inheriting $2.5 million dollars

Here's a tip:

Don't spend 15k a month on your wife and kids.

Invest the 60k+ a year you just saved wisely.

Then your kids won't be complaining about the crappy inheritance you left them on Letsrun in 50 years.

Give it away wrote:

Also, inheritances shouldn't be celebrated

THIS!

Based on your post it sounds like it was your dad who died. So nice to hear you are gonna celebrate his death with a beer and lament you still have to work.

ESAD

Handle says it

you all know it is possible to get an inheritance from your parents without them dying right?

Maybe OPs parents want him to enjoy/utilize the money while he is young.

corunnerguy wrote:

you all know it is possible to get an inheritance from your parents without them dying right?

Maybe OPs parents want him to enjoy/utilize the money while he is young.

Maybe if you wanna get murdered by taxes lol

true- i was just pointing out that parents are not necessarily dead/dying.

corunnerguy wrote:

true- i was just pointing out that parents are not necessarily dead/dying.

Fair but we are piling on this guy so get with the program bud

Lol at this idiots spending

Spends 15k a month

Him and his wife makes 23k before tax a month, so at a rough 30% rate is about 16k a month

So that’s leaves a 1K a month for savings.

No wonder he can’t quit his job.

your monthly expenses disgust me and you don’t deserve this money. You should already be millionaires at this point and this should be enough to retire but alas you have squandered your opportunities thus far and will squander this one as well. I weep for your parents.

Yours truly,

A self made multimillionaire in his 30s

0/0.

osaka wrote:

give the money away wrote:

yes it is

Maybe in Iowa or whatever it is you're from, but if you live in a place like California, no it's not. That's like $60,000 if you're living on interest along and not drawing off the principal. Seeing as how I'd rather not move to a stucco bungalow in the Inland Empire and eat beans and rice all year, that ain't enough.

Our monthly expenses are close to 15k. The $2.5 will be a nice cushion / windfall but it's not going to allow me to quit my job.

You should be able to take 90-120k or so a year...indexed for inflation. Still not quite enough to replace $275k, but enough retire in many places.

Here's what you do:

1) keep this as separate property. In your name only and do not intermingle with with joint property. You love your wife and want to stay married forever, but if she loves you she won't mind.

2) keep a couple 100k in online saving making around 1.9%. Emergency fund.

3) Go to a discount broker and put around about 1 million in Tax Free Muni's. They will set you up with a managed account for a small fee. You'll get around a 4% yield (but you'll actually pay more than bond face value, so your yield to good will be around 2.2-2.5%).

4) Put the rest in an ETF. Maybe a low volatility or a dividend EFT. Your div yield will be around 3% in a div fund. Maybe 2%

5) Get a trust, will, all that.

6) spend some crazy money if you must, bu mostly use the extra income off the investments to live better, or gift as you see fit.

7) continue to use your 401k.

By the time you are mid 40's you should have enough to retire whenever you want. Funny thing is, once you can retire, it's often much easier to go to work every day. I'm 58 and could have retired 4 years ago. Work is much more enjoyable when I realize I can walk about whenever I want to.

don't listen to these poor, skinny, nerds. you need to: grab yourself a nice bottle of scotch, research and find investments that will give you 4% annually and yield 100k, and then work part time for the extra income you need and have a blast with life while working 20h/wk. find some hobbies and tear it up man. life's given you a decent hand today, take risk and don't live life in a box.

3 mil in the bank wrote:

your monthly expenses disgust me and you don’t deserve this money. You should already be millionaires at this point and this should be enough to retire but alas you have squandered your opportunities thus far and will squander this one as well. I weep for your parents.

Yours truly,

A self made multimillionaire in his 30s

His spending disgusts you? Really?

Making a moral declaration over someones else's spending without knowing the details is very a Trumpian thing to do (and maybe that a compliment for you). Does the 15k in "spending" include his taxes. He lives in California. At the salary, it's likely he lives in the Bay Area, LA, or San Diego. Does his own a home? What's his property tax. Does his "expenses" include his 401k and HSA deductions. Those are not expenses, but some people think of them as such (since they subtract from your cash flow).

Details matter.

osaka wrote:

. . . it's not enough to quit or jobs and raise our children properly so it's business as usual. Kind of disappointed in that regard.

If I thought I wouldn't inherit enough to retire in my early 30s, I would kill myself immediately.

First rule:

Don’t tell anyone about your inheritance.

Second rule:

Enjoy it without drawing attention.

Big windfalls can get in the way of happy, truly loving relationships and attract people you don’t want in your life.

Is true wrote:

not true wrote:

I guess you don't get out much if you think California is the be all end all for scenery.

I don't consider fighting traffic for 1-2 hours to be 'accessible'.

It’s pretty lame to argue against California’s scenery. There are very few places on earth with either the variety and raw spectacular views. Yosemite alone is one of the greatest views in the world. Big Sur and the coast way up North from Mendecino to Oregon compete for the most dramatic coastline. Those are the well known spots.

If driving 2 hours is a burden, you aren’t much of an outdoorsman or traveler.

lol, yeah 4 hour round trip ain't a burden at all!

Doofus.....that's the difference from going once or twice a month and going any time you want.

How many time have you been to Yosemite in the last year?

It's great to have scenic places that you visit once every 3 years, but it hardly moves the needle on quality of life.

Give me the NW or Alaska where you can actually LIVE in the scenic places and enjoy them after work rather than commute to them once every five years when the in-laws are in town.

2.5 M CASH plus 3 houses to rent for passive income... 4% withdrawal on that cash will give you 100k a year + the rental income, another 30-40k at least. I think that's plenty. Chances are they only need that 275k annual income because they live somewhere overpriced in order to have a decent career. If they quit they could move somewhere only requiring half that income to live the same lifestyle.

What an anti-social weirdo.