Long story short, there are a variety of reasons my wife and I have not done 'correct' wealth planning and we now have several online savings accounts near the FDIC max. I am not necessarily wanting to continue to open more accounts, but want to keep money relatively easily available and don't want to take any risk with it.
Yes, I am soliciting financial advice from strangers on a running board. I am okay with that. I am too busy and lazy to figure this out but I'll take suggestions if they sound solid.
Well, I won't shame you because you haven't invested in the stock market until now. SHAME! Ok, maybe a little bit. This first bit of advice is what I am advising YOU to do...it's not what I would do, but since you obviously have some sort of need to hold onto money that earns either nothing or next to nothing, here's what I think YOU should do (I'll tell you what I would do if I woke up in your situation in point #2).
1) THIS IS WHAT YOU SHOULD DO - Keep your nearly $1 million in your bank accounts. I'm not about to tell you to do something that will give you night sweats. Since you have your house paid for and your kids' college already handled, you should now actually invest some money. If you or your wife has a 401k available to you, contribute to that. If there's a company match, at least do enough to get that...that's free money. Now, unless you inherited money or got it in one fell swoop somehow, it seems you were able to save that money. Take the amount you were saving each year from your income, and now invest that into your 401k(s), an IRA(s), and then if there's money left over if you max out, open some non-retirement mutual funds and put money in there. You still have maybe 20 years or more to invest...and that would be wise.
2) THIS IS WHAT I WOULD DO IF I WOKE UP IN YOUR SHOES - I would keep 3 YEARS of expenses liquid. This is easiest to do just as cash. I would put the rest in non-retirement mutual funds. I would then invest from that point on out of my income as I detailed above in #1 (401ks and IRAs).
3) Good job with the saving money, but make it right now and start investing.
2 banks have just recently already tanked the latest Credit S
Any advice could soon be invalid I would hold right now even if its a long term investment its not the right time
Why has this poster not mentioned his pulse of 35 bench press of 500lb & hot gf as obvs a braggart
Highly recommended passive income with real estate syndications or hard money lending funds. You need to be an accredited investor which it sounds like you are. RE syndications pay out about 10-12% with tax benefits and you dont do anything. Filing K1 forms sucks but its worth it.
HM lending funds can be hard to find but check with your local real estate groups and I am sure there are a few. With mine I invest 500k and get 11% return but its paid out in a check every month so each month I get a $4500 check. You do have to pay income tax on it though but getting a predictable 11% return paid out each month is pretty cool
Long story short, there are a variety of reasons my wife and I have not done 'correct' wealth planning and we now have several online savings accounts near the FDIC max. I am not necessarily wanting to continue to open more accounts, but want to keep money relatively easily available and don't want to take any risk with it.
Yes, I am soliciting financial advice from strangers on a running board. I am okay with that. I am too busy and lazy to figure this out but I'll take suggestions if they sound solid.
Cool bro. Nobody cares.
he forgot to mention underwear model wife. Most likely dude got a bunch of cash from his parents or her parents...if he is even real.
Why not believe him? Our family net worth is $6M and we did nothing special. We never spent and we invested in the market. The only downside was that the highly selective colleges charged full price which bothered me because out income never exceeded $200K.
Why not believe him? Our family net worth is $6M and we did nothing special. We never spent and we invested in the market. The only downside was that the highly selective colleges charged full price which bothered me because out income never exceeded $200K.
Why not believe him? Our family net worth is $6M and we did nothing special. We never spent and we invested in the market. The only downside was that the highly selective colleges charged full price which bothered me because out income never exceeded $200K.
Don/t feel bad. Essentially the same situation here.
But I do think that the ability for our child to pay the full amount probably worked to their advantage in admissions.
Long story short, there are a variety of reasons my wife and I have not done 'correct' wealth planning and we now have several online savings accounts near the FDIC max. I am not necessarily wanting to continue to open more accounts, but want to keep money relatively easily available and don't want to take any risk with it.
Yes, I am soliciting financial advice from strangers on a running board. I am okay with that. I am too busy and lazy to figure this out but I'll take suggestions if they sound solid.
What should you do? First, don't come to Let's Run message boards for financial advice. You don't know anything about the folks offering it, and they know nothing about your investment objectives, return requirements, risk tolerance, liquidity needs, time horizon, etc. It is irresponsible to provide advice without understanding these factors, which makes just about everything here irrelevant, despite well intentions.
Instead, go buy a nice bottle of wine (if that's your thing) when you cross the $1M mark. Celebrate with your wife. And before you cross 7-figure territory, go find a financial advisor who can better answer these questions for you.
This post was edited 1 minute after it was posted.
No. They never asked for our financial info until after being admitted.
Understood.
Our college applicant had a bunch like that and he got in to some, but not others. Then, for one, there was the opportunity to file this stuff with the application - I think it may have been through the FAFSA site but maybe it was with the college - and one of their "stretches/long shots" came through with an acceptance. Solid student, good school, extra curriculars looked good, etc., but their test scores would suggest that they were below standards.
I heard that these things do tend to happen in the interest of allowing the schools to make college admittance affordable for those with significant need,
FDIC is 250k PER NAME on the account, so add more people if opening accounts is too annoying. Wife's sis added both of us to her account when First Republic looked like it might have problems.
Why not believe him? Our family net worth is $6M and we did nothing special. We never spent and we invested in the market. The only downside was that the highly selective colleges charged full price which bothered me because out income never exceeded $200K.
Don/t feel bad. Essentially the same situation here.
But I do think that the ability for our child to pay the full amount probably worked to their advantage in admissions.
My wife and I have worked our azzez off for 25 years in high pay/high stress jobs. So we live a comfortable life and are blessed to have a daughter that is a likely National Merit Semifinalist once they are announced this coming Fall.
We are looking at highly selective colleges but have heard that being able to pay full freight is not a benefit because the top schools have so much money they do not care.
But to answer the OPs question, hire a financial advisor that is recommended by someone you respect.
Don/t feel bad. Essentially the same situation here.
But I do think that the ability for our child to pay the full amount probably worked to their advantage in admissions.
My wife and I have worked our azzez off for 25 years in high pay/high stress jobs. So we live a comfortable life and are blessed to have a daughter that is a likely National Merit Semifinalist once they are announced this coming Fall.
We are looking at highly selective colleges but have heard that being able to pay full freight is not a benefit because the top schools have so much money they do not care.
But to answer the OPs question, hire a financial advisor that is recommended by someone you respect.
Cool and congrats for that!
Our junior didn't actually get into any of the top tier schools, but the private university does almost just make the top couple dozen. At that level, I would assume they struggle both to find funds for the people they want to admit but couldn't afford it.
And the other thing that is major is the likelihood that the applicant will accept an offer. That helps the college's ranking in the US News and World Report rankings of colleges, and I am led to believe this is critical to stay competitive and attractive to future applicants.
It's a total win-win for them: solid student with ample means to pay their way (thereby offsetting the aid they want and need for underprivileged applicants), and extremely high likelihood that the applicant will accept since it is such a "reach".
Why are you looking to change now? Was $1M a goal and now you want to invest? Are you fearful of banks?
Here's general financial advice to anyone who has a windfall of money (in this case $1M): Dollar cost average it over 6-8 months into a target retirement index or S&P500. You can safely live off of 3.5-4% of that (safe withdrawal rate) for the rest of you life - so $35-40K, inflation accounted for.
Seriously can't believe you are asking this question. Wake up.
The $1M in idle cash is the proceeds of a systemically biased economic system that rewards luck not hard work. You should publicly apologize for your ill-gotten gains and then donate the entire amount to causes that promote social equity.
Why are you looking to change now? Was $1M a goal and now you want to invest? Are you fearful of banks?
Here's general financial advice to anyone who has a windfall of money (in this case $1M): Dollar cost average it over 6-8 months into a target retirement index or S&P500. You can safely live off of 3.5-4% of that (safe withdrawal rate) for the rest of you life - so $35-40K, inflation accounted for.
Generally good advice, but if your investment horizon is so far off (OP said they are in their 40s), they could just do a lump sum purchase since by the time they need the money, it would have had decades to rid out any blips in the current market.
Also, that's a lot of money in one fund. S&P is not diversified. It is 500 of the largest cap. US companies. Their are tons written about this on the internet, and the conventional wisdom is something along the lines of say
50% S&P 500, 10% international
15% small cap.
25% discretionary based on your risk tolerance,
If it was me, I'd load up on the a Nasdaq or Tech. ETF with the discretionary portion.
Consider these questions. What is your life purpose? How are you contributing to the benefit of others? You're past the point where you need to grow wealth for its own sake; let your use and further growth of your wealth reflect these priorities and be a means towards fulfilling these ends.