I’ve never had this much money before and it’s overwhelming. I always knew you should invest but never actually made good money until now, I feel like I have something to play with. Any suggestions?
I’m sorry, wtf kind of giveaway gives $460k? Put it in a high yield savings and it will generate like $1500 monthly.
Mal said:
I’m sorry, wtf kind of giveaway gives $460k? Put it in a high yield savings and it will generate like $1500 monthly.
So… you won the lottery?
Mal said:
I’m sorry, wtf kind of giveaway gives $460k? Put it in a high yield savings and it will generate like $1500 monthly.
You know, check your junk mails. They happen like weekly doh. Many Princes are locked out of their inheritance and need your help!
Mal said:
I’m sorry, wtf kind of giveaway gives $460k? Put it in a high yield savings and it will generate like $1500 monthly.
Would that still be covered by the FDIC? I thought it had a limit of $250k.
@Ainsley
You could spread it around if you were worried about it. The likely scenario is that the government will cover all of it (to keep people from losing faith in banks).
West said:
@Ainsley
You could spread it around if you were worried about it. The likely scenario is that the government will cover all of it (to keep people from losing faith in banks).
Yep! They’ll just print some more. Problem solved.
@Ainsley
Yes—but it’s $250K per account per joint holder, so $500K for one married couple (or other joint arrangement) per account.
High yield savings account: put 6-12 months expenses for an emergency fund that you can access at any time.
Roth IRA: create one and max it out every year.
401k: max out employer match contribution.
Personal brokerage account: put the rest in an index fund like SPY, VOO, or IVV. These index funds track the S&P 500 and make between 7 and 10% a year.
Do the above, keep working your job and you’ll be fine. Maybe take $5k and do something nice for yourself.
@Amar
Do you have any thoughts on whatever Goldman and Sachs said this week about the S&P making as little as 3% returns in the next decade? I finally have a chunk to invest and I’m worried I’m getting in at the wrong time.
@Jermaiine
If the S&P 500 only provides 3% returns then the American economy is over and you’ll have bigger things to worry about.
Edit: also if that does turn out to be true and America is somehow still chugging along, you’re still making 3%, so that means the first year you get that incredibly low return you can pull your money out and buy a tangible asset if you can afford one. If the S&P is at 3% you won’t be able to find a HYSA or bond that’s worth putting your money into.
@Amar
Haha excellent points. Thank you.
@Jermaiine
If that happens then that will be indicative of most of the market.
@Amar
This is a great answer (and pretty much everything my FA is saying to do with extra funds)!
I would also add a Health Savings Account (if you’re eligible with a high deductible health plan). The deposit is deductible, the money grows tax-free, you can withdraw the funds tax-free for medical expenses, and with some HSAs, you can invest the money with no taxable growth. Mine also matches most of the HYSA rates, so it is one of our best investments—although the max contribution is only $4150 single/$8300 family annually.
Chin said:
What kind of giveaway is it?
Hi OP actually there’s been a mixup, I’m actually the person who won the giveaway, please transfer the funds to my wallet, k thx.
Chin said:
What kind of giveaway is it?
Hi OP actually there’s been a mixup, I’m actually the person who won the giveaway, please transfer the funds to my wallet, k thx.
No, I’m the one who won. Just send them to me.
Give it to me and I’ll give you 5% a year for life.
Simple, look for a bank that will give you for new deposits 5% interest. This is about $23k a year. Many banks will offer you this for new clients for 1 year or more terms. Sometimes it can be negotiated to prolong.
$23k a year for free plus whatever job you have can give you a good living.
I’d use it to pay off all of the debts (excluding mortgage). Then I would put $50K in high yield savings, $200K in SPY ETF, and $200K in Magnificent 7 stocks.
Emerson said:
I’d use it to pay off all of the debts (excluding mortgage). Then I would put $50K in high yield savings, $200K in SPY ETF, and $200K in Magnificent 7 stocks.
People that were in debt to begin with will always mess up and spend/lose it all. You don’t fix the real problem, just a temporary band-aid.