Business & Investing
Sponsored by

Investing an Inheritance

988 Views | 5 Replies | Last: 7 yr ago by JR2007
JR2007
How long do you want to ignore this user?
AG
My grandmother passed away just over a year ago and I inherited a portion of her annuity. I sat on it this long to see what taxes I would be accountable for, as well as make sure I didn't make any rash decisions. Little did I know the S&P would climb nearly 20%. After the tax season I plan on investing in index funds and putting a portion in a high interest checking account at 3%. I'm 32 years old, single, 401k and Roth maxed, and only debt is a mortgage at 3.5%. I've seen studies that historically show investing a windfall as a lump sum wins ~70% vs a series of investments over time, however it's hard to pull the trigger when the market is riding an all time high and has felt like it's been due for a correction for several years. What are yalls take on an investing strategy?
FriendlyAg
How long do you want to ignore this user?
In 20 years, there will be a new all time high from where we are now.
DriftwoodAg
How long do you want to ignore this user?
AG
JR2007 said:

My grandmother passed away just over a year ago and I inherited a portion of her annuity. I sat on it this long to see what taxes I would be accountable for, as well as make sure I didn't make any rash decisions. Little did I know the S&P would climb nearly 20%. After the tax season I plan on investing in index funds and putting a portion in a high interest checking account at 3%. I'm 32 years old, single, 401k and Roth maxed, and only debt is a mortgage at 3.5%. I've seen studies that historically show investing a windfall as a lump sum wins ~70% vs a series of investments over time, however it's hard to pull the trigger when the market is riding an all time high and has felt like it's been due for a correction for several years. What are yalls take on an investing strategy?
Where are you getting a checking account at 3%
RK
How long do you want to ignore this user?
AG
I think he omitted a decimal on the front end. Or he time traveled to ~2007.
JR2007
How long do you want to ignore this user?
AG
Check out Max Checking at https://www.lmcu.org/

Requirements are direct deposit, minimum of 10 debit purchases each month, minimum of four logins to your account each month, receive estatements, and donate $5 to ALS. I believe you can get 3% on up to $15000. The guy I know who told me about it direct deposits a portion of his pay to this account and purchases 10 $0.50 gift cards through amazon each month.
Whitetail
How long do you want to ignore this user?
AG
Uh....Max Checking Account for $1 - 14,999* is 3%, but 0% interest for over $15k.

$450 per year for $15k....$450 per year for $150k

Sounds like a lot of work for $37.5/mo.

How much money are we talking?
JR2007
How long do you want to ignore this user?
AG
Thanks for pointing that out. I obviously haven't looked closely at all the details yet and didn't realize it I had planned on keeping only the max of $15000 and direct depositing 1%. As far as a safe non-stock option for that portion, you think a bond fund is a better option then?

Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.