Large Inheritance - Need Advice

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dliu123
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Large Inheritance - Need Advice

Post by dliu123 » Tue Oct 07, 2014 12:42 pm

Seeking help from investment pros.

I was fortunate enough to receive a large inheritance of 500K. I have purchase stocks on and off but never had such large amount to invest. I'm conservative in nature and don't like to take large bets / risk. With the market near it high and very large swings lately. How should I invest this 500K.

Questions:
1. Do I invest the full 500K immediately or use a Dollar-Cost Average strategy.
2. How should I break up the pie so that not all is in a particular asset class.
3. Should I look at short term bonds until market takes a healthy correction?
4. Some FA was suggesting buying whole life insurance policys which supposedly gives a 4-5% annual return. Does these whole life policy ever makes sense. Sounds too good to be true.

Thanks in advance for the feedbacks.

Dliu123

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gatorking
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Re: Large Inheritance - Need Advice

Post by gatorking » Tue Oct 07, 2014 12:45 pm


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runner9
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Re: Large Inheritance - Need Advice

Post by runner9 » Tue Oct 07, 2014 12:48 pm

Take option #4 off the table, it's only a good choice for the salesman.

Read the link about Managing a Windfall and don't make any big decisions for a while, just learn, think and consider.

(Assuming the money is currently in a savings account, etc under FDIC limits)

HawkeyeJD
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Re: Large Inheritance - Need Advice

Post by HawkeyeJD » Tue Oct 07, 2014 12:54 pm

1. If you are going to place your assets with Vanguard, I would call Vanguard Voyager Select services at 800-962-5167. With your level of assets, you would be entitled to things like consultation with a CFP professional from Vanguard anytime the need arises, or a more detailed financial plan for your long-term investment goals. If you are not at Vanguard, perhaps you could talk with people at that same number about whether opening an account is appropriate.

2. That said, I think Vanguard as the "good guys" giving you decent advice since they are not commissioned. Another excellent option would be to talk with a CFP that is flat fee-based (i.e. they charge an hourly rate for advice rather than a % of your assets) and see what they have to say. $500k, managed properly, can turn into a lot of money if you don't fall victim to flashy sales presentations and insurance salesman.

3. I would avoid all insurance products unless an estate law attorney (or a CFP/CPA type in some cases that does estate planning*) says you need those types of insurance products. Hint: most people do not. If you are particularly risk adverse, a conservative bond/CD type structure may make the most sense, and there are also excellent options such as mutual funds that are 30% stock and 70% bonds to give you some upside on the equity front but will preserve your nest egg pretty well over time as well or better than complex insurance products.


* Estate planning is not the same thing as the brokerage salesman talking about preserving assets and avoiding taxes as part of a flashy sales presentation. Actual estate planning is usually performed by an attorney that specializes in estate planning in conjunction with a CPA/CFA type. I know it can be hard separating the salesman from the actual professionals, but at least if you go to an attorney or CPA, they will have a fiduciary duty to be honest with you so that would be a good place to start.

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Raymond
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Re: Large Inheritance - Need Advice

Post by Raymond » Tue Oct 07, 2014 1:01 pm

Whatever you do, avoid the whole-life insurance policy.

Almost always, the person for whom it makes sense is the seller, because of those lovely commissions :greedy

For you, not so much.
"Ritter, Tod und Teufel"

jdb
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Re: Large Inheritance - Need Advice

Post by jdb » Tue Oct 07, 2014 1:09 pm

Your question about whole life policies was scary. My suggestion is put money in short term fund for several months. Read at least five of the Boglehead investment philosophy books recommended on this site. (Edit: at least The Boglehead's Guide to Investing). Peruse prior posts on this site at your leisure as to portfolio allocation, especially Taylor Larimore and Nisprius. Lots of wisdom there. Take your time, not a rush. And do not take advice from a financial advisor who makes a commission from selling products. Good luck and congratulations.
Last edited by jdb on Tue Oct 07, 2014 2:37 pm, edited 2 times in total.

dliu123
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Re: Large Inheritance - Need Advice

Post by dliu123 » Tue Oct 07, 2014 1:28 pm

Thank you everyone for the quick feed backs.

Some clarifications:

1. As much as I wish to, I don't think I have the time or smarts to manage the money myself or ever get good at it.
2. Reading up blogs is one thing but books would be impossible with 2 small children. (constantly running around for ativities).

I have heard many good things about Vanguard's but never spoke with anyone there. I do have a small 401K account with fidelity and was thinking of starting there in terms of gathering advice. From what I've read, their advisor are not commissioned based. Fidelity was not the one pitching the whole life policies.

But more importantly, is now a good time to invest? I definitely heard the saying "you can't time the market" but given I have no position in it now. What is my upside vs downside by getting into the market now? If I do go in, how much do I go in with? 25%, 50%, 75% or 100%. I don't want to receive a large inheritance but got into the market at the wrong time causing a short term lost of 10-15%. I know over time, it will recover evenutally.

Thanks again.

Gattamelata
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Re: Large Inheritance - Need Advice

Post by Gattamelata » Tue Oct 07, 2014 2:01 pm

dliu123 wrote:But more importantly, is now a good time to invest? I definitely heard the saying "you can't time the market" but given I have no position in it now. What is my upside vs downside by getting into the market now? If I do go in, how much do I go in with? 25%, 50%, 75% or 100%. I don't want to receive a large inheritance but got into the market at the wrong time causing a short term lost of 10-15%. I know over time, it will recover evenutally.
I think this depends on when you plan to use the money. For instance, money you'll need in five years is much more vulnerable to short term swings in market value, so I'd be more inclined to DCA the money than to invest a lump sum. But if you won't use the money for 10 years or more, I'd be more inclined to invest it all at once as soon as possible to maximize the potential compounding.

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dodecahedron
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Re: Large Inheritance - Need Advice

Post by dodecahedron » Tue Oct 07, 2014 2:02 pm

dliu123 wrote:Thank you everyone for the quick feed backs.

Some clarifications:

1. As much as I wish to, I don't think I have the time or smarts to manage the money myself or ever get good at it.
2. Reading up blogs is one thing but books would be impossible with 2 small children. (constantly running around for ativities).
You have more smarts than you think. As for time, hire a "mother's helper" (essentially a babysitter who entertains/watches/chases after the kids while you and/or your spouse are at home) to free up time for you to spend time reading books.

Reading and reflecting thoughtfully on the books recommended by Bogleheads is an investment that will pay dividends over the rest of your life. (And the going hourly rates for mother's helpers type babysitters can be very inexpensive--they don't need to be as old/mature/experienced as a babysitter you would leave alone with your kids because you and/or your spouse are nearby in the event of a crisis of any kind. Even regular babysitter rates are a lot cheaper than financial advisor rates!)

JustMe
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Re: Large Inheritance - Need Advice

Post by JustMe » Tue Oct 07, 2014 2:05 pm

dliu123 wrote: As much as I wish to, I don't think I have the time or smarts to manage the money myself or ever get good at it.
There's nothing wrong with using an advisor, as long as you find one who is reasonably priced and has your best interest at heart (harder to find than it sounds). Here's some advice from a long-time poster on finding an advisor, along with specific recommendations:
http://thefinancebuff.com/the-average-i ... d-one.html
dliu123 wrote: But more importantly, is now a good time to invest? I definitely heard the saying "you can't time the market" but given I have no position in it now. What is my upside vs downside by getting into the market now? If I do go in, how much do I go in with? 25%, 50%, 75% or 100%. I don't want to receive a large inheritance but got into the market at the wrong time causing a short term lost of 10-15%.
There's no rush, so take your time. If the money is currently in a bank account and you want to keep it there for a while while you investigate options, you should probably transfer some to a separate institution so the total at each is below the 250K FDIC coverage limit. But watch out for bank "advisors" or "specialists", aka salespeople; big-name banks have some of the highest investing costs anywhere.

Since you're risk averse you may wish to start by paying off any loans (possibly including your mortgage) if applicable.

RadAudit
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Re: Large Inheritance - Need Advice

Post by RadAudit » Tue Oct 07, 2014 2:12 pm

dliu123 wrote: As much as I wish to, I don't think I have the time or smarts to manage the money myself or ever get good at it.
Based on the fact you came here and asked the question before you invested, you have the smarts to manage your money yourself. A lot of folks do it the other way around. As for time, I think you can find five minutes a year to rebalance the portfolio back to your chosen asset allocation. Actually, the less time you have to manage the money, the better your results will likely be.
dliu123 wrote:Do I invest the full 500K immediately or use a Dollar-Cost Average strategy.
Immediately will probably result in the better returns over a 20 to 30 year period. Dollar Cost Average will prevent you from kicking yourself if the market tanks the day after you invest and result in only very slightly lower returns over the same period of time. Choose one.
dliu123 wrote:How should I break up the pie so that not all is in a particular asset class.
Read the three fund portfolio in the wiki or as a thread on this form. Other options are target retirement date funds.
dliu123 wrote: Should I look at short term bonds until market takes a healthy correction?
Short term bonds may be a relatively good place to put funds as you average in. Short term CDs may be preferable or a couple of good savings accounts in a few local banks. But I wouldn't wait for a healthy correction; we've been waiting for inflation to increase for years.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

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InvestorNewb
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Re: Large Inheritance - Need Advice

Post by InvestorNewb » Tue Oct 07, 2014 2:54 pm

I agree that you shouldn't be discouraged by the time it takes to "manage" your portfolio. I remember before I had any clue about investing, I was worried about making mistakes and had fears about making the wrong investing decisions and losing money.

Fast forward two years, and I have been successfully "managing" my portfolio since then - I use quotations because I think the word applies to something active and not passive. I spend about 30 minutes a year reinvesting dividends and that's it.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

Easy Rhino
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Re: Large Inheritance - Need Advice

Post by Easy Rhino » Tue Oct 07, 2014 3:06 pm

So, if a financial advisor hears you have an inheritance and immediately says "hey, you should buy a whole life insurance policy", then that guy is a jerk.

First read the wiki on managing a windfall.

Then think hard about what your goals are.

Then, if you want to have some bogleheads bounce around ideas anyway, then you can gather up information similar to the "asking portfolio questions" topic.

http://www.bogleheads.org/forum/viewtop ... f=1&t=6212

But remember you may not want to act decisively on any of this for a while to let the inheritance sink in to your psyche.

cherijoh
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Re: Large Inheritance - Need Advice

Post by cherijoh » Tue Oct 07, 2014 3:13 pm

dliu123 wrote:Thank you everyone for the quick feed backs.

Some clarifications:

1. As much as I wish to, I don't think I have the time or smarts to manage the money myself or ever get good at it.
2. Reading up blogs is one thing but books would be impossible with 2 small children. (constantly running around for ativities).

I have heard many good things about Vanguard's but never spoke with anyone there. I do have a small 401K account with fidelity and was thinking of starting there in terms of gathering advice. From what I've read, their advisor are not commissioned based. Fidelity was not the one pitching the whole life policies.

But more importantly, is now a good time to invest? I definitely heard the saying "you can't time the market" but given I have no position in it now. What is my upside vs downside by getting into the market now? If I do go in, how much do I go in with? 25%, 50%, 75% or 100%. I don't want to receive a large inheritance but got into the market at the wrong time causing a short term lost of 10-15%. I know over time, it will recover evenutally.

Thanks again.
I would strongly recommend you read If You Can by Boglehead William Bernstein. It is directed at Millennials, but would be appropriate for anyone who doesn't think they could manage a portfolio on their own. As Dr. Bernstein points out, listening to a FA could be one of the most expensive decisions you ever make.

Fidelity would be a better choice than the FI recommending whole-life insurance, but they tend not to be competitive with Vanguard on an expense ratio basis except for selected funds like their Spartan Index funds. Unlike Vanguard, they offer a bunch of load funds that jack up the expense ratios as well as high-ER actively managed no-load funds - so you would have to be a lot more careful with fund selection than you would need to be at Vanguard.

As a new investor with a windfall, I would NOT recommend dumping it all into the stock market but I would recommend moving it over to vanguard and setting up an appointment with one of their Certified Financial Planners. A short term bond index fund would be a good holding area for the interim.

Afty
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Re: Large Inheritance - Need Advice

Post by Afty » Tue Oct 07, 2014 4:32 pm

Consider using the Vanguard Personal Advisor service. They match you with a Certified Financial Planner for a 0.3% fee, which is much lower than most other CFP services. I've found their advice generally matches what you'd read here, and being as time strapped as you are is probably a good tradeoff to help you get started. You can drop the service anytime, once you feel confident managing things yourself.

This is different from the free CFP consultation in that (a) you'll have a CFP assigned to you that you will work with you over time, rather than as a one-time consultation, and (b) the CFP will actually implement the plan once you sign off on it.

TSR
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Re: Large Inheritance - Need Advice

Post by TSR » Tue Oct 07, 2014 4:39 pm

dliu123 wrote:(snip)I have heard many good things about Vanguard's but never spoke with anyone there. I do have a small 401K account with fidelity and was thinking of starting there in terms of gathering advice. From what I've read, their advisor are not commissioned based. Fidelity was not the one pitching the whole life policies.(snip)
Fidelity is a fine company. I use them for my Roth and I solely invest in the Spartan funds (FSTVX, FSGDX, and FSITX, which would all be great funds split three ways for you), which are very low cost index funds along the line of Vanguard. Personally, I would not use their advisor service, as my experience suggests that they try to put you in higher-cost funds. If you truly, truly don't feel that you have time to read up on this stuff (it's relatively simple, I swear!), then I agree with other folks that you should consider going to Vanguard and asking for the help of their advisors.

Best of luck. (And holy moly, don't do the whole life insurance!)

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BL
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Re: Large Inheritance - Need Advice

Post by BL » Tue Oct 07, 2014 4:59 pm

You have received some good advice.

Let it sit in a bank (or rather 2 banks) for a while while you think and study. Agree that paying for someone to let you do some reading and thinking would pay off in the long run. Take your time. Going slowly into equities is fine if that is what you are comfortable doing. No one knows what will happen to the market.

Vanguard would be my first choice as there are almost no expensive (high ER) funds, so any advice there would be without conflict of interest. They would have the lowest cost advisers or free. The 3-fund portfolio would work fine, and a target or Life Strategy fund like the moderate one (60% equities/ 40% bonds) would work quite well and be simple to understand. There is nothing wrong with buying Total Stock Market, Total International Stock Market, and a bond fund, possibly some tax exempt. Also use some of this money if you need help to fill your 401k and Roth IRA.

Fidelity Spartan funds are fine, but their advisers would suggest the expensive ones.

Beware of the local brokers/salesmen. They will convince you that their products are so much better than index funds. Of course, they are better for the broker!

Don't tell anyone about your windfall! Hope it is not too late! You will have people coming out of the woodwork to sell you insurance products, annuities, and other tax-avoiding products.

If you are less than 30 years from retirement, consider some I-Bonds at http://www.treasurydirect.gov/
You can only buy $10K/year, but they work for emergency funds as well as long-term inflation-protected bond investing.

Consider an umbrella liability policy.

dliu123
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Re: Large Inheritance - Need Advice

Post by dliu123 » Tue Oct 07, 2014 6:17 pm

Thanks for all the replies. Interesting how a forum like this have so many kind and sincere people that is willing to help, yet in the real world people are out to get your money.

From all the replies. I think this is how I'm going to go.

1. Talk with a Vanguard CFP to come up with a strategy.
2. Probably look into some ultra safe short term bond funds that will give better yields than bank's CD accounts.
3. Read up some of the suggestions and see how the Vanguard CFP's suggestion lines up to my goals.
4. Definitely use the DCA strategy to invest overtime. Probably over the course of 1 year to 18 months.

Much appreciate all the great advice.

Lafder
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Re: Large Inheritance - Need Advice

Post by Lafder » Tue Oct 07, 2014 8:33 pm

dliu123,
This is a great time to take a look at your overall financial situation. This 500,000 is not by itself, it is added to everything you already have and will be adding to it.

It is not as hard to "manage" your money yourself. The hardest part is getting some understanding of the risks of stocks and bonds, and choosing an asset allocation to match your risk tolerance, as well as % international desired. Once you decide that, it is easy to make a simple portfolio and rebalance it as little as once a year. If you want to just go with what many experts recommend, go with your age in bonds, rest in stocks, 20-40% international stocks. Or simply pick the closest target age retirement fund for a one step approach.

Vanguard, and Fidelity too will hold your hands through this. Especially if you are investing 6 figures that will be growing. They have free help available to get the money there, and lots of help to decide where to put it. And higher degrees of "management" on an ongoing basis if you want to pay the (small) extra cost.

This site is the easiest and best place to get quick advice and perspectives.

Once you pick an overall plan you are comfortable with, it will be more clear what to do with this 500k and how it fits in your total picture.

Also consider paying off any debt as a good thing to do with some of this money.

Consider posting everything you have like this that will make you answer the question what you want your asset allocation to be. http://www.bogleheads.org/forum/viewtop ... f=1&t=6212

lafder

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Re: Large Inheritance - Need Advice

Post by Ged » Tue Oct 07, 2014 9:33 pm

I would not use a Fidelity managed fund. I use Fidelity and they have pitched it to me a couple of times. It's a high fee active management account. Not good.

If you feel you must have an adviser I'd go with Vanguard.

As far as the guy who tried to sell you whole life, terminate your relationship with him as soon as possible. He's trying to rip you off. It's likely anything else he tries to interest you in will not be beneficial to you.

dliu123
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Re: Large Inheritance - Need Advice

Post by dliu123 » Wed Oct 08, 2014 9:04 pm

I've called up Vanguard for the different options they have.

1. Fund an account with 500K and they will provide complimentary CFP service to create a plan that aligns to my goal. But execution is depended on me.
2. Professionally managed account for about .3% of total asset. 100K will get a FA to help with planning, 500K will also get a CFP.

My questions to others.

1. Is the CFP service any use? Are they bias towards Vanguard?
2. Anyone have use their professionally managed service? Is it worth the .03 fee?

Thanks
dliu123

subham
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Re: Large Inheritance - Need Advice

Post by subham » Wed Oct 08, 2014 9:11 pm

ive looked at etrade and fidelity before settling on vanguard as the former two were a rip off at 1% commission for who-knows what phylosophy drives them.

the fact that you came to bogleheads with trust should be a good enough reason to explore vanguard seriously which is very pro-bogle (hint: who invented vanguard?)

the CFP was a God-send for me in the moment of analysis-paralysis. I am kicking myself why the hell i did not contact them 20 years ago when i started my career.

2stepsbehind
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Re: Large Inheritance - Need Advice

Post by 2stepsbehind » Thu Oct 09, 2014 6:07 am

dliu123 wrote:I've called up Vanguard for the different options they have.

1. Fund an account with 500K and they will provide complimentary CFP service to create a plan that aligns to my goal. But execution is depended on me.
2. Professionally managed account for about .3% of total asset. 100K will get a FA to help with planning, 500K will also get a CFP.

My questions to others.

1. Is the CFP service any use? Are they bias towards Vanguard?
2. Anyone have use their professionally managed service? Is it worth the .03 fee?

Thanks
dliu123
I would sign up for the complimentary CFP service to create a plan that aligns with your goals. Tell the CFP you are working with that you want a plan that is (1) tax efficient, (2) easy to execute, and (3) does not require much continuing work on your part (basically you want to set it and forget it). Come back here and post the CFP's suggestions and we can tell you whether they appear to be reasonable. Then, if reasonable, execute. I don't think you need the professionally managed service unless you are horribly confused after the consultation.
Last edited by 2stepsbehind on Thu Oct 09, 2014 6:26 am, edited 2 times in total.

2stepsbehind
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Re: Large Inheritance - Need Advice

Post by 2stepsbehind » Thu Oct 09, 2014 6:22 am

jdb wrote:Your question about whole life policies was scary. My suggestion is put money in short term fund for several months. Read at least five of the Boglehead investment philosophy books recommended on this site. (Edit: at least The Boglehead's Guide to Investing). Peruse prior posts on this site at your leisure as to portfolio allocation, especially Taylor Larimore and Nisprius. Lots of wisdom there. Take your time, not a rush. And do not take advice from a financial advisor who makes a commission from selling products. Good luck and congratulations.
As an aside, I think we do already skittish newbie posters a considerable disservice by exaggerating the effort needed to put together a reasonable portfolio. Not every individual needs to be steeped in boglehead philosophy to create a reasonable portfolio. The wiki http://www.bogleheads.org/wiki/Boglehea ... philosophy and perhaps one easy to read suggestion like the The New Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get on with Your Life - by Bill Schultheis or If You Can by William Bernstein provide a more than sufficient foundation. With all due respect to the authors, I would not recommend the Boglehead's Guide to Investing unless the poster expressed a desire to dig deep on personal finance issues because though that book is comprehensive, it is fairly dry and you risk newbies abandoning the project altogether rather than getting the information they need.

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BL
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Re: Large Inheritance - Need Advice

Post by BL » Thu Oct 09, 2014 8:35 am

http://www.etf.com/docs/IfYouCan.pdf
If You Can by a Boglehead, (William Bernstein)
16 pages with further reading suggestions. Also on Amazon.com.

Yes, it is not as hard as some folks make it. You don't have to do the analysis that some folks love.

You could use 3 funds and even if you never (well, almost never) changed anything, you would be miles ahead of giving your money to an adviser. (Total stock market admiral, total international stock market admiral, and fixed income (perhaps tax-exempt bonds) Vanguard will help you set it up.

Tigermoose
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Re: Large Inheritance - Need Advice

Post by Tigermoose » Thu Oct 09, 2014 8:51 am

Here are some things to consider.

I agree with other posters that you absolutely need to find the time to educate yourself properly. It is well worth it.


You have children. Invest up to the maximum tax benefit amount in a 529 College Savings plan each year (around 15-16k?). Choose an investment option that adjusts over time until your child is 18.

Make sure you have an "emergency buffer" in safe assets such as I-Bonds or an Online Savings account such as Ally Bank or Discover Bank that pays around .80% interest. Also set aside some money here for future car money, or any other big purchases you will need in the next 5 years.

Consider how "on-target" you currently are for retirement. If you are behind, then use some of the money for retirement. Make sure you max out your Roth IRA contributions. Consider upping your 401k/Traditional IRA contributions to reduce your current tax liability.

Consider paying down your house instead of putting money into bonds. Just make sure you have enough of an emergency buffer for cash liquidity in case of an emergency (putting the money in the house instead of bonds makes that money "locked" into the home, whereas with bonds you could access the money by selling the bonds).

Pay off any other debt you might have.

If you do need bonds, consider the Vanguard Intermediate municipal bond fund. The interest is tax free from the Federal Govt. You would still pay taxes for state and for any capital gains.

Look into purchasing an Umbrella Insurance policy now that you assets have increased and could be targeted by lawsuits.
Institutions matter

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Taylor Larimore
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The Three Fund Portfolio

Post by Taylor Larimore » Thu Oct 09, 2014 9:14 am

You could use 3 funds and even if you never (well, almost never) changed anything, you would be miles ahead of giving your money to an adviser. (Total stock market admiral, total international stock market admiral, and fixed income (perhaps tax-exempt bonds) Vanguard will help you set it up.
dliu:

This is a link to The Three Fund Portfolio:

http://www.bogleheads.org/forum/viewtop ... 10&t=88005

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Lafder
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Re: Large Inheritance - Need Advice

Post by Lafder » Thu Oct 09, 2014 2:11 pm

I have only ever used the "free" financial planning services Vanguard offers. Things may have changed. When I last did it a few years ago, before I found bogleheads, they made recommendations in writing with I believe 2 options depending on how aggressive I wanted to be and taking my current holdings into account. They told me they could carry out the transfers for me with my approval, or I could do it myself.

I chose an in between option where I was on the phone with a rep to confirm I was doing it correctly, as I did it myself. (With the regular account rep, not the financial planner)

If you have them make a plan and decide to go with it, it should be listed in your Vanguard account.

When you speak with the concierge service about transferring the $ they should have access to the plan and help you set up the needed accounts and arrange to get the right amounts of $ to the various accounts to match the plan.

My experience with transferring money into Vanguard is that they are extremely helpful and will make 3 way calls where ever the money is to arrange it to be transferred. Sometimes that means waiting for the other institution to send you the right forms to manually fill out and mail in. Other times it just takes the Vanguard forms to get the money moved. They absolutely will walk you through the steps. They patiently spent hours on a 3 way call with myself and an elderly relative helping her transfer her $. Including help get info on annuities and accounts the relative did not understand what they were.

(Removing $$ only takes a few mouse clicks to arrange a check be sent to me. I just wanted to be clear they are not just great about getting your money, they are easy about giving it back to you too)

Carrying out the plan will be easier than deciding what you want the plan to be!

lafder

dliu123
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Re: Large Inheritance - Need Advice

Post by dliu123 » Fri Oct 10, 2014 1:18 pm

Taking the advice of other here of putting some of the money into 529 plans for the kids.

Questions:
I have 2 plans.
One for Alliance Bernstein. Got con'ed by a HSBC FA thinking it was a NYS 529 plan.
One for NYS 529 now administered by JPMorgan.

I'm thinking of consolidating them into Vanguard to reduce the expense. Is there any tax implications of doing this? Performance wise, does it generate similar returns?

Thanks
dliu123

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