I just inherited $1 million

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Sugar1
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I just inherited $1 million

Post by Sugar1 » Sat Dec 07, 2013 8:08 am

Hi:

My wife just inherited a $1 million from her grandfather and I need some help investing.

I have been a individual stock investor my whole life; however, i want to put this money into a diversified etf portfolio.

Can someone reccomend a good etf strategy and a good broker for cost and execution? I would like to be able to tweak the portfolio periodically every so often.

Sorry, I know this is sort of a general request, but I sure could use some help.

Thanks in advance. Happy holidays!!

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LadyGeek
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Re: I just inherited $1 million

Post by LadyGeek » Sat Dec 07, 2013 11:08 am

Welcome! Take your time. The first thing you need to do is read this: Managing a windfall Then, read this: Getting started

At some point, you should try to post your question in this format: Asking Portfolio Questions

If you have any questions, just ask.

BTW, I hope your wife will take an interest in learning the concepts with you. This is a lifelong skill that more than pays for itself. If something bad happens, she should be able to take over the finances. It's something to think about.
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Retread
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Re: I just inherited $1 million

Post by Retread » Sat Dec 07, 2013 11:19 am

Your heading says you just inherited a million and your text says it's your wife. I hope you give proper consideration to the fact that this is your wife's money, not yours. :happy She might not be happy to have you churning it through a "good broker" if there is such a thing.
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ruralavalon
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Re: I just inherited $1 million

Post by ruralavalon » Sat Dec 07, 2013 11:22 am

Weocome to the forum :) .

I have the same reading suggestions as LadyGeek. Also read at least one of the books from the Gereral Investing section of this reading list -- "Investing Books". They are easy to understand, and not overly technical.

I would add re-emphasize just one thing.

Beware of anyone (friend, neighbor, relative, co-worker) trying to sell any investment product (insurance, annuity, stocks, bonds, mutual funds, commodity). Instead take your time and make investment decisions only after educating yourselves.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Professor Emeritus
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Re: I just inherited $1 million

Post by Professor Emeritus » Sat Dec 07, 2013 11:29 am

Repeat after me IT'S YOUR WIFE'S MONEY .

If your wife knows nothing about finances she needs a person who both owes her an undivided fiduciary duty and monitors and controls whomever is doing the investments.

Both my wife and I are trustees. Every trust investment we make is made with the assumption that we might have to defend it in court, under oath.

It's a good discipline

dickenjb
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Re: I just inherited $1 million

Post by dickenjb » Sat Dec 07, 2013 11:52 am

Your request is so general that it is unactionable. You don't even state what your goals are for this money, yet you seem to know you want to buy ETF's.

livesoft
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Re: I just inherited $1 million

Post by livesoft » Sat Dec 07, 2013 12:04 pm

Welcome to the forum. It's a good place to be.

I would suggest reading some books that are aligned with the philosophy of using a good ETF portfolio of passively-managed, low-expese-ratio index funds. The "quick links" link on the left-hand panel of http://www.bogleheads.org has a list of books as well as a link to more books. I suggest you read ALL of 5 or 6 books listed. And another one from Larry Swedroe "The Only Guide You'll Ever Need for the Right Financial Plan: Managing Your Wealth, Risk, and Investments".

I think these books will get one thinking more clearly about an asset allocation plan, an investing policy statement, and even some ETFs. But to answer your question directly, use these ETFs:
VTI, VBR, VXUS, VSS, BND and some others. And only use a broker who would not charge any commissions for what you want to buy. Such brokers are Vanguard, TDAmeritrede, Fidelity, Schwab and maybe a couple others.

If I take your statement literally about you have been investing in individual stocks your whole life, you probably already have broker. Maybe you are only 23 years old and your whole life is not the same as someone who is 50 years gold. Maybe you have only invest $2,347 in stocks? Or maybe you have $4.88 million in stocks? We cannot tell, but can you see how any responses would differ because of our personal interpretations?

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Re: I just inherited $1 million

Post by sport » Sat Dec 07, 2013 12:12 pm

Investing in ETFs is a good way to invest. Directly investing in low-cost no-load index mutual funds, such as at Vanguard, is also good. Be sure you know the advantages and disadvantages of each method before making a decision.
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Re: I just inherited $1 million

Post by kenner » Sat Dec 07, 2013 12:43 pm

Sugar1 wrote:Hi:

My wife just inherited a $1 million from her grandfather and I need some help investing.

I have been a individual stock investor my whole life; however, i want to put this money into a diversified etf portfolio.

Can someone reccomend a good etf strategy and a good broker for cost and execution? I would like to be able to tweak the portfolio periodically every so often.

Sorry, I know this is sort of a general request, but I sure could use some help.

Thanks in advance. Happy holidays!!
There is nowhere near enough information provided to give you definitive advice. If you desire to optimize your investment future, you must educate yourself.

Ultimately, you need to have an investment portfolio that is globally diversified with stocks and bonds, tax-efficient and suitable for your investment time horizon and risk tolerance.

A simple example of such a portfolio is this:

Total US Stock Market 40%
Total International Stocks 40%
Total US Bond Market 20%

There are countless permutations on recommended portfolios, but educating yourself is of paramount importance.

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Munir
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Re: I just inherited $1 million

Post by Munir » Sat Dec 07, 2013 12:49 pm

I hope the OP is not pulling our leg. :?

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HomerJ
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Re: I just inherited $1 million

Post by HomerJ » Sat Dec 07, 2013 12:59 pm

Sugar1 wrote:Hi:

My wife just inherited a $1 million from her grandfather and I need some help investing.

I have been a individual stock investor my whole life; however, i want to put this money into a diversified etf portfolio.

Can someone reccomend a good etf strategy and a good broker for cost and execution? I would like to be able to tweak the portfolio periodically every so often.

Sorry, I know this is sort of a general request, but I sure could use some help.

Thanks in advance. Happy holidays!!
I can only give you general answers to your general request.

(1) Do not trade in individual stocks
(2) Read some books and take some time before you do anything with this money. The Four Pillars of Investing is an excellent book on investing.
(3) Low-expense index funds or etfs are your best bet. One really can do very well with just 3 funds (Vanguard Total Stock Market Index, Vanguard Total International Stock Index, and Vanguard Total Bond Market Index)
(4) Do not "tweak your portfolio" very often at all.

Really, we need to know more specifics if you want better answers... How old are you, how close are you to retirement, how much are your expenses, etc.

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BL
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Re: I just inherited $1 million

Post by BL » Sat Dec 07, 2013 1:55 pm

To complement the suggestions above, read about the 3-fund portfolio at various companies: http://www.bogleheads.org/wiki/3-fund_portfolio

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Re: I just inherited $1 million

Post by Calm Man » Sat Dec 07, 2013 3:14 pm

OP, with all due respect, if this is a legitimate post, I would "beg" you to have your wife do the post. The first thing we would all tell her is that it is her money, to keep it clear from you and to learn a tiny bit and invest it herself with help from this forum. You m ay be a great husband but that is not relevant to this.

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wintermute
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Re: I just inherited $1 million

Post by wintermute » Sat Dec 07, 2013 3:31 pm

The last thing on earth you would want to do is give it to a "broker". Watch the movie Boiler Room.

staythecourse
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Re: I just inherited $1 million

Post by staythecourse » Sat Dec 07, 2013 3:32 pm

OP,

First things first DON"T DO ANYTHING until your wife and you have thought everything out. 1 mill. is a lot, but is easily lost for those who don't know what they are doing.

Read the bogleheads link on how to post for advice which will give us all the material info. to give you accurate advice for your situation.

BTW, it looks like you who is having a good Holiday!! :D

Good luck.
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wintermute
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Re: I just inherited $1 million

Post by wintermute » Sat Dec 07, 2013 4:50 pm

staythecourse wrote:First things first DON"T DO ANYTHING until your wife and you have thought everything out. 1 mill. is a lot, but is easily lost for those who don't know what they are doing.
This is really important. Don't make any big purchases or life changes, for 3-6 months. I have a family member who spent a bunch and regrets it.

If it's cash, just make sure it's spread across banks for FDIC insurance, or put it in treasuries (t-bills), until you have a plan.

The Wizard
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Re: I just inherited $1 million

Post by The Wizard » Sat Dec 07, 2013 4:53 pm

I'd like to know what the OP&spouse's present financial situation is first, and their ages.
That would be a good starting point in deciding what additional advice is needed.
So far, we know that individual stocks should be avoided...
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wander
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Re: I just inherited $1 million

Post by wander » Sat Dec 07, 2013 4:58 pm

I recommend to read "The Bogleheads' Guide to Investing" first before starting to invest your wife's money.

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Re: I just inherited $1 million

Post by The Wizard » Sat Dec 07, 2013 5:03 pm

wander wrote:I recommend to read "The Bogleheads' Guide to Investing" first before starting to invest your wife's money.
I think his wife should invest her own money.
*shrug*
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gerrym51
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Re: I just inherited $1 million

Post by gerrym51 » Sat Dec 07, 2013 5:09 pm

1. Congratulations.

2. are there inheritance taxes?

3.Hire a tax lawyer.

then invest

ieee488
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Re: I just inherited $1 million

Post by ieee488 » Sat Dec 07, 2013 5:13 pm

The Wizard wrote:
wander wrote:I recommend to read "The Bogleheads' Guide to Investing" first before starting to invest your wife's money.
I think his wife should invest her own money.
*shrug*
+1
It is HER money. And if she was smart, she'd get involved real quick.
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Bacchus01
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Re: I just inherited $1 million

Post by Bacchus01 » Sat Dec 07, 2013 5:14 pm

Do you all keep your finances separate?

camoaero
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Re: I just inherited $1 million

Post by camoaero » Sat Dec 07, 2013 5:16 pm

I'm a little surprised at the consensus......I definitely don't consider the investments that I brought to my marriage as solely belonging to me anymore. Seems to go against the point of marriage.

ieee488
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Re: I just inherited $1 million

Post by ieee488 » Sat Dec 07, 2013 5:23 pm

camoaero wrote:I'm a little surprised at the consensus......I definitely don't consider the investments that I brought to my marriage as solely belonging to me anymore. Seems to go against the point of marriage.
There was another thread about this very thing.

For $1M, I'd be want to keep finances separate.
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island
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Re: I just inherited $1 million

Post by island » Sat Dec 07, 2013 5:23 pm

camoaero wrote:I'm a little surprised at the consensus......I definitely don't consider the investments that I brought to my marriage as solely belonging to me anymore. Seems to go against the point of marriage.
I agree with you to a point, but this is an inheritance which is different. And the title say "I" rather than "my wife" or even "we".

BanditKing
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Re: I just inherited $1 million

Post by BanditKing » Sat Dec 07, 2013 5:30 pm

You have a windfall. The worst thing to do with a windfall is to do ANYTHING with (most of) it right away. It'll be gone before you know what happened if you aren't careful. You need to take a slow, reasoned approach to it so you don't get hosed on losses and taxes.

See: http://www.bogleheads.org/wiki/Managing_a_windfall

In fact, in my IPS I have the following statements specifically regarding windfalls:

INVESTMENT PHILOSOPHY
[...]
  • 5) At least 90% of any windfall exceeding $10,000, including inheritances, will be held as cash or low-risk assets for at least six months. The remaining 10% can be used for any purpose.
    • a.This will be held in either HY Cash savings or can also be held in any fund or ETF with a risk rating of “1” (Vanguard) if yield is anticipated to be better.
[...]

This is so that when it does happen to me (which is likely eventually due to inheritances some day), I don't do something stupid. Yes that 10% is a maximum if I want to "go crazy", but the rest is shoved in a drawer to be dealt with by reasoned heads when emotions are better in check.

The last thing we want to see is a followup posted called "I just wasted away $1 million (of my wife's money)".

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Watty
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Re: I just inherited $1 million

Post by Watty » Sat Dec 07, 2013 5:40 pm

Sorry that some of the posts were negative and suggesting that your post was not legitimate, there have been problems in the past with some new posters putting up fake posts just to get people going.

There is no hurry to do much of anything, even if you and your wife have the knowledge and skills to take care of everything it will take a while to decide on a plan and feel comfortable with it. Right now the best thing to do would be to just put it into insured accounts, probably CD's, for at least six months while you learn, plan, and get used to the idea of having the money.

That said there are a few things that you should likely do;

1) Make sure that you have ample car, house, and umbrella insurance. You are now a lot more likely to be sued. Get at least a two million dollar umbrella policy.

2) Make sure you have wills that are up to date and that the beneficiary is correct on any of your investing accounts. Talk with a lawyer about what arrangement is right for you and your wife, there is no one right answer.

3) Buy $10,000 each in iBonds in both your and your wife's name before the end of December. That is the annual limit and limited amounts will fit in well with almost any plan. Any 2014 iBond purchase can wait until later next year.

4) Pay off any debt except possibly your mortgage if you have one.

5) Max out any deductible 401k type accounts for the last couple of paychecks of the year. Set it up so that in 2014 you will also max these out over the entire year. You often need to do it over the entire year to get all of any employer match.

A few things to pay close attention to;

1) Read up on why financial advisors are often a mistake and why most of them can cost you greatly. The only type you might want to use is a "fee only" one that clearly states their fees and that they have a fiduciary responsibility to you. "Fee based" is much different than "fee only" since they can charge you to put you in a bad investment just to get paid a large commission. As you learn more about financial advisors you will be amazed that some of the stuff they do is legal but it is.

2) Realize that even though you have a million dollars that you cannot live a millionaire life style. There has been volumes written on it but the safe withdrawal rate from a retired person’s portfolio starts at somewhere around 4% so that they do not run out of money in their lifetime. Assuming that you are well below retirement age then it is like more like 3% so if you wanted to quit your jobs now then you would need to live on about $30,000 a year to be safe. Spending too much is why people like athletes that make a lot of money in a few years end up broke.

http://www.bogleheads.org/wiki/Safe_withdrawal_rates

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Re: I just inherited $1 million

Post by gkaplan » Sat Dec 07, 2013 5:45 pm

OP, I don't get this. Your post title reads, "I just inherited $1 million," but your text starts out, "My wife just inherited $ million." Which is it?
Gordon

ieee488
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Re: I just inherited $1 million

Post by ieee488 » Sat Dec 07, 2013 5:46 pm

Watty wrote:Sorry that some of the posts were negative and suggesting that your post was not legitimate, there have been problems in the past with some new posters putting up fake posts just to get people going.
The OP hasn't returned yet, so it is too soon to say whether the original post is legitimate or not.
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frugaltype
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Re: I just inherited $1 million

Post by frugaltype » Sat Dec 07, 2013 5:52 pm

There's not nearly enough information to say much useful.

Do you have an emergency fund? Are you both employed? What are your other savings? What is your debt, if any? Do you have kids? Tax issues?

As someone said above: This is your wife's money, why the heck is she not in this discussion at least 50-50? And why does the title say "I" just inherited?
Last edited by frugaltype on Sat Dec 07, 2013 5:54 pm, edited 1 time in total.

BanditKing
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Re: I just inherited $1 million

Post by BanditKing » Sat Dec 07, 2013 5:53 pm

Also, regardless of what you do, do the following immediate-term tactical things:

1) Buy $10k in Series I Bonds from Treasury Direct in both you and your wife's name. You need to do this by the end of December. Because of the annual maximums you don't want to miss the window.
2) Maximize your after-tax IRA contributions for 2013 for both you and your wife. I think (but not sure) you can do this before April 15, so you have a little time, but you should do this immediately anyways. You can then convert this into a Roth IRA. Since you don't have an investment plan yet, you could just put it into the target-retirement fund for your age bracket.
3) If you haven't maxed your 401k (or equivalent), Contact your employer ASAP and see if it's not too late to get 100% of your pay for the rest of the year contributed. Given payroll delays and such it may be too late, but you want to do what you can if possible. Make sure to max for 2014.
4) Pay off all credit cards. If your car loan(s) are above, say, 2-3%, maybe pay them off as well. If below that, don't worry for the short term until you have a better battle plan.
5) I'd hold off on student loans unless they are small (under $20k or so) just for a little bit until you have your battle plan.
5) Over the next six months, you need to get wills updated, living wills, PoAs, etc etc etc.

Remember, you can't realistically retire on $1m, especially if the tax man has any say in the matter. You need to take it slow so you can use that $1m windfall to turn it into a LOT more so you CAN retire early and comfortably.
Last edited by BanditKing on Sat Dec 07, 2013 6:13 pm, edited 1 time in total.

Calm Man
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Re: I just inherited $1 million

Post by Calm Man » Sat Dec 07, 2013 6:07 pm

camoaero wrote:I'm a little surprised at the consensus......I definitely don't consider the investments that I brought to my marriage as solely belonging to me anymore. Seems to go against the point of marriage.
Guess what? They are. Unless they are hopelessly commingled and can't be separated.

Retread
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Re: I just inherited $1 million

Post by Retread » Sat Dec 07, 2013 7:55 pm

BanditKing wrote:Also, regardless of what you do, do the following immediate-term tactical things:

1) Buy $10k in Series I Bonds from Treasury Direct in both you and your wife's name. You need to do this by the end of December. Because of the annual maximums you don't want to miss the window.
2) Maximize your after-tax IRA contributions for 2013 for both you and your wife. I think (but not sure) you can do this before April 15, so you have a little time, but you should do this immediately anyways. You can then convert this into a Roth IRA. Since you don't have an investment plan yet, you could just put it into the target-retirement fund for your age bracket.
3) If you haven't maxed your 401k (or equivalent), Contact your employer ASAP and see if it's not too late to get 100% of your pay for the rest of the year contributed. Given payroll delays and such it may be too late, but you want to do what you can if possible. Make sure to max for 2014.
4) Pay off all credit cards. If your car loan(s) are above, say, 2-3%, maybe pay them off as well. If below that, don't worry for the short term until you have a better battle plan.
5) I'd hold off on student loans unless they are small (under $20k or so) just for a little bit until you have your battle plan.
5) Over the next six months, you need to get wills updated, living wills, PoAs, etc etc etc.

Remember, you can't realistically retire on $1m, especially if the tax man has any say in the matter. You need to take it slow so you can use that $1m windfall to turn it into a LOT more so you CAN retire early and comfortably.
Much of your advice involves moving funds into husband's name. I disagree. It's her money.
Bruce
absit iniuria verbis

expat
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Re: I just inherited $1 million

Post by expat » Sat Dec 07, 2013 8:18 pm

Your wife inherited the money, not you.

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InvestorNewb
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Re: I just inherited $1 million

Post by InvestorNewb » Sat Dec 07, 2013 8:29 pm

The title should read "We just inherited $1 million".
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

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William4u
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Re: I just inherited $1 million

Post by William4u » Sat Dec 07, 2013 9:43 pm

Here is an answer to the explicit, ETF part of the question: If you put it all in VT (vanguard total world etf), you would own (close enough to) virtually every stock in the world. Now THAT is diversification! You could get the same effect, for a little lower ER, by doing half VTI and half VXUS.

However, there are implicit questions about risk, asset allocation, needs of the family, etc., that should be answered as well.

Retread
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Re: I just inherited $1 million

Post by Retread » Sat Dec 07, 2013 9:48 pm

InvestorNewb wrote:The title should read "We just inherited $1 million".
No - "My wife just inherited $1 million".
Bruce
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Retread
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Re: I just inherited $1 million

Post by Retread » Sat Dec 07, 2013 9:49 pm

Once more, we're all just whistling in the dark. Will we ever see the OP again?
Bruce
absit iniuria verbis

island
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Re: I just inherited $1 million

Post by island » Sat Dec 07, 2013 9:53 pm

Retread wrote:Once more, we're all just whistling in the dark. Will we ever see the OP again?
Bruce
Maybe not, but gotta give him the benefit of the doubt since he just posted this today. Not everyone checks in multiple times a day like some of us. Maybe his wife will post instead :happy

The Wizard
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Re: I just inherited $1 million

Post by The Wizard » Sat Dec 07, 2013 10:13 pm

Retread wrote:Once more, we're all just whistling in the dark. Will we ever see the OP again?
Bruce
OP was spoofing us.
Oh well, stuff happens...
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Spirit Rider
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Re: I just inherited $1 million

Post by Spirit Rider » Sat Dec 07, 2013 10:13 pm

camoaero wrote:I'm a little surprised at the consensus......I definitely don't consider the investments that I brought to my marriage as solely belonging to me anymore. Seems to go against the point of marriage.
The reason is that inheritances are NOT marital assets in most states. The assets are and should remain the separate and distinct assets of the beneficiary. This should be done to protect her and the children's interest.

Whether the OP intended it or not, his post comes across as him believing this money is his to do with as he pleases. The OP needs to fundamentally understand that the family did not inherit this money, but rather his wife did. This money should remain in accounts in her name only and not co-mingled with marital assets.

The wife needs to understand this and have proper professional advice. The family (including the husband) can certainly benefit from the security this money provides. However, The husband should not have primary control over this money. This is why inheritances of this significance should be left in trusts to properly protect the interests of the beneficiary and their heirs.

I have seen the best and the worst of human nature. I have seen siblings reluctant to benefit from the death of their parent and I have seen siblings act like a season of "Survivor", developing alliances to throw others under the bus. I don't mean to assume the worst here. However, taking proper steps to protect the interests of the beneficiary, should not offend someone with altruistic goals.

Dandy
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Re: I just inherited $1 million

Post by Dandy » Sun Dec 08, 2013 12:47 pm

If it is in a taxable account make sure to invest after funds have paid their cap gains/divs in December or you will generate unnecessary income in 2013.

tibbitts
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Re: I just inherited $1 million

Post by tibbitts » Sun Dec 08, 2013 1:46 pm

island wrote:
Retread wrote:Once more, we're all just whistling in the dark. Will we ever see the OP again?
Bruce
Maybe not, but gotta give him the benefit of the doubt since he just posted this today. Not everyone checks in multiple times a day like some of us. Maybe his wife will post instead :happy
After a first post like that, maybe they're both too busy meeting with divorce attorneys to get back to us.

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Re: I just inherited $1 million

Post by countdown » Sun Dec 08, 2013 1:52 pm

In many states, inheritances are SEPARATE property, and a spouse has no right to the funds generally.
I hope Wife gets some advice of her own.

countdown
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Re: I just inherited $1 million

Post by countdown » Sun Dec 08, 2013 1:55 pm

Just saw Spirit Rider post. Agree 100 percent. Excellent post.

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Re: I just inherited $1 million

Post by Fallible » Sun Dec 08, 2013 2:14 pm

[OT comment removed by admin LadyGeek]
And there is more. Why, if he's into individual stocks only, ask this particular forum? Why ask this forum for a broker? Why a million even (though it's a catchy headline). And, of course, why no details? Possible red flags all. But hey, I've enjoyed and learned a lot from the excellent replies, so if the OP doesn't appreciate them, I do. :)
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LadyGeek
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Re: I just inherited $1 million

Post by LadyGeek » Sun Dec 08, 2013 4:59 pm

I removed some off-topic posts. As a reminder, the OP should feel welcome to post in this forum.

To the OP - Do you have any comments or questions that we can help you with?
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Sugar1
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Re: I just inherited $1 million

Post by Sugar1 » Sun Dec 08, 2013 6:48 pm

Thank you, for all of your replies. I guess I was not clear, Yes it is my wife's inheritance, but I manage our( hers and mine) investment portfolio, and I have done so for 25 years.

We are in our 50's and as I have said that I have been a reasonably successful individual stock investor, however with this new money, I am looking to develop an ETF strategy for it. We are reasonably well heeled, and I am looking for something that requires less effort and is better diversified, and hopefully will be more consistent. I am really looking for information, websites and discount brokerages that will help me develop a correct strategy for this new money. I am not looking for a financial plan, as I already have one in place. i am just looking for help developing an ETF strategy that will work for us.

Again, I appreciate any steerage in the general direction that I have elicited above that you may have. Thanks again in advance.

Mudpuppy
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Re: I just inherited $1 million

Post by Mudpuppy » Sun Dec 08, 2013 7:44 pm

Sugar1 wrote:Thank you, for all of your replies. I guess I was not clear, Yes it is my wife's inheritance, but I manage our( hers and mine) investment portfolio, and I have done so for 25 years.

We are in our 50's and as I have said that I have been a reasonably successful individual stock investor, however with this new money, I am looking to develop an ETF strategy for it. We are reasonably well heeled, and I am looking for something that requires less effort and is better diversified, and hopefully will be more consistent. I am really looking for information, websites and discount brokerages that will help me develop a correct strategy for this new money. I am not looking for a financial plan, as I already have one in place. i am just looking for help developing an ETF strategy that will work for us.

Again, I appreciate any steerage in the general direction that I have elicited above that you may have. Thanks again in advance.
You hit on a couple of pet peeves and that is why you got the nature of the replies you received. Even if your wife says she is not interested in the money, keep her in the loop. You're both in your 50's. Statistically speaking, she's likely to outlive you. It's better she learns about how you're handling the money now while she can ask you questions than for her to have it all thrust into her lap if you pass before she does. As someone suggested above, consider yourself the trustee of her inheritance, not the sole manager of it, and involve her in the process.

As for the strategies to use, the wiki is a great place to start. I'd start off with the following articles, but also browse around the wiki for what might catch your eye. See if your wife might want to read some of these too:
Managing a Windfall: http://www.bogleheads.org/wiki/Managing_a_windfall
Three Fund Portfolio: http://www.bogleheads.org/wiki/Three-fund_portfolio
Four Fund Portfolio: http://www.bogleheads.org/wiki/Vanguard ... _portfolio
Lazy Portfolios: http://www.bogleheads.org/wiki/Lazy_portfolios
Tax Efficient Fund Placement: http://www.bogleheads.org/wiki/Principl ... _placement

btenny
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Re: I just inherited $1 million

Post by btenny » Sun Dec 08, 2013 8:20 pm

Sorry but we will not teach you to hire some broker. We want you to get smart enough to do your own investing or if that fails how to hire a hourly index investment advisor. We think that is the best way for most of us to manage our money. We think that is the cheapest way and the best way to get rich over time. So please read on.

Do you have a good asset allocation plan? Do you personally really understand investing with mutual funds (previous generation etfs) and have read several books books like Asset Allocation by Roger Gibson? If not please read it.
http://www.amazon.com/Asset-Allocation- ... 0071478094

Have you really read the books and information in the Wiki about investing in general and how we here believe in index investing in a few simple mutual funds or etfs to make a simple portfolio? If not please read them.
http://www.bogleheads.org/wiki/Lazy_portfolios

Or have you just bought a few stocks and some bonds in the past and "think" you have done OK? Can you prove you have earned 7% PER YEAR every year for the last 15 years on ALL your assets?

Because people here are very sure of investment plans and most of us have been successful investors for years with these kinds of returns. We are index and low cost mutual fund investors. All of us have serious asset allocation plans that WE understand. We make our own decisions here, not some broker or fund manager.

So??? Please tell us some more and talk to us when you have read some further info about asset allocations and what you want to do.

Good Luck and have fun.....

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