r/wealth • u/No-Town-157 • 13d ago
Need Advice Inheritance money
I might be receiving inheritance money ( couple hundred thousand) . I’m 31 single male , what would you do if you were me in this crazy economy
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u/minimalist_coach 13d ago
I'd pay off debt first. Make sure my car is reliable; repair or replace as needed. Then put the rest in an emergency fund.
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u/Routine-Wolf-2907 13d ago
hookers and cocain
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u/modsatemyass 13d ago
my man. the only way
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u/Ebonvvings 13d ago
Yeah seriously. 200k isnt much anymore. High end hookers make that in 1 night
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u/NeitherSuccess4159 13d ago
This. fuck generationl wealth
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u/Ok-Jeweler2500 13d ago
I can laugh at your comment but hugely disagree. You can't live off social Security. If you don't invest for later you'll be bagging groceries when you're 80
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u/dwoj206 13d ago
VOO and VTI and chill forever bro.
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u/Agile-Year-742 13d ago
Small bit of SMH incase robots take over.
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u/BlondDeutcher 9d ago
XSD is better, equal weight that shit so you get the outperformance of the SMID names
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u/Agreeable_Ask7033 13d ago
Don't do anything for six months, park it in a high yield saving account and let it sit. If you want property, talk to a fee advisor only. Don't let anyone manage it for a percentage
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u/MathematicianAfter57 13d ago
pay off your debts, invest the rest. buy a house if it makes sense. act like you didnt get anything.
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u/Ok-Jeweler2500 13d ago
If you spend it you may never have that much again. If you invest it you can create wealth that will give you financial security. The power of long term investing is amazing in the long run. I tried my own investing on Robinhood and largely failed. But I have a licensed awesome financial advisor that has worked wonders! Certainly if you have a crappy car or something then upgrade but be frugal because once money is spent there it goes 🔥. Been there. Done that.
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u/redjay97 13d ago
Pay off any high-interest debt, make sure your emergency fund is topped off, and work on maxing out IRA, HSA, and 401k. Anything left over to brokerage in an index fund.
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u/Superb_Advisor7885 13d ago
Well you haven't received anything yet. So best bet is to starting learning how to manage your money
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u/Penguin_Life_Now 13d ago
Invest in a broad index fund and wait 30 years, SPYM (basically same as VOO, but slightly lower expense) , or VTI etc. with maybe 20-25% VXUS. Even if there is a market downturn you are young enough to wait it out to recover.
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u/TheSolvencyLine 13d ago
The more boring the investment method, the better it is for you. Consider options like index funds, real estate, and gold—all three share a common trait of low risk and need time for compound interest to really grow. Avoid high risk /quick return kind of investments or anything overly hyped, as it's usually a red flag. No matter what you choose, it's essential to educate yourself through books, courses, and other resources. Best of luck!
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u/Sicilian_Gold 13d ago
Buy physical gold.
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u/squawmama 13d ago
My answer as well. Lay off any high interest debt and put the rest into physical gold today! Hold hold hold
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u/SwimDistinct43 13d ago
Down payment on a affordable apartment, take 10-15% and travel for a year, 8% in physical Gold and silver, have a decent amount in cash in a vault (It allows you actually to see it, instead of numbers on a screen) get a used Lexus with a good warranty, invest 40% in S&P. Don't tell anyone. Invest in yourself & take some calculated risks. and have fun as well ;) Buy better quality food and clothing (not LV or gucci, avoid polyester) Avoid expensive watches & cars until you get to a higher tax bracket. Also open multiple bank accounts and credit cards available. Look into Infinite banking.
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u/OnlyThePhantomKnows 13d ago
90% invest in the market. Depending on how much it is, this might be enough to set you up for retirement. I'd suggest reading a bit on r/coastFIRE which deals with "how much do I need to save before I will have enough to retire"
10% open a "fun stupid stuff" account.
When the "fun stupid stuff" account is empty, the fun stupid stuff stops.
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u/blarryg 13d ago
Invest it in a solid mutal fund for 30 years. Seriously, as you get older, you want more optionality. Being poor and old is way way way worse than being young and old.
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u/Thotty_Thuncle 13d ago
How do I be young and old plz and ty
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u/Free_Answered 13d ago
S/he is old and their brain is going thru normal atrophy- they meant to quote Shakespeare from the play Takes One To Know One: "tis better to be young and poor than old and poor, for the women, I beseech you are hotter and care less for the fruits of the earth but for the fruit of thy loom."
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u/Weird7954 13d ago
So you’re thinking the stock market is just gonna keep going up up up at this crazy rapid rate?
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u/Clutchcon_blows 13d ago
30 years from now the current stock market will look small. 30 years from now you’ll wish you had invested
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u/Fearless_Baseball121 13d ago
Over a 30 year avarage? Yes. It historically has. Forever.
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u/Hdglamping 11d ago
Relative to inflation...that is a much less certain statement. Dow vs gold is fundamentally the same as in the 70's at a range of 12:1 to 20:1 ratio. Everytime the M2 surges, the ratio drops....that 6:1 range is the entire range of every crash to rally since the gold standard was dropped...the markets barely increase, the dollar just drops thus it's valued higher in dollars.
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u/blarryg 12d ago
Hell no. I'm old enough to remember a couple of crashes and recessions. So, keep your money in, never try to time markets, just put more money in. Thank me in 30 years.
Stocks are an index into the economy. You cannot have a prolonged decrease in stock prices (the economy) and not a decrease in prices for goods. So, over long enough time, it doesn't matter -- stocks will either hold their value or mostly exceed inflation. We are in for turbulent economic times for awhile, but AI is going to cause a huge boom in about 10 years (after a huge bust). Since you can't time this, just keep investing.
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u/born2bfi 13d ago
Yes. Ride the magic carpet and sell occasionally to lock in gains like paying cash for cars and houses. The rich elites are all in on stocks so I will be too. It’s been a great 14 years since I started investing
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u/Boring_Adeptness_334 13d ago
If all your other goals are set then throw it all into SPY. Otherwise make sure you have a 12 months emergency fund and down payment for a house.
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u/Agile-Year-742 13d ago
SPY has been my emergency fund for years, not complaining.
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u/Boring_Adeptness_334 13d ago
That’s stupid and reckless. It’s all fun and games until you lose your job and the market tanks at the same time like during Covid or 2008.
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u/Agile-Year-742 13d ago
Behind every Great Depression are the millionaires who took advantage. You mean the same covid that made my retirement possible in the first place? Same covid that led to the one of the largest market corrections in history?
Same covid that turned my 500k into 2.5?
The devils advocates are smart, but lose.
You know who was investing in 2008? My dad.
What age did he retire? 40.
What age I retired? 25
I learn from the best.
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u/Boring_Adeptness_334 13d ago
You took risks and got rewarded. Other people take risks and get completely wiped out.
It’s like dumping all your money into 1 stock and thinking you’re a genius because you beat the market.
I take a lot of risks myself but they’re all within moderation. I sent my friend a joking text around 8 months ago of an options trade that would have turned $40k into $3m+ overnight. But im not going to invest in something that has a 99% chance of failing.
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u/Agile-Year-742 13d ago
Because it’s gambling. The house always wins.
Since the beginning of its history, No buy-and-hold investor in the S&P 500 has ever been permanently wiped out. This is fact. Not even the Great Depression. Only way you get “wiped out” are buying on margin or options.
Even If the S&P 500 is dropping more than 10% year after year, you have far bigger concerns than just your investment portfolio. That level of sustained structural decay points to a catastrophic macroeconomic collapse, meaning the commercial banks holding your cash wouldn't be safe either since they rely on the exact same underlying financial infrastructure.
Remember during the crash, banks closed their doors.
I have a wad of cash under my bed too!
So technically, having your money as digital code PERIOD is unsafe.
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u/EvangelineRain 13d ago
VOO, provided all high interest debt is paid off
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u/sc1lurker 13d ago
Invest the money to better secure your chance at retirement one day. The S&P500 is a great choice, or a mix of the S&P500 and Nasdaq100 (QQQ or QQQM) if you're willing to take on a little more risk for a potential greater return, which is feasible as you have a long time horizon.
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u/InnerNetwork7314 13d ago
S&P INDEX FUND….look up VTI….. 20 years from now every hundred thousand you invest could easily be worth 2 to 3 million.
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u/DeepDishZero 13d ago
I would look at tax advantaged muni bonds. That money can turn into usable income for years while preserving the original amount.
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u/Heavy_Bicycle6524 13d ago
If I had come into a couple hundred thousand when I was 31, I’d have 100% bought a house and a nice campervan. I’d live in the campervan and rented the house out whilst I repayed the remainder of the mortgage
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u/weigelf 13d ago
Read "Early Retirement Extreme," by Jacob Lund Fisker before you receive your inheritance. Although the book is more extreme than most folks will go, it will help you get perspective on "stuff" before you go crazy buying things.
Remember, you don't own stuff - stuff own you. Stuff needs to be stored, maintained, protected/insured, inventoried, and buying stuff has an opportunity cost.
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u/Illustrious-Jacket68 13d ago
why do you say crazy economy? makes it sound like you're trying to make a political statement more than you're actually looking for advice...
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u/literally_a_raccoon 13d ago
If you have any high interest debt, I would start by getting that paid off. If there’s anything left over, invest in a low cost index fund and chill.
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u/mightysockelf 12d ago
I received a settlement of about 300k.
10% went to buying a new used vehicle
5% went to fun (trips, buying gifts, etc)
75% went into ETFs, growth stocks, dividend stocks, and bonds. I bought enough dividend stocks to generate another 8k a year, and the growth investment dividends reinvest. The bonds are my liquidity.
10% went to a day trading account with margins. With it, I make about $200-400 a day after taxes.
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u/jacknycusa 12d ago
Dollar cost average in over 2-3 years. VOO 90%, BOND 10%. Spend those years learning to trade GARP-style. Good luck
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u/Anxious-Doughnut-224 11d ago
Do you own a house yet? Do you have an emergency fund of 12 months of your expenses?
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u/No-Town-157 11d ago
None to both
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u/BayAreaBill 11d ago
That’s your emergency money and the start of your down payment.
First thing I’d do though is pay off any high interest debt, like credit cards and autos. Don’t spend it if you can help it. And don’t let your friends know.
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u/Hdglamping 11d ago
Pay off debts with interest over 4% (inflation will likely be higher than that so anything under is actually reducing your effective debt).
Park it in a high interest account for 6 months and do a deep dive on your personal goals.
Anything under $500k isn't truly life-changing unless you are in a bind already - hence pay off debts. Beyond that, I'd personally be looking into cash direct purchases of real estate at $0.30 on the dollar If you have any knowledge of that sector.
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u/Legitimate_Mix8318 11d ago
If it was only a couple hundred id invest it. If it was a couple million id buy a modest house in a good neighborhood if you dont own one yet, or I would just retire somewhere in Asia.
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u/the_illest99 11d ago
I made a tool for myself that basically tells me the order of operations of what to do with your next dollar, it would be cool to run your case. It all depends on what kind of debts you have and what kind of tax advantaged investments you are already taking advantage of though. Just don't spend it all lol.
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u/royalpyroz 13d ago
Hi I'm married. Can you join my family? You can live in my basement. I'll take care of your inheritance. Don't you worry.
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u/nick_c8_vegas 13d ago
80% s&p 500 or similar index fund. 10% individual top stocks 10% Bitcoin or Bitcoin etf
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u/Agile-Year-742 13d ago
Bitcoin is ass.
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u/nick_c8_vegas 12d ago
Best performing asset of all time.
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u/Agile-Year-742 12d ago
Not anymore
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u/nick_c8_vegas 12d ago
No other asset has done what it has done. Yes it’s down from all time high like every other cycle. But to be sitting at 85k, I started buying at 3-5k not sure how 17x is bad.
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u/Agile-Year-742 10d ago
Those days over
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u/nick_c8_vegas 10d ago
We’ll see this year alone if you were buying in at 50-60k you are up 20-30% in a few months how is that ass? Index funds take years to do that. I think you might just be someone who never bought in missed your chance and are now a Bitcoin hater.
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u/Agile-Year-742 10d ago
Yeah before you were down 60% if you bought at 100k???!!!
Please. BTC is hedged. I own a lot of BTC but only to purchase from the dark web. That’s it. I’d never rely on it as a truly appreciating asset.
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u/nick_c8_vegas 10d ago
I started buying in 2018. If you did dca from there to now. If you did dca from Jan 1st 2018 to today you would still be up 400%+. Yeah that is so bad right?
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u/Agile-Year-742 10d ago
You can extract water from shit. Guess what….
It’s still shit!
I made money off Logan Paul’s shit coin dumps, those are valuable too right.
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u/Agile-Year-742 10d ago
Shit coin dumped. Shitcoin will keep dumping. Next is 200k. I believe it…
Guess what….
It’s going right back down to 12!
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u/modsatemyass 13d ago
put it up your butthole.... and buy some beer
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u/SquidGlam 13d ago
Instructions unclear, beer in butthole, very buzzed despite not drinking at all!
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u/teachertmf 13d ago
Who are these people I see here that are constantly gifted /inherited thousands of dollars?! Wtf. Seriously. It must be a nice problem to have. lol.
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u/OutlandishnessLimp25 13d ago
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u/SanFranPeach 13d ago edited 11d ago
I made $12m overnight 7 years ago. Boggleheaded it and have hardly touched it since. Didn’t change my spending much. Didn’t tell a soul. All I need is the peace of mind that work is only an option, my kids have what they need and we’re good in case of any life emergency.
Buy yourself that not super expensive thing you’ve always wanted (mine was a vitamix) then… Invest it (index funds, keep it boring) and chill.