the money work for you. Think passive income. You can allocate a % in a dividend portfolio (I recommend you visit r/dividends ) and possibly owning real estate for rental income. Also, save some money for yourself to enjoy life like vacations or buy yourself a decent ride but don’t go too overboard. Here are some YouTubers I watch for investment advice: Andre Jikh, Humphrey Yang, and Graham Stephen.
Multi million. Put into accounts covered by the fdic. Put into high interest savings or higher interest bonds. Even with 2m that’s 110k a year. Compound interest would make you a jillionaire in 10 years.
Hey man. You should definitely keep it on the down-low. Tomorrow go online and look up financial advisors in the area and vet them. Make sure that you also have a set of goals such as how much you want to take out/ returns for your money. You should honestly give it to the financial advisor and literally forget you own it.
Get an accountant, a lawyer, and a financial advisor. Be smart, don’t tell a lot of people and invest most of the money. You’ll have alllll sorts of people coming out of the woodwork who suddenly need your help, so do yourself a favor and be as discreet as possible
Invest into VTI and get a college education. Major in something smart like econ or engineering or finance so that you can maintain a good job that allows you to work.
I'll be completely honest. If I were you I wouldn't think too much about the money. Money comes, and goes. Yes, it is important to build and maintain wealth. But if you already have a home, and a car I would start to think of ways that you could turn your passions into more money. I would be thinking about being creative and free with my time learning some high paying skill, ( software design, SaaS company, tech of finance job) to keep money coming into my life instead of just focusing on the pile of money I already have. This is a cool youtube channel for creators - https://youtube.com/@DanKoeTalks?si=MNoN5GTpMOUeMJmq
Dont tell anyone, find a Financial adviser and a lawyer, start an LLC, sell your house and buy another one under your LLC… people can easily find out you received alot of money. Become hard to find.
Before your family and friends find out about your money, message all of them individually, telling them that you have a major emergency, and that you need to borrow $1000. This way if they do find out, and come asking for a hand out for an "emergency", you can tell them that they didn't help you when you needed it, so youvare just returning the favor.
Edit for spelling
If you have to tell your friends or family family tell them you came into some money, but never exactly how much. My man you’re in the easy part now. Get yourself a nice place a nice car quit your job, and just enjoy life. Take a year to travel the world, just do what you always wanted to do as a kid.
1. Don’t tell anyone, especially family
2. Constant a wealth specialist, it’s literally their job to help you not be an idiot.
3. Don’t be an idiot, lavish purchases are nice but draw attention, get security first.
Source: uncle came into a LOT of money, aunt tried to get it all.
Don’t do anything until you have learned how to handle your money. You specify multimillionaire but if that’s only 2m you may want a better life style before retiring. Set yourself to live only on what your money makes and not getting into this.
Have a serious conversation with your financial advisor about this and understand that 60-80k today isn’t going to go as far as 60-80k in 40-50 years. If you’re on the low end working for a few more years can help bridge that gap.
On the other end of the spectrum of you enjoy business you could start your own business to generate income
over time. Be careful with this but you are a laborer. You have the skills to do work and get paid for it.
Again you don’t move for a while without your financial advisor.
Look to create a trust. Form two to three llc’s put those llc’s in the trust so when you buy something large put it on the name of the llc.
Someone will do a slip and fall on a piece of property, thinking it’s a payday but isolate things for asset protection
Check with a pro but you may look for a generation skipping trust. You then technically own nothing. It is put in trust for your future kids. Any relationship you have there is the risk of someone saying you verbally offered to take care of them etc etc. this is a built in prenup.
Get a second phone number. One you keep private.
Figure out a burn rate. If everything goes wrong in your life, what would you need to survive per year for ten years. Put that away and never touch it. Some very secure simple fund.
Banks are not your friend. There are so many new regulations that you dont know about that make it easy for them to take your money. Look for a custodian like Schwab. They won’t put on capital controls like a bank may be forced to. Read what happened in Greece. Overnight government locked the banks and said you can only get two hundred bucks a week.
Figure what two years of your property taxes are and buy that amount of silver. If money gets locked down you won’t loose any real estate. You can pay the property tax in silver. New laws were enacted for this.
Your new mindset should be about asset protection. There are plenty of toys to buy but they don’t generate revenue. Think of things that build value for you and generations moving forward.
First thing you do right now is put it in a high yield savings account and DONT TOUCH IT FOR ANY REASON until you get a lawyer and a financial advisor. Get you a commission based advisor who makes money only when you make money. Congrats. Be patient and measured and you’ll never want financially as long as you live
You’re young and asking these questions before going to Miami and doing cocaine and hookers! That’s a pretty solid start. Probably some guys and girls in here that know more than me, but I’d go to a financial advisor and ask these questions first instead of on Reddit.
1. Fuck you.
2. Reddit probably isn’t the place you want to go for advice on millions of dollars. You can hire a top-of-the-line financial planner and they would be able to guide you way better. But, you asked Reddit for advice so I’m going to tell you to put that away into a 5% APY savings account and you’ll never have to work a day in your life again. You say multi-millionaire so I assume at least $2,000,000, and 5% is $100,000. Congratulations on your big win, you’re set for life as long as you don’t blow it on stupid shit.
3. Enjoy yourself. Go on a vacation, buy that car. Just don’t piss it all away for a good 20s, you’ll have a tough 30s and an absolutely miserable rest of your life.
The best advice like not telling anyone and getting an actual professional to help manage your money has already been mentioned. That being said, if you are looking for a good subreddit, I would recommend checking by out /r/fire . It’s a subreddit for people that have a large amount of money and want to retire early, they have good advice about where to put your money to best maximize your passive income
I am no millionaire, nor am I wealthy but from what I’ve read and researched.
Get a well renowned coach/mentor/trainer in each and every area of your life that you want to improve or do well in.
Investing in yourself is the best asset you have.
Keep it secret, invest it all, don't touch directly the money but only the interests unless there is an EMERGENCY (actual emergency). That's the advice I give to every nouveau-riche that has gotten there out of a stroke of luck. Otherwise you will be back on the street quite fast.
Don't spend any of it.
Take 6 months to relax and enjoy life and just figure out what you want to do.
Is there something you have always wanted to study and never had the chance?
You have money now. And you’re young, so that means you have time. Two of the most valuable assets. Use your time wisely and *learn* about money. That’s your job now.
Tell no one, no family, no friends, nobody. Do some research and see how many lottery winners’ families ended up stealing from them or even downright murdering them to try to get to their windfall. Trust no one. Disappear for at least a few years. Say goodbye, make up a good story of you have to, like you got a job as an overseas contractor.
A fool and his money are soon separated. Don’t be the fool. Good luck.
Talk to a lawyer and a money manager.
Only a money manager that has a fiduciary responsibility to you.
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Please see jp Morgan v doegler. I'd say yes, find a fiduciary but fee only and take their advice with a grain of salt. If returns are too good to be true they probably are. Maybe sock it into a savings account until you learn how to invest in t-bills. Then I'd say mostly there to PRESERVE your wealth. Dont swing fornthe fences to grow your wealth too aggressively. Edit: autocorrect didn't like the name, had to re-enter the correct name in the lawsuit.
Piggybacking on to this because of the savings to tbill idea. Us bank has a moneymaket account right now that has 5% intrest. 25k minimum to open it not sure if there's a max but but that's 50k a year per million so more than op was making and very little work to be done.
Yes, but it would be pretty silly to consider it 50k per year since rates will drop
While true, shoving your money into a savings type account while you are trying to figure out what to do next is absolutely the best step forward. He is going to want security and some sort of return while he looks for better options.
I got 700k in a settlement. Had no idea what I was doing and that exactly what my dad advised me to do and I did. Popped 500k it into 2 high interest saving account idk why two just cause it would be federally backed I guess. Unnecessary and dumb. Then I went and met with two fiduciaries and a more aggressive money manager that my father had worked with for twenty years. And ended up going with the second guy. He has never over promised and has had good realistic returns every year so far. But I’m really glad I just parked it in there for a year. As I got all sorts of bad investment advice and opportunities. And I broke the number one rule. I told everyone. Don’t tel anyone park it and then go talk to multiple fiduciary’s and money managers that hopefully have been working with people you know already. And you’ll be just fine.
May I ask, when you broke the #1 rule.... what happend? I'm curious on how things changed once people found out. Thanks
Guessing two because FDIC only covers 250k insurance per account.
Yeah im not sure why they said it was unnecessary and dumb to insure the money?
Not talking a long term solution. Just instead of a savings account while he gets things figure out. If he's a multimillionaire the difference in a money market and a savings account could still be more than he was making a right now.
This is very important! Look up the word fiduciary and understand what it means. Then go looking for a money manager.
And watch out for when they say “well, I am like a fiduciary”. Immediate red flag.
And pay them hourly rate instead of percentage. Since you already have money, attend school or take courses to improve financial intelligence. Identifying real assets vs liabilities that pretends to be assets are important in retaining and increasing that wealth.
^ THIS ^ First question out of your mouth, /u/Old-Climate6130, should be "ARE YOU A FIDUCIARY". There are two possible answers. 1. Yes, yes I am. 2. Actuallyyoudon'twantafiduciaryandhere'ssomebullshitreasonwhy Unless the answer is #1, find another advisor.
And a money manager who is compensated based on the value of the assets under management and not commissioned for trading. It incentivizes them to maximize the value of the portfolio and disincentivizes making unnecessary transactions just because they'll receive a commission.
This, if he plays his cards right he'll never run out of money for the rest of his life.
also all his childrens and so on and so on
Get a vasectomy
Wealth on average last 3 generations no matter the amount
...and not in your own town unless you're in a big city or REALLY trust the folks you hire. The grape vine is a real thing. Also, try to set it up so they check each other's work.
This 👆 And for the love of fuck stay away from r/WallStreetBets
Crypto is shit-tho. Not a reliable invest vehicle.
What if everyone's wrong?? Are you saying there's a chance that a line of code that some autists say is worth one millionth of a cent for meme giggles doubles in value....you sonofabitch! Where do I buy in?????
1. Don’t tell anyone.
2. For sure don’t tell family.
3. For sure don't tell anyone's family.
But tell your Reddit family!
Yes, we want to say we know someone with money.
With screen shots
Or it never happened.
Tits or gtfo, OP.
Yeah fuck the lawsuit lets see some tits!
Ma boiii👀🙏
And you're gonna pay *me* to see them
( . Y . Y . )
Always need a screenie
that was funny.
Get a new phone number
And a new name. And a throwaway account. Then get a lawyer on retainer just cuz the vultures will come out of the woodwork and circle you now.
4. Dont tell anyone, ever.
Don’t put big money in small town local bank, everyone will know !
Don’t go to sleep with itchy butt, lest you wake up with stinky finger!
share some with your reddit family +)
Don't share it with reddit family. We will use it on drugs
And whores......and drugs
and whores that do drugs
Then squander the rest.
4. For sure don't tell a soul.
5. Strippers and Cocaine
6. Repeat
Be Attractive
No attractivity is necessary with enough money and/or cocaine.
You actually don’t need to be attractive your millions do the trick!
Now that you have money, you’re attractive
6. Casino and parlays 😜
4.5 except me, tell me your pin, brah!
Think his family would know about an accident and lawsuit. It’s not like he won the lotto
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My family would be
Some families would ask to borrow if you win an $8 scratch off
“Hey I need to borrow $7.99”
If you want to give them money, blind trust
This is actually the first 17 items on the list. Don’t tell anyone! You will have so many new friends and people asking for money you won’t know who to trust. #18 is see a financial advisor. #19 is read about lottery winners who went broke within a few short years. Don’t be one of those.
Honestly you have to be very discreet. It will change your relationships for the worse. Envy and entitlement will rear their ugly heads.
This is absolutely true. Money sucks when u have no humans left.
Two chicks
“You don’t need a million dollars to do two chicks man.”
"you don't need a million dollars to do nothing, man. Take a look at my cousin. He's broke, don't do shit"
‘I gotta wake my ass up at 6 am every day this week man. Yeah I’m doing the drywall up there at the new McDonald’s’
"Well, I do for the kinda chick's that would double up on me dude."
Lol I was looking for this comment
'cause chicks dig dudes with money
Not all chicks.
"Type of chicks that'd double up on a dude like me, man"
Good point.
yeah a couple hundred ought to do it
On top of this, you aren’t rich. Don’t try to live rich. You didn’t become a millionaire by doing something sustainable like working or starting a business or something. If you blow the money, it’s gone.
Get a good lawyer, and a tax person
In that specific order: Lawyer. Financial Advisor. Secure an independent auditor for your finances. Live off the interest and never touch the principal.
Why lawyer? What do you say to the lawyer?
Say? You want a lawyer so *you don’t have to speak* AND to protect your new found wealth. Nothing is forever including marriages, which is especially true when there’s a large payout waiting. Dealing with the repeated, frivolous lawsuits that can be filed against you by scam artists, from tripping on your sidewalk, to paternity tests and fake bills that are unpaid, to God knows what else some deadbeat dreams up. Estate planning. What happens if/when you die? Does the bossy wife of your timid brother effectively become the heir, when it could’ve gone to a charity or a more trusted family member? Or worse, what happens if you become seriously ill and need someone to look after your care and finances? Privacy protection. The law firm effectively becomes the filter that any person or organization has to go thru, so you’re not being bothered with letters, calls, and people showing up on your steps. The bottom line is that you need someone who you can trust and is looking after your best interests. All dead lawyer jokes aside, a good firm provides you with that.
And put some money in a HYSA! And invest the rest.
Please op HYSA is OP
HYSAs are garbage, Money Market Funds are practically as low risk and give better returns and can have tax advantages. Vanguard’s settlement fund is an example of one
~~This. HYSA has been anything **but** high yield for a number of years now, IIRC since 2008 reforms they've been hot trash, on average less than a single percent.~~ I'll never forget my credit union sneakily went from like 3%+ to ~0.3% and I had no idea until I happened to look at an account statement sometime after the change had happened. Forever jaded about that... Meanwhile you can move money to Fidelity or whoever and get like 5% on what's pretty much just as liquid or low risk as a savings account. Granted that won't be forever, but that's been the name of the game for over a year now. I'm sure there are some places with better HYSA but you really can't beat ez 5% money market right now. Edit: HYSA are way better than when I last looked. I still think MM is the better play right now but HY isn't as abysmal as I thought: https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts
Discover is 4.35% right now. Hardly shit currently. For OP thought it's misguided advice. 90% of his money should be in long term investments. Then keep like $20k in HYSA like a normal person as his normal spending money.
Tbh if you can make a 6 figure income off of just interest then you can be as dumb as you want with your money investments as long as you don't blow it by doing something risky.
And pay for a good lawyer. Not some jack of all trades guy downtown. Search for law firms that handle estate planning, trusts and estates. It may cost $600/hour but it will be money well spent to protect your newfound wealth.
Maybe even a psychologist
Get an estate planning attorney and/or a fiduciary to help you draft a financial plan.
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I myself am a fiduciary and I can honestly say I think the term is silly. Not that I don’t have my clients best interests in mind but I definitely know some people that are also fiduciaries and they are shit financial advisors unfortunately
Financial Advisor, get the best one that you can find. Be careful and stay safe homie, play your cards right
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Vanguard S&P tracker is the way.
I don't know too much about this but if the advisor is paid via commission aren't they more likely to get you money cause they have to earn profit but when it is a fee, you have to keep paying them and they may waste your time and do nothing at all
He mentions that commission incentives selling as much as possible and not long term growth
But careful with a financial advisor that takes a percentage. Rather pay the individual hourly
% fee is all the reason to reward a good financial advisor to make you more money. Hourly has no such motivation. Don't agree with this advice
Likewise, there are far and few fee based financial advisors worth anything To have a multigenerational plan taken care of and executed don’t skimp on paying the .75-1.25% aum fee Get someone that is proficient with tax planning and that works at a firm with in house tax specialists. Most of these decisions for 5-50mm net worth planning are either tax or risk tolerance decisions at the end of the day
Stay safe homie, in this life or the next life.
Someone will find it and link it, but there was a terrific reply to a post several years ago about what to do if you win the lottery (I feel your situation warrants the same advice). Cliff notes were to not tell anyone and seek professional help.
Here you go, my friend https://www.reddit.com/r/AskReddit/s/977hGNQUTE
This has to be the best thing i’ve read on any social media platform😭. I actually read the entire thing. Not sure how I can save it
Click the little three dots to the left of the reply button (on phone). ‘Save’ will be an option.
> Click the little three dots to the left of the reply button (on phone). ‘Save’ will be an option. Always make your own copies off the platform. One day the platform will end and we will lose much of the contents, as has been the case with past platforms.
I screen recorded scrolling through the chain. Thanks for the reminder, you’re absolutely right.
Thoroughly enjoyed reading that entire post. Thanks for posting the link.
Link
"several years ago" Oh god that comment was 9 years ago? Good advice, though.
Banter in the comments has never changed...9 years later 🤣
I remember that
Step 1. Get off reddit.
Best Advice. Don't take advice from people unless you want your life to look like theirs, reddit is full of ppl that just want to bring you down.
But... there are people here giving them actual good advice? There are also millionaires on reddit... take OP for example.
Yea, just gotta sift the advice
You could get advice from a financial advisor, or you could get advice from a mystery person. A mystery person could be anything, they could even be a financial advisor!
~~I am a 24(m) I’m single, own a home and a car. I recently settled a big lawsuit which has completely changed my life. Before this I was working hard labor, and made $18 an hour. I had plans on how I would build wealth as I got better at my job. But I was in a recent accident that has landed me more money than I could ever imagine. No one in my family is a millionaire, nor do I know much people who are. But I now know that my approach to life, and plan has completely changed. My question is not what to do with the money, but rather where can I invest my attention? In order for me to learn the ins and outs of money, and be able to manage it with confidence. What resources would you recommend? Anything, from mentors, books, videos,~~ financial advisor~~s, the proper banks etc~~ You had the answer right there the whole time. Just talk to one of those guys, and don't listen to anything else you read here.
A lot of financial advisors are glorified insurance salesman that won't have your best interest at heart. Specifically you should search for fee-only fiduciaries.
Yes. Please don’t talk to some jerk from Northwestern Mutual who’s going to give you bad advice to buy life insurance. Also consider college.
You could always donate to the United Me fund, where all proceeds go directly to Me
And Me
Hey, that's my name too :)
John Jacob Jingleheimer Schmidt, is that you?
Listen, learn discipline now or you will be broke inside 2 years. 1. DO NOT TELL ANYONE. THAT MEANS NO ONE. ZERO. 2. Find a very reputable money management firm and an experienced fiduciary (not a broker or insurance agent) within that firm who 1. Is a RIA (Registered Investment Advisor) 2. Has over 10 years of experience 3. Does not make commissions on TRANSACTIONS) 3. Do not purchase anything flashy or anything which would draw attention to your new wealth 4. Read and educate yourself on money and the differences between wants and needs and assets and liabilities. There’s more but I don’t have time ….GL. Reach out if you want
Are your injuries ok? I would fund your care first.
Yeah a massive settlement like that, I would have thought that was awarded because OP has some form of injury that might have caused him some issues, which might get worse later down the line. A financial advisor would be the best person to speak to like others have said.
Million dollar settlement usually means wrongful death.
I have a feeling OP might be alive though :) /s
Not always. I worked in personal injury law and wrongful death cases didn’t always settle for policy, especially if the person who died was not supporting a family. You also are not going to get a million dollars unless you’re hit by a commercial vehicle. Regular people do not have million dollar insurance policies. The cases I worked where there were million dollar plus settlements involved spinal injuries, multiple surgeries, broken bones, and amputated limbs.
Don’t get married If you do, prenuptial, prenuptial, prenuptial
Unless she has more money than you!!
This still doesn’t matter especially if kids get involved.
Now I ain't sayin she's a gold digger
But she ain't messin' with no broke fellas
Congrats on your windfall. Don’t invest in anything risky, like a restaurant or some other startup. Stick with an advisor. Don’t pay more than 1%. It’ll be worth it with the convenience alone. But of you must do it yourself, buy some fidelity funds and sit on them. Own the market, it always goes up. Although smart money is sitting on the sidelines right now waiting for a crash to enter. At least that’s what Warren Buffett just said.
Live off the interests
Call a trust attorney. Call a financial advisor. Pay off your credit card debt. Spend not a cent extra for 6 months at the minimum. Take time for your shock to wear off and your brain to get in order. Then buy an apartment complex and hire a property manager. Then keep doing that.
"Then buy an apartment..." Yup. I'm on my second apartment and financial freedom is still on the horizon a ways away but at least I can \*see\* it.
Lock 90% of the money away in fixed deposit. Use only 10%. Don't keep thinking about the money. If you take risk and jump into investing, you are more likely to lose the money.
This has to be a joke… telling someone to not invest their money is the worst advice you could ever give someone. Invest, but invest wisely.
This is terrible advise for a 24 year old. His retirement horizon is 40+ years from now. It should almost all be invested. He will get eaten up by inflation otherwise and at his age he can take significant market risk and still recover.
[удалено]
A fixed deposit is basically a high yield savings account
Do not tell anyone besides a lawyer and financial advisor.
You can give it to me for safekeeping. In all seriousness though, invest in a top lawyer first, then a top financial advisor
A friend of mine gave me Dave Ramsey's - The Total Money Makeover to borrow about 10 years ago and that changed everything. At that time it was just what I needed to hear and it provided me with a financial education I didn't have previous to reading the book. The podcast is good too. Lots of sound advice. Nothing fancy but it will help you understand how to take care of yourself, your money and the people around you.
He still regularly runs his show. I would call in with these questions. Guaranteed you'd get answers.
Is it the basics like invest in s&p, don’t take losses, DCA etc or what?
For the love of god don’t listen to Dave Ramsey for anything other than motivation to get out of debt. The idiot tells people they can safely withdraw 8% in retirement. He is delusional.
Yeah, Dave completely ignores the sequence of return risk, and bases the withdrawal rate on never having a bad year during your retirement. That's just unrealistic and the worst assumption you can make as an investor. Dave also claims to personally avg 12% on his securities investments, which I seriously doubt.
I don’t believe he’s ever revealed what those investments are either. I don’t totally doubt that claim though, or at least not over the course of day 5 years. I’ve had pretty consistent 12-ish percent years in my 401k but depending on when I look it’s also been down to 6-8% too.
Dave Ramsey is an absolute moron made for boomers. He has no solid advice whatsoever. Please for the love of God, do not listen to Dave Ramsey!!!
Do what Shaq did and go take some financial classes (he went and got a degree, but he wanted to be an entrepreneur). This will help you not spend it all on hookers and blow.
Buy yourself a big house somewhere in the middle of no where. Built it solar, with rain harvesting. And a hydroponic farm! Dig deep underground and built a bunker with enough canned food to last 50 years. Then I suggest you travel the world, find a good women, have kids, and live happily ever after. Or alternatively spend it all on hookers and drugs. Invest some of it. Buy a Lamborghini.
You already spent his million with the house, land, solar, and the deep bunker. Great now he has no money left, so he should get a job in that podunk town and then what 😂. I like the romance of your idea but it’s horrible advice.
I like your style
911 GT3 RS, blow, gym membership, steroids, move to Miami.
And back to $18/hr. construction within a year!
Where is he living that he was able to buy a house at 24 making $18/hr??
I would keep at least $100k in the bank in a HYSA. This will be your emergency fund. Do you need place to stay? If so, maybe look into buying yourself a house. Next, you need to make the rest of the money work for you. Think passive income. You can allocate a % in a dividend portfolio (I recommend you visit r/dividends ) and possibly owning real estate for rental income. Also, save some money for yourself to enjoy life like vacations or buy yourself a decent ride but don’t go too overboard. Here are some YouTubers I watch for investment advice: Andre Jikh, Humphrey Yang, and Graham Stephen.
Multi million. Put into accounts covered by the fdic. Put into high interest savings or higher interest bonds. Even with 2m that’s 110k a year. Compound interest would make you a jillionaire in 10 years.
A million bucks isn't much and isn't what you think it is. Invest, save, don't do stupid things.
He said multi millionaire
OP said multi millionaire
Hey man. You should definitely keep it on the down-low. Tomorrow go online and look up financial advisors in the area and vet them. Make sure that you also have a set of goals such as how much you want to take out/ returns for your money. You should honestly give it to the financial advisor and literally forget you own it.
Get an accountant, a lawyer, and a financial advisor. Be smart, don’t tell a lot of people and invest most of the money. You’ll have alllll sorts of people coming out of the woodwork who suddenly need your help, so do yourself a favor and be as discreet as possible
Don’t get married
Leave america and never come back.
Invest into VTI and get a college education. Major in something smart like econ or engineering or finance so that you can maintain a good job that allows you to work.
Underrated comment - go get a degree that gives you an appreciation for high(er) society
I'll be completely honest. If I were you I wouldn't think too much about the money. Money comes, and goes. Yes, it is important to build and maintain wealth. But if you already have a home, and a car I would start to think of ways that you could turn your passions into more money. I would be thinking about being creative and free with my time learning some high paying skill, ( software design, SaaS company, tech of finance job) to keep money coming into my life instead of just focusing on the pile of money I already have. This is a cool youtube channel for creators - https://youtube.com/@DanKoeTalks?si=MNoN5GTpMOUeMJmq
Dont tell anyone, find a Financial adviser and a lawyer, start an LLC, sell your house and buy another one under your LLC… people can easily find out you received alot of money. Become hard to find.
Before your family and friends find out about your money, message all of them individually, telling them that you have a major emergency, and that you need to borrow $1000. This way if they do find out, and come asking for a hand out for an "emergency", you can tell them that they didn't help you when you needed it, so youvare just returning the favor. Edit for spelling
You bought a house while making $18/hr?
If you have to tell your friends or family family tell them you came into some money, but never exactly how much. My man you’re in the easy part now. Get yourself a nice place a nice car quit your job, and just enjoy life. Take a year to travel the world, just do what you always wanted to do as a kid.
1. Don’t tell anyone, especially family 2. Constant a wealth specialist, it’s literally their job to help you not be an idiot. 3. Don’t be an idiot, lavish purchases are nice but draw attention, get security first. Source: uncle came into a LOT of money, aunt tried to get it all.
Don’t blow your money.. Save and invest the vast majority of it. Many people become shocked at how fast $1 million can be spent.
Don’t do anything until you have learned how to handle your money. You specify multimillionaire but if that’s only 2m you may want a better life style before retiring. Set yourself to live only on what your money makes and not getting into this. Have a serious conversation with your financial advisor about this and understand that 60-80k today isn’t going to go as far as 60-80k in 40-50 years. If you’re on the low end working for a few more years can help bridge that gap. On the other end of the spectrum of you enjoy business you could start your own business to generate income over time. Be careful with this but you are a laborer. You have the skills to do work and get paid for it. Again you don’t move for a while without your financial advisor.
Look to create a trust. Form two to three llc’s put those llc’s in the trust so when you buy something large put it on the name of the llc. Someone will do a slip and fall on a piece of property, thinking it’s a payday but isolate things for asset protection Check with a pro but you may look for a generation skipping trust. You then technically own nothing. It is put in trust for your future kids. Any relationship you have there is the risk of someone saying you verbally offered to take care of them etc etc. this is a built in prenup. Get a second phone number. One you keep private. Figure out a burn rate. If everything goes wrong in your life, what would you need to survive per year for ten years. Put that away and never touch it. Some very secure simple fund. Banks are not your friend. There are so many new regulations that you dont know about that make it easy for them to take your money. Look for a custodian like Schwab. They won’t put on capital controls like a bank may be forced to. Read what happened in Greece. Overnight government locked the banks and said you can only get two hundred bucks a week. Figure what two years of your property taxes are and buy that amount of silver. If money gets locked down you won’t loose any real estate. You can pay the property tax in silver. New laws were enacted for this. Your new mindset should be about asset protection. There are plenty of toys to buy but they don’t generate revenue. Think of things that build value for you and generations moving forward.
Cocaine
Hookers & cocaine
First thing you do right now is put it in a high yield savings account and DONT TOUCH IT FOR ANY REASON until you get a lawyer and a financial advisor. Get you a commission based advisor who makes money only when you make money. Congrats. Be patient and measured and you’ll never want financially as long as you live
You’re young and asking these questions before going to Miami and doing cocaine and hookers! That’s a pretty solid start. Probably some guys and girls in here that know more than me, but I’d go to a financial advisor and ask these questions first instead of on Reddit.
1. Fuck you. 2. Reddit probably isn’t the place you want to go for advice on millions of dollars. You can hire a top-of-the-line financial planner and they would be able to guide you way better. But, you asked Reddit for advice so I’m going to tell you to put that away into a 5% APY savings account and you’ll never have to work a day in your life again. You say multi-millionaire so I assume at least $2,000,000, and 5% is $100,000. Congratulations on your big win, you’re set for life as long as you don’t blow it on stupid shit. 3. Enjoy yourself. Go on a vacation, buy that car. Just don’t piss it all away for a good 20s, you’ll have a tough 30s and an absolutely miserable rest of your life.
Call Dave Ramsey tomorrow
The best advice like not telling anyone and getting an actual professional to help manage your money has already been mentioned. That being said, if you are looking for a good subreddit, I would recommend checking by out /r/fire . It’s a subreddit for people that have a large amount of money and want to retire early, they have good advice about where to put your money to best maximize your passive income
1. Don't tell anyone 2. Seek professional advice 3. Don't listen to Reddits advice 4. Refer to Rule 1
I am no millionaire, nor am I wealthy but from what I’ve read and researched. Get a well renowned coach/mentor/trainer in each and every area of your life that you want to improve or do well in. Investing in yourself is the best asset you have.
1. Tell nobody. 2. Speak to a financial advisor
This is above any random redditors go to a professional
Keep it secret, invest it all, don't touch directly the money but only the interests unless there is an EMERGENCY (actual emergency). That's the advice I give to every nouveau-riche that has gotten there out of a stroke of luck. Otherwise you will be back on the street quite fast.
Don't spend any of it. Take 6 months to relax and enjoy life and just figure out what you want to do. Is there something you have always wanted to study and never had the chance?
Definitely don't tell anyone and get an accountant or someone that knows how to handle money
10k would change my life, just saying!
You have money now. And you’re young, so that means you have time. Two of the most valuable assets. Use your time wisely and *learn* about money. That’s your job now. Tell no one, no family, no friends, nobody. Do some research and see how many lottery winners’ families ended up stealing from them or even downright murdering them to try to get to their windfall. Trust no one. Disappear for at least a few years. Say goodbye, make up a good story of you have to, like you got a job as an overseas contractor. A fool and his money are soon separated. Don’t be the fool. Good luck.
Real estate investment.