@kasham That’s good advice, generally speaking, I’d like to know what people have done and what has worked for them. Buy a house and rent it, get an annuity, buy crypto, set up and max 401k, all in on a Vanguard Fund, and so on. There is just so much information out there. Too much.
@josh0302 Based on what you just said, it's not that you lack understanding. I sounds to me like what you're looking for is guidance. As a practicing attorney, you likely recognize the value in hiring a professional yet when you come to Reddit you receive advice (which is typically as least technically good) but coming from amateur do-it-yourselfers. I think you might benefit from working with a fee-based financial planner. You should expect to explore your personal goals and have a conflict-free plan built based on your unique objectives. Since you said "I don't trust myself", hiring a fee-based investment advisor to manage your portfolio might be the right choice for you. I know that's not a popular opinion on here and many will say "don't pay the fees, just do it yourself" but that's just not for everyone.
@josh0302 First, my condolences on your loss. The first thing to do is nothing with the money until you formulate a plan. It’s a significant windfall that came as a result of your loss. Since you have no retirement, the first thing you can explore is to open a Roth IRA and fund it. For 2021, you can contribute $6,000. Choose a Target Retirement fund that adjusts to the year you plan on retiring. Vanguard Target 2040 would be when you reach age 65. Fund another $6,000 for 2022. That’s $12k of the first $200k. Do you have an emergency fund or savings account in place? You might want to consider holding 6 months of expenses in that account. Do not buy crypto - it’s like taking a match and lighting money on fire. Instead, consider what you want the money to do for you. You mentioned real estate? Have any experience at all in being a landlord or maintenance man? Owning real estate to live in is one thing, owning it to run as a business is a different thing all together. Would you advise a barber to open a law office if he had zero knowledge of the law? No, no difference here. You could read a few books if you want to learn about investing. Suggest Straight Talk on Investing, 2nd Edition by John Brennan, former chairman of The Vanguard Group of Mutual Funds. The Psychology of Money - Morgan Housel. Visit Bogleheads.org, search the wiki for Investing start-up plan. Avoid bank advisors (salesman) and life insurance agents. You don’t need to buy overpriced products to achieve your goals.
@josh0302 That $200K is your retirement security. Put it in a stock index fund and hopefully it would quadruple over 20 years. Then by the 4% withdrawal rule it would provide you and extra $32K income a year on top of your Social Security.
@josh0302 When my mother died, Vanguard took very good care of me and my inherited IRA. Put it there, and put it into an index fund. It's okay to take a couple of days to make a decision on which mutual fund. My favorite is currently VTSAX, but there are others.
What form is this money? Is it in a retirement account? Cash?
@josh0302 Please read the Bogleheads.org wiki - especially on windfalls. This is a one-time event and the allocation of assets should be treated with the same level of care that your recently deceased mother took to accumulate such assets. Since you may still be grieving, you will want to take your time with any decisions you make.
@josh0302 Easiest answer is keep emergency fund, and invest the rest in SOMETHING YOU UNDERSTAND or the market (SPY ETF) and leave it until you need it.NOT WANT IT. NEEEEED IT.
@josh0302 Condolences on her passing. I would find a good financial planner (CFP) and a CPA. Formulate a long term plan based on your goals. Don’t make big decisions solely based on reddit.
@josh0302 Sorry to hear about your mom. I lost my mother when I was 44 years old. My mom didn't have anything, but you fortunate that your mom left some inheritance. Put that money in a broker account like vanguard or Betterment and your $200K will double in about 12-15 years. You will be in good shape by then to retire.
