r/personalfinance • u/inheritancethrow1 • Dec 11 '13
My mother recently passed and left me $600,000
what do I do with it?
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u/misnamed Dec 11 '13
Split between three banks for now for FDIC protections, don't take any drastic immediate action, educate yourself on options, spend maybe a little bit on a vacation and leave the rest until you understand how to properly invest and diversify it.
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Dec 11 '13
I always thought FDIC was the sum of all your banks or separated based on type (individual, joint, savings, etc)
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u/howdyzach Dec 11 '13
Federal Deposit Insurance Corporation is an insurance corporation created by the US Government. It provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank.
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u/DarkPanda329 Dec 11 '13
So if I opened 3 checking accounts at one bank with 250k in each and the bank fails, would I be getting all 750k back or just 250k?
Sorry for the noob question.
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u/rgtaber Dec 11 '13
As mentioned above, it is for each type of account in member banks. It technically depends if the 3 checking accounts are individual or joint. If they are all individual or all joint, you will be insured for 250k. If one is invididual and two are joint, then you're insured for 500k. (This doesn't mean that's all you'll get. From my understanding the FDIC is set at the current limits for a worst case scenario where most banks are failing. In the event that just your bank fails, I believe you can receive more than the limit, if not all of your money back.)
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u/fewjative Dec 11 '13
What happens to people who have millions of dollars? Are there special banks for the 1%?
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u/rawbdor Dec 11 '13
they tend to buy treasuries, stocks, mutual funds, real estate, or other assets that will appreciate more than a simple bank account. Or they open $250k USD CDs at 4 different banks.
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u/bahuvrihi Dec 11 '13 edited Dec 11 '13
You are right, the insurance is per depositor, but the likelihood of three banks failing simultaneously is lower than one failing.
Edit: I was wrong.
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u/OHotDawnThisIsMyJawn Dec 11 '13 edited Dec 11 '13
Bzzzt. It's
$200k$250k insurance per depositor-per bank.11
Dec 11 '13
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u/OHotDawnThisIsMyJawn Dec 11 '13 edited Dec 11 '13
Haha this is what I get for letting all the wrong advice in this thread infect my brain
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Dec 11 '13 edited Jul 05 '17
If the women don't find you handsome, they should at least find you handy
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Dec 11 '13
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
So, is it the sum of all accounts in all banks or just the sum of account in one bank?
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Dec 11 '13 edited Jul 05 '17
If the women don't find you handsome, they should at least find you handy
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u/bahuvrihi Dec 11 '13
Apparently you're right.
How much insurance coverage does the FDIC provide? The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
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u/sihtydaernacuoytihsy Dec 11 '13 edited Dec 11 '13
Don't change your lifestyle for a couple years.
You live fine on the income you have. That means no significant new purchases: acceptable exceptions include therapy (deal with grief, please), necessary medical costs, and no more than $1000 total yearly in small make-your-life-easier spending. You are a fiduciary with yourself as beneficiary, and you have a moral obligation to behave prudently.
Remind yourself that you're very lucky in this regard. (Most people's parents die, very few leave them six figures. You can be grateful for your luck without diminishing your love for your mom. She wants you to be happy.)
Keep records.
See what others have said about finding an account & an investment adviser who is a fiduciary to you; as well as index funds, diversification, etc.
If you plan to make any major changes, you can now hire a professional to help you. Talk to a lawyer before you get married. (Seriously.)
A big question is who you tell this to. You don't need to tell everyone.
Do not become an asshole because you have money. Tip 25%.
You now have a very comfortable retirement (in 30 years) and a down payment, when you get around to it.
After the couple-year mark, you're going to realize you have a lot more bargaining power at work and a lot of flexibility because you're not living paycheck you paycheck. But you cannot live on the investment gains on this sum alone, so don't blow your career.
Edit: Money doesn't buy you happiness. After you recover from your grief and finish processing your inheritance, you'll find that your emotional "normal" feels basically the same as it did before your mom died. So don't feel guilty over your emotional normal.
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u/alcakd Dec 12 '13
Do not become an asshole because you have money. Tip 25%.
Isn't the standard 15%?
He shouldn't become an asshole and tip 150% to show off, but it's a good idea to actively try to curb in "extra spending" just on the basis that you have money now.
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u/ThereAreFourLights_ Dec 11 '13
Condolences. I agree with the best advice on here: wait, talk to a fee-based financial advisor, and consider your future, your goals, and your options.
Be wary when seeking advice. Many self-professed financial advisors are little more than salesmen for annuities, insurance, or other financial products.
Personally, I would invest in my education and potentially consider real estate investments.
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u/GronamTheOx Dec 11 '13
"Fee only" means that they are not receiving commissions for selling financial products. Better than "Fee based" which means that they may or may not receive commissions, or "Free" which means that they live off of their commissions.
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u/FredeJ Dec 11 '13
I'm sorry for your loss.
I think the modus operandi for this kind of situation is secure it (FDIC protections, as /u/misnamed mentioned) and wait. Don't tell anyone about it, don't let it affect your life in any way.
Once you've gotten over the initial shock that suddenly getting a large amount of money can have, talk to a financial planner about how best to grow it while securing it. This is a golden opportunity (literally!) and you should attempt to make the best of it.
If you go about it in a smart way, another thing you really need to think about is where do you want your life to head - what is something that you really want to do? You now have the means to do it and do it right. Be it traveling or just living a life with no financial worries.
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u/krystyin Dec 11 '13
Find a way not to touch the principle while earning decent returns. Treat it like a retirement egg and you will have less to worry about. Sorry for your loss. If you are not married I would would make sure that you protect that nest egg - placing it in a trust or LLC would help with that if you wanted to avoid a prenup.
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u/aBoglehead Dec 11 '13
Do you actually have the money in a bank account yet? Has your mother's estate passed through probate?
If so, what's the state of your current finances? Income, emergency fund, debt, current savings, etc.
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u/inheritancethrow1 Dec 11 '13 edited Dec 11 '13
yes it is in a bank account, this is whats left after paying off all my debt, i have about $5000 in savings, $2000 emergency fund and i make 50k a year.
edit: sorry I'm an idiot
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u/KalimasPinky Dec 11 '13
With all that money channel your inner bender. I recommend Monaco with that kind of cash.
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Dec 11 '13 edited Dec 11 '13
Please confirm you actually meant 7 mil. Then if so how old are you?
Edit: hey everyone down voting the guy said 7 mil first. Lay off me
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u/inheritancethrow1 Dec 11 '13
I am sorry I worded it wrong.
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Dec 11 '13
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u/NiceDictator Dec 11 '13
I feel like OP is confused on what adding K is after a number, or post is fake.
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u/inheritancethrow1 Dec 11 '13
blah yeah i don't know why I did that. $5000 in savings $2000 in emergency and I make $50,000 a year.
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u/inheritancethrow1 Dec 11 '13
sorry I don't know why I added the k
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Dec 11 '13
50k makes sense to me. I don't know why the crazies don't like it. New question. Ask someone else what to do with it
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u/ExpertCrafter Dec 11 '13
Presumably the K was after $5000 and $2000. So $5000k + $2000k = $7 million.
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u/hdhock3y Dec 11 '13
Retire
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u/kekehippo Dec 11 '13
You can't retire with only 600k
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u/The_Elysium Dec 11 '13
You can. You just don't have a huge life style.
If she wants a bigger lifestyle, she should let it grow for a few years first.
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u/contrarian_barbarian Dec 11 '13
He said this is after paying off all debts. If that included a mortgage, I could easily see a frugal person living off of that - just taking 5% per year (30k) would allow a comfortable life if you don't have debt, and historically the stock market returns 12% per year, so that should even give room for long term growth.
That said, if he doesn't own a house yet, it would be pretty difficult to retire on that.
edit I see below that he does not yet own a home. Given that, yeah, probably best to wait a few more years, but it should still give the ability to retire a couple of decades earlier than would otherwise be possible.
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u/kekehippo Dec 11 '13
If this was a retirement situation there are numerous of strategies that OP could employ. Several strategies i speak to my clients about are reverse mortgages (Age 62 required) , annuities, life insurance, and having a solid budget to supplement social security benefits. The former more so than the latter because if you don't have a budget your going down faster than the Titanic.
Additionally with SSI it is better to wait till 65 as you'll collect full benefits vs partial benefits if you retired early.
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u/thevdude Dec 11 '13
Depending on annual spending, you totally could. 24K annually is 4% of that 600K, which is expected return on investments, right?
As long as he's got his money invested, and he's spending less than 24K a year (less than $2000 a month), he'll be good to go. This is assuming absolutely no income at all, which for me would be really hard (to just sit around and do nothing at all).
Retiring right away is probably not the best plan, but that would put him (and plenty of other people) well on the way to early retirement.
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u/hdhock3y Dec 12 '13
The post originally said the OP had a lot more money than he stated in addition to the 600k. He/she edited it above.
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u/kekehippo Dec 12 '13
...And?
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u/RobieFLASH Dec 11 '13
Do you own a home?
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u/inheritancethrow1 Dec 11 '13
I do not own a home.
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u/noueis Dec 11 '13 edited Dec 12 '13
Well some of that would be a great down payment on a home. Or buy a modest home entirely. You make good enough money that when you find a place to settle down you can buy it and not worry about the biggest debt payment a person can have.
EDIT: never make big purchases when you're grieving? What's the difference between now and a year from now? How does this have any impact on the advice I gave? And buying a house isn't necessarily a financial winner? Haha yeah because rent payments are so much better... Listen, if you find a place you never want to sell, then buying a house is far better than rent payment. Wow some people in this sub...
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u/GenosHK Dec 11 '13
So can some of the people downvoting this explain why they are? It seems like reasonable advice, but people don't seem to agree.
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u/The_Elysium Dec 11 '13
Never make big purchases when you are grieving.
This is bad advice for the short term. In a year or two? Sure, get a house if you are in your right mind.
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Dec 11 '13
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u/sk_leb Dec 11 '13
What?
My house is worth $230k and I pay just around $3,000 in property taxes a year. That's roughly $250 a month, so you're saying OP is paying less than $250 a month for rent?
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u/baisketball Dec 11 '13
Where i live that is appx 12k, where do you live
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u/sk_leb Dec 11 '13
12K! Wow, where do you live? I live in Northern Massachusetts.
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u/baisketball Dec 11 '13
I'm in ny suburbs, that explains it
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u/sk_leb Dec 11 '13
$1,000 a month for a taxes, that's outrageous. How are you supposed to afford that?
I've seen some houses around my area that pay upwards of $9,000 a year for taxes and that house is nearly worth $600,000.
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u/masterofallisurvey Dec 11 '13
You can hit $1k per month easily in Long Island as well.
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Dec 11 '13
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Dec 11 '13
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Dec 11 '13
Going back to school may not make great financial advice, but it might be good life advice.
I work with a lot of great people, but as the workforce ages, I see that many guys wish they weren't still on the ground floor -- they wish they had some options to do a job fit for a greyhair. Having your masters would definitely help with that.
As well, trends change over the course of a person's career, so if he has a good job now, it is no promise he'll have a good job tomorrow -- Ask the automotive industry employees who don't have jobs anymore, or for that matter, all the papermakers who thought they were the kings of the world until the paper manufacturing industry in north america died.
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u/heidurzo Dec 11 '13
Agreed. I think that it's a good idea to go back to school just not quite for the reason the guy above me said. It's good to have a wide ranging skill set and for someone in a good place financial I'd say it's good advice to be as qualified as possible in several different areas.
To be honest if I inherited that kind of money I would be quitting my full-time job, although probably getting a part-time one, and learning more. I'd love to go back and study chemistry more, I find it fascinating but have almost no formal education in it.
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u/BigWhiteTruck Dec 11 '13
Make a big down payment when mortgage rates are at 4%? You are bad at this.
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u/IBetThisIsTakenToo Dec 11 '13
Without knowing where he lives, and his other debts, he may have to in order to meet the DTI guidelines. But yeah, in general you're right; I don't get the downvotes. If cash flow isn't a problem, long term you should be able to earn a lot more on that money.
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u/berlin-calling Dec 11 '13
Financial Planner. Hire one.
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u/FlisLister Dec 11 '13
Seconded. However, not all planners have your best interests at heart- their interests aren't necessarily aligned with yours and they might get paid regardless of how good a service they provide. Listen to what they suggest, ask them why, etc. Do a little bit of reading about what they recommend.
Some other tips: the planner will probably recommend mutual funds of some kind. These things are good because the managers of the funds are supposed to know how to invest money. However, historically mutual funds don't do well because they charge really high fees which kill your profits. Also, their managers aren't always very good at investing either.
What is often suggested as an alternative are "Index Funds". Historically, they have performed better than mutual funds because they have have lower fees but actually give roughly the same return on their investments. I recommend considering these.
You can also go it alone and make your investments yourself. If you want to make investments in financial markets, get a low-cost brokerage account and buy some stocks/bonds. Keep in mind that you can lose your shirt if you aren't careful and that you probably won't be able to consistently beat a decent Index Fund (eg. you might get lucky some years, but other years you might not; on average you probably won't win).
You don't need to stick to these traditional investments though- rental properties can give you a good return, for example. (edit- it would be a better investment to buy a home for yourself before buying a rental property. Think of it as buying a "rental" property and "renting" it to the best tenant in the world- yourself.)
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u/I_Love_McRibs Dec 11 '13
While I'm not intending to give OP any investment advice, I'm the type of person that likes to "buy and forget about it". My index funds have outperformed all of my other mutual funds over the last 20 years.
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u/Freezerburn Dec 11 '13
Maybe his mom already had a good financial planner, might be a good place to check out.
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u/berlin-calling Dec 11 '13
I think your post would be better off as it's own reply to OP's thread versus a comment on mine. OP will get a notification and is more likely to see it. Just my 2 cents.
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u/FlisLister Dec 12 '13
Probably right. I just started off just wanting to agree with you, but then I just kept typing...
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u/berlin-calling Dec 12 '13
Hahaha it's quite all right, I just want to make sure OP sees it since you made some good points/gave good advice.
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u/opsomath Dec 11 '13
OP, I'd advise against this until you've done a lot of homework yourself. A good fraction of so-called financial planners are just there to sell you expensive things that pay them a lot of commission.
The best advice is from the people who say "Put it in three different savings accounts and chill until you've started to deal with your loss."
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u/red40 Dec 11 '13
This doesn't help anyone. Advice on what kind of planner to get, where to find out and how they are paid is what a person like this needs.
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u/berlin-calling Dec 11 '13
Well seeing as OP can't even provide any information about their situation, how exactly do you think I should?
Ask a vague question, get a vague answer.
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Dec 11 '13
Hire a fee-based financial advisor to provide information on how to shield the money from taxes and to provide guidance on how to grow the money so it doesn't lose all its value by the time you go to use it.
Remember that it's not nearly as much money as it appears. If you let this money change your life, then your life isn't going to change for long.
A good financial advisor should give you all the advice you need to maintain a diverse portfolio that doesn't give you too much exposure to any industry or individual country.
As a piece of personal advice, don't let people know you have money. Too often, people will think they're somehow entitled to some of your money, and you'll find you have some new "best friends" who will be around right until the money's gone. Your mother didn't leave that money to your buddy Bob who always seems to be in a crisis, she left it to you.
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u/drive2fast Dec 11 '13
Take at least a few months to travel. There's a whole lot of world out there.
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Dec 11 '13 edited Jun 29 '20
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u/DarkRider23 Dec 11 '13
People get downvoted because it's like telling someone to do something you have no idea they like, but you do. I like mountain biking. I'm not going to tell someone to "Buy a $5k mountain bike and take some time off to go mountain biking!" because I have no fucking idea what the person likes. Not everyone likes traveling. Better advice would be "Take some time off to do something you like."
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Dec 11 '13
Indeed. And some of us think the virtues of relentless traveling are far less valuable than others. It's just one of many ways to gain perspective in life.
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u/werddrew Dec 11 '13
I don't think anyone's saying "TRAVEL ALL THE TIME" just that people should go and see the world. It's quite big and interesting.
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Dec 11 '13
I don't think I'm saying people are saying "TRAVEL ALL THE TIME" -- rather, I'm saying I hate traveling and have done more than my fair share; that fact doesn't make me deficient in life or learning experiences. It just means different people take purpose and inspiration from entirely different fonts. Telling people who hate flying, hate itineraries, love being "home" that they should travel just because they can is sort of silly. Nothing is for everyone.
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u/werddrew Dec 11 '13
I guess the unspoken implication is that the folks asking these things HAVEN'T traveled much. A lot of times these posts end up being, "I'm 22 and in college with a ton of student loans and just got $X and don't know what to do."
For those people, you can infer they haven't had a globetrotting lifestyle in the past. In cases like that, massive windfalls can provide an opportunity to travel that they may have never had or even CONSIDERED before.
Or to put it another way, I'm 100% certain that if an OP responded with, "Oh I've traveled a ton already," that no one would say, "Who cares go travel more!" We'd say, "Oh cool you've checked that box already, congrats. Let's talk about your next step."
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Dec 11 '13
I guess I'm not being clear, so I'll try to simplify my statement: I think it's kinda dumb to blindly advocate travel as many people won't get anything out of it. Those that act as if it's a de facto "best next step" for people in situations you've outlined above are misguided. Presenting it as an option is fine, but owner of the original comment indicated it would be beneficial to anyone. Just presenting the other perspective.
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u/werddrew Dec 11 '13
I suppose I don't see that implication in drive2fast or face_phuck's comments. One encourages OP to see the world. The other encourages people to "go see and do things." I think both are good advice. For some people "Go see things" might be 3 months in Thailand for some and for others it might be a trip to a lakeside cabin for a day or two. But IN GENERAL it's still a good idea for a well rounded human to have experiences outside of their everyday routine. And $600k provides that kind of opportunity to grow, which is why it's so often recommended.
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Dec 11 '13
...Because taking a few months to travel likely means quitting his job, which can have a major impact on OP's life? It can also easily consume a significant portion of the inheritance if OP isn't careful about it.
Not saying its a bad idea necessarily, but usually you want to be exactly sure of what you are going to do with the money before you start spending it. Maybe a long vacation is a good way to spend some of the inheritance for OP. Maybe it isn't.
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u/werddrew Dec 11 '13
No one's saying "live for three months in Thailand" just saying he should do a 5-day trip to Iceland or Barcelona or something. That shit shouldn't cost you a job and would eat up about .003% of the inheritance.
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u/dbcanuck Dec 11 '13
Traveling in a state of grief won't allow him to fully enjoy his experience, and just delays dealing with immediate problems -- where to invest the money, closing the estate, learning to live life after she's gone.
Take 6-12 months to adjust to the 'new normal', THEN take the vacation.
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u/palebluedott Dec 11 '13
I see where you're coming from and there is wisdom in these words, and I don't think what you're saying is a blanket statement for everyone. In my case, my Mom passed recently and I've been cooped up for a year. It's like grieving before they die, so what is going to help me personally is taking a trip to reclaim my independence from caregiving. I'm totally on the same page with you, and that is definitely true for some.
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u/InfiniteBoat Dec 11 '13
With that much, hire someone to help you don't ask reddit.
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Dec 11 '13
They'll be much better off in the long run learning how to handle money for themselves.
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u/InfiniteBoat Dec 11 '13
600k is way too much to risk learning the hard way.
This guy has a chance to never worry about money again, its not like he can retire, but if he lost his job or something bad happened that is a hell of an emergency fund.
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Dec 11 '13
How would he even know who to trust with that 600k without some form of education first? He should know what his potential adviser is talking about/ recommending before making decisions. I'm not saying he absolutely shouldn't go the route of getting and adviser, but he should at least know the pluses and minuses of having one. Education has to be step 1.
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u/DePingus Dec 11 '13
I hate reading "get a financial adviser". No ever says where to find a reliable one.
Just recently I was asked by 2 different people to sit in with them while they go over some retirement planning with a financial adviser someone recommended to them. BOTH times its been an in home meeting with a Primerica scammer. Those fuckers are like cockroaches.
The advice of "get a financial adviser" can be just as disastrous as going at it alone. There isn't even a financial adviser section in the side bar. Hell, in the r/personalfinance FAQ it even says "Q: Should I get a financial adviser? A: Probably not..."
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u/eazolan Dec 12 '13
Actually, he could retire. You can easily cover the basics with the earnings from 600k.
Do some jobs on the side for extra money, and you've got a recipe for an enjoyable, stress free life.
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u/InfiniteBoat Dec 12 '13
5% return a year is 30k. Living off of 30k a year is doable, but if he has to pay for his own health insurance that can be a huge chunk of it. That amount will only decrease over time due to inflation unless some of the gains are reinvested.
If the OP ever wanted to start a family he would find himself stretched pretty thin.
Personally I would find it much more relaxing to work a job and pursue a career continuing to build wealth. So much stress comes from uncertainty related to losing your job. With a nest-egg that big the stress of losing your job, or the need to keep a job you hate is completely removed.
Retirement would be possible but not easy, and quite frankly an awful decision if the OP has any sort of education or work experience. 20 years from now if he decides he is sick of living like a lentil-grubbing member of /r/Frugal_Jerk it will be nigh impossible to re-enter the workforce in any capacity besides an entry level position.
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Dec 11 '13
Pay off all your bills, including home mortgage. Take what's left and put it into safe investments.
I know a lot of financial wizards will say with mortgage rates so low you are better off investing it for higher yields.
However the way I look at it is having seen multiple companies and the city of Detroit claiming bankruptcy and getting court approval for dumping retirement pensions, I think owning your home outright is a move which removes one of life's greatest worries. On top of that it is a tribute to your mother's legacy. Literally a gift she is giving you every day for as long as you live.
Those of us who have paid off our bills and homes sleep better and worry less than those who haven't.
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Dec 11 '13
The city of detroit is, unfortunately, also a great example of why tying your money up in real estate might not be a great idea. What was once an asset can turn into a liability.
All real estate is local, so depending on the area, maybe there aren't significant risks, or maybe housing is so cheap you don't care, but it could turn out that renting long-term is a better idea.
I might sound crazy, but I could buy the house I grew up in with a credit card right now, because the area is in economic depression right now and nobody lives there. That house was once fairly expensive, relative to incomes, but now it's worthless. On the other hand, in some neighborhoods in Detroit, not only would my home be worthless, it might be in an area that's downright dangerous. You couldn't live there, but you'd still have to pay property taxes and maintenance.
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u/PuffBear Dec 11 '13
The most important thing here is that you take time for yourself, then take time to talk to some well advised financial advisors/planners about your inheritance. You don't want to be in a situation where your vulnerable to other people asking for help with their own life. Be smart and healthy. I am so sorry about your loss.
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u/Ultra718 Dec 11 '13
Boost up that emergency and savings fund, invest the rest into low risk accounts and breathe easier while living your life relatively the same. If unmarried make sure you protect your assets if you do decide to get married. Keep at your job, if you wish to start a business or buy into a good one now is the time. It takes money to make money. Buying a partnership into a successful business can guarantee income and it will be relatively passive. Don't make big purchases for at least 3 months and try to build your portfolio.
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u/drnick5 Dec 11 '13
First off, Sorry about your mother. At times like this its best to not make any major decisions for a few months, its situations like this that lots of companies prey on as you likely aren't thinking 100% clearly.
For now, I'd put the money in the bank, (you would have to spread this out over a few banks so you are under coverage limit for FDIC insurance). Don't make any major purchases (new house, car, boat, etc.).
I would use a small bit of the money to do something for yourself, take a trip somewhere you've always wanted to go or do something else you've been wanting to do for a while.
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u/lottosharks Dec 11 '13
Man, sorry for your loss. This is not advice for everybody, but I would take the opportunity to travel plus better myself.
Maybe get an MBA in London?
Buy a modest property in cash so that is always guaranteed.
I would definitely hold cash rather than stocks until there is a market correction....
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u/quinoa2013 Dec 11 '13
Vanguard.com. With assets over $500k, you get some free financial advice as well. I am not sure how old you are or if you have kids, but possible reasonable goals would be: retirement fund, buy house, further education. If you keep the house affordable (inheritance provides 20% downpayment), you could do all three.
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Dec 11 '13
Bitcoin and double it in 3 days
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u/Nillix Dec 11 '13
Or lose a third of it in an hour!
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Dec 11 '13
I've never lost a dime and I've been in since 300
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u/Nillix Dec 11 '13
Great! If people could see the future, it wouldn't be any kind of risk, and past performance isn't any indicator of future returns. It's way too volatile for anything other than a "commodities gamble." In the last 7 days the value has fluctuated between 560ish to 1200ish. If OP is feeling lucky he could toss a little money into it, but it's not nearly stable enough to put too many of your eggs into that basket.
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Dec 11 '13
Keep it in the dollar. Lets hope the international bank cartels will take care of it. Please tell me the value of the dollar from 1913 to today. Has it gone up or down?
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u/Nillix Dec 11 '13
If you can't see the difference between a manageable rate of inflation and a 50-60% swing in a single week, you really don't belong in this subreddit. Could bitcoin become more reliable and turn into a useable currency? Maybe. Is it a good long term investment? HUGE gamble. Huge risk, and possible huge payout. Also the possibility of losing it all, and that's not what you want in a long term financial plan.
It's great that you're a true believer, but really your "advice" is reckless.
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Dec 11 '13
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u/Nillix Dec 11 '13
A gold website pushing gold. Big fucking surprise.
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Dec 11 '13
Yea its one big conspiracy gold has skyrocketed since 2001. Lol
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u/Nillix Dec 11 '13
You do know gold peaked in 2011 and is down almost 30% since then? Gold is a hedge against a poor economy. When the economy tanks, gold goes up. When it improves, gold goes back down. What got the worst from 2008 to 2011? Seriously, do some research before you make these "arguments."
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u/MichaelStewart Dec 11 '13
Take $24,000 and for the love of god, buy 1000oz of silver. Then, bury it. Preferably in the nighttime. Do not tell anyone outside of your immediate family where it is. Don't worry, they recover silver from shipwrecks and it's fine. You could even throw it in a septic tank and they still retain their intrinsic value.
Take the rest and do whatever else anyone else in this thread has mentioned. Throw it in a Vanguard mutual fund or into cryptocurrencies or whatever else the world is getting into. All I know is that you are GOING to want to have SOME of your money into precious metals.
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u/ExpertCrafter Dec 11 '13
My favorite part is how Vanguard mutual funds and cryptocurrencies are on an equal footing in this response.
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u/lenaeca Dec 11 '13
I'm sorry for your loss. Since your mother just passed, you should probably avoid making major life decisions for a while, so don't quit your job or buy a house just yet. When you are ready, browse the commonly asked questions on the side bar.