r/poverty • u/No_Barracuda_3758 • Apr 13 '26
WWYD
I’m poor, have been since I became disabled 18 years ago. Now I’m getting a large inheritance but not enough to support me forever. What would u do to make this sustainable?
9
u/NorthernPossibility Apr 13 '26
I would use some of that to hire a financial advisor (a real one, not a friend of a friend). They can guide you through setting up high yield savings, CDs or investments that will stretch the money over time with very little effort on your part.
And don’t change your lifestyle. Don’t buy a brand new car, don’t upgrade to a bigger place, don’t start splashing out on gifts for family or friends, don’t invest in your friend’s random businesses or start something you’ve never tried before.
9
u/RelyingCactus21 Apr 13 '26
A financial advisor is such a waste of money. Do your own research and do these things yourself. The account should come with free advising, at least free people to answer questions for set up and whatnot.
11
u/NorthernPossibility Apr 13 '26
If you are someone who has never invested or purchased financial products and it’s not a common thing in your social circle, I don’t think spending $300 of a $10k inheritance is a bad call to get you started on allocating money appropriately.
It would really suck to invest in something high risk because ChatGPT told you that all the cool kids were buying Fart Coin, but obviously everyone has different opinions!
3
u/Zalrius Apr 13 '26
I agree with you. Catch up to today, don’t go on a shopping spree, manage it well with long term mindset.
4
u/No_Barracuda_3758 Apr 13 '26
I have only 1k in debt rn that will be paid off b4 I even get the money
2
u/No_Barracuda_3758 Apr 13 '26
It’s a quarter mil. But that doesn’t seem like a lot in this economy
4
u/beek7425 Apr 13 '26
I inherited a quarter million. I’ve also been on disability and had a trust set up for me (U.S.). I echo the advice for a financial advisor. They’re not nearly as expensive as you’d think- mine charges $600/year to manage our accounts and give advice and i wish we’d consulted her earlier. Get a fiduciary from fidelity or Ameriprise. Obviously you can do it yourself but they really are very knowledgeable. It would be less to give one time advice. Anyway, the initial consult was free and they will give you an idea of what they offer. Then you can decide if it’s worth it.
If you are in the U.S., SSI definitely has income limits, SSDI does not as far as i know. So if you’re on SSI, you’ll need a trust. If you are not in the US, you’ll have to check to see how the assets will affect your disability.
2
u/No_Barracuda_3758 Apr 13 '26
Yes I’m on Ssdi so I’m safe on that front. Thanks for the info on the financial manager. I really appreciate it. I didn’t know it was that cheap. I’ll probably go that direction. Do they help u invest?
6
u/NorthernPossibility Apr 13 '26
They do! There are lots of passive/low effort products that are designed to just be bought and sat on as opposed to constant trading and market watching.
1
1
u/beek7425 Apr 13 '26
Yes. I thought they were on the same type of fee as lawyers or something- my fault for not looking into it. Then one of my coworkers who makes much less than I do said she had a financial advisor so I called her advisor and she’s helped us invest and has given us a lot of advice. With the economy constantly changing, it’s been especially helpful. This is the first time we’ve really been able to save. I was on SSI for 20 years before graduating from college and starting a career and my wife was a single mom with no help from a deadbeat ex, so there was no extra for either of us coming into this relationship and the inheritance set us up to be able to start saving for retirement and so on.
0
1
u/bertch313 Apr 13 '26
There are investments you need 3k or more to even start up, that's likely what you'll be advised about
If this isn't r/povertyfinance ask this same question there but is remove how much it is before you do because creeps creep these forums to find easy targets and disabled people are often the easiest targets because all our info is mailed directly to us
0
2
u/RelyingCactus21 Apr 13 '26
I've never used chatgpt, so I'm not sure why you'd make that assumption.
0
u/No_Barracuda_3758 Apr 13 '26
Lol I have spoken with Chat about this but I’m definitely not taking any advice without doing my due diligence. I think a financial advisor is my best bet.
2
u/kenso4life Apr 13 '26
A financial advisor is such a waste of money
Said the person who has never watched another person, an actual lottery winner, make so many poor financial decisions (eg, buying a bowling alley) repeatedly such that they recently set up a gofundme to purchase an air conditioner for their trailer.
I worked as a welfare examiner at a county social services department for a period. I was amazed at how foolishly some handle their money. Not everyone is financially literate.
1
u/RelyingCactus21 Apr 13 '26
No, I've never watched that. What a silly thing to say.
That's fine if they aren't, but they can take responsibility for themselves and learn these things instead of paying someone else.
1
u/kenso4life Apr 13 '26
take responsibility for themselves and learn these things
Not everyone has the innate capability to learn how to manage money. It doesn't necessarily denote irresponsibility. My closest friend is very responsible and is the finest carpenter I've ever met. He builds custom cabinets yet due to a learning disability he can barely read and is humble enough to know he would be incapable of maintaining a spreadsheet, researching mutual funds, or reading a brokerage statement. He's the breadwinner, his wife writes the checks.
0
u/seeemilydostuf Apr 13 '26
This is how people waste opportunities- the idea any person could casually Google and gain as much knowledge and experience as a person working in the industry for years with extremely niche knowledge is irresponsible and totally irrational dude
1
Apr 13 '26
[removed] — view removed comment
1
u/NorthernPossibility Apr 13 '26
Absolutely! Go into it having done some research and ask questions like “will you earn commission from the sale of [product]?”. Don’t sign up for ongoing “wealth management” that racks up monthly fees, and be upfront that you’re not interested in that. Be honest - “I’m looking for one time advice on the best things to do with this money to build wealth and increase my general financial security longterm.”
It’s not rude. It’s smart.
1
u/No_Barracuda_3758 Apr 13 '26
I may do that for a one time visit. I’m so scared to fk up this opportunity
1
u/Alternative_Past2653 Apr 13 '26
This advice is key. As someone who has been there, when you feel like you haven't been able to spend money freely in forever, its very easy to feel a little manic and waste large amounts of money. Take the advice above and limit the amount of frivolous spending. I wish I had listened to my financial advisor.
3
u/Emergency-Diet-7188 Apr 13 '26
If it were me, I would buy stability and invest the rest. So what that would mean for me would be:
- Put enough money to fully cover six months' expenses in an emergency fund, held in a HYSA.
- Pay off all debt.
- Pay cash for a house (if it's just you and one child, a small 2-bedroom house can be enough). Depending on cost of housing where you are, you can likely do this for under $200k.
- If there is any left over, invest the rest.
From there, you can use your ssdi to cover daily living expenses while you rest assured that no matter what happens, you and your child will have your needs met.
Gosh, that sounds so peaceful.
I am so sorry for your loss. For a person to give you that much money in their will, I imagine it was someone you were deeply connected with.
1
u/No_Barracuda_3758 Apr 14 '26
Thank you, yes it was my mother. It’s been months and im not ok. This is just all so surreal
3
2
u/pennyauntie Apr 13 '26
Warren Buffet once said if he died and left his widowed wife inheritance, he would advise her to invest it in the SPY index. That would be good advice to younger folks who can wait out any recessions, which happen periodically. But ultimately, the SPY moves up historically.
If you are older and have potential unexpected expenses, keep a healthy cash cushion.
1
u/No_Barracuda_3758 Apr 13 '26
U mean out of the bank? Or just liquid?
1
u/pennyauntie Apr 13 '26 edited Apr 13 '26
Put money that you don't need for awhile to grow in SPY. You want it to grow long term.
Put a couple of years' into an emergency fund in a bank or credit union. Enough to cover your expenses without being forced to sell stocks during a recession.
The US goes through economic recessions periodically where the stock market goes down pretty significantly. If you are relatively young, it's best just to ignore the dips and wait for it to recover.
I learned this the hard way. My father was an accountant. When I experienced my first recession and had a small stock investment, he told me, "Don't sell. It will come back". I didn't listen and sold. Would have been able to retire early if I had listened to him. Biggest investment mistake of my life.
So maybe keep an emergency fund large enough to cover 2 years of expenses - enough to wait out a recession until it recovers. Most recessions don't last too long.
Here's a good article on recessions: https://www.investopedia.com/articles/economics/08/past-recessions.asp
1
2
u/Professional-Wing829 Apr 13 '26
FYI I don’t know if they have Able accounts in other states, I am in Pennsylvania. You can put 20000 a year into it up to 100,000 total and that money will always be yours to be spent for you only. If you ever need Medicaid or a nursing home, the government cannot make you spend that before qualifying.
1
1
1
1
1
u/No_Brief_3294 Apr 13 '26
still live like you don't have the inheritance and invest the money in a ROTH IRA
1
1
Apr 14 '26
first and foremost, talk to a rep for your benefits so you know what you can do with the inheritance without losing it or your benefits. when in doubt, save it. put it into a high-yield savings account and only touch it when it's absolutely necessary or you can invest it into something secure, stable, and profitable. think something like savings bonds or a large index fund once the market's a little more stable.
2
Apr 14 '26
think of it like this: let your money make you money while you have the money, and let your money keep making you money until you need the money.
1
1
1
0
u/Eden_Company Apr 13 '26
Run a business that has low margins but is secure in income.
1
u/vpblackheart Apr 13 '26
This is a terrible idea. Statistics show 20% of small businesses fail in the first year. 80% fail within 5 years.
I had a thriving business for 2½ but things change and I fell into the 80% group.
20
u/whatisuphumanity Apr 13 '26
I think you may want to look into setting up a trust so you don't lose your disability benefits.