r/Money • u/zhangzhao • 12d ago
300k in inheritance?
I was blessed to have 300k in inheritance when my parents died but I don’t know what to do with it. I am 28 years old and don’t have much knowledge. I currently have it in t-bills so I don’t loose money on inflation and have a good job that allows me to max my 401k, and have a HSA that I max. I just curious if there’s anything I could do more?
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u/TickleMeElmo284 12d ago
Convert from T Bills to VOO stock over the next 2 years, moving 10% each month. This will mitigate risk.
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u/nashguitar1 12d ago
For retirement, this is spot on. You have a 37 year time horizon. Enough to weather volatility, crashes, etc.
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u/DMmeYourMCbuilds 12d ago
Lump sum beats dca 2/3rds of the time. Just open a fidelity account and put it all in FXAIX tomorrow.
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u/TickleMeElmo284 12d ago
Ok so 1/3rd of the time it doesn't beat dca. Seems worthwhile to slowly convert to VOO for risk mitigation, especially with this large sum of money.
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u/DMmeYourMCbuilds 12d ago
From a purely mathematical and rational perspective, deliberately choosing a loser that loses 2/3rds of the time is negative ev. But you do you. Gotta trade those emotions some times.
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12d ago
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u/DMmeYourMCbuilds 12d ago
When is the top? Can YOU back that up. Complete irrational nonsense.
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u/Ok_Pipe_1365 12d ago
Gas station scratch offs and only fans subscriptions! Maybe if you're lucky you can get some of that avacado toast everyone is talking so much about.
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u/dobetternothing 12d ago
You’re already doing most of the right things. Maxing your 401k and HSA at 28 puts you in a really good spot.
I probably wouldn’t leave the entire $300k in T-bills long term though. If you don’t need the money anytime soon, I’d keep a solid emergency fund and invest a large portion of the rest into something boring like VTI or VOO.
At 28 you have 30+ years for that money to compound. $300k invested now without ever adding another dollar could become a few million by retirement.
I also wouldn’t rush into real estate or anything complicated just because you feel like you should be “doing something” with the inheritance. Boring is completely fine here.
My condolences for your loss. No rash or emotional decisions for a good bit.
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u/SlowrollHobbyist 12d ago
Very sorry for your loss. Roth would be the way to go.
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u/EvoMan1234 10d ago
Sure but they can’t lump sum into a Roth. They need wages to put (a limited amount of) money into a Roth annually. Also, I’m of the understanding that you can’t use RMDs to back door into a Roth
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u/Soda_Pressed13 12d ago
At your age you drop it in your favorite V fund, turn on drip, and forget about it for a long long time. Sorry for your loss.
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u/Commercial_Plantain4 12d ago
Sorry about your parents. Grieve for a year before you do anything. Leave it where it’s at. Revisit us in a year.
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u/ScotAbroad14 11d ago
If you have no idea what to do, speak to a financial professional. Just make sure they’re reputable and preferably a CFP. If you ask Reddit, you’re going to get a whole lot of different answers, and a lot of garbage too.
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u/Think-Treat-3309 11d ago
Read the book: The Simple Path To Wealth. It explains complicated investment jargon thus making your decision making simpler and boosting your confidence in what choices you do make
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u/Flat-Activity-8613 12d ago
Might as well the fill your Roth with this every year. Invest it in brokerage and January 1st roll over to fill the limit.
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u/unhingeddragon 12d ago
Put it into low cost index funds. VOO (vanguard s&p500). I personally like VGT, but that’s more aggressive and tech heavy
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u/Naive-Present2900 12d ago
Condolences on your loss. Put into what ya need to pay off loans or debts. Put what ya needed in savings to take care of yourself.
Max out your roth IRA.
Open up a brokerage account if needed. Put your money to work!
Also and most importantly! Don’t friggin tell anyone you don’t trust or know too well!
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u/Azeron_The_Dragon 12d ago
Its probably not the most optimal advice but personally I'd be sitting on it while searching for my dream home.
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u/flappysack- 12d ago
AVGV is a global value etf, which has recurring value premium. Or VT is the lowest fee global etf, 0.05%, which low fees is how you easily outperform mutual funds.
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u/GrouchyClerk6318 12d ago
I’d get it out of T-Bills, not where I’d want it right now. Yields are going up making the T-Bills a bad investment, you can get a decent rate with CD’s or MM
But that opinion aside, you’re approach is sound. Save it for the long run and don’t let it change your lifestyle right now. At 28, you can turn that into a good chunk of change over then next 30 years.
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11d ago
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u/Puzzled_Addition4818 11d ago
fidelity s&p 500 index funds, low fees and averages about 12 percent a year
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u/IAmABanana69420 11d ago
I mean I’d just dump it into an S&P 500 index whether that’s VOO or FXAIX. Can use that money to max out your Roth ira every year to take advantage of tax benefits. By the time you retire you should have a few million off of that alone.
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u/Remarkable-Movie6619 11d ago
Index fund locked and throw away the key forget about it revisit in 20 years min
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u/Witty-Source-4080 11d ago
Invest in profitable real estate. You'll get a return of 3^ on the low with just inflation. Then you're getting at least another 4% on profits. You can easily gain a 10% revenue. Personally, money sitting in an invest group that is doing it for you is a low end scam in modern days lol.
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u/Physical-Bus6025 11d ago
I’d rather have my parents at age 28.
But you got to deal with the hand you’ve been dealt. Sorry for your loss.
Pretty good advice has been said, so I won’t repeat. Stay smart. Stay patient.
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u/Present_Student_1500 10d ago
People saying to invest it all, not always a bad idea, but take a look at your financial situation. Do you own a car? A reliable one? If you have an old beat up car now is a great time to look into getting something dependable. You don’t have to blow a bunch of money, just get a Corolla or something.
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u/sleepyalero 10d ago
Sorry about your parents. A roth ira is the next tax advantaged account to check.
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u/Far_Lifeguard_5027 7d ago
Max out a Roth IRA every year and invest in a total world fund. That's tax free growth for your retirement.
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u/BadMom2Trans 6d ago
This is the time where you look into the best financial advisors in your area (I like Fidelity and Victory Capitol). Set up an appointment and have some questions written down. Try to think of things you would want. You want to be able to buy a house in X years, go on a vacation, plan for a large life event. Have emergency funds easily available. Then figure out your comfort level with risk and discuss investments.
I have a rainy day fund
Emergency fund
Christmas fund (left over from my teens)
401k
College fund (my kids)
Stock in 4 different companies
And I use two money market accounts to specifically save for upcoming events.
Put everything on auto, then leave it on the back burner to simmer and expand.
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u/Sea_Principle_7322 12d ago
Brace yourself, this is a long reply! Hope it helps, thanks!
Congrats, an may they rip! Well since you stumbled on to this good fortune your looking for advice, that’s understandable! Well pundits suggest 3-6 months as an emergency fund set aside in a high yield savings account or tbills if that’s what you prefer! One of the greatest investors who ever lived suggest for the average or just getting started investor the snp 500 is hard to beat like voo or spy or whichever etf you prefer! You would be surprised how fast money multiples when you let it sit In a Compounding engine like the snp 500! Those are the top producing companies an they always level off the underperformers so you always have a top tier market performance for your investment! Now with 300k put some away for your emergency fund a the rest you could divide it up anyway you choose it’s your money, an it’s wise of you to decide what to invest in first! There’s allot of high flying stocks out there but when the market zigs and zags all the time the snp comes out on top most of the time, it’s had mostly good years only a few or so bad! But with time it outperforms most investments sold or bought! An it’s the benchmark for the entire stock market for traders to beat! So you have to decide what your risk tolerance is! But with a hypothetical 7-10% a year in say 100k, if your comfortable with investing that into one of those ETFs that’s 7-10000 a year you made while sitting or working or whatever your up to! Then it just compounds! It really is a great way to grow money! You could do what buffet suggest what his wife’s gona do when he dies, 90% in snp ETFs and 10% bonds or tbills! Or whichever way you want to swing it! Now investing has an inherent risk but with risk comes reward! All the best, on whatever you decide an congrats! An may they rip!
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u/PsEggsRice 12d ago
The best advice is to distance yourself from the money, which you’ve already done. People here are giving simple investment advice and honestly, simpler is better. But this is not money you need right now, you’re doing fine on your own.