I’m about to receive about $200,000.00 and I’m not sure what the best thing to do with it is

[summerheat99]

@shaylayla OP, do you have any enemies or perhaps some revenge you've been delaying? If so, I agree that finding a grizzled fortune teller (ideally with a scar across her cheek and a minimum of one facial mole) to place a hex could be a good use of funds initially.

There are lots of folks here who will tell you not to hire a professional to help when placing a hex. These people might also say, "just do your own hex" and "don't bother diversifying into curses and incantations." But there are stats showing that people who work with a fee-only witch/warlock see their enemies suffer far greater tragedies long-term. Further, you should own more than just US stock... I mean whatever metaphor I'm using here.

Writing this is feeling a little tedious, so I'll just add that there are a number of robo-advisor platforms that can help with an allocation for a nominal fee.

 

[zech1210]

@josh0302 Best sound advise: ask an accountant on what to do with the money. Chances are Uncle Sam will come and take a big chunk of it.

I would absolutely open a Roth IRA account, max out 401k and max out Roth 401k. After that speak to a professional that can guide you on what to avoid to not affect your tax bracket.

 

[josh0302]

@zech1210 Ok, this is great stuff. I’ll get ahold of my guy.

 

[marlond]

@josh0302 Nonsense - inheritances under 11.1 million in 2021 are NOT taxable.

 

[knotlikeyou]

@marlond Some states tax inheritances too.

 

[marlond]

@knotlikeyou That’s true, but the tax liability can not be defused after the decedent has passed if proper estate planning was not taken before death, only paid. At a 70,000 gross income level, the amount of taxes the OP will pay on any taxable assets at that income level will be at a low rate.

 

[zech1210]

@marlond Hence why I said speak to an accountant…

 

[resjudicata]

@zech1210 No, they won't.

Inheritors get stepped-up basis on capital gains.

Estate tax exclusion is currently $11m.

Accountants are absolutely useless in this situation. What they need help with is asset location and asset allocation.

 

[marioshroomed]

@zech1210 Inheritances, or gifts, are not taxable for the receiver. Any taxes owed would be paid out of the deceased's estate. The current estate exemption amount is almost 12 millions. For the average american, gift and inheritance taxes practically do not matter.

 

[zech1210]

@marioshroomed I stand corrected. Hence why I said speak to an accountant…

 

[resjudicata]

@josh0302 First and foremost 5% Charity. Its god's blessing so pass it down to others.

Then pay tax upfront if required. I dunno your country tax law.

Now split rest after tax into
70-20-10

Now if you didn't had to pay any tax on gift. Then you have $190,000 for disposal after 5% chairty

$19,000 - 10% cash - only use it when needed.

$38,000 - 20% in bank. Yes it has lower interest rate than your country's Inflation rate. (US current inflation is 5.4) but still it's liquid.

Fill it back up if taken out. Like if you have taken some cash out, fill your box back. Always keep it filled just in case you need liquid cash.

Rest
Invest 70% $133,000
Split that 70% also in 60-25-10-5 each i.e

$ 84,000 - 60% - Low Risk Investments like Bonds, Gold etc.

$35,000 - 25% - Medium Risk Investment

$14,000 - 10% - High Risk Investment

$7,000 - 5% Very high risk investment.

Also from time to time like once a month check your investment, is it giving return or you need to reshuffle.

Invest the profits from these investments also back into the same strategy.

Now
Live by your own old income of 70k per year
If you can split your monthly income also by

50% Expenses try lower it to 30% down the line in 5 years.
20% Investment (split investment again into 60-25-10-5 per month.
10% Dreams like your children marriage or some future plans.
10% Fun - Cause you deserve this
5% Learning - invest in yourself to upgrade.
5% Charity - Donation to return back to the society.

I hope this helps. And sorry to hear about loss. Mother's are blessing in life. May her soul rest in peace and she has passed down her blessings to you. Utilise it wisely.

Edit: Updated figures after deducting 5% Charity on $200,000

 

[resjudicata]

lol what?

30% cash and savings account is WAY too much.

60% bonds is insane at his young age

No one should invest in gold.

This is really, really, really, bad advice.

 

[resjudicata]

Lol, it seems you were quite quick to judge Putting money in gold and bond is depending on the age of the person who posted who has only 15-20 years he has to be safe playing. Risk can only be taken at 20-30 years of your life and maximum 35.

rather he can retire now only...

Well the plan is upto the the person to take or not. Try attending or reading Millionaire mindset or consult some best financial planners and you will know.

It seems you are not a avid reader or learner.

So it's upto you to take it or leave it.

30% is based on 70-20-10 emergency fund rule

You need liquid cash too.

 

[resjudicata]

If you want to take less risk, you buy money markets or bonds, not commodities. Commodities are atrocious investments.

I'm an executive director of strategy at one of the world's largest wealth managers, I don't need to read your dumb book. And, since my team and I literally create the strategy our wealth managers and planners follow, I can tell you, that's not the actual advice they give. So you're literally just making things up right now.

 

[resjudicata]

Good for you...

 

[resjudicata]

The above method is somewhat based on 6 Jar Method of T Harv Eker of Millionaire Mindset and it's has been doing wonders for many.

 

[resjudicata]

@josh0302 You want to max out a 401k because of its tax advantaged status.

If you can't do that with your existing budget, then you'd want to "pay yourself" $19.5k per year from her inheritance, and then use $19.5k from your salary to fund the 401k.

The $200k should also be immediately invested... 70-100% equities and 0-30% bonds.