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/biz/ - Business & Finance

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357406 No.357406[DELETED]  [Reply] [Original]

My old man recently passed away and left me with over ~450,000. He saved his nickels and dimes for 25 years working a middle class job to pass it on to me. He never invested in anything more then CD's because he was scared to lose 25 years of hard work. What should I do with it? Sit on it? Go into business? Invest? Any ideas welcomed

>> No.357407

>>357406
Go into business, definitely. Remember, you need to get into things that will probably make money though.

>> No.357408

>>357406
if it was me I'd buy a house assuming he didn't leave you one of those also. Something medium sized in a nice neighborhood, somewhere you want to live. Then stay there.

Rest of it in a mutual fund.

>> No.357409

My Great-Grandma saved $5 a week and put almost every dime in CD and Money Markets. Due to inflation, her $5 weekly savings turned into over $500K when she retired which wasn't bad for a lady who worked part-time at a laundry mat. I received $200K last July when she passed away. The CDs haven't matured yet but I already plan to pay off my debts and go back to college (dropped out due to financial situation).

>> No.357418

How old are you? Do not fucking go into business. You sound so clueless that all you'd do is lose it all.

It should all go into some index fund like Vanguard.

>> No.357423

OP if I were you this is exactly what I would do:

>Take 100k and buy a modest but nice house on the edge of suburbia/rural area by wherever you live now; not too upscale suburban where you pay 250k for a 2 bedroom house, but not so rural that you're far away from everything like workplace/hospital/etc. You can get a ~975 square foot house for that price pretty much anywhere in the USA if you look around.

>100k in a checking account for comfort of not having to worry about necessity bills for a very long time.

>100k in a low-risk mutual fund if you're over the age of 40, high-risk if you're 30 or younger.

>100k for a new car/wardrobe/hobby items that you've always wanted and can help you make more money in the long run. No need to do the car thing unless you're driving an unreliable one, however. Also, get brand new Honda - Not a fucking brand new Lexus.

>50k to travel around the world and find yourself while remembering your father.

Sorry for you loss, friend. My pops kicked it when I was 17 and never got to see me grow up to be a successful man ;_; I hope for your own sake you got to spend far more time with yours than I did with mine. He sounds like he was a great person and a smart man.

>> No.357428

>>357418
25, currently finishing my masters.

Quite clueless, yes. Nothing I can't learn

He left me with his house as well.

>> No.357435

>>357406
I'd invest 25% in VFINX, 25% in short-term treasuries, 25% in long-term treasuries and 25% in physical gold.

>> No.357441

>>357406
Lucky. I wish my old man would leave me a huge chunk of his assets, but he's a stingy nazi.

>> No.357442

>tfw dad died when i was 15 but was a broke alcoholic cancer patient
>tfw all my grandparents died my uncles and aunts sweeped in like vultures and took everything

Dammit OP i wish I had an inheritance. I just inherited my dads alcohol problem. good luck with the 450k be smart about it.

>> No.357446

buy butt coins

>> No.357456

>>357442
>died when i was 15 but was a broke alcoholic cancer patient

>tfw mine died when I was 17 but was just an alcoholic

My dad wasn't broke by any means, but he had such a shitty life insurance policy that it barely covered the funeral. I guess no one really expects the extra cash for life insurance to be worth it since no one expects to die at 44. I didn't get any inheritance either, but he left a small company of his to my mom, and holy shit is that woman amazing; she literally quadrupled the annual revenue in the first 3 years of taking it over.

OP life is never easy, but like I was in comparison to the anon before me, you are in comparison to me dealt a better hand. Use your brain and don't act impulsively and you'll be fine - if not a gorrilianaire

>> No.357497
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357497

Personally, I have a business idea of what to do with my inheritance, but short of accident or terminal illness or other unexplained phenomena I most likely won't get much of that money any time soon. But hey you never know. God may want me to become a business owner.

But the business I was thinking of getting into is something I am pretty familiar with. If you want to start a business get into something you are trained for and have a good deal understanding of. Maybe something related to your college education.

Otherwise teach yourself some investing.

Safe ways to earn money is to invest in ETF indexes like SPY and what not. Don't invest all of your $450K into though.

Mutual funds aren't bad if you really don't understand the market either.

Personally, I'd start a ROTH IRA account and throw $100,000 in there with mutual funds to play it safe for retirement by 60.

I like playing with the markets so I personally would buy growth stocks. However, if you aren't familiar with the stock market, you shouldn't do this except with play money say $10,000 just to experiment with.

>> No.357512

>>357418
This, you can even buy admiral shares

http://www.marketwatch.com/lazyportfolio/portfolio/yale-u-portfolio

>> No.357543

>>357435

This is reasonably good, but a even better option would be:

>20% total US stock market (VUSTX)
>20% total int'l ex-US stock market (VGTSX)
>20% long-term corporate bonds (VWESX)
>20% short-term Treasuries (VFISX)
>20% gold (Don't buy stupid shit like coins, $100k is enough to skip straight to kilo bars)

Alternately, if you don't want to bother managing your own money at all, the Permanent Portfolio mutual fund (PRPFX) will basically give you this allocation, though the expense ratios are about four times higher than you'd pay with the Vanguard clone of it.

>> No.357576

>>357435
Fuck treasuries, yields are below inflation.

You're guaranteed to lose money

>> No.357594

omg find a professional broker you trust and pay them to invest your money

I.like Euro Pacific Capital

you will fuck everything up trying some of this shit

>> No.357606

$250,000 -- Index Funds & ETFs but watch out for synthetic risk. Weight it with a reasonable amount of international exposure (ex. my portfolio is ~65% US, 10% UK, 5% Japan, 5% CAN, 15% BRIC).
$100,000 -- A or higher corp bonds
$100,000 -- Government bonds

>> No.357619

>>357543

There's a permanent portfolio backtesting tool at peaktotrough.com/hbpp.cgi

>> No.357623

>>357576

It's a passive strategy. That allocation has earned 3-6% real returns since the early 1970s.

So it's a good choice for someone who's uncertain about the future of neoliberal globalized corporate capitalism.

If you're sure that corporate profits will rise, buy VFINX. If you believe the opposite, buy gold and guns. If you could go either way, PP is a sensible choice.

>> No.357740

>>357406

$2k in the checking $15k in a money market fund, everything else in an ETF fund, max out the Roth IRA every year

You're welcome

>> No.357765

>>357428
If you scored a crib too, just put everything into an index fund. Do a bit of research though, or pay a pro for some advice on minimising taxes.

>> No.357784

>>357623
"since the 1970s"
Lots of things have happened in the past. Investments are forward looking. Right now, if you purchase treasuries, you are going to lose money to inflation

>> No.357799

>>357406
high class escorts and blow
just a little

>> No.357805

>>357423
>upscale suburban
>250k

does this actually exist

>> No.357822

>>357423
>Take 100k and buy a modest but nice house on the edge of suburbia/rural area

I would advise OP to only buy a house in a place with no property tax.

>> No.358873

>>357805
>does this actually exist

Absolutely.

A 3-4 bedroom house in Western MA, in any town outside of Springfield without a shitload of blacks? Quarter-mil easy.

>> No.359061

bitcoin/gold bars obv

>> No.359266

>>357406

also look into bankoholic.com and money market rates.

Ally Bank offers like .87% interest right now

start reading the mr money moustache blog as well.

>> No.359274

Assuming that amount is USD, I would sit on it until an opportunity arises, throw 10K or 20K at it, and forget about it.

An opportunity would have been buying Russian stocks at the height of the Ukraine crisis.

>> No.359275

Put half of the cash into quality bonds, but the other half into an brokerage account. Buy blue-chip stocks and sell covered calls.

>> No.359277

>>357406

House free and clear.
significant portion in stocks that pay dividends.
the rest?
commodities (food, gold/silver, guns, ammo)
start a business or side business.

>> No.359281

Start your own business or put it in a savings account I would say. If he didn't want it risking personally I would respect that, although thats just me.

>> No.359303

Right now would probably be a really good time to buy Target (TGT). They're averaging in the high 50's when they should be in the high 70's or low 80's.

They're the third largest retailer, with formidable marketing and branding strategies and nearly as overwhelming a national presence as Wal-Mart. It's the damn data breach that's hurting them.

But Americans are stupid. One week, it's their neighbors stolen credit cards. Next week it's a missing plane, then some crazy rancher or basketball owner. Pretty soon it'll be time for back to school shopping then Christmas.

Targets too strong not to bounce back. They're already showing mild to moderate growth.

It would only cost you a couple thousand to get in.

>> No.360975

>>357406
invest in africa! they market is much bigger then you could think

>> No.361048

ask the internet of course

>> No.361053
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361053

>>357512
>that fund is getting thrashed by the S&P 500

Why

>> No.361088

>>357406
>start your own business
That is some of the worst advice anyone could give you. Do you fuckers even try to think about what you need besides capital to run a fucking business? Oh yeah throw it all into a high risk venture of course that's the best plan for someone with what I am assuming very little knowledge of business/investing since you're asking fucking 4chan. Most people on this board don't know shit. Talk to a professional about what to do with your money, they have way more knowledge and resources than these fuckers. Just make sure they are putting your interests before their own (which admittedly is hard to do). Do your homework and soak all the knowledge you can. Or you'll end up some dumb nigger that got scammed out of his inheritance.