Hello guys, I’m 19M and will be receiving roughly $350-400K in inheritance money in November/December. I’ve seen it happen before where people have been given a lot of money quickly and wasted it all because they believe it would last forever. I want to make my parents proud with their money and see them look down on me knowing that I’ve done well with the amount they’ve provided for me in a difficult situation. People with experience on being able to do great things and create great profits with an amount like this, where should I start? I’ve been told to put it in a compound interest bank account and/or even buying a house and getting rent money from it, but I still want to explore my options to see if there’s a better way. I appreciate your help.
I’d open a brokerage account, buy a ton of VOO, and forget I ever got it. Eventually, when it grew to the point where I could withdraw 4% a year and live off that amount, I’d retire.
Carter said:
I’d open a brokerage account, buy a ton of VOO, and forget I ever got it. Eventually, when it grew to the point where I could withdraw 4% a year and live off that amount, I’d retire.
This is what I would do. Three fund portfolio. Boring, effective, and you’ll be set for life. Parents would be proud you didn’t blow it.
Carter said:
I’d open a brokerage account, buy a ton of VOO, and forget I ever got it. Eventually, when it grew to the point where I could withdraw 4% a year and live off that amount, I’d retire.
What is VOO?
@Corey
It’s a mutual fund for the S&P 500. Any similar fund works too.
Hadden said:
@Corey
It’s a mutual fund for the S&P 500. Any similar fund works too.
Exactly. It’s the same as buying SPY (i.e., the S&P 500 ETF); VOO just has lower fees. Over 20 to 30 years, those fees add up, so you’ll end up with a better return using VOO.
Carter said:
I’d open a brokerage account, buy a ton of VOO, and forget I ever got it. Eventually, when it grew to the point where I could withdraw 4% a year and live off that amount, I’d retire.
I keep hearing about VOO. Is it really the golden goose people say? I’m always a little hesitant.
I usually invest the max in a Roth IRA and put the excess in my mutual fund. See if your bank has financial advisors available as a free service to you. Look for an older one – they’re very knowledgeable and will help set everything up! Most of the time, I didn’t have to do anything, and my advisor handled it all.
Hopefully, everything goes well for you. Money is the root of all evil, and I’ve seen it firsthand with inheritances within my own family. You are young; don’t blow it. The money can go fast. Investing and parking this amount will set you up with a financial cushion later in life. But remember, you only get one, so don’t be afraid to live and have some fun too.
Max out your Roth IRA, then put the rest into low-fee mutual funds. Enjoy those 10 percent gains.
$INTC would be a great purchase. Not financial advice, btw.
Put almost all of it in VTI or VOO and don’t worry about it. It will grow over time! Then take $5K and try to start a business. Do that again after you fail. Then start a third one and see if you can spend as little cash as possible. By then, you should be an expert in addressing a consumer problem. Then, start the right internet business, whether it’s a course, ebook, or something, and build your money-making machine.
@Shay
That’s good advice. I think 80% in index funds for the $5K startup sounds cool too. You can buy a duplex, live in one unit, rent the other. You’ll have subsidized housing and generate revenue while building equity. By your thirties, you could have it paid off and live for free.
My only advice is to buy and hold at least 1 Bitcoin. We’re at the beginning of a bull market that will continue into late 2025. Why not put a small amount of your windfall into the best performing asset over the last decade? You’ll still have plenty left over for other investments.
@Eli
The question is, can we keep OP from “diversifying” into shitcoins? If he buys 1 BTC and stores it cold, he’d be set in ten years, provided he doesn’t touch it.
Do what everyone else does. Use some money to invest and profit. Then act indignant around poor people while boasting about how hard you worked for your wealth.
I would definitely diversify, and I’d personally take maybe $25K and look into crypto mining. It could provide a base for some passive income and grow your funds.
Valen said:
I would definitely diversify, and I’d personally take maybe $25K and look into crypto mining. It could provide a base for some passive income and grow your funds.
Great advice. Diversifying is key with this amount. The beauty of having it at a young age is you can take risks. Determine what percentage you want to invest in low/mid/high-risk assets.
@Merrick
This is interesting! How do you find businesses like that? Do you contact them directly?