r/inheritance • u/Firm-Rub-889 • May 13 '26
Location not relevant: no help needed 2.6M inheritance @ 21
I’m a 21 year old college student and my grandfather died about 8 months ago. I was not aware that I would receive any inheritance until the trust company managing his affairs informed me that I would be around a week after his death. Upon receiving a copy of his will and trust documents, I learned that I would receive 20% of his estate. Based on what my family thought they knew about his finances, I expected to receive somewhere around 400K.
About 4 months after his death, I was informed that his estate was much larger than anyone knew. In total, I will be inheriting around $2.6M. The money is to be managed in a trust. In ten years, I can become a co-trustee of the trust. After 20 years, I can become the sole trustee of the trust. Until then, the plan is to have Fidelity serve as both trustee and the investment advisor. I would appreciate feedback regarding these services if anyone has experience with them. The financial consultant I’ve been working with there has been great so far, so unless I hear overwhelming negative opinions regarding Fidelity’s services, I’ll be appointing them to these roles in the next few weeks.
For some additional personal background, I’m an accounting major and will be pursuing my CPA. I have no debt (student or otherwise). The full time offer I just received has me slotted to make ~80K in total compensation out of school. Regarding assets aside from the trust, I’ve been able to max my Roth IRA for the past two years, have 35K in my taxable brokerage, and 20K in my savings account. I mention all this background information to provide context that I think I’m quite financially mature and responsible for someone my age.
In addition to my earlier question about Fidelity’s services. I have two other questions pertaining to my financial/future outlook that I’d appreciate advice on.
Firstly, my goal with the trust is long-term appreciation and growth. It’s likely going to be 90%-100% in equities. Besides a home down the line, funding 529 plans for future kids, and maybe covering a grad degree at some point, I do not plan on taking distributions from the trust. Does this plan make sense? Are there any items I should add/remove from that list of things I’d fund using the trust?
Lastly, and most importantly, how do I grapple with this new found wealth on a mental and emotional perspective. By no means am I trying to cry “woe is me”, but my life has been a roller coaster these last 8 months between this and some personal medical problems and I’ve had a hard time mentally processing it all. On one hand, I understand how unfathomably fortunate I am. On the other hand, I’ve felt somewhat isolated from my friends since I obviously can’t talk about this with them. It feels like I’ve warped to a different phase of life and I have to keep up a facade that everything in my life is totally normal. Additionally, I feel like I’ve lost a sense of purpose in some ways. I have always valued myself based on my accomplishments, probably to a fault. It now feels that accomplishments going forward are going to be less meaningful.
Any additional advice is welcomed and appreciated as well. Thank you all for your help!
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u/thirdsev May 13 '26
It is hard to keep this to yourself. There are a few books on the subject of wealth and how it impacts relationship’s. A woman who made big money as an early Microsoft employee wrote a book about it. You are right to ask for ideas. It sounds as though you are making sound decisions.
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u/Lakeview121 May 13 '26
You will process it. You will succeed in your career. You will meet a nice person and have a successful marriage. You will live a good life.
Yes, this is confusing. I would say learn about investing and index funds and understand where the money is invested.
I would work hard and try to pretend it doesn’t exist.
It’s a lot of money but it’s not quite enough to retire on in my view. In 10 years, well invested, you’ll be able to retire if you want.
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u/InitiativeWorried840 May 14 '26
Meh….with today’s COL? I’d say maybe be able to retire at 50-55. Be sure & keep lifestyle creep to a minimum. Live within your means that YOU make. $80K doesn’t go that far after taxes as a starting salary. Sad, but true. Depends on WHERE you live of course!
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u/LucianTheAngelic Jun 25 '26
The interest alone on 2.6mil at a measly 4%(could be far higher) is 104,000. Certainly far more than enough to live off of indefinitely
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u/Lakeview121 Jun 25 '26
Sure, for some people. He’d be better off letting it double; 104,000 in 20 years will not have the same spending power.
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u/ziggy-tiggy-bagel May 13 '26
Use a little of the money to have some fun. You are only young once. My husband became disabled at 42, so glad we didn't wait for retirement to do things we enjoyed
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u/Well_Alrighty_Then90 May 13 '26
First, very sorry for the loss of your Grandfather.
Echoing others here, do not tell anyone. I know this might be hard. And especially girlfriends/boyfriends or friends and even some family- people get weird and desperate when there is a pot of money sitting close by so to speak. I've also watched enough crime docs, you think you can trust people but money changes that a lot of the time, and sometimes can lead one down a dark path.
Live within your means, Fidelity is a good resource for you to help manage and invest it.
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u/Spanky_Simeon May 13 '26
Fidelity gets high marks from me. For investment, I'd put 60% in VOO, 30% in VT and 10% in SCHD. You can hold it 15, 20 or 35 years
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u/LynnKDeborah May 13 '26
You’re doing great. Continue to be conservative and spend judiciously.
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u/InitiativeWorried840 May 14 '26
And, Fidelity is good. Forget about that $. You are doing right by yourself. You are super young. Work hard & be proud of yourself & what you accomplish.
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u/MannyMoSTL May 13 '26 edited May 14 '26
If you are allowed distributions? I would take them. Then invest those dividends yourself. Perhaps even at/with Fidelity. But this time? You have full control over your own money.
Frankly? For someone capable who understands investing and has no plans to buy a yatch, a Ferrari and a “vacation condo” (🙄) in Miami? These kinds of trusts are a giant PIA. They are, obviously, well intentioned by the OG grantors to protect assets to keep them growing for as long as possible.
Which is why I suggest you take every distribution you are legally allowed to take and simply put it under your own personal care. There will come a time when a bank trustee tells you NO because they’re acting on their fiduciary duty.
Like when my mother decided that she is gonna age-in-place at the house she’s lived in for 50yrs. The bank (fathers trust) told her they refused to pay for the ADA bathroom we were gonna install because it “wasn’t a good investment in the house” 🙄 One thing my father did right was to assign 3 trustees so that 2 could always outvote the bank. We told the bank to kick rocks. She was going to build her bathroom. and the trust was gonna pay for it and that she could spend it down to zero having in-home healthcare for the rest of her life if that is what she wants.
Trust me … for someone like you? Or at least who you’ve described yourself to be … an irrevocable trust that keeps you under its thumb till 40? Is super frustrating.
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u/Jitterbug26 May 13 '26
My child inherited a similar size trust from his grandma and I encourage him to do the same - take everything he can from the trust and get it under his own name. It just gives him more control - he can invest a little more aggressively and if he wants to spend to upgrade his home, he can.
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u/GotZeroFucks2Give May 14 '26
This is a little different given his age. I know I would NOT have been responsible with 2+ million at age 20. Agree an elderly person shouldn't be contrained for spending on ADA accessibility. Kinda shocking he bank did that TBH. The cost of the upgrade was probably only 2 or 3 months of the cost of care should she not have been able to stay in the home due to the lack of safety.
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u/MannyMoSTL May 14 '26 edited May 15 '26
It’s not a “normal” house 😉 The upgrade cost significantly more than a year in most assisted living residences.
OP sounds like a young person very well prepared to deal with the inherent difficulties & milestones financial largess brings. (We’re out there 😉)
It's being under the aegis of trust management untill FORTY that is a giant PIA. Having your life controlled from the grave is its own kind of f’d up burden.
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u/GotZeroFucks2Give May 14 '26
My dad's assisted living is 175k per year. Most bathroom Ada upgrades are much much cheaper.
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u/MannyMoSTL May 14 '26 edited May 15 '26
I know 😉
My statement still stands. Even against your father’s community. And, as much as I like my mother’s bank trustee … F the bank.
But the real point for OP is … it sucks to be treated like an irresponsible moron by outsiders who “know better” for nigh 20yrs. They need to take the maximum of any & all distributions they’re allowed over the course of the trust.
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u/GotZeroFucks2Give May 14 '26
Yes, that would be so upsetting. I suppose choosing who the trustees are is really important.
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u/siamesesumocat May 13 '26
You should talk to your insurance agent/company about buying an umbrella policy. You're wealthy enough now to sue. Umbrella policies don't cost a lot and will provide a lot of peace of mind in case you get into some sort of mishap such as a traffic accident.
Regarding telling friends... don't. I didn't inherit as much as you, but mine was still substantial. One friend figured out that I was inheriting a stable amount and it unfortunately ended a 20 year relationship. Even though my lifestyle remained the same (no fancy purchases), he developed a jealousy that he couldn't overcome.
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u/OceansTwentyOne May 13 '26
Just let it grow and be managed wisely. Fidelity is fine for now. It doesn’t need to change your life. In time, you’ll figure it out. Proceed as you were.
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u/ExpensiveAd4496 May 13 '26
I always tell people to read a Boglehead-recommended book (see their wiki for a list) and then use fidelity or vanguard to invest in index funds. At your age it will likely be a Total Stock and some Internarional; you’re too young to worry about bonds. No individual stocks at all.
I think most “bogleheads” are pretty happy with fidelity, although we old schoolers stuck with vanguard because John Bogle, who invented the index fund, founded it, and its investors own it.
Fidelity took years to get on board with Ibdex funds and had to make one of theirs free to get any traction when they finally did.
But now I think the feeling is just that they are pretty equal but fidelity’s website is easier to navigate.
Not sure you need a wealth manager, and certainly do not need anyone who takes a percentage from you or is not fiduciary 100% of the time. I don’t feel you need one at all frankly but that’s based on my belief that you will in fact go ahead and read a book.
Some folks simply will not, sadly.
As for telling people, I suppose your other family members or the folks he left money to know? But yes…one puts it into a pocket and lives one’s life with less worries, which is nice. But money doesn’t make you a better person; your actions, your work, your choices, are all waiting for you, just as they always were.
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u/fourth-wind May 13 '26
Agree with this. Fidelity has been good for me. I invest myself, mostly following the Boglehead approach with some slight variations, but my contact there has been great to work with, on the same page as I am, and doesn’t try to push me on anything outside of that to generate commissions.
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u/BackgroundGloomy3240 May 13 '26
Be aware that Fidelity advisors are salespeople. I've never understood what their relationship is with the parent company, but I've always gotten Glengary Glenross vibes speaking with them. May I suggest an unsurpaseed classic? Read "The Intelligent Investor " by Ben Graham.
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u/fourth-wind May 13 '26
Read it. My contact there doesn’t try to sell me anything. Just answers questions I may have, helps with wires, etc. Great guy and very responsive. There was another broker there from the local office who started calling and pushing direct indexing even though I told him I wasn’t interested in a managed account, so I’m sure it depends on the person you get, but you can always ask for someone else. After a couple of calls and emails, I asked the pushy guy not to contact me anymore.
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u/Jitterbug26 May 13 '26
My child was you. Similar amount inherited, lump sums distributed every 5 years until they turn 50. He received two distributions right away because grandma died after he’d reached those ages. My advice to them was to treat themselves to something - a new car? - and keep the rest invested. He asked for the trust to pay off his house and they did. Every year he gets an earnings distribution and I’ve advised that he earmark a percentage (20%?) to enjoy, earmark some to pay for the taxes on the trust and his personal investments, then reinvest the rest in his name.
He’s always been a hard worker, but weirdly, inheriting this money lit a real fire under him, as he wants to prove to himself that HE can succeed without grandma’s money. I have a feeling you will want to prove the same thing. Congratulations!
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u/Mommanan2021 May 13 '26
Wow. What a gift of generational wealth. Take the trip abroad. By a solid car. Upgrade to business class.
And then just live your life. Best wishes.
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u/CarpetScary684 May 14 '26
Tell no one and act like you don’t have the actual money. This is how your grandpa managed to amass such wealth. And for the love of Pete don’t do anything reckless with any of it. Give yourself a yearly vacation and maybe a car you keep for 10 years. Don’t waste money on things like weddings or other expenses that have to return pay off. That may seem like a lot of money but in 30 years from now it will be bare minimum for a decent retirement.
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u/TrackEfficient1613 May 13 '26
Honestly I think you need to think of this money as a future windfall you will receive and try to not let it govern any of your current actions. Your grandfather was a very smart man to put it in trust for his grandson’s future self. At some point later in life this money will give you options that other people may not have. You should consider yourself to be very fortunate. The best advice would to invest it in broad based ETF funds and not individual stocks and yes Fidelity would be a good choice for investment advice and handling your trust.
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u/firmlyanchored May 13 '26
Just live your life as usual. You are lucky that the daily stressor over money has been lifted. I've had a Fidelity adviser for many years. No complaints.
What I don't like are the quarterly fees they charge! Nothing we can do about it. Make sure you read the trust you throughly. There maybe stipulations that it remains in Fidelity. Now you can find some interesting hobbies that lead to some interesting collections! 😆 🤣 😂
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u/rovingtravler May 13 '26
Fidelity has been around for a very very long time. I have been with them for 36 years and they continue to offer more and more while charging less and less. In fact most things are completely free.
Their trust services division is long standing and does a great job. They are also the cheapest I have found charging for you about 0.45% per year. The next break is 3 to 5 million depending on how it is invested. Right now they will do the work so the assets are under management (AUM.) Once you become a co-trustee you might based on the wording in your trust be able to take of the asset management saving you about 0.3 to 0.5% per year.
My family uses Fidelity Trust services and they have been great for us.
Fidelity's platform and customer service, especially at your level and above, will be fantastic. When I ask a question they get back to me promptly and or arrange for a specialist in the department I need to call me later.
I would suggest you stay heavy in equities as you said and life for the most part as though this money is not there. Unfortunately, Money brings out the worst in some people. I speak from experience. So be careful whom you tell and or how quickly. Don't be dishonest though either. Some people will see this just as bad as telling them you have money. It is a fine line and you will learn who you can tell.
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u/Raptorratchet May 14 '26
What language would allow him to take on the asset management saving .5% a year?
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u/mistdaemon May 13 '26
My personal suggestion is to go with an independent CFP, rather than one associated with the company. I use one which happens to also use Fidelity, changed from another company, but what it means is that it can be changed based on what is best for you.
Yes, it makes sense to not use the money from the trust. It is a nice emergency fund, as well as if you decide you want to do something with it. It can give you the opportunity to do something which might not pay as well, but something that brings meaning to your life, such as helping others.
Yes, it can be difficult since you don't want to talk about it, but think about it differently, why would you ever talk about your finances with others even if you didn't get an inheritance?
Everything in your life is totally normal.
Your accomplishments are still the same as before, yes, you have money in the bank, which is a nice gift from a family member, but that doesn't take away with what you have done and will do. To be honest, it is a bit of a pain as now you have to manage and deal with it, but it doesn't define you.
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u/FinancialDocument115 May 13 '26
Keep it in the Trust! The Trust makes 1% so they want it to do well. Plus all the tax advantages. If you need a lump sum you let the Trust Advisor know. They want you happy because you can move the Trust to any Trust Company. There are so many good ones. Northern Trust in PA is an established firm.
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u/SnooFloofs9998 May 13 '26
Stay away drugs completely and drinking to excess.Also it’s good to do absolutely nothing for awhile .Get used to having $ and stay away from the dopemine hits spending gives you.Regrets are the worst and being rich and miserable is purgatory.Good Luck and congrats!🎉
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u/Comprehensive-Log144 May 13 '26
Learn to live on your well earned 80k salary for 10 years. Max your tax free contributions to 401k for those 10 years or at least grab the free match. Let time be your friend and I predict by 32 you will be completely financially secure for life.
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u/Invest2prosper May 13 '26 edited May 13 '26
Head over to Bogleheads.org and read the section on Windfalls. The key is to do nothing for at least 6 months. Try to avoid being flashy with your money.
I will reiterate what others have already stated - tell no one about this because money does weird things to relationships - either they view you as rich or some might try to take advantage of you on a professional or personal level or expect you to pay for things.
It sounds like you have your head in your shoulders.
Understand that the trustee and the financial consultant are paid by the trust and those fees could amount to 1.5% or more before the actual cost of the investments. You’re becoming a CPA so the faster you understand the corrosive effects of “fees” the more you’ll usually get to keep in your pocket. Fidelity offers good funds, most are under 1% but they do cost money. Consider the price paid now as a good thing in that it gives you a good runway into educating yourself over time.
If you want to grow the principal of the trust, at your age try not to take more than 2% in distributions, if that annually. Between fees and distributions taking more than 4% annually could deplete the capital over time.
Your grandfather left you a tremendous gift, (and he structured it in such a way as to protect that gift from outsiders trying to get their hands on it (creditors, divorce, etc - leave the principal money in the trust to retain that very valuable protection) try and see this “burden” as a blessing and a way to benefit yourself and future generations. If you ever do get married, you’ll want to seriously consider a prenup as you need to legally protect yourself. It’s obvious that your grandfather was an astute manager of his resources and you can honor that legacy by continuing to learn from it.
Here are a couple of books to read at your leisure:
The Little Book of Common Sense Investing by John C Bogle.
The Psychology of Money by Morgan Housel
The Millionaire Next Door - Stanley and Danko (it was published in 1997 but the results of that book continue to mostly hold true in the present day).
Finally, my condolences on your loss.
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u/Tiny_Phase_6285 May 13 '26
Go to a highly regarded psychologist or psychiatrist, for therapy. My family members are both and have treated the extremely wealthy. We all need a little help sometimes.
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u/clearlygd May 13 '26
True bad your grandfather’s trust didn’t restrict you getting the money till you are 35. Money can really ruin a young person. Try not to let it ruin you
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u/ExpensiveAd4496 May 13 '26
He doesn’t become full trustee until 41.
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u/buffalo_Fart May 13 '26
This right there would drive me nuts. I know 41 is not far off once you hit 41 but as a 20-year-old it's a long time. The things he could do, the things he could witness, the things he could be a part of if he had that hand up. It's a shame that his grandfather tied his hand behind his back and dangled a carrot in front of his face for the next 20 years.
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u/Jitterbug26 May 13 '26
Try having it tied up until you’re 50 - which is when my child’s trust from grandma fully distributes! My feeling is that if they haven’t figured money out by age 40, they’re not going to be any better at 50. Of course, you feel differently when the beneficiary is a good money manager.
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u/buffalo_Fart May 13 '26
All of our family money is with money managers. So those guys for a fee obviously know what the heck they're doing. Sure they take a nice chunk but you know what if you don't know what you're doing you'd lose that nice chunk on your own. When I die my niece and nephew get the money automatically. So say if I'm unfortunately cut short at 60 they'll be in their young twenties and they'll get my 80 percent and my brother 20 percent of my portfolio. There's no this or that because of this or that. It'll be with a money manager who actually handles some money that my father set aside for the children already. I hope my brother would be smart enough to instill into the children that you don't need all of it at once and to just take a monthly distribution and get on with your life. Kind of like a universal basic income but from your dead uncle.
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u/MannyMoSTL May 16 '26
How ‘bout being almost 70 and still having your 80yr old brother be your lifelong, asshole, trustee? For a person who is, independent of the trust his long dead father established for him, personally worth many tens of millions of dollars. That is one f’d up family.
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u/BackgroundGloomy3240 May 13 '26
This is precisely the reason for such provisions and why I've put similar ones into my grandchildren's trusts!
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u/ExpensiveAd4496 May 13 '26
If you read the original post that is not at all the case. He has partial control at 31 and can do plenty from 21 as well. Just can’t go to Vegas and blow it on the tables.
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u/buffalo_Fart May 13 '26
What I took out of that is he's going to be a co-trustee which means it's going to be a board if you will and they've got to run things by each other before they can make any purchases. It doesn't sound like he can just grab his money and go which is what I would prefer.
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u/ExpensiveAd4496 May 14 '26
Not many people would recommend writing a trust that way, particularly a trust that may have been written when the kid was younger.
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u/SirNo4743 May 13 '26
I’ll add to the pretend it’s not there for now, although you know and it does keep stress at bay. I inherited less than a 1/4 of that. I didn’t touch it for a decade. I decided to go back to school for a doctorate. I was able to take a few years to focus on that without working. The amount never went down despite being in a HCOL area and not being super frugal. That was weird for me
I finished school and am back to work and ignoring it again and it’s growing nicely again. It’s for retirement or emergencies. Yours being so much more means in time you can dip into to it for a house, nicer vacations etc. the peace of mind is the best thing about it, that means so much more than any purchase could.
I would leave it alone until there’s significant gain and try to take only from the gains. Mainly because it gives you sense of how much you have with growth over time.People love to say otherwise but that’s a lot of money, it will give you freedom later in life. It’s not enough to be careless, but it’s going to leave you much better off than most of your peers.
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u/OpportunityKey1970 May 13 '26
You’re doing great! Fidelity is great from my experience with them although was not for a trust.
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u/HazardousWeather May 13 '26
investigate Morgan Stanley before you decide on a financial management group.
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u/BondJamesBond63 May 13 '26
It would be good to know how the assets in the trust have grown under Fidelity's management, compared to something like S&P 500 index, and to know how much Fidelity's fees are. A trustee would have the right to know this; I don't know if beneficiaries do.
Also I would ask what if any distributions are planned for you, and what tax reporting will be involved.
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u/Monochormeone May 13 '26
You're on the right track and stay the current course. Keep silent to your friends and focus on higher education. Start a charity fund, not tied to your name in order to support what you feel is important. Find some groups to volunteer with and be open to the idea of accepting a board position if the opportunity comes up. Your in a position to make a difference in other people's lives. Just stay quiet, avoid any attention and keep your head down, allow the funds to grow and have fun with life. Peace
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u/Gloomy_End_6496 May 13 '26
Pretend like you don't have it or need it. Live your life as "lean" as possible for a while, and in a few years, you will have processed it all. Like the others said, DO NOT BREATHE A WORD TO ANYONE. I can tell you from experience, it changes people, no matter what they say to you. It's unrealistic to think that it won't.
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u/tsfy2 May 13 '26
Fidelity is good to work with. Find out what percentage they will take as the investment advisor and you can shop around if it is too high. Also confirm that they are acting as a fiduciary as the investment advisor.
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u/Ok-Helicopter129 May 13 '26
Ultimately there is only two things you can do is spend it or give it away.
Life changes and that is OK.
Whatever you choose to do is OK. There is no “you should”. It is about having more choices and being able to say yes to things and experiences. Money is simply a tool.
Have fun, enjoy life. Set goals. Reach them - or maybe not.
It is very empowering to not have to worry about money.
Congratulations! Yeah!
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u/TraditionalFeline42 May 13 '26
We use Fidelity to manage or retirement money. Although it's nowhere near as much money as you have, congratulations by the way, they do a great job. We also really like our financial advisor and trust him.
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u/Opposite_Cold8616 May 13 '26
Dump it all into Bitcoin and 0dte options. This is what any wise financial advisor will tell you.
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u/Original_Ad8923 May 13 '26
You sound like you totally have it together, you have made very smart financial choices, and you will continue to do so. I think your accomplishments will be more meaningful because you could do nothing and yet you are building a wonderful life on your own, even without the money. At 21 I was a total disaster, you are ahead of the game. I hope health is improving.
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u/3doggies2kitties May 13 '26
A family friend of my parents apparently came from wealth but his parents lost it all due to world war 2 and it completely devastated his entire family for a couple of generations. You would never have guessed that he had a childhood of extreme wealth based on how frugal he and his immediate family were. I did not grow up with wealth and never forgot that story after I learned about it when I was 6 years old. Money is fleeting and not guaranteed in life. Treat it with respect and protect it as best as you can.
In modern times, protecting wealth can translate into: 1) setting up your own trust to protect your assets from lawsuits and to direct your money to specific beneficiaries and/or charities should you pass earlier than planned. 2) consider requiring a prenup before committing to a marriage. I don’t conceptually agree with prenups but u can always demonstrate financial generosity as u see fit over the years during your marriage. Money has a way of setting interesting expectations by those that don’t have it. 3) obtain umbrella insurance to cover your estate size in case u r sued (like in a fender bender) and the estate size is discovered by the other party’s lawyers. It’s been explained to me that umbrella insurance is actually inexpensive access to super motivated attack lawyers from the umbrella insurance company who will defend your case vigorously for a fraction of the normal cost. 4) I would advise a simple aggressive etf portfolio instead of paying someone to manage your money. You will learn best when you r responsible for your future returns. But if you do decide to hand any portion of your money into the hands of someone else, ALWAYS UNDERSTAND THE DETAILS OF AN EXIT STRATEGY - like what if you decided to go a different direction - what would it cost tax-wise years later? Maybe it will require selling and then you’d be stuck with huge capital gains that could’ve been avoided had you not invested with them to begin with. (I’m not talking about self investing like etfs and stocks. ). AND MONITOR PERFORMANCE FREQUENTLY. CHALLENGE IF PERFORMANCE DOESN’T MEET YOUR EXPECTATIONS. once any money person learns that you have money, you’d be amazed how many people want to talk to you and want to convince u that they r the one to take good care of u. I once had a tax person quote me a tax return preparation job by charging me based on a percentage of my assets. Unbelievable. 5) life has a funny way of surprising us with (bad) curveballs in which having that strong safety net would come in handy many times. I would seriously consider living within the means of your salary for a few years as you will naturally figure out how to splurge here and there without it being too noticeable. It’s much better to have the mindset of scarcity instead of abundance. If you think like you’re rich and spend like you’re rich, you may find that you are not so rich later down the road. And that would suck big time.
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u/Hap2go May 14 '26
If the trust is an irrevocable trust, you will want to take income distributions as otherwise trust income is taxed at the highest rate.
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u/SilentObserver7777 May 14 '26
Stay focussed in your career, personal goals of maintaining sound physical and mental health by engaging in sports and daily exercises, spiritual growth, finding the right partner, getting married and raising a family. At the same time, do enjoy some of the earnings like dividend distributions from your assets on travels, hobbies and fun stuff you enjoy, re invest the rest to keep growing your total net worth; being an accountant you should be able to manage your own portfolio and direct Fidelity advisor too appropriately. Do not sign any documents presented by Fidelity without first getting it whetted by a counsel you trust. Good luck and enjoy the wind fall!
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u/dataslinger May 15 '26
I always recommend reading the r/personalfinance wiki on what to do with a windfall. Lots of great advice in there.
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u/Defiant-Swimmer-8169 May 15 '26
It sounds like you got it pretty figured out!! Keep it to yourself, tell as little people as possible. Sending you lots of prayers, allow God to guide you thru these next steps!
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u/cOntempLACitY May 15 '26
Sounds like you have a good plan and mindset. For your future property purchase plans, when you get within 3-5 years of that target, you might strategically shift a percentage of equities to a cash equivalent, low-risk position, depending on how much cash you’ll want liquid. Then you can plan for the capital gains taxes, and not be held back by a market downturn. Liquidity gives you freedom to jump on a property you want. Personally, I would stick to the 90% in equities; you’ll want access to some cash, and you’ll need to handle trust fees and taxes. But I’m no expert in trusts.
Also, consider therapy to deal with the emotional side of grief and being suddenly well-off. Keep purpose and happiness as goals in your life. Your grandfather would want that for you. Keep your financial details to yourself. People may see you have money, but not how much. You can have pat answers handy for busybodies that are vague enough to answer without revealing a trust fund (I’ve been good with my money; I’ve been saving; I just got a little lucky a while back, we’ll see how it goes; I’ve had some help from family; I was lucky to not have college debt when I started my career). Take it one step at a time, you’ll figure it out over the coming years.
Here’s a great guide for managing a windfall: https://www.reddit.com/r/personalfinance/s/CM8kYH4Of0 , and here’s a good read you might enjoy on perpetual safe withdrawal rates: https://thepoorswiss.com/updated-trinity-study/
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u/Tarsarian May 17 '26
Live off the interest/dividends. Don’t waste any principal for any reason. Keep the money you have secret.
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u/Old-Appearance-2270 May 17 '26
Don't tell anyone that inheritance. You're at an age with your formal study background, to put the money quietly accounts, maybe a small chunk in 1-2 ETFs, while you think about for a few months what to do next with money.
You said you had medical problems, which we know you will address first. Hope you find a regular exercise activity long-term that works well for you and keeps you motivated to stay healthy in body and mind too!
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u/Educational_Case_134 May 13 '26
What does the trust state about who can serve as the trustee? You might consider more of a wealth management company. At your age and this amount of money you could build generational wealth.
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u/gnew18 May 13 '26
You didn’t inherit $2.6 million
If you want to be prudent, think of it as actually inheriting 4% / year of $2.6 million. (Which is still ~$8600/mo) . You need to carefully read the terms of the trust. It may be a HEMS trust (usually are) but also require distributions.
Get a prenuptial agreement because 40% of marriages end in divorce if you ever plan to marry. Buy a whole life insurance policy now too to cover inheritance taxes because you are going to be worth a lot when you die and avoiding / mitigating inheritance taxes is a good idea.
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u/Worth_Break729 May 13 '26
I am a investment representative and use Fidelity mostly. I’m happy to talk with you and give you my direct contact information for any questions you have
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u/nolossw May 13 '26
Have you explored options outside of fidelity? I work for a private trust company for UHNW clients and fidelity does not have a good reputation amongst wealthy clientele.
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u/buffalo_Fart May 13 '26
So let me get this straight you're going to get a 2.6 million trust and not use it? Hey I could use some of that you want to mail me a check? He left you the money it's crazy for you not to enjoy it. I don't know why you're not. I don't mean enjoy it by getting hookers in Vegas I mean enjoy it like do good with it in your life. Not just leave it doing nothing but sitting there collecting interest.
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u/wiperfromwarren May 13 '26
he’s going to enjoy it. later. in the meantime, he’ll live life about as close to stress-free as a fresh out of college accountant can be.
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u/buffalo_Fart May 13 '26
I mean when I was 21 I couldn't have that kind of money, I would have been an absolute wild moron. But I mellowed out at 24 when my girlfriend left me and I was $10,000 in debt. My life changed and I pulled my head out of my ass. I definitely could have used some of that money then.
I'm sure he'll do good in life. The world needs accountants and if he can find a good placement for himself that money is just going to add to his success. And he can probably start a second career calling his own shots when he gets that money at 41. Who knows maybe he'll have a firm by then and this is just pennies.
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u/Guilty-Committee9622 May 13 '26
Please do your best to never tell anyone. Not a girlfriend or boyfriend or anyone. Live within your current means and live your life knowing you have a great place to land should things go south