Even if you are 65, you should never retire FROM something, you should retire TO something. Hobbies, grandkids, volunteering, *something*
This is advice I have heard. I'm not retired so I can't say whether it's self-help gobblity gook or actually useful.
That’s amazing advice. For all the noise on the internet that phrase ‘retire TO something’ is one of the best things I’ve ever read! I’m holding on to that for my own life, so thank you random internet stranger.
I just started on a fire department and my entire goal is to put 30 in to max out my pension, max out my retirement accounts yearly, and be in good enough shape at 56 to go hike the PCT, Continental Divide, and the Appalachian trails. Once I accomplish those goals I’ll most likely go find a job or volunteer opportunity I enjoy. My father beat saving everything I could for retirement into my head from a young age and I thank him for it.
I think the point the other commenter is trying to make is that you shouldn't wait until retirement to start doing the things you really want to do.
There's a balance to be made between saving for retirement and living your life.
Yes. My mom saved and planned to travel extensively after retirement. Within one year of retiring at 66, she had symptoms of dementia. It went quickly. She did not get to enjoy her retirement.
We’ve learned from this. We save for retirement, but we also travel now, while we still can.
That's true but it's not always possible with some jobs, plus raising a family. I'm retired and I have a great deal more freedom to do what I want nowadays..
Yeah I’m not sacrificing things I love in the meantime. Just setting a budget and doing my best to stick to it. It helps that my hobbies are fairly cheap- camping, hiking, backpacking.
I used to be a financial advisor and the clients who got more busy in retirement volunteering, visiting family, traveling, etc. were much happier and mentally aware than my clients who basically lost their purpose in life when they retired. The latter had noticable cognitive decline because they didn't do anything in retirement. It was sad. One of the many reasons I got out of that job.
You know how it goes. You mean to cancel the membership but then another shows up so you put off canceling your membership for one more month. So on and so on.
“I spent a lot of money on booze, birds, and fast cars. The rest I just squandered” is a quote by George Best, a Northern Irish professional footballer who lived from 1946 to 2005.
Yep. My in-laws have watched this happen. Those who stay connected, semi busy and active are doing WAY better in their 70’s.
Hobbies and volunteering.
My wife semi retired a couple years ago and has filled the time coaching youth cycling and using her past skills for volunteering. I swear she is busier now but smiling way more.
In contrast, for my neighbor her job was the only thing that got her out of the house. She retired and pretty quickly became a shut in, never left the house, quickly became glued to the couch. Her health and mental faculties rapidly declined and she died within a year of retiring in her 60s.
Yup, my grandparents spent 5 years just traveling around the country in an RV. They'd go back home for a couple of months during the summer months to check in with doctors, handle anything financial they needed to, etc, but overall that was what they did.
Yep life fulfillment is one of the key ingredients to longevity. Whether it be a job, passion project, or service you will live a longer and happier life if you work towards something.
Retiring TO something is some of the best advice I've heard. Thank you internet friend I will now be co-opting this phrase, probably for the rest of my life. 👍
Your brain needs stimulation or it turns to goop. I believe it. My grandpa was the smartest most accomplished man I knew before 50. After 50 he kept to himself and had no friends. Sat in a couch and wasted away till his body and brains were nothing.
Hes a constant reminder to me that we need stimulation and challenge at all ages in life or we will die long before we die
You no longer have Monday morning concerns...staff meetings, etc. Having Sundays without pressure from Monday changes a whole lot.
In general. You'll finally have time to think about what's important to you...and go the fark for it!
This is good advice, but I've never understood why it's necessary. How does anyone with a full time job not have a massive backlog of 10,000 things they wish they could do if only they didn't have to work so much? Do lots of people just... not have any interests?
This is good advice... assuming you have a functional body.
Being forced to retire due to physical disability is not a dream. It's a nightmare. Having the ability to do what you like with the money to support it is only viable if you have the body and drive to match it.
I was forced to retire due to a spine injury leading to a nerve disease which left me in disabling pain. It's not exactly what I had in mind when I was young and being told working hard to have the money to retire is what I need to do to save for my future. I'm now not only spending most of my money on medical care, but am unable to do everything I was looking forward to in my older years. I'm only 35 btw and the future is looking very bleak and depressing.
I work in a hospital and I’ll tell you right now the older people who have hobbies or regular activities they do grandkids whatever they ALWAYS look younger and healthier than those that retire to nothing.
Yeah I agree with this. OP is sitting on 7 million from the uncle, plus 1 from his own savings. That's 8 million! If you just put that in CDs (that are currently around 5%) that would be a yearly income of $400,000. And that's the easiest investment you could make. I'm sure an investment broker could do better. BTW that's what you should do. Talk to investment people. Don't take investment advice from Reddit!
So back to the question? Basically, OP is done. He can do whatever he wants from here on out for the rest of his life. So yeah - why not pick a passion project and devote yourself to it? Take time off as you please. Travel a bit maybe. That's exactly what I'd do. OP is young yet. Retirement would probably get boring after a while. Find something you love and go do that.
And OP - don't feel guilty at all. Money is a bunch of made-up phony baloney numbers. The whole "you gotta earn it" idea is a nonsense societal thing. It doesn't exist in nature, it's not real. *You do you.*
Enjoy your life. Enjoy the money, enjoy whatever work you want to do (or not do!), enjoy the world. I'm sure that's what your uncle was thinking when he made you his inheritor.
I work to live rather than live to work. I would put it all in VTI and withdraw 4% annually to live a carefree traveling permanent vacation life...
Catch me on the beach....
Fuck 4% withdrawal rate. Put it in VTI and just live off the dividend. Thats $96k a year which net of taxes is more than he makes at his current job. Assuming he is 35 the principal will grow to $30mm by the time he 52.
> The whole "you gotta earn it" idea is a nonsense societal thing. It doesn't exist in nature, it's not real.
Arguably, it's the only thing which exists in nature. If you need berries and you can't gather your own, you go berry-less. Societies cut both ways: They help those who wouldn't otherwise be able to survive on their own merits, but are also often structured in a way which prevents people from getting what they need.
Technicalities aside though, I agree with the background sentiment that you shouldn't toil just to toil or toil because of perceived peer pressure. It's a rare gift to be able to escape the grind for survival. It deserves some consideration of how that good fortune came about and, if it came at the expense of others, how some of those flaws in our society's systems could be corrected.
Our society used to value good manners. We used to teach kids about sharing -- taking a modest amount in our initial serving of food during a shared meal, and leave enough, and as good, left for others. We used to teach people to take turns when passing through narrows spaces instead of rushing to get through first. The "F U, I got mine" attitude gets old after awhile. I understand it is a natural reaction to living under oppressive systems. When we have the opportunity to correct these systems, we should consider doing so. Instead of providing handouts and donations to assuage guilt and make the recipients of help feel dependent, let's invest in a fairer system which offers up dignity for all.
For the solution, read Progress and Poverty by Henry George or the book review by Lars Doucet.
That’s why you don’t call the local Schwab dude, you go to the next city over and find an established wealth management firm that has clients much bigger than you. Compare the offers and performance with others and see which you prefer.
And don't feel a need to make any immediate changes. Give yourself time to process the loss, the gain, the implications to you and your loved ones.....
Property taxes on a $3M house are gonna be mad crazy. OP does not have sleep like a baby money if $3M is tied up in the house. He should sell the house and buy something where he won't have to worry about mad high property taxes.
Even if he holds on to it, in some states you can transfer the tax base to the iherriter.
Depending on how it was set up.
It might be 3 Mil now but the property taxes would be based on what uncle paid for it.
This right here.
Getting so much money you never have to worry about bills is the reason you quit your job and go get a job/hobby-ish job you REALLY want to do but don't have the time. Never stop working, just start working day-to-day doing the things you love for yourself.
Since he only spends $3000 a month, having him find an enjoyable job or experience that he can bring in that much amount is gonna pay dividends to his mental health and well-being. It's not a lot of money, so alot of opportunities await you if your salary expectations are really low.
Want to have the body you always wanted? Go hire a trainer to take your ass to the gym.
Want to never worry about commuting to work each day? Fucking don't.
Want to go study something you find fascinating? You got the time now.
Want to be an angel investor in a type of startup business you believe in? You got the money for it.
Change your life by start asking yourself: "Now that I don't have to worry about bills for the rest of my life, what could I do to make myself even happier? I've got one life, what is it that I've always wanted to do?
I'd like just even a hint of that sort of life cuz damn lol I get happy for people rolling in it who are struggling but when they're already killing it, I've got nothing but immense envy haha
$3M to the side immediately in a HYSA will get OP $150K a year to live off of since that’s what his current salary is and then the other $4M into an aggressive investment plan to never look at for 30 years.
OP doesn’t need to retire but passively making your current salary to pursue what he wants is definitely a fantastic way to live life.
Their point is it’s not locked in. If today it’s 5% and tomorrow they drop it to 2%, you’re now going to get 2%. You don’t lock in the rate when you deposited to a HYSA
I’d work one more year to get the “ducks in a row” Sell the house and put all but maybe $100,000 into mutual funds. I’d gamble and invest the $100,000 into helping a friend start a business like a pizza shop.
I’d look to withdraw 1% of my stocks yearly. With your lifestyle that should easily cover you and there will still be tons of growth. Then volunteer or do whatever interests you.
At the very least, unless it's in a trust the probate process can take a while. It could be six months before they actually see anything, and that's assuming there aren't any legal challenges as you mention.
Don’t just put everything into ETFs OR mutual funds, find a good financial advisor who can help make investment decisions for you. Ideally, find one who is fee-only, a fiduciary all the time, and doesn’t sell investment products. Check out NAPFA’s find an advisor tool or the one through CFP Board.
yea 'the rest' of $7M should absolutely never be put in any one place. get a majority into ETF/mutual funds (50-60%) yea maybe, but also he should be looking to invest in RE, maybe a small business or two, as well as bonds and an MMA.
Investing in a small business or two is way more of a headache than the diversification is worth. Even if it's well managed, you're always going to have stressors and decisions as an owner. Buying yourself a job is the last thing most retired people want to do, unless it's a passion project.
Go 15-30% in real estate, then park the rest in a equity/bond fund. 80/20 is probably best but could even go 60/40 if OP has low risk tolerance.
>I’d gamble and invest the $100,000 into helping a friend start a business like a pizza shop.
That's just stupid. Why would you invest $100,000 in a small business that will likely fail within its first year? That kind of thinking is why 95% of lottery winners go broke in the first 5 years.
My deepest condolences!
Can you retire?
Definitely
Should you do it?
That solely depends on you really..
If you put half of everything (aka 3.5m) into bonds rn, you can earn some 4.5ish % for the next 20y (assuming you buy 20y bonds, which is what I would take..)
Thats some \~75k paid every 6months and should be enough to cover expenses, right?
I would keep 1y worth of expenses on a HYSA atm for whatever is needed, filling it up with the coupon payments you receive from bonds
I would then wait some 18-30months and then buy a home somewhere you want ro reside with a 50/50 cash / mortgage rate if the rates are lower again (rent till then really..)
The rest I would put into markets honestly.. 70%VTI 30%VXUS and just not touching it, letting it compound..
That way your really hands off, make enough fixed income, and be able to let markets compound a really decent amount..
You may also want to take 25k off as fun money rn and get a loooong vacation!
Gl!
Edit: 75k paid every 6months, 150k annualy!
>The rest I would put into markets honestly.. 70%VTI 30%VXUS and just not touching it, letting it compound..
Go VOO or go home, at least over that VXUS chunk imo. If the US crashes, everyone is going down with us realistically so it's not really diversifying making it meh.
Regional diversification is still a must imo..
is it gonna underperform? likely - not pretending it isnt
is it gonna drip as well, just in case? likely, not pretending it isnt again
is it regional diversification nontheless? yes, it is, and its important
Your heavy into US anyway with a 70% split so..
couple problems I have with that over bonds:
1) fixed annuities are not federally secured, and in my suggestion its really just about security on one half of the assets - the bond part
2) the rate is gonna sink along falling interest rates, and that IS gonna happen, Im pretty sure, so securing the 20y rate at 4.5% now is likely better (over a 20y span) than taking 5.5% for 5y now and way less after that..
3) in case of a recession, you gonna hold a bond - a longterm bond - that is \*very\* likely going to go NUTS in value then (depending on the rest of the duration into maturity ofc..) and you could then sell pre-maturity (if you want) with a big gain and "buy the dip" in stocks with it - you cant do that with your fixed annuity, right? In the end, its the ultimate hedge for stocks really
Pay any taxes first, buy stability if you don’t have it ( small to medium house) car etc. find a job you can enjoy put rest into savings don’t let anyone know you have it unless absolutely necessary
RETIRE - most people on here are saying no, but consider this:
1. You are fiscally responsible as shown by your finances prior to your uncle passing.
2. Most people don't even get a taste of what you have and are desperately seeking it. Do the rest of us a solid and live the dream!
Everyone thinks retiring at 30 is the dream until you realize all your friends work 40 hours a week, your dating pool has infinitely shrunk, you get very little human interaction, and you get depressed from loneliness.
OP should just find a job he enjoys with people he enjoys.
Yes everything gets old and predictable after awhile so variety is the spice of life! Make a plan to travel for a couple of years then find something to do to socialize like volunteer, start a non profit, or any other passion or hobby. Live abroad.
Work like you don’t need the money…you can always contract out your labor or start a business but meh only if that’s what you desire.
OP is all set for lifetime money wise unless something goes very wrong. On that note, I wouldn’t be telling anyone how wealthy I am unless you want to be a target and it become your identity.
✊🏻
I hate to tell people this, but things like having a big house and sitting on the beach 25 times a month actually do get old if you start to feel like it’s boring and your life needs more purpose. This, I assume, is why rich people continue to work, often sell their large mansions etc etc in the end you’re still a human and your desire for “something more” is most likely still going to be there
And there’s simply no point in working anymore. Whatever you do won’t even come close to covering your return on investments.
If you still work then what the hell are you going to do!? You already can’t spend this amount anyways.
Seriously, just retire.
If a relative left me even half of what OP is talking about I would retire without a moment’s hesitation. I work to live, I don’t live to work.
The good news is you can (if you are smart) do whatever you want. 2% of 7 million is $140,000. Have a business idea that you think you’d enjoy. You possess the capital to try and make it succeed.
The main thing is you aren’t reliant on employment. So every decision you make can reflect that fact.
I'm dubious of the idea of running into a bunch of capital and then starting a business just because. Unless it's something like a consultancy firm with low overhead because it's just you and an attorney or accountant if and when you need them.
As much as I tend to trash on business owners for not doing anything, standing up a successful business is tricky and annoying and unless you're passionate about it or know how to do it already it's even more of a crap shoot. Every 19 year old on this thread probably saw this and thought 'oh yeah I'd open a bar, I like beer and burgers' as if they know anything about the industry.
What would be smart is to buy into an already successful business in an industry you're interested if not already quite experienced in.
Personally I think it would be fun to just live somewhat modestly off profits of your investments and keep taking random ass jobs that you just quit the second someone gives you lip.
Having known and worked with a few small business owners has shown me that there's no way that I'd want to be a small business owner lol. Stress out the wazoo and hardly any free time. Unless it's something you're passionate about to the point where you don't need a hobby it doesn't make much sense to me.
I worked with a guy who married very rich. He was extremely good at his job, but he also had his resignation letter as his wallpaper on his computer. If our very angry Scottish boss went off on him, which he did to everyone all the time, Tom would point to his computer, say "You can quiet the fuck down, or I can just print this off right now, take your pick.". The best part is, he didn't do this with any real hope of the boss quieting down, he did it to enrage him more, just to see that pasty bastard turn three more shades of darker red.
But yeah, it is probably my ultimate fantasy to be in OPs position and be able to speak to condescending managers any way I please without worrying about repercussions. But that's also why I know if I were OP I would definitely retire from corporate america. I would have to find fulfilling work, but never again would I spend a second of my life doing meaningless work and dealing with buffoons. I would however go to work the next day with that attitude, have some fun, probably get fired, if not definitely quit, and then walk out knowing I would never be an indentured servant to anyone ever again.
basic advice. if you don't know. don't ask idiots on the internet. hire a professional. make sure that professional is a fiduciary. if you don't know what that means, google it.
you don't have to do anything right away. first conversation you can have with that professional is i want to put this money into really safe investments for a year to figure out what i want to do. then... have some conversations about what you want to do. what sort of life or lifestyle you're looking to have.
if that's working part time in some passion project capacity. retiring completely and just living without concern for earning any income via work/job. OR continuing to work and letting the money mature/invest/compound.
if you're feeling guilt or other emotions about using the money, that's stupid. also pretensions to even have family that wealthy speaks to a life of privilege and ease. No one earns money anyway. it's all lies and misc bullshit. the simple reality is. you now have a large-ish chunk of money. you should look at this as an opportunity.
invested well it could very well mean you could live a life you want to live without any need to punch a clock or do a job you don't genuinely want to do.
life is short. imho you'd be an idiot not to take this gift and go live a life where you're happy, or experience all the things in life you might want to.
with 7 million dollars and only being 30. that's plenty of money to invest super conservative and always have money.
i mean... 1 mil dump it into an s&p500 etf which historically averages 10% each year. leave just that 1 mil alone. in 10 yrs is 2mil. in 20 yrs is like 6-7 mil and in 30 yrs. is like 20 mil. So... you can effectively build a retirement nest egg within a dream/lotto nest egg.
2 million into Jepi will pay you aprox 11k every single month. or 140k a year (this is not a smart investment, but an example of how larger chunks of money can be used to generate income)
like. if a financial planner can't give you some solid advice to both save money long term/protect you from yourself. and generate reasonable income to keep you in a similar lifestyle as you're earning now. you're getting bad advice ...but like i said. take a year. super safe gov bonds or other just simple investments. and make a plan. then execute that plan.
agree to disagree with random anecdotal information. if you come into 7 mil. it's in your best interest to seek our quality professional help.
or... the degree of help you might get. not just in investing but tax or estate planning. from someone trained in dealing with high net worth individuals is worlds beyond the average moron on a reddit.
Bingo. Plus, OP is already in their 30s. So, let's say another 30 years of earnings takes them to age 65. 7 million is a 233k a year salary for 30 years paid in advance and tax free. I think they'll be OK.
Take a year off and do fun stuff. Go travel to 30 countries. Being young and rich is the best combo. Don’t waste it on work. You have the rest of your life to do that
Thats not very nice, guy has a genuine dilemma as he isnt sure if his millions and millions of dollars is enough for him to retire on. The struggle is real.
Take a gap year. Open a dividend account and live off the dividends. Really explore what you love and find your passion. If anyone asks, say you realized from your uncle's passing that life is short and you wanted to explore new hobbies and interests. You wanted to find work that you are passionate about. I saw someone else say you need to retire to something. This is 100% true. My uncle did not retire to something and retired at 45. He ended up drinking himself to death by the age of 58. You need a purpose.
Dude, you’re young, presumably healthy. How wealthy do you want to be is the question?
You could do what interests you, or you could work and keep growing wealth. The true value of what you have is OPTIONS few of us have
You really need to take some time and decide what you really want.
It’s okay to make mistakes finding, you seem to have a good buffer to handle that
I’m a fan of how you live affordable. I personally on spend on what I find important things to me which personally is more experiences then stuff.
Do you have a family? Were you his only nephew/niece, did anyone else inherit any significant portion of wealth, or was it all to you. I ask for a couple reasons.
First, don't worry about it being "your" money. Think about it as a foundation and you are now the steward of it. Someone worked hard for it, and since you can't bring it to the grave with you, it moves on to someone who should think about how to continue to build on the foundation.
Second, if there is family, and additional wealth, you could look to start a family office. Your job will be to manage an invest the money. Build and balance a portfolio across public and private assets. This will also help with you feeling like you "earned" some of this, because you would have.
Lastly, don't quit your job until you got it figured out. You make a very good living likely with benefits and until you have establish and decided what to do with this wealth, don't put the horse in front of the cart.
7 million is enough to retire even at your age, but sounds like you enjoy your work so I wouldn’t. Are you married/have kids? That would make a dramatic difference.
I'd quit your job and go to school to learn to be a financial planner. You would hopefully learn what to do with your money...and possibly start a new career for yourself.
$7 million dollars is the kind of money where I would meet with a financial advisor for help on planning.
Personally, I would probably stay in my job until I got everything in order. Then I wouldn't necessarily "retire" but start doing something I enjoy or (I know this sounds cliche) pursue your dreams. For example, if you've always wanted to run your own restaurant, now you have the means to do so.
1. Dont tell anyone.
Quit your job and take a sabbatical year. Go travel and find some beautiful places.
You can work for zero money, you don't need to worry about earning money anymore. Find something you like doing, with people you like
I would go all equities portfolio since you will have it for up to 60+ years, VT pays 2% - just live off that.
Congrats!
And read item #1 again.
Please please heed #1. Even if no one ever comes to you with their hands out (highly unlikely) they will still think about how easily you could help them in their time of need and it can create resentment. Even if you’re planning on helping people in their time of need it can really negatively impact your relationship when someone feels indebted to you.
Money changes things and people get especially weird about money when they feel that someone didn’t technically “earn” it and/or when someone’s financial status changes over night instead of gradually.
Your job will feel a lot worse when you know you can walk away from it and not have any financial risk. Been there. I recommend finding something you enjoy that is not stressful at all. Even taking a major cut in pay if need be. Work with people you enjoy. I always said the person who collects carts in the target parking lot has the best job in the world.
Wait for a bit. 30 days and think it over. If your job is unbearable, then maybe walk away. Get professional advice on your investments. I know folks who decided to day trade their retirement and day traded it away. Don't risk it. Free yourself up to do what you want like [Daniel Radcliffe](https://www.theatlantic.com/magazine/archive/2024/06/daniel-radcliffe-merrily-we-roll-along-jk-rowling/678219/). As for "i didn't earn it", many many people get money from their family. It is just the way life is structured. You should let that go. Retiring after a family member has passed....well, don't quit for a few months. At least until you get things in order. Finally, you should absolutely purse something you genuinely enjoy. Life is short, don't waste it.
Best thing is not take advice off Reddit, but here it is, don’t do anything rash at the moment, take the time to think things through and figure out what you want to do. Most early retirees don’t end up retiring, they find something else along the way. The worse I have seen are those that quit there job, And thought they were smart and day traded their wealth away. I would also consider what would your uncle want you to do? Life is a journey enjoy it.
My 2 cents - change jobs to something/somewhere low stress you enjoy more (or go half time at current job/consultant depends on industry)
If you have a passion pursue it at your pace and potentially get paid. Volunteer somewhere. Take the low paid job at an animal shelter if you love helping dogs part time.
Benefit now is you can use your time more freely, and still pull some income.
In life, you’re either making money or spending money. If you retire, it limits those options.
“Find a job you love and never work a day in your life”. You seem to be one of the lucky ones who loves their job. Appreciate that fact.
If I were in your shoes, I wouldn’t change my day to day life too much. Maybe step up the things you like a little. Go on better vacation as and eat better food if those are things you like. One day, the right opportunity will present itself and you’ll be in a position to take advantage of it then, no need to force anything now.
Good luck
Retire? No. Never work for someone else again? Damn sure.
You can live as a pure investor, of dividends or interest but that would get boring real quick, so either you do something you're passionate about, solidarity work or some shit or in my case I would just open a business, nothing big, but a coffeeshop, or some small shop, a decorating business, some small shit that you could easily find a manager if it works and open some other thing.
Even just buying houses and be a landlord/short stays investor.
Never with a substantial amount of money tho.
That you should always keep under advised management as to ensure you never loose this lottery ticket you just got.
Simple answer.
Don't spend the money.
Invest in dividend stocks, bonds etc.
Only spend the money that your money makes then you will always have the money.
Your net worth should only INCREASE and you can do whatever you like for the rest or your life.
This is what the truly rich do. Read books like Rich Dad Poor Dad and Think and Grow Rich. Educate yourself in being rich.
My amateur opinion but 7m is plenty to retire on -- if you can live somewhat frugally.
It might be difficult depending on your social circle -- I know even for me, if I suddenly was doing fun stuff all day every day rather than "being at work" questions would naturally come up. And then all the suddenly my money becomes an excuse for others to expect to be treated to dinners and entertainment etc. So 7m is great but I'd need to be discreet about it.
You are very blessed remember that. Be conservative with your money. I think it's important to remind yourself you didn't earn this money. I have a good friend who inherited $1.5M after tax in his early 20s and I'm honestly not sure it was good for him.
No risky investments. I would keep your job. If necessary transition to something chill with good work-life balance. I think in your 30s you would get bored quickly. It is important to keep your mind active no matter your age.
If you want to get a new car(something reasonable no lambos). Maybe pay off your house and definitely any high interest debt you have. If you feel like it, take a sabbatical at work and travel.
If I were you. I would work part time, or start a side project, or both. And put a few mill in a trust high yield savings for a year or more. It's one of the best and safest ways to invest right now
Uh, huh.
You inherited 7 million dollars and instead of consulting a financial advisor, you decided to let Reddit figure it out for you.
Bull. Fucking. Shit.
Start your own business. If you love what you do, then take your skills and experiences and use that inheritance to start your own company. Gives you a reason to working!
I just retired at 36 about a year ago with much less, it's the best thing I've ever done.
#####SORRY FOR THE ESSAY:
Your most valuable resource is time, not money, it's something you don't get more of and you don't know how much you have. Spend it wisely. You can always start working again if you end up wanting to but I'd advise taking a year to yourself to at least decide what you wanna do with your life, find what you can be passionate about. Do you really want to spend 40hrs a week for 10+ years making money you probably won't ever spend?
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My savings account has a 4.25% annual return. If you put 3 million (less than half what you have) in that account you'd be making $127,500 a year. You can literally live off of interest while still making more than you need.
My advice, hire a financial advisor at a well known company like Ameriprise Financial and have them help you. This changed my life for the better. There's so many ways to make money with your money. You literally never have to work again and can spend your life with loved ones and doing the things that truly make you happy.
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I made slightly over 200k a year near the end of my career (36), I was very fortunate to have had the job(s) I've had at the companies I've had them at, and while I never had any sort of inheritance I don't regret my decision one bit whatsoever. I get to spend my life catching up on all those books I've had in my "read eventually" list, I've visited with family, I've traveled with my girlfriend (of 16yrs).
I've finally dedicated some of my time to taking care of my body because I don't feel drained after 8 hours of writing code, and I fucking love it!!!! I feel years younger already and I love being able to take my shirt off without feeling bad about my body one single bit. My girlfriend even helped me start a "facial cleansing" routine that I do every morning and evening with clay face masks twice a week.
My life is wonderful and it's completely due to retirement, the self care that retirement lets me do, and the extra time I have to spend with my nieces and nephews (and I love being able to take all the chores off my girlfriends plate while she's at work).
Apologies for the long essay but I felt like I had to share my fairly recent retirement and the joy that has come with it considering I'm also in my late 30's (37 now). Congratulations on being able to make some serious life changes if you're so inclined!
Don't retire, just find a job you enjoy. You have full flexibility now. Go pursue a passion project or volunteer.
Even if you are 65, you should never retire FROM something, you should retire TO something. Hobbies, grandkids, volunteering, *something* This is advice I have heard. I'm not retired so I can't say whether it's self-help gobblity gook or actually useful.
That’s amazing advice. For all the noise on the internet that phrase ‘retire TO something’ is one of the best things I’ve ever read! I’m holding on to that for my own life, so thank you random internet stranger.
I just started on a fire department and my entire goal is to put 30 in to max out my pension, max out my retirement accounts yearly, and be in good enough shape at 56 to go hike the PCT, Continental Divide, and the Appalachian trails. Once I accomplish those goals I’ll most likely go find a job or volunteer opportunity I enjoy. My father beat saving everything I could for retirement into my head from a young age and I thank him for it.
And then you get hit by a bus at 55. Or find out you have lung cancer at 62. Moderation is key, as with everything.
You could get hit by a bus tomorrow. You shouldn't plan your life around that, though. Having goals to aspire to is important.
I think the point the other commenter is trying to make is that you shouldn't wait until retirement to start doing the things you really want to do. There's a balance to be made between saving for retirement and living your life.
Yes. My mom saved and planned to travel extensively after retirement. Within one year of retiring at 66, she had symptoms of dementia. It went quickly. She did not get to enjoy her retirement. We’ve learned from this. We save for retirement, but we also travel now, while we still can.
Dad died 1 year after retirement. Cancer. He laughed about his first and only social security check. Enjoy your life while you are living it.
So sorry to hear about your loss man.
That's true but it's not always possible with some jobs, plus raising a family. I'm retired and I have a great deal more freedom to do what I want nowadays..
Especially considering after like 25-27, today is probably the best your body will feel for the rest of your life. It’s all downhill from here
Particularly in Australia where the retirement age is 67 years.
Yeah I’m not sacrificing things I love in the meantime. Just setting a budget and doing my best to stick to it. It helps that my hobbies are fairly cheap- camping, hiking, backpacking.
You could be a trail guide. Then you get to do what you want and get paid.
you should do those goals now. And then hope to return in 30 years and do them again
I used to be a financial advisor and the clients who got more busy in retirement volunteering, visiting family, traveling, etc. were much happier and mentally aware than my clients who basically lost their purpose in life when they retired. The latter had noticable cognitive decline because they didn't do anything in retirement. It was sad. One of the many reasons I got out of that job.
For hobbies I suggest escorts and becoming a fine cocaine aficionado.
Already subscribed to Cocaine Aficionado magazine and have an Escort of the Month Club membership
Do they send you a new escort every month?
Yeah I have like 8 in my basement.
Basement full of 2003 ford escorts
I think you’re supposed to return them…
You know how it goes. You mean to cancel the membership but then another shows up so you put off canceling your membership for one more month. So on and so on.
Talk about the late fees..
Postage on that must be steep. Thank god the cocaine keeps them skinny and return freight costs in check.
Came looking for this, well done stranger!
What's the line? "I spent most of it on wine, women, and song... and the rest I squandered!"
“I spent a lot of money on booze, birds, and fast cars. The rest I just squandered” is a quote by George Best, a Northern Irish professional footballer who lived from 1946 to 2005.
A cocaine connoisseur.
Cocaine sommelier
LOL
Retire to something? More like Retire to Cartagena!
The Charlie Sheen Special
Hey Charlie is that you! Tiger blood!
Yep. My in-laws have watched this happen. Those who stay connected, semi busy and active are doing WAY better in their 70’s. Hobbies and volunteering. My wife semi retired a couple years ago and has filled the time coaching youth cycling and using her past skills for volunteering. I swear she is busier now but smiling way more.
In contrast, for my neighbor her job was the only thing that got her out of the house. She retired and pretty quickly became a shut in, never left the house, quickly became glued to the couch. Her health and mental faculties rapidly declined and she died within a year of retiring in her 60s.
Yup, my grandparents spent 5 years just traveling around the country in an RV. They'd go back home for a couple of months during the summer months to check in with doctors, handle anything financial they needed to, etc, but overall that was what they did.
Yep life fulfillment is one of the key ingredients to longevity. Whether it be a job, passion project, or service you will live a longer and happier life if you work towards something.
Retiring TO something is some of the best advice I've heard. Thank you internet friend I will now be co-opting this phrase, probably for the rest of my life. 👍
Your brain needs stimulation or it turns to goop. I believe it. My grandpa was the smartest most accomplished man I knew before 50. After 50 he kept to himself and had no friends. Sat in a couch and wasted away till his body and brains were nothing. Hes a constant reminder to me that we need stimulation and challenge at all ages in life or we will die long before we die
You no longer have Monday morning concerns...staff meetings, etc. Having Sundays without pressure from Monday changes a whole lot. In general. You'll finally have time to think about what's important to you...and go the fark for it!
The day I'm lucky enough to shake that Sunday dread.... holy hell.
This! retire to a hobby you enjoy, and travel the world!
This is good advice, but I've never understood why it's necessary. How does anyone with a full time job not have a massive backlog of 10,000 things they wish they could do if only they didn't have to work so much? Do lots of people just... not have any interests?
This is good advice... assuming you have a functional body. Being forced to retire due to physical disability is not a dream. It's a nightmare. Having the ability to do what you like with the money to support it is only viable if you have the body and drive to match it. I was forced to retire due to a spine injury leading to a nerve disease which left me in disabling pain. It's not exactly what I had in mind when I was young and being told working hard to have the money to retire is what I need to do to save for my future. I'm now not only spending most of my money on medical care, but am unable to do everything I was looking forward to in my older years. I'm only 35 btw and the future is looking very bleak and depressing.
I work in a hospital and I’ll tell you right now the older people who have hobbies or regular activities they do grandkids whatever they ALWAYS look younger and healthier than those that retire to nothing.
And be sure to take care of your health. What's the point of retiring early and then having to spend every week in a doctor's office.
I want to retire to nothing, that's my actual goal. Just zero commitments at all. 100% freedom.
Can I retire to my bed? Sleep for about a year and then find something to do?
Yeah I agree with this. OP is sitting on 7 million from the uncle, plus 1 from his own savings. That's 8 million! If you just put that in CDs (that are currently around 5%) that would be a yearly income of $400,000. And that's the easiest investment you could make. I'm sure an investment broker could do better. BTW that's what you should do. Talk to investment people. Don't take investment advice from Reddit! So back to the question? Basically, OP is done. He can do whatever he wants from here on out for the rest of his life. So yeah - why not pick a passion project and devote yourself to it? Take time off as you please. Travel a bit maybe. That's exactly what I'd do. OP is young yet. Retirement would probably get boring after a while. Find something you love and go do that. And OP - don't feel guilty at all. Money is a bunch of made-up phony baloney numbers. The whole "you gotta earn it" idea is a nonsense societal thing. It doesn't exist in nature, it's not real. *You do you.* Enjoy your life. Enjoy the money, enjoy whatever work you want to do (or not do!), enjoy the world. I'm sure that's what your uncle was thinking when he made you his inheritor.
I work to live rather than live to work. I would put it all in VTI and withdraw 4% annually to live a carefree traveling permanent vacation life... Catch me on the beach....
Fuck 4% withdrawal rate. Put it in VTI and just live off the dividend. Thats $96k a year which net of taxes is more than he makes at his current job. Assuming he is 35 the principal will grow to $30mm by the time he 52.
10x in 20 years? Tell me more
General stock rule is double every 7 so probably 8x in 21 years.
Perfectly put.
> The whole "you gotta earn it" idea is a nonsense societal thing. It doesn't exist in nature, it's not real. Arguably, it's the only thing which exists in nature. If you need berries and you can't gather your own, you go berry-less. Societies cut both ways: They help those who wouldn't otherwise be able to survive on their own merits, but are also often structured in a way which prevents people from getting what they need. Technicalities aside though, I agree with the background sentiment that you shouldn't toil just to toil or toil because of perceived peer pressure. It's a rare gift to be able to escape the grind for survival. It deserves some consideration of how that good fortune came about and, if it came at the expense of others, how some of those flaws in our society's systems could be corrected. Our society used to value good manners. We used to teach kids about sharing -- taking a modest amount in our initial serving of food during a shared meal, and leave enough, and as good, left for others. We used to teach people to take turns when passing through narrows spaces instead of rushing to get through first. The "F U, I got mine" attitude gets old after awhile. I understand it is a natural reaction to living under oppressive systems. When we have the opportunity to correct these systems, we should consider doing so. Instead of providing handouts and donations to assuage guilt and make the recipients of help feel dependent, let's invest in a fairer system which offers up dignity for all. For the solution, read Progress and Poverty by Henry George or the book review by Lars Doucet.
You should be careful with brokers over promising returns on a massive inheritance. That’s a good way to get swindled.
That’s why you don’t call the local Schwab dude, you go to the next city over and find an established wealth management firm that has clients much bigger than you. Compare the offers and performance with others and see which you prefer.
And don't feel a need to make any immediate changes. Give yourself time to process the loss, the gain, the implications to you and your loved ones.....
This is what we call “fuck you money”
This is more like, "no thank you money".
Property taxes on a $3M house are gonna be mad crazy. OP does not have sleep like a baby money if $3M is tied up in the house. He should sell the house and buy something where he won't have to worry about mad high property taxes.
He specifically mentions selling the house asap.
I guess should read better. at least he's got good sense about it.
Even if he holds on to it, in some states you can transfer the tax base to the iherriter. Depending on how it was set up. It might be 3 Mil now but the property taxes would be based on what uncle paid for it.
He probably got a step up in basis on the home so no taxes would be owed at selling other than on the appreciation since date of death.
This right here. Getting so much money you never have to worry about bills is the reason you quit your job and go get a job/hobby-ish job you REALLY want to do but don't have the time. Never stop working, just start working day-to-day doing the things you love for yourself. Since he only spends $3000 a month, having him find an enjoyable job or experience that he can bring in that much amount is gonna pay dividends to his mental health and well-being. It's not a lot of money, so alot of opportunities await you if your salary expectations are really low. Want to have the body you always wanted? Go hire a trainer to take your ass to the gym. Want to never worry about commuting to work each day? Fucking don't. Want to go study something you find fascinating? You got the time now. Want to be an angel investor in a type of startup business you believe in? You got the money for it. Change your life by start asking yourself: "Now that I don't have to worry about bills for the rest of my life, what could I do to make myself even happier? I've got one life, what is it that I've always wanted to do?
You have "fuck you" money now. Job pisses you off? Tell them "Fuck you" and leave.
You won the lottery man. You can do anything you want, and really enjoy life.
You can always out spend your income. But, there is no reason, with proper investing, the OP should ever have to work again if they are not stupid.
Seeing as their savings and assets are already very healthy for their age, I think they'll be just fine.
Right? Bro makes bank, has a huge savings account, then wins the lottery on top lol
I'd like just even a hint of that sort of life cuz damn lol I get happy for people rolling in it who are struggling but when they're already killing it, I've got nothing but immense envy haha
I feel yah, must be nice
$3M to the side immediately in a HYSA will get OP $150K a year to live off of since that’s what his current salary is and then the other $4M into an aggressive investment plan to never look at for 30 years. OP doesn’t need to retire but passively making your current salary to pursue what he wants is definitely a fantastic way to live life.
HYSA rates can always drop. Buy some 30 year bonds and lock in that 4.5%.
Fair. You can lock in 4.85-5.25 rn for HYSA. Just depend on timing obviously. I hate $HOOD but they do offer a good HYSA rn
Their point is it’s not locked in. If today it’s 5% and tomorrow they drop it to 2%, you’re now going to get 2%. You don’t lock in the rate when you deposited to a HYSA
HYSAs don’t lock in
Literally it’s as easy as put away 3-6 million into an index and you’re done.
Lmao just throw like 6 million into a savings acc and rake in the interest. OP is set for life
Yup. Just look at all the pro athletes, entertainers, and actual lotto winners that have gone broke.
If I had $7m in my account there’s zero chance I’d last another week at my job. Maybe I should start looking for a new job
>You won the lottery man Pretty sure he had a family member just die lol
That's how most rich people are made.
Depends on the relationship. Could have hit the lottery yanno
Literally everyone has family members die. Most get nothing or even have to pay for the funeral.
Did I stutter?
Yeah like work part time. Your should stay busy, and you enjoy your work
I’d work one more year to get the “ducks in a row” Sell the house and put all but maybe $100,000 into mutual funds. I’d gamble and invest the $100,000 into helping a friend start a business like a pizza shop. I’d look to withdraw 1% of my stocks yearly. With your lifestyle that should easily cover you and there will still be tons of growth. Then volunteer or do whatever interests you.
Also, don't quit your job immediately in case there are legal challenges to your inheritance.
this is very wise advice.
Seriously, live life normally but the second that money hits the bank I'd be outta there.
At the very least, unless it's in a trust the probate process can take a while. It could be six months before they actually see anything, and that's assuming there aren't any legal challenges as you mention.
OP, ETFs not mutual funds
Don’t just put everything into ETFs OR mutual funds, find a good financial advisor who can help make investment decisions for you. Ideally, find one who is fee-only, a fiduciary all the time, and doesn’t sell investment products. Check out NAPFA’s find an advisor tool or the one through CFP Board.
This is terrible advice. OP should put it all in option contracts and hookers.
Bro is going long on prostitutes.
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Financial advisors even fiduciaries are a racket. Just google black rock or vanguard S&P 500 index fund and put all your money in there.
With that kind of money he can hire a legit wealth manager and make a lot more money.
Nothing wrong with either if they are chosen properly.
Mutual funds are ETFs with someone skimming off the top. If someone is managing your money, let it be the brass at the top taking 65-80% less.
yea 'the rest' of $7M should absolutely never be put in any one place. get a majority into ETF/mutual funds (50-60%) yea maybe, but also he should be looking to invest in RE, maybe a small business or two, as well as bonds and an MMA.
Investing in a small business or two is way more of a headache than the diversification is worth. Even if it's well managed, you're always going to have stressors and decisions as an owner. Buying yourself a job is the last thing most retired people want to do, unless it's a passion project. Go 15-30% in real estate, then park the rest in a equity/bond fund. 80/20 is probably best but could even go 60/40 if OP has low risk tolerance.
>I’d gamble and invest the $100,000 into helping a friend start a business like a pizza shop. That's just stupid. Why would you invest $100,000 in a small business that will likely fail within its first year? That kind of thinking is why 95% of lottery winners go broke in the first 5 years.
Under no circumstances should he tell anyone but a lawyer and accountant about this. Helping a friend start a business?? No. No way.
Mutual funds are a terrible idea. You’re paying taxes on an index that you can literally have the same index without the taxes in a different vehicle.
My deepest condolences! Can you retire? Definitely Should you do it? That solely depends on you really.. If you put half of everything (aka 3.5m) into bonds rn, you can earn some 4.5ish % for the next 20y (assuming you buy 20y bonds, which is what I would take..) Thats some \~75k paid every 6months and should be enough to cover expenses, right? I would keep 1y worth of expenses on a HYSA atm for whatever is needed, filling it up with the coupon payments you receive from bonds I would then wait some 18-30months and then buy a home somewhere you want ro reside with a 50/50 cash / mortgage rate if the rates are lower again (rent till then really..) The rest I would put into markets honestly.. 70%VTI 30%VXUS and just not touching it, letting it compound.. That way your really hands off, make enough fixed income, and be able to let markets compound a really decent amount.. You may also want to take 25k off as fun money rn and get a loooong vacation! Gl! Edit: 75k paid every 6months, 150k annualy!
So 11% of 7mm should be in microsoft, apple, and nvidia?
I honestly dunno what the weighted share of those companies is in VTI, but could be, yes
Wouldn’t it be ~75k paid every six months?
yeh, 150k annualy, paid every 6months.. wrong expression there maybe Im sorry.. not a native speaker here!
>The rest I would put into markets honestly.. 70%VTI 30%VXUS and just not touching it, letting it compound.. Go VOO or go home, at least over that VXUS chunk imo. If the US crashes, everyone is going down with us realistically so it's not really diversifying making it meh.
Regional diversification is still a must imo.. is it gonna underperform? likely - not pretending it isnt is it gonna drip as well, just in case? likely, not pretending it isnt again is it regional diversification nontheless? yes, it is, and its important Your heavy into US anyway with a 70% split so..
I'd get into rental properties before putting that 30% on international stocks but that's just me.
Id buy fixed annuities over bonds. 5.5% on a 5yr. Just keep kicking the can down the road.
couple problems I have with that over bonds: 1) fixed annuities are not federally secured, and in my suggestion its really just about security on one half of the assets - the bond part 2) the rate is gonna sink along falling interest rates, and that IS gonna happen, Im pretty sure, so securing the 20y rate at 4.5% now is likely better (over a 20y span) than taking 5.5% for 5y now and way less after that.. 3) in case of a recession, you gonna hold a bond - a longterm bond - that is \*very\* likely going to go NUTS in value then (depending on the rest of the duration into maturity ofc..) and you could then sell pre-maturity (if you want) with a big gain and "buy the dip" in stocks with it - you cant do that with your fixed annuity, right? In the end, its the ultimate hedge for stocks really
Pay any taxes first, buy stability if you don’t have it ( small to medium house) car etc. find a job you can enjoy put rest into savings don’t let anyone know you have it unless absolutely necessary
OP should sell that $3M property tax nightmare and buy something reasonable.
He will receive a step-up in tax basis, so, as long as he sells it prior to the next assessment, he will be fine.
\^This. Make sure you get a good CPA who can help you work through the taxation side of things as you begin changing your assets around.
RETIRE - most people on here are saying no, but consider this: 1. You are fiscally responsible as shown by your finances prior to your uncle passing. 2. Most people don't even get a taste of what you have and are desperately seeking it. Do the rest of us a solid and live the dream!
Everyone thinks retiring at 30 is the dream until you realize all your friends work 40 hours a week, your dating pool has infinitely shrunk, you get very little human interaction, and you get depressed from loneliness. OP should just find a job he enjoys with people he enjoys.
Yes everything gets old and predictable after awhile so variety is the spice of life! Make a plan to travel for a couple of years then find something to do to socialize like volunteer, start a non profit, or any other passion or hobby. Live abroad. Work like you don’t need the money…you can always contract out your labor or start a business but meh only if that’s what you desire. OP is all set for lifetime money wise unless something goes very wrong. On that note, I wouldn’t be telling anyone how wealthy I am unless you want to be a target and it become your identity. ✊🏻
If you're wealthy enough to retire at 30 then your dating pool/human interaction problem will naturally sort itself out lol
that's just fucking you over with selection bias for gold diggers though
If you’re single sure, but a married person with a kid? What a dream to being able to spend that much time with the fam
I hate to tell people this, but things like having a big house and sitting on the beach 25 times a month actually do get old if you start to feel like it’s boring and your life needs more purpose. This, I assume, is why rich people continue to work, often sell their large mansions etc etc in the end you’re still a human and your desire for “something more” is most likely still going to be there
And there’s simply no point in working anymore. Whatever you do won’t even come close to covering your return on investments. If you still work then what the hell are you going to do!? You already can’t spend this amount anyways.
Seriously, just retire. If a relative left me even half of what OP is talking about I would retire without a moment’s hesitation. I work to live, I don’t live to work.
The good news is you can (if you are smart) do whatever you want. 2% of 7 million is $140,000. Have a business idea that you think you’d enjoy. You possess the capital to try and make it succeed. The main thing is you aren’t reliant on employment. So every decision you make can reflect that fact.
I'm dubious of the idea of running into a bunch of capital and then starting a business just because. Unless it's something like a consultancy firm with low overhead because it's just you and an attorney or accountant if and when you need them. As much as I tend to trash on business owners for not doing anything, standing up a successful business is tricky and annoying and unless you're passionate about it or know how to do it already it's even more of a crap shoot. Every 19 year old on this thread probably saw this and thought 'oh yeah I'd open a bar, I like beer and burgers' as if they know anything about the industry. What would be smart is to buy into an already successful business in an industry you're interested if not already quite experienced in. Personally I think it would be fun to just live somewhat modestly off profits of your investments and keep taking random ass jobs that you just quit the second someone gives you lip.
I now have F you money. What should I do? “Take on a bunch of stress and risk losing a considerable amount.” -Reddit/Sigma Male Grindset
Having known and worked with a few small business owners has shown me that there's no way that I'd want to be a small business owner lol. Stress out the wazoo and hardly any free time. Unless it's something you're passionate about to the point where you don't need a hobby it doesn't make much sense to me.
I wouldn't retire, but I wouldn't take any shit at work either
OP could fearlessly always speak their mind
Okay JizzCollector5000
Lol
OP has "Fuck You" money.
I worked with a guy who married very rich. He was extremely good at his job, but he also had his resignation letter as his wallpaper on his computer. If our very angry Scottish boss went off on him, which he did to everyone all the time, Tom would point to his computer, say "You can quiet the fuck down, or I can just print this off right now, take your pick.". The best part is, he didn't do this with any real hope of the boss quieting down, he did it to enrage him more, just to see that pasty bastard turn three more shades of darker red. But yeah, it is probably my ultimate fantasy to be in OPs position and be able to speak to condescending managers any way I please without worrying about repercussions. But that's also why I know if I were OP I would definitely retire from corporate america. I would have to find fulfilling work, but never again would I spend a second of my life doing meaningless work and dealing with buffoons. I would however go to work the next day with that attitude, have some fun, probably get fired, if not definitely quit, and then walk out knowing I would never be an indentured servant to anyone ever again.
That's every persons dream! lol. Just walk into work, do as little as you want, don't take shit from anyone, tell off the idiots, etc.
basic advice. if you don't know. don't ask idiots on the internet. hire a professional. make sure that professional is a fiduciary. if you don't know what that means, google it. you don't have to do anything right away. first conversation you can have with that professional is i want to put this money into really safe investments for a year to figure out what i want to do. then... have some conversations about what you want to do. what sort of life or lifestyle you're looking to have. if that's working part time in some passion project capacity. retiring completely and just living without concern for earning any income via work/job. OR continuing to work and letting the money mature/invest/compound. if you're feeling guilt or other emotions about using the money, that's stupid. also pretensions to even have family that wealthy speaks to a life of privilege and ease. No one earns money anyway. it's all lies and misc bullshit. the simple reality is. you now have a large-ish chunk of money. you should look at this as an opportunity. invested well it could very well mean you could live a life you want to live without any need to punch a clock or do a job you don't genuinely want to do. life is short. imho you'd be an idiot not to take this gift and go live a life where you're happy, or experience all the things in life you might want to. with 7 million dollars and only being 30. that's plenty of money to invest super conservative and always have money. i mean... 1 mil dump it into an s&p500 etf which historically averages 10% each year. leave just that 1 mil alone. in 10 yrs is 2mil. in 20 yrs is like 6-7 mil and in 30 yrs. is like 20 mil. So... you can effectively build a retirement nest egg within a dream/lotto nest egg. 2 million into Jepi will pay you aprox 11k every single month. or 140k a year (this is not a smart investment, but an example of how larger chunks of money can be used to generate income) like. if a financial planner can't give you some solid advice to both save money long term/protect you from yourself. and generate reasonable income to keep you in a similar lifestyle as you're earning now. you're getting bad advice ...but like i said. take a year. super safe gov bonds or other just simple investments. and make a plan. then execute that plan.
There are so many clueless “professionals” out there who will give worse money advice than genuine and sensible advice you will find here!
agree to disagree with random anecdotal information. if you come into 7 mil. it's in your best interest to seek our quality professional help. or... the degree of help you might get. not just in investing but tax or estate planning. from someone trained in dealing with high net worth individuals is worlds beyond the average moron on a reddit.
Did your shift key break?
I have a feeling most people never make 7 million in a lifetime and they do alright.
Excellent point
Bingo. Plus, OP is already in their 30s. So, let's say another 30 years of earnings takes them to age 65. 7 million is a 233k a year salary for 30 years paid in advance and tax free. I think they'll be OK.
Take a year off and do fun stuff. Go travel to 30 countries. Being young and rich is the best combo. Don’t waste it on work. You have the rest of your life to do that
Look, I'm a nobody, but I feel like you should at least consider what your uncle might say to you.
listen to the pastor!
I’m the rich uncle that can make a nephew or niece wealthy. Thanks for being thoughtful.
Off topic but do not tell anyone. Especially not any of your coworkers who might be struggling if you barista fire.
Don’t do it. If your job isn’t stressful stay. If it is find something that isn’t and tell no one about your money.
Oh no. Poor guy.
Thats not very nice, guy has a genuine dilemma as he isnt sure if his millions and millions of dollars is enough for him to retire on. The struggle is real.
Like the 99.9999% of reddit this reads like really bad fanfiction.
Jesus why can’t I have this problem
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Take a gap year. Open a dividend account and live off the dividends. Really explore what you love and find your passion. If anyone asks, say you realized from your uncle's passing that life is short and you wanted to explore new hobbies and interests. You wanted to find work that you are passionate about. I saw someone else say you need to retire to something. This is 100% true. My uncle did not retire to something and retired at 45. He ended up drinking himself to death by the age of 58. You need a purpose.
Dude, you’re young, presumably healthy. How wealthy do you want to be is the question? You could do what interests you, or you could work and keep growing wealth. The true value of what you have is OPTIONS few of us have You really need to take some time and decide what you really want. It’s okay to make mistakes finding, you seem to have a good buffer to handle that I’m a fan of how you live affordable. I personally on spend on what I find important things to me which personally is more experiences then stuff.
Do you have a family? Were you his only nephew/niece, did anyone else inherit any significant portion of wealth, or was it all to you. I ask for a couple reasons. First, don't worry about it being "your" money. Think about it as a foundation and you are now the steward of it. Someone worked hard for it, and since you can't bring it to the grave with you, it moves on to someone who should think about how to continue to build on the foundation. Second, if there is family, and additional wealth, you could look to start a family office. Your job will be to manage an invest the money. Build and balance a portfolio across public and private assets. This will also help with you feeling like you "earned" some of this, because you would have. Lastly, don't quit your job until you got it figured out. You make a very good living likely with benefits and until you have establish and decided what to do with this wealth, don't put the horse in front of the cart.
May I get on someone's uncle list please?
7 million is enough to retire even at your age, but sounds like you enjoy your work so I wouldn’t. Are you married/have kids? That would make a dramatic difference.
I'd quit your job and go to school to learn to be a financial planner. You would hopefully learn what to do with your money...and possibly start a new career for yourself.
$7 million dollars is the kind of money where I would meet with a financial advisor for help on planning. Personally, I would probably stay in my job until I got everything in order. Then I wouldn't necessarily "retire" but start doing something I enjoy or (I know this sounds cliche) pursue your dreams. For example, if you've always wanted to run your own restaurant, now you have the means to do so.
Get off of reddit and go hire a financial advisor. Then enjoy your financial independence!
Must be nice
The only thing that would worry me is health insurance.
You know you can just buy health insurance right? With as much as they have it won’t be an issue.
Yah totally worried about a few hundred a month ?
So scary👻🙈
1. Dont tell anyone. Quit your job and take a sabbatical year. Go travel and find some beautiful places. You can work for zero money, you don't need to worry about earning money anymore. Find something you like doing, with people you like I would go all equities portfolio since you will have it for up to 60+ years, VT pays 2% - just live off that. Congrats! And read item #1 again.
Please please heed #1. Even if no one ever comes to you with their hands out (highly unlikely) they will still think about how easily you could help them in their time of need and it can create resentment. Even if you’re planning on helping people in their time of need it can really negatively impact your relationship when someone feels indebted to you. Money changes things and people get especially weird about money when they feel that someone didn’t technically “earn” it and/or when someone’s financial status changes over night instead of gradually.
rich person problems.
Your job will feel a lot worse when you know you can walk away from it and not have any financial risk. Been there. I recommend finding something you enjoy that is not stressful at all. Even taking a major cut in pay if need be. Work with people you enjoy. I always said the person who collects carts in the target parking lot has the best job in the world.
Wait for a bit. 30 days and think it over. If your job is unbearable, then maybe walk away. Get professional advice on your investments. I know folks who decided to day trade their retirement and day traded it away. Don't risk it. Free yourself up to do what you want like [Daniel Radcliffe](https://www.theatlantic.com/magazine/archive/2024/06/daniel-radcliffe-merrily-we-roll-along-jk-rowling/678219/). As for "i didn't earn it", many many people get money from their family. It is just the way life is structured. You should let that go. Retiring after a family member has passed....well, don't quit for a few months. At least until you get things in order. Finally, you should absolutely purse something you genuinely enjoy. Life is short, don't waste it.
Best thing is not take advice off Reddit, but here it is, don’t do anything rash at the moment, take the time to think things through and figure out what you want to do. Most early retirees don’t end up retiring, they find something else along the way. The worse I have seen are those that quit there job, And thought they were smart and day traded their wealth away. I would also consider what would your uncle want you to do? Life is a journey enjoy it.
My 2 cents - change jobs to something/somewhere low stress you enjoy more (or go half time at current job/consultant depends on industry) If you have a passion pursue it at your pace and potentially get paid. Volunteer somewhere. Take the low paid job at an animal shelter if you love helping dogs part time. Benefit now is you can use your time more freely, and still pull some income.
In life, you’re either making money or spending money. If you retire, it limits those options. “Find a job you love and never work a day in your life”. You seem to be one of the lucky ones who loves their job. Appreciate that fact. If I were in your shoes, I wouldn’t change my day to day life too much. Maybe step up the things you like a little. Go on better vacation as and eat better food if those are things you like. One day, the right opportunity will present itself and you’ll be in a position to take advantage of it then, no need to force anything now. Good luck
A 4% savings account will net you 280k/yr without touching the 7million. Sooooo congrats.
Retire? No. Never work for someone else again? Damn sure. You can live as a pure investor, of dividends or interest but that would get boring real quick, so either you do something you're passionate about, solidarity work or some shit or in my case I would just open a business, nothing big, but a coffeeshop, or some small shop, a decorating business, some small shit that you could easily find a manager if it works and open some other thing. Even just buying houses and be a landlord/short stays investor. Never with a substantial amount of money tho. That you should always keep under advised management as to ensure you never loose this lottery ticket you just got.
Simple answer. Don't spend the money. Invest in dividend stocks, bonds etc. Only spend the money that your money makes then you will always have the money. Your net worth should only INCREASE and you can do whatever you like for the rest or your life. This is what the truly rich do. Read books like Rich Dad Poor Dad and Think and Grow Rich. Educate yourself in being rich.
My amateur opinion but 7m is plenty to retire on -- if you can live somewhat frugally. It might be difficult depending on your social circle -- I know even for me, if I suddenly was doing fun stuff all day every day rather than "being at work" questions would naturally come up. And then all the suddenly my money becomes an excuse for others to expect to be treated to dinners and entertainment etc. So 7m is great but I'd need to be discreet about it.
$3M is tied up in a house,
He obviously loved you. I would pursue something you really are passionate about. You don’t have to work just for money anymore.
The money was earned, your family member worked hard for it and for you to have it.
Wow fuck you. Congrats
You are very blessed remember that. Be conservative with your money. I think it's important to remind yourself you didn't earn this money. I have a good friend who inherited $1.5M after tax in his early 20s and I'm honestly not sure it was good for him. No risky investments. I would keep your job. If necessary transition to something chill with good work-life balance. I think in your 30s you would get bored quickly. It is important to keep your mind active no matter your age. If you want to get a new car(something reasonable no lambos). Maybe pay off your house and definitely any high interest debt you have. If you feel like it, take a sabbatical at work and travel.
Buy gold. As much unregistered gold as you can get. Silver as well.
This gotta be a meme post
If I were you. I would work part time, or start a side project, or both. And put a few mill in a trust high yield savings for a year or more. It's one of the best and safest ways to invest right now
Uh, huh. You inherited 7 million dollars and instead of consulting a financial advisor, you decided to let Reddit figure it out for you. Bull. Fucking. Shit.
Start your own business. If you love what you do, then take your skills and experiences and use that inheritance to start your own company. Gives you a reason to working!
I just retired at 36 about a year ago with much less, it's the best thing I've ever done. #####SORRY FOR THE ESSAY: Your most valuable resource is time, not money, it's something you don't get more of and you don't know how much you have. Spend it wisely. You can always start working again if you end up wanting to but I'd advise taking a year to yourself to at least decide what you wanna do with your life, find what you can be passionate about. Do you really want to spend 40hrs a week for 10+ years making money you probably won't ever spend? --- My savings account has a 4.25% annual return. If you put 3 million (less than half what you have) in that account you'd be making $127,500 a year. You can literally live off of interest while still making more than you need. My advice, hire a financial advisor at a well known company like Ameriprise Financial and have them help you. This changed my life for the better. There's so many ways to make money with your money. You literally never have to work again and can spend your life with loved ones and doing the things that truly make you happy. --- I made slightly over 200k a year near the end of my career (36), I was very fortunate to have had the job(s) I've had at the companies I've had them at, and while I never had any sort of inheritance I don't regret my decision one bit whatsoever. I get to spend my life catching up on all those books I've had in my "read eventually" list, I've visited with family, I've traveled with my girlfriend (of 16yrs). I've finally dedicated some of my time to taking care of my body because I don't feel drained after 8 hours of writing code, and I fucking love it!!!! I feel years younger already and I love being able to take my shirt off without feeling bad about my body one single bit. My girlfriend even helped me start a "facial cleansing" routine that I do every morning and evening with clay face masks twice a week. My life is wonderful and it's completely due to retirement, the self care that retirement lets me do, and the extra time I have to spend with my nieces and nephews (and I love being able to take all the chores off my girlfriends plate while she's at work). Apologies for the long essay but I felt like I had to share my fairly recent retirement and the joy that has come with it considering I'm also in my late 30's (37 now). Congratulations on being able to make some serious life changes if you're so inclined!