Personal Finance on Sidechat | Ive recently inherited around $550,000. Before this ive been poor. What should i do? I dont trust anyone and am scared of stocks, so far ive been in HYSA getting 2k monthly

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Personal Finance 1w

Ive recently inherited around $550,000. Before this ive been poor. What should i do? I dont trust anyone and am scared of stocks, so far ive been in HYSA getting 2k monthly

Anonymous 6d

Yea idk best route but probably a year of expenses in an HYSA, and rest invested in s&p tracking etf’s. VOO, QQQ, and SPY. If you just dump the vast majority in the ETF’s you should be a millionaire pretty quickly. You’ll see interest comparable to what you make in a year of work if you put $500,000 in.

Anonymous 5d

Fidelity. S&P 500.

Anonymous 3d

Whatever you choose to do, it seems like you’re smart to be careful with the money. I would highly recommend going ahead and creating a Roth IRA and maxing out your contribution for this year and next year ($7k each). Roth accounts are based on your current tax rate not the tax rate you retire at, whereas non-Roth accounts are the opposite.

Anonymous 2d

DM me! I have lots of knowledge on this and have been looking for anyone who will listen! Just an example. This is simple don’t do this without asking more about it because it needs to be strategic like dollar cost averaging. Invest in high yield dividend stocks such as yield max. They have dividend yields of 10-150% it’s different every month but the way I’d diversify would have 90-100% return over 1 year through dividends alone. Then with the dividends invest in long term growth stocks and…

Anonymous 5d

Join this Telegram community if you are interested in investing or learning about cryptocurrencies. [Join here] https://t.me/+j7GRcngaTP1iMjMx

-1

Anonymous 1w

Your best bet is to invest it all in crypto

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Anonymous 1w

Put all of it except for $100k into your HYSA, this will cause your account to grow much quicker. Eventually you should be able to find a financial advisor and I think most take commission from what they make with your money, so you would just attract a more skilled one with your large bank account

-2

Anonymous

#1 1w

lmao

Anonymous

OP 1w

You really want to buy only a few different types of crypto. It’s probably best to just only buy one kind.

Anonymous

#1 1w

No thank u

Anonymous

#3 6d

Unfortunetaly id need more than 50k set aside for expenses

Anonymous

#3 6d

Do not get a financial advisor, and do not put more than 50k in an HYSA. Rates will come down soon and the HYSA will not be as useful. At that point consider CD’s for a portion. Financial advisors aren’t going to be able to help you outperform the s&p and even if they do it’s probably going to be negligible with the fees you’ll pay.

Anonymous

OP 6d

Why? Do you live in a high cost city or do you have a lot of debt? If you have debt accumulating interest (not including medical bills) I suggest paying those off immediately. If you’re spending more than 50k a year you might have a spending issue

Anonymous

#3 6d

I live in nyc. No debt, but got to pay rent, eat, and have basic quality of life.

Anonymous

#3 6d

And im not living in luxury here lol costs recently have been insane

Anonymous

#3 6d

And i dont have a job at this time, used to but it didnt work out

Anonymous

OP 6d

Ok maybe consider leaving New York. I know that’s easier said than done but this inheritance will evaporate quickly if your expenses are that high. I live in a mcol mid sized city and I don’t spend more than 20k a year. I don’t live super frugally at all.

Anonymous

#3 6d

Cant cuz of college

Anonymous

#3 6d

But id like to leave

Anonymous

OP 6d

For reference a one bed here is about $950 a month. Nice 2 bed/2 bath in a really good area is $1500. Groceries aren’t bad either.

Anonymous

OP 6d

Transferring is a hassle but you should consider it if you’re more than a year from graduating

Anonymous

#3 6d

No its less than one yr

Anonymous

#3 6d

lol. 3k a year here for a crappy roach/rat infested studio

Anonymous

#3 6d

Nyc is screwedd

Anonymous

OP 6d

lol I split $1500 with my gf and our only complaint is having to park 50 feet further from our building occasionally or the new neighbors playing music at night 😭

Anonymous

OP 6d

Seriously move anywhere west of Appalachia after graduation and you’re gonna feel rich 😭 if I had half a mil dropped in my lap I’d be on track to retire by 45

Anonymous

#3 6d

500k nothing here. We got bankers and trust fund kids running around with 5 times that

Anonymous

OP 6d

I feel like the majority of people only stay there because they have no way of leaving

Anonymous

#3 6d

Yep

Anonymous

#3 6d

Ive met, and worked for crazy rich people who have no concept of reality here

Anonymous

#6 3d

Research has shown that people who save heavily between 25-35 and then save less after 35 are better off at retirement than people who wait to save starting when they’re 35

Anonymous

#6 3d

In addition to your Roth IRA, if you need any of this money for school, create a 529 account and put a portion of your money in there so you can invest your college savings without a tax liability when your withdraw

Anonymous

#6 3d

Based on your comments above, it seems you’re concerned about liquidity because of living expenses (important note that 529 accounts have to be used for education, not anything else, otherwise you’ll get a 10% tax applied to withdrawals), so I’d recommend the following:

Anonymous

#6 3d

- $14,000 to Roth IRA for 2025, 2026 - $250,000 to an investment account and invest in ETFs with low administrative costs that average at least 7% annual return (can be same investments as Roth) - $136,000 to HYSA to ensure you have continued high returns that you can access the money. Make sure to try to only use the interest each month, not the principle - $100,000 to your 529 account. If you don’t need this, just add more to your investment acct and HYSA

Anonymous

OP 3d

Don’t invest in crypto lol. Too much of a gamble and your money is not insured

Anonymous

#7 2d

Then some king dividends

Anonymous

#7 1d

Don’t do this. Yield max etfs dividends won’t ever be comparative to real growth, etf will continuously depreciate, and you have to pay capital gains tax on the dividends. If it were this simple everybody would do it. It’s not. It’s mathematically proven to lose you money

Anonymous

#3 1d

It’s not though look at the pay two years if you invested you’d more than double your initial investment which you can then move to other stocks. Yes, the stocks depreciate but it’s not meant to grow your portfolio it’s meant to be income. Which is why you can utilize those short term returns and reinvest the dividends into actual growth stocks. Also, don’t invest all at once dollar cost average

Anonymous

#7 1d

I wouldn’t invest all the money either maybe 25% the others even mix of crypto, metals, reits, growth stocks and such

Anonymous

#3 1d

It isn’t simple that’s why not everyone does it your right which is why I said don’t do it without more info in which case I have that info I’ve done it myself.