$900K Inheritance

[Anonymous No.12877759]

I have a $900K inheritance. What should I do with it so that it grows and stays secure while paying me passive income.

No crypto.

[Anonymous No.12877767]

>No crypto.
kill yourself brainlet

[Anonymous No.12877780]

>>12877759
Idiot...
BUY CHAINLINK

[Anonymous No.12877796]

>>12877759
You do know what "death tax" is, right anon?

[Anonymous No.12877811]

hold 450k fiat

put 450k in BTC, sell at 100k+ per btc

[Anonymous No.12877825]

>>12877759
I'd say rental properties. If you can buy cash and don't have to mortgage it then you can probably afford to pay a property manager to take care of shit for you and deal with the tenants. Value isn't exactly guaranteed to grow though the housing market is definitely in another bubble.

[Anonymous No.12877826]

>>12877759
no crypto no candy

[Anonymous No.12877844]

Throw into an index fund (VTSAX) and rental properties

You literally don't have to wagecuck EVER again

[Anonymous No.12877878]

>>12877759
Grab a few apartments for 80-100k each. Pay off the loans. You’ll have 3 rent checks each month for a long time.

[Anonymous No.12877892]

>>12877759
It would be an easy call if the stock market didn't seem so over-valued right now.

If it was me I'd probably put 25% into silver, 25% into stocks (personally I'd look into under valued large cap stocks rather than in index fund in the current market), 25% into bonds, 10% into REITs, 10% into cash, and even though you said no crypto 5% into crypto.

[Anonymous No.12877907]

>>12877826
based

[Anonymous No.12877909]

>>12877759
Buy a duplex or something similar with some of the money. Invest the rest in a combination of equity and bond ETFs. If, after a year or so, you find that being a landlord works well for you, shift more of the money into rental properties and start leveraging your property investments.

>>12877796
It depends on the size of the entire estate, but it is likely OP's inheritance is well below the federal estate tax exemption level. There could be some state-level estate tax depending on what state OP is in, but that probably wouldn't end up being much if anything.

[Anonymous No.12877913]

>>12877759
>No crypto.
based

[Anonymous No.12877917]

>>12877913
t. nopants

[Anonymous No.12877924]

>>12877759
Vanguard mutual funds
CDs
Index funds
5% in high risk like crypto.

[Anonymous No.12877929]

>>12877924
What's is your yearly return on this combo?

[Anonymous No.12877942]

>>12877878
Just don't buy property in the ghetto, you want financially stable, preferably white tenants. No welfare rats, tweakers or college kids. They will fuck your property up.

[Anonymous No.12878035]

>>12877924

What fees do you pay on your Mutual funds, how much does it eat into your networth and what kind of return do you get from that combo as >>12877929 said.

[Anonymous No.12878074]

>>12877759
With 900k you should go into bonds. They usually trade in lots of 100-200k so it's hard to get in if you're poor. Buy short-term (3 years tops). That way you won't care about price fluctuations and you only need to make sure that the company doesn't go under.

There are a ton of options for you to choose from. Pick companies that are right above investment grade or slightly below it as a general rule of thumb. That's where you can earn some money 5-10% annually and be pretty sure that the company doesn't go under.

You can also speculate on that market sometimes, and earn quite a bit. About a year ago the biggest Brazilian meat manufacturer JBS S.A. had some political problems but otherwise their business was solid. Their bonds went down quite a lot. I bought them. They bounced back pretty quickly so I sold them and made about 20% in a couple month.

If you don't wanna bother, just buy a short-term bond fund that you like. There are evem short-term ETF bond funds.

[Anonymous No.12878097]

>>12878074

I'm usually quite busy so i'm looking at a more handsoff approach. I know actively managed funds get a bad rep, but I kinda like the monthly distributions they give out and although I am getting scalped through fees I don't mind as long as I attain that monthly dividend that I can use to compound.

How safe are mutual funds? Can I go all in on 1 mutual fund? They offer diversification.

[Anonymous No.12878104]

>>12877796
The cost basis of your inheritance is the same as the decedant’s date of death.

[Anonymous No.12878117]

>>12877796

I don't live under US jurisdiction and I am not a US Citizen.

[Anonymous No.12878198]

>>12878097
It all depends on what you want to achieve. I personally just want to cover USD inflation and have like 3-5% on top of that.

I personally try not to touch anything related to stocks and avoid actively managed funds. The stocks are very volotile, the US stocks are overvalued af, actively managed funds just suck up all your money on commissions, and perform worse than the market.

With bonds you get less risk, less volatility, and if you're doing short-term bonds (1-3 years), the only thing you really care about is the likelihood of a company defaulting on its debts. Obviously, with less risk you get less of a chance of a huge profit but you're not as likely to get fucked by the market.

Also, some bond markets can be incredibly lucrative. Especially EM bonds which can be way more lucrative and less risky than US stocks.

If you don't wanna actively manage your money I suggest two ETF bond funds managed by Black Rock:

iShares 0-5 Year High Yield Corporate Bond ETF
And
iShares iBoxx $ High Yield Corporate Bond ETF

They're pretty good and low cost.

[Anonymous No.12878222]

>>12877759

My inheritance was exactly 1.5k

[Anonymous No.12878311]

Buy a subway franchise.

[Anonymous No.12878463]

>>12877767
Fpbp as usual

[Anonymous No.12878702]

>>12877796
>be american
>get shot
>be taxed for it

[Anonymous No.12878716]

>>12877878
>tfw large inheritance
>gonna get in when I’m 60 because it will go through my mother 100%

[Anonymous No.12879176]

The average expense ratio for actively managed mutual funds is between 0.5% and 1.0% and typically goes no higher than 2.5%, although some fund ratios have gone higher. For passive index funds, the typical ratio is approximately 0.2%. Expenses can vary significantly between different types of funds.

Let us assume that mutual fund ABC is no-load, with no hidden charges, and an expense ratio of 1%. Index fund XYZ has an expense ratio of 0.2%. Shouldn't make much difference, right?

Wrong. If both funds achieve the exact same return, 20%, then after 10 years of compounding there will be a 6.9% difference in returns, and after 20 years it shoots up to 14.3%.
Let's apply that to some real figures now: your $900k, invested and compounded yearly. Let us also assume a more reasonable average return of 10% per annum. Using XYZ, you'll make $161,643 more in 10 years, and $794,369 more in 20 years, than you would have if you chose ABC.

Clearly, then, index funds are the best option. If you really want to be convinced, then simply look up how many mutual funds actually outperform the market (and don't forget to account for survivorship bias).

[Anonymous No.12879192]

>>12877767
>heavy bagholder

[Anonymous No.12879783]

>>12879176
Is it not important to see by how much they outperform the market when they do?

[Anonymous No.12880099]

>>12877759
>No crypto.

[Anonymous No.12880125]

>>12877796
you do know the minimum estate size to pay a death tax is $11.18 million right? over 100x what this inheritance is.

[Anonymous No.12880173]

>>12877759
https://www.bogleheads.org/wiki/Main_Page

[Anonymous No.12880367]

>>12877844
second, but just wagecuck a bit, for the experience and to increase your wealth over a year or so, you can leave the fuckers whenever you want once your yearly passive income is enough for you to live comfortably, not to mention you know (unless you splurge it all on cocaine and whores over a week) that you probably are the only motherfucker in the entire office building (unless the C-suite for the entire company happens to be there as well) who will actually be able to afford retirement

[Anonymous No.12880378]

>>12880367
oof, meant increase your wealth over a few years or so

[Anonymous No.12880788]

>>12877759
sell covered calls or covered puts for monthly income

[Anonymous No.12881513]

[Anonymous No.12881535]

My grandfather left me $2000 when he died, and my father $5000 and a 1980 ford truck.

[Anonymous No.12881554]

mortgage swaps.

[Anonymous No.12881561]

This is a LARP, but fuck it. Either (a) build your own fallout bunker with supplies, or (b) blow it all on hookers and booze while you can..... we're getting close to the end of the road. You'd have to be a brain dead moron not to see that!

[Anonymous No.12881579]

>no crypto
all in bitcoin
do it now goy

[Anonymous No.12881585]

>>12877759
Put at least 10k in internet funny meme money. If it sinks to zero you gonna have nothing to regret, if it moons you gonna be more rich, maybe even have the double o triple of your total inheritance if you play you cards well.

[Anonymous No.12881598]

>>12877759

Asian gf

[Anonymous No.12881614]

actually hire a financial adviser and don't ask retards on the internet

[Anonymous No.12881660]

>>12881614
Yes goy. Give money to a Mr Shekelstein so he can loose it for you.

[Anonymous No.12881708]

>>12881660
Well said

[Anonymous No.12881713]

at least buy 10 bitcoin. less than 5% of your total inheritance. then do safe shit with the other 95%. hold them for at least 5 years. you can't lose.

[Anonymous No.12881765]

>>12877759
You have 3 statistically viable choices.
>A 3-4 fund portfolio (check Bogleheads). This is the safest, but lowest return, rebalance every quarter/year
>All in VTSAX, higher return, higher risk, completely passive
>Leveraged real estate (most tax benefits, lower unlevered return, highest levered returns that cannot be called), requires some effort to actively seek new deals and manage properties. I would do 25-50% down in your situation, but make sure the properties you buy are undervalued.

[Anonymous No.12881808]

OP if you listen to bondanon above you are going to get destroyed in the coming decade.

Unironically go long the USD if you want piece of mind.

[YOU BETTER SAGE THIS SHIT No.12881892]

>>12877767
this. fuck op. he'll lose it all to inflation before he even fucking does the die.
he'll die poor and peniless in the streets homeless

>USD fiat is going to crash and go to true $0 by 2100

[Anonymous No.12882007]

invest most of it in good mutual funds that beat the S&P, keep a bit of it liquid in a money market account. live off the 10+ percent it makes a year.

maybe put some in real estate income properties but make sure you make your money at the buy, not in the rent.

don't do all this shit yourself, invest in a good no bullshit investment pro that puts his money where his mouth is instead of selling you shit.

[Anonymous No.12882202]

>>12877759
put in S&P 500

[Anonymous No.12882211]

>>12877844
second

[Anonymous No.12882221]

>>12882007
What "good mutual funds" beat the S&P over the long haul? Yes, I'm ready to call you out on your bullshit.

[Anonymous No.12882237]

>>12877844
this but work part time and live modestly
it's financial security and freedom that makes you happy not luxury goods

[Anonymous No.12882251]

>>12877759
Buy up realestate rent out if you want you'll get more valiue you;'ll have something physical with value or you could buy internet coins

[Anonymous No.12882299]

>>12877759
Boomers are FINALLY starting to die off. S

Congrats on your inheritance.

[Anonymous No.12882306]

>>12877759
>No crypto.

[Anonymous No.12882380]

>>12880125
You are right but you might want to check your math. The death tax thing is a scare tactic. If you are inheriting enough to get taxed chances are you dont give a shit about the tax

[Anonymous No.12882545]

buy iraqi dinar. guaranteed pump.

[Anonymous No.12883280]

[Anonymous No.12883314]

Buy dividend stocks my guy. With like 500k you can make 40k a year just on the dividend returns. If prices go up you make more on top of that.

Anyways when you make that much a year doing nothing you have all the time in the world to do what you actually want, the problem is figuring out what that is

[Anonymous No.12883777]

>>12877844
Unironically this, wagecuck to push it over 1mil if you have to and just let it sit and gain interest then go out doing things you enjoy knowing you'll never need to worry again

[Anonymous No.12883810]

>>12877796
>living in a country with inheritance and other nonsens taxes like tax on lottery winnings
Murica lmao

[Anonymous No.12883895]

>>12877759
Why not put 200k in btc tho at least?