Thanks especially for the article Managing a windfall This is very helpful. I'm definitely at the "Establish Goals" part. I guess that is the crux of my problem, I never really expected this to pay off and consequently I don't have any goals.
Here is the background before my question ... from the Prioritizing Investments link:
- Contribute to the work-based plan (401(k), 403b,) Done
- Pay off high interest debt - We have no debt at all
- Contribute to a Health Savings Account (HSA) - N/A
- Contribute the maximum to an IRA Done
- Contribute the remainder of the maximum employee contribution to the work-based plan, Done
- College funds are established for all kids and are well funded. Kids are 14, 13, and 11. I've put enough in their 529 plan that I'm starting to wonder if I should scale it back a little.
- We have far more than enough in our emergency fund
- I have a decent sized life insurance policy on myself
- I am 45 and plan on working for about 20 years. My FIRE plan has a 100% chance of remaining positive with my planned spending
- Roughly 10% is already going to charity, that is the fun part!
- This windfall represents 85% of my investable money
We just sold our company and I've got to find something to do with a healthy sized chunk of cash, high 6 figures. We have absolutely no financial needs or wants so I need to find something to do with this money. Right now, I have it parked in the highest interest savings accounts I can find.
How do I invest when I don't even know what I want to do with the money? Since I don't know what to do, I can't set my time horizon so I can't be sure how much risk to accept. At the same time, I can't just let it sit in a savings account. At best it is keeping up with inflation but that is not a long term strategy.