So i recently Inherited a little over $500k from my recently deceased Dad (God keep his soul). I really did not know he had that kind of money to the extent that i got 500k. I am 30 and been a saver all my life. I had 30k in savings by 20 and I have about 220k to my name personally in terms of savings. I feel like with this money i cam finally relax and enjoy some vanities in life but then again, i feel scared that it will all disappear if i dont keep saving. Any advice on how to spend some and invest some?
Slowly get into index funds and relax. May be 20k per month for the next 2-3 years. If market goes down, invest more. Buy a home with 20 down.
Operative word "slowly"
Depends on the rest of your financial situation. I would pay off my condo (live rent/mortgage free), but a sports car, and invest the $100K left over in crypto. [Not advice! Just fantasizing]
You can do whatever you wish since it is yours and extra. That said, I’d personally put that into index funds and forget it - with possible exception of using some of that to a down payment of a house.
Hello, Semiconductor the first thing many people do when they inherit money is to look for ways to spend it. Some buy new clothes, a flashy car, a European vacation, a beach house, and on and on until the money runs out. Instead of rushing out to the mall or the car dealer, young heirs should spend some time evaluating their financial situation. Making this effort will give you a good view of your overall financial condition, including income, expenses, assets, debts, and liabilities. The best way to evaluate your financial situation is to hire a financial advisor who can objectively help you manage your wealth. Although it can seem like a hit to your pride to hire someone to tell you what to do with your money, these people are certified experts at not only helping you make money, but keeping you from losing it as well. If your parents had one, they are usually a better option because they already understand the situation. You may even know them personally. The absolute worst thing someone can do is to go out and spend money lavishly. Get your affairs in order first, and then squander only what you can afford to live without. Investing can seem intimidating, which makes it wise to hire an investment advisor to guide you to a secure financial future. Eliminating existing debts is often the first and best move you can make. Pay Off Debts, Don’t Incur Them, after you've completed your financial review, take a look at your balance sheet. If you have debts, it may be a good idea to use your inheritance to pay them down or pay them off. This will free up your future cash flow, reduce your expenses and save you the money that would otherwise go toward paying interest on your debts. Remember this! <Think of debt like a reverse return: a 15% return on a stock is great, but a 15% interest rate on debt paid yearly is a terrible investment.> Your financial advisor will be able to help you invest wisely. The best thing to do for most people they will probably echo this sentiment is to invest widely in a large basket of funds that offer a solid return over time. It is considered safe, and often the smartest investment for young people with an inheritance. If your investments are producing a steady stream of income, or you’ve truly hit the jackpot and inherited a pool of money so large that you are debt free and have plenty of money left over each month after paying your bills, you can splurge on that new car or place at the beach. Like with any other decision, discuss first with your financial advisor. But don’t overdo it. Just because you can buy a dozen samurai swords or a garage full of exotic sports cars doesn't mean that you should. Tip: Reason and moderation are the hallmarks of wise investors. Another thing to think about: if your career was chosen for its salary, inheriting a lot of money could give you the freedom to do something else you've dreamed of including paying for the education needed to become, say, a college professor instead of a portfolio manager. Your inheritance is a blessing that if well managed, can make a lasting positive impact on your life. If you can, continue the legacy by making plans to bequeath a nice inheritance to your heirs or favorite charities. To make sure you do justice not only to what you have received but to the generations that will follow, keep in mind that, in terms of longevity, inherited wealth has a bad track record. Some 70% of that wealth is lost by the second generation and 90% is gone by the third generation. If you’re lucky enough to inherit a nest egg that somebody else worked hard to build, you can honor your benefactor and delight your heirs by being a good steward of what you have received. No matter how large or how small your inheritance, manage it with care and pay it forward. The advisor you inherited along with the money either helped your parents get rich or at the very least helped them stay that way. When heirs talk to new advisors they are almost always encouraged to make a change. The usual result? The disappearance of the inheritance. These facts suggest that young heirs should think carefully before discarding the advice and wisdom that helped their parents amass a fortune. Some of the richest families in the world have had their vast fortunes squandered by future generations. Benefactors and heirs of lesser fortunes would do well to learn from their mistakes and those of other families with similar stories. A little planning, care and common sense can go a long way toward taking care of not only the second generation but perhaps the third, fourth and fifth generations as well. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with top fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is legally bound to act in your best interests. Best of wishes to you and your future riches if you have any more questions feel free to message me.
I’d invest in some paragraphs.
vIMg30, couldn’t have said it any better. 🤣🤣🤣
I’m very sorry to hear about your loss.
Shoutout to hooli
how did u save 30k at 20? spend half (via 1 year sabbatical) invest other half
Put 40% in CDs at 3%. Put rest in S&P500. Take one nice vacation. Keep living style the same. And keep saving.
Buy rental property at low interest rate..
Any city recommendations. If on west coast better
500K isn't really enough to relax. Invest it wisely, and don't change your goals. 500K can be that extra buffer.
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Put 80% in VTI, 20% in BND and act like nothing happened.
Not all at once. Good chance we're testing the December 2018 looooows before the year's over!
Historically it does make sense to put all at once. Many analysis online showing that.