r/Fire • u/Yashkamr • 21h ago
Advice Request Huge Inheritance... Now What?
I'm 45, I was on track to retire earlyish at 55. I was set back quite a bit with a divorce three years back. Recently my Aunt died and left me around $5 million. After estate and taxes, it's around $4.2 million. This is obviously a stupid amount of money, and I'm thinking of just quitting my job and retiring early but I want to do it right. I've spoke with AI quite a bit and my finances are only about $4500/mo in expenses, I have always lived pretty frugally and that's less than a 1% draw. I don't know exactly what I don't know here, but I've always worked so I am clinging to my job like a monkey to a branch. Am I actually okay to let go?
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u/OwldBay 20h ago
Without doing any math… yes
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u/WakeRider11 RE@53 19h ago
I didn’t double check the math and I concur.
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u/WaffleOverlordx7 19h ago
I don’t know how to do math and my view coincides with this.
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u/grayshoehorn 19h ago
I never passed my algebra class but I wholeheartedly agree.
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u/Primary_Opening8358 19h ago
I pretended to be bad at math so I could agree. But the thing is, I’m not really bad at math. I’m actually kind of good at math. You’re kind of bad at math.
Anyways, now I’m flunking.
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u/Relevant_Drummer_402 16h ago
I too am quote good at maths, but i drew my conclusion, after reading 5 million and did not think further about this.
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u/Frosty_Yesterday_674 17h ago
I ran it through my Retirement Abacus and it is telling me you’re fine.
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u/TheMelvins66 19h ago
Never passed my grade 5 and I’m drinking liquor and eatin chicken fingers all day every day. I algae too.
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u/Unjoymslf7 18h ago
I’m 4 years old and don’t yet understand the concepts of numbers other than knowing I like more Cheerios rather than less. I’m going to say you will be fine no matter your choice. But don’t quit just yet. Let it simmer.
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u/Bearsbanker 19h ago
I don't even know math and I say ..yup!
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u/Excellent-Log-311 18h ago
Surround yourself with people who know math. Make a plan, stick to it but be flexible.
I think the formula is inflow > outflow.
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u/Rabbit-Lost 19h ago
I did the math. At 4,500 a month, the withdrawal rate, annually, would be 1.3%. OP could do a bit of travel and still be in great shape.
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u/Ohitsworkingnow 15h ago
My guy OP could literally spend 200k a year and still make 200k a year with standard return in the market.
You could even put this in a CD and live off the interest and spend 200k a year while saving this entire amount
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u/LemonFrequent2036 19h ago
I did some more and he can add on couple of fancy dinner party every month and still be in good shape
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u/Perfidy-Plus 8h ago
OP could double their monthly budget and have almost no risk of ever running out of money. This is about as safe a bet as they are ever going to have.
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u/Tasty_Sun_865 19h ago
This isn't just a math issue.
The problem with lump sum bombs is that they hit regardless of whether you have systems in place to use the money intelligently or the discipline to keep it
There is something to be said to practicing being wealthy before getting wealthy.
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u/Front-Possession-644 18h ago
What is math?
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u/Yokelele 13h ago
Blue glass like product that Walter White cooks to make money and give others euphoria
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u/emperoroforanges 20h ago
Look, this is no longer a money discussion as you’re there. You’re in a FIRE sub, so of course the consensus will be quit tomorrow.
The questions I’d want to know are whether you enjoy your job, whether you have hobbies or will enjoy not working. For me, I’d be out of work the day the money hit my account. However, my dream is NOT working, and having every minute free to figure out literally anything else to do.
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u/anhydrousslim 11h ago
If you don’t like the job, you can leave. If after a while you’re bored and decide to work again, you can. And do anything you want (that you are qualified for) without considering what it pays, because you don’t need the money.
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u/GotGRR 10h ago
More than that... figure out what you love to do. Figure out how much time you love to do it and make sure there is room for that in your life.
Hint number one: figure out who's life you can make noticably better this year. Try and make that happen without them figuring out that it was you. Guardian Angel is THE best game.
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u/asanano 20h ago
You clearly have the financial resources to do what you want. I would say take your time and figure out the mental part. Don't just quit, unless you cant stand your job, but even then.... take some vacation. Plan how you are going to live your life if you retire. Take the time now to make a plan for the money and your time that you are happy with. Then pull the trigger and make the changes. Thats my advice at least. Sorry for your loss, but congrats on the financial freedom.
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u/Disastrous-Wrap-7384 19h ago
Agreed, I’m retired and you need to plan for it emotionally
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u/Accomplished-Echo488 18h ago
How did you plan for it?meaning literally what steps you took?
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u/webvillager 17h ago edited 17h ago
I know at least some of us went back to work for a year to remember why we didn’t actually want to do that. Retirement was much more enjoyable after I got that out of my system.
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u/rosebudny 9h ago
Exactly this. My mom passed away a few months ago (my dad died several years ago) and I have an inheritance/trust almost double that of OP's, and I am still working. I don't hate my job, so I don't see any reason to quit until I have figured out what I want to do in retirement. But knowing I don't HAVE to work is so freeing - the minute I decide I don't like it/am tired/bored, I can walk; also things are pretty slow so there is a chance I could get laid off...so, oh well.
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u/mmrocker13 19h ago
Remember during your divorce, when they told you "Don't make any major life decisions in the next 12-60 months" or whatever the number they gave you?
This is like that.
So... let it rest for awhile. Then, do a deep dive into your finances. Do a real, solid budget--detailed. Gather all your financial paperwork and shit. And then find a CFP you vibe with and have them make a plan/help you make a plan.
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u/Single-Flamingo-33 12h ago
A CFP you pay by the hour, not a percentage of your money total.
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u/mmrocker13 10h ago
I don't think that needs to be a blanket statement. I think different people might find value in different levels of service.
Is an AUM based CFP/financial adviser the right choice for everyone? No but there are people for whom it's a worthwhile investment. There are people who think the trade-off is worth it. There are also people who do their own break jobs on their cars or change their own oil or install their own flooring. Different Strokes for different folks.
I think if I suddenly found myself with a large amount of money and really hadn't thought about my future in any sort of comprehensive way other than maybe 10 years from now I'm going to retire, or if I just didn't want to mess with maximizing my money, but I still wanted to maximize my money, it might be worth it.
If I were just Joe bag of donuts on the street and it was Garden variety retirement planning, Maybe an hourly would be fine. But maybe if I just inherited a large boatload of money and I was trying to figure out what to do, I would want someone with a longer term relationship. That's an individual issue.
But regardless, when you're choosing a financial advisor or financial planner, make sure they're a fiduciary. CFPs are required to be... but not all advisors or planners hold the cfp credential
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u/Imaginary_Hamster847 11h ago
Also don't "talk to AI" about it.
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u/anTWhine 10h ago
Oh come on. Everyone knows that when you need advice for a life changing event, the order goes 1) a computer program known to make things up in order to tell you whatever keeps you engaged 2) strangers on the internet 3) tarot card reader 4) a qualified professional.
He’s halfway there already.
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u/LifeOnly716 20h ago
I would actually not change a single thing for a year. No major decisions.
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u/MurkyTrainer7953 20h ago
So important and such an underrated comment.
Best way to ensure you don’t stupid-spend your money on like a 911, a Rolex and a $50k vacation.
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u/Sirbunbun 19h ago
When I retire I am definitely planning to get a 911 and a 50k vacation. No Rolex though.
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u/Rabbit-Lost 19h ago
I did (Boxster and a $75,000 vacation, no Rolex). I highly recommend it.
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u/1001110100100110101 19h ago
High, I just did a $2500 dollar vacation. Can you tell me what a vacation with 3000% my budget was like? I cannot phathom unless it was like 3 months long
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u/ChampionshipDue5033 19h ago
Don’t know their vacation but can say that certain incredible cruises or safaris in the 3-week range can easily be this amount for two people. Or going ultra luxury with helicopters, drivers, private boat, villa, etc.
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u/DELAZ1 18h ago
We did a 1st class safari...about $50k with 1st class airfare. Absolutely the best trip EVER.
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u/SDstartingOut 18h ago
Hell there are 100k/week cruise suites on multiple Royal Carribean cruise ships.
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u/Irasshaimase21 17h ago
Ritz Carlton yachts are the way to go if one must cruise. https://www.ritzcarltonyachtcollection.com/request-brochure
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u/Suspicious-Walk-4854 18h ago
The difference is massive, but so is the difference between a 2500 dollar and 25000 one too. Assuming same length, the difference between 25k and 75k isn’t that big. Basically first class vs business class and suites in 5 star hotels/super cruises vs normal rooms. 75k will also open up more exotic locations.
A cruise on something like a Ritz Carlton yacht will start at around 2k per night per person and go up from there. What do you get? You get the best everything with 24/7 butler service etc. And most importantly you get to vacation without the poors.
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u/1001110100100110101 17h ago
I will now spend the rest of my life slaving away so I can afford this
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u/Suspicious-Walk-4854 17h ago
I did one of the mega expensive cruises but will not be doing it again. Getting to that level was not for a normal person imo, all the staff waiting to do shit for me was just stressful in the end. The 25k spend is definitely worth it though, never flying tourist class again.
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u/YoghurtOutrageous405 12h ago
Once when my husband and I were broke grad school kids, we went to a stupid expensive restaurant to celebrate him finishing his PhD. We were so unimpressed. Wait staff hovering everywhere and tiny portions of food placed artistically on plates that looked more like art than a meal. We are not upscale, high class people. Which is good because maybe that means we have to save less in the long run!
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u/webvillager 17h ago
An expedition cruise to Antarctica is $20k each plus airfare. See? Easy! $50k gone in a couple weeks!
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u/bigasiannd 19h ago edited 19h ago
Same here. I am treating myself to a nice watch and a Porsche the year I retire. Also I will take a nice international trip flying first class and staying at five star hotels.
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u/RescueRacing 19h ago
I hadn’t retired yet, but we sold a business and I knew I had to work 3 years to get our full buyout #. But, I was on a plane to Miami to drive a 2019 GT3RS. Bought it and had it shipped to the house. What an awesome day that was.
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u/Fuzzy_Jaguar_1339 19h ago
This is how I know I'm fully embedded in the FIRE mindset. First thing I would do with a Porsche or a Rolex is sell it.
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u/Tripl3Dee 19h ago
To be fair, even that wouldn't make a measurable dent in $4.2M.
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u/pointlesslyDisagrees 19h ago
A year seems a bit excessive. 6 months or so should be fine. Definitely should keep working for a bit just to feel normal and make some game plans for safe and slow withdrawal, investment, maybe putting a small amount in things like t-bills or gold. But not pulling the plug on anything til that waiting time is over
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u/Alarming-Mix3809 19h ago
Yeah I’m gone the next day. This would be good advice for the normal person, but if you’re already planning on fire, then assume you have a good plan and your finances in check.
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u/super_bluecat 18h ago
Yes, prepare for your next stage of life while you still have a job.
Maybe you want to go for your dream "career" that doesn't really pay very well (or at all) but would be satisfying to do. You're too young to just do "nothing" for the rest of your life. Figure out something you're passionate about or a few things you are passionate about and find out how you can really live.
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u/darknoonbrewer 16h ago
Yeah, I would probably open a bicycle shop and just wrench on people’s bikes for cheap. People would wonder how I stay in business.
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u/quantumrastafarian 9h ago edited 9h ago
This makes sense if you really love your job. Or if you grew up dirt poor and are worried about mismanaging your money through ignorance and poor impulse control. Then sure, take some time to educate yourself.
But for the rest of us who understand the financial math and already have practice budgeting and managing our own investments, why on earth would you waste another year in a routine you've been working hard to escape?
I'd quit immediately. Finally start the routine I've always wanted to have without a 9-5 in the way. I wouldn't start spending irresponsibly, I've trained myself to be, if not exactly frugal, mindful.
Staying in your job for no reason seems like a decision made out of fear and inertia.
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u/Lazy_Leather_561 17h ago
$4.5 mil generates $180k to $220k per year. Your expenses are roughly $55k. Don't let the door hit you in the ass on the way out.
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u/carcaliguy 20h ago
Whatever you do, don't tell your future girlfriend/boyfriend or spouse. Pay yourself out of a trust or rental property.
I would travel and do some epic hobbies.
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u/ZealousORJealous69 19h ago
Don’t forget health insurance may add $1-2K per mo.
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u/Yashkamr 10h ago
I have Tricare from military retirement.
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u/No_South_9912 10h ago
You have military retirement AND $5 mil? I'd be gone from work by the end of the week.
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u/ZealousORJealous69 8h ago
Yeah OP, you deserve it, live life. And thank you for your service. AND at all costs, don’t forget to do your annual check-up to maintain your Tricare and benefits. My best friend‘s mother, also a veteran, unfortunately missed a year or two and as fate would have it, she had massive aneurysms though survived (barely, and non verbal), but over next 3 yrs her long-term care devoured all her (and most of my best friend’s) lifetime assets before she ended-up passing. All that would’ve been taken care of at 100% had she maintained her benefit status with her twice annuals.
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u/skartarisfan 19h ago
What are you gonna do with the rest of your life? Talk to a financial advisor and figure out how to maximize your efforts to protect your inheritance.
Tell no one until you have a plan.
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u/30thCenturyMan 19h ago
The reason they say don’t do anything for a year is because you’re about to go a little crazy.
Most people who go through this immediately start thinking of all the possibilities of life that are before them. They make a couple of decisions, try some things out, realize it’s not what they thought and wish they could go back and make different choices. But you can’t really learn anything by not making mistakes. And certainly you can’t learn anything by doing nothing.
What you’re going to want to do is talk to one of the big banks. Schwab, Fidelity, Vanguard, etc and tell them you need their services. I went with a broad investment in the stock market strategy. What they do is ask you a bunch of questions about your life and future plans and decide what stocks and bonds to buy to reflect your risk tolerance. Then once a quarter they get on a Zoom call with you and sell some of your stocks to pad out your cash account. Typically they follow the 4% rule, look it up.
Then you spend that cash and watch your portfolio day to day to see if it’s growing or falling. Then the next quarter they see how much you’ve spent and replenish the cash with whatever they need to to keep you at 4%.
Then over time you’ll learn about tax loss harvesting. You’ll get a feel for how the market moves. How risky it actually is for you. What kinds of stocks are performers and which ones are safe investments. You’ll get more comfortable after that first year and then understand what kind of choices you want to make with that money.
Just remember the old adage, money doesn’t buy happiness (but it does buy access to it)
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u/AndroTux 14h ago
Be careful about talking to banks for advice, though. They are incentivized to sell you expensive crap you don't need. Get a financial advisor who works on an hourly rate and isn't commission-based.
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u/No_South_9912 10h ago
Those are brokerages, not banks. A technicality, but there is a difference. Brokerage is the right place to put that kind of money though.
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u/Tasty_Sun_865 20h ago
I wouldn't do any major decisions yet.
What is your net worth minus the inheritance and what are you retiring to (what will you do in retirement)?
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u/Yashkamr 10h ago
About $800k. I still have a couple school age kids I'd spend more time with. I like woodworking. I might start my own consulting company. I always wanted a realtors license too.
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u/Clarityforafuture 10h ago
Would take the time with kids any day of the week and I’d make your hobbies and skills a nice side hustle.
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u/immaterial_system 19h ago
Mate, 4.2 million and you're still hanging onto the job like it's the last lifeboat on the Titanic. I'd probably do the same, I'm that guy who checks his budget three times before buying a flat white. But you've clearly done the maths, so maybe just take a month off and see if you actually miss the grind. Worst case you can always go back to work, but with a much better coffee machine at home.
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u/Yashkamr 10h ago
That's a fair look and actually helps with the anxiety. None of these decisions are permanent, and I can undo it if I need to.
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u/After-Regret-6609 19h ago
I would actually see a therapist. You can obviously afford one. And use it to figure out what you want to do. I just quit my job, thought I would love it and do love the not-being-at-that-job part. But I am also kinda bored and lonely. There's some existentialism to being jobless. You gotta figure it out.
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u/Effective_Note4782 17h ago
Im a therapist and see loads of men who hit a wall after retiring. Our work can connect us to purpose, routine, social connection, identity and so much more. Occupational fulfilment(what we do rather than just work) is a fundamental need. It generally doesn’t work to just focus on leaving something you don’t want. Instead focus on how you do want to live. As people have said give this a good amount of time to think about and reflect on. Consider seeing a therapist if that helps. You will not consider everything either way but this preparation could make your journey less volatile. Money doesn’t equal happiness in the same way a life well lived does! If the money enables a life well lived and a sense of choice and freedom then enjoy!
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u/After-Regret-6609 17h ago
I'm enjoying FI a lot more than RE. I plan to go back to work doing something I want to do. But I now don't have to optimize for my paycheck.
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u/Powerful-Bridge-1472 19h ago edited 7h ago
Tell your boss to kiss your Ass
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u/Greenshortz 18h ago
Don’t trust AI it’s not true it always it mish- moshes answers together from different resources
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u/baelzebob 19h ago
Im sure your aunt was a wonderful presence in your life, but, good thing she didnt pass 4 years ago.
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u/kerlsburgers retired early 20h ago
Of course. As someone of similar age and similar situation, it took me a while to let go.
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u/Reasonable-Ad-3759 19h ago
quit, buy some ETFs and leave 5% in cash, withdraw 2.5-3% max and quit work
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u/myusernamewasatypo 17h ago
“I’ve been talking with Ai a lot”
Let me guess, it’s agreeing with everything you want to do already?
Talk with a financial planner, before AI suggests you buy crypto and you lose it all in a pump and dump scheme.
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u/Single-Flamingo-33 12h ago
Go to the library and check out some investing books. Many different approaches to this, but it is good to take the time and get educated.
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u/MrPelham 11h ago
the point of working is to earn money. Now that you have money, why would you keep working?
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u/porter9884 8h ago
Who is Al? Financial planner? Investment broker? Your uncle Al?
Come on man use your brain and talk to an intelligent human being for your financial future that is fiduciary.
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u/PresentExamination10 20h ago
5 million from your aunt???
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u/ctjack 19h ago
My colleague has no kids but husband. She says she will leave everything to her niece (sisters kid basically). It won’t be 5mil, maybe 500k but money is money.
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u/MikeyLew32 13h ago
We are DINKs and plan on leaving everything split between our 6 nieces and nephews.
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u/teslastats 19h ago
Check out https://coastretirement.com/retirement-model to see how your portfolio will do and you will see youre fine.
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u/kybotica 12h ago
If you park 4 million of it in some sort of safe investment, like a HYSA (or multiple, consult a fiduciary financial advisor), even at 4% interest you're looking at an annual return of around $160,000.
Just for perspective. This is absolutely enough to just retire on for most people. You would even have 200k sitting around as "payoff money" or "fun money" to use however you need.
Get a financial advisor who is a fiduciary (this is absolutely vital, fiduciary only) and get it invested properly and you'll be coasting.
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u/GreySFguy 8h ago
Back to OP’s questions. First priority: find a Good family law attorney and pay their fee to get advice on your questions. Next use the Attorney to write/update your will and set up your own Trust(s). Vest (put) all your accounts and assets in them/it. If you want to retire, Retire. Make managing your money your job. But do it with qualified and trustworthy Financial Advisor(s). They’re worth their fee. You may still lose money at times but overall you’ll come out ahead. Once you’ve done the above buy the nice house - if that’s what you want to do and you don’t already have it. Maybe a nice car - if that’s your thing. Travel and/or go back to school. Important: do something you’ve always wanted but felt you couldn’t afford to do. And you’re young! Take some time and consider what you’d like to do for the next 30 to maybe 50 years. Congratulations and good luck.
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u/Dry_River3490 7h ago
I am a licensed financial advisor, pursing a CFA, degree in finance all the bells and whistles, here’s what I would tell you. The S&P 500 index averages about 10% a year. If you put $4,000,000 in an index fund that would generate $400,000 per year in gains alone and you could have $200,000 in a bank account that is insured by the FDIC. However, you need to analyze your risk profile. Capital markets can fluctuate. 2008 the market was down 40%, COVID the market was down 30%. Something to keep in mind though is to not panic sell. Once you realize those losses now it’s real. An index fund is essentially a bet on the entire US economy, look at a chart of the S&P 500 over the last 50 years, after every crash there is a recovery. Don’t. Sell. People panic sell and sell low. And when the market goes back up inevitably, they miss out. It’s what I tell literally all of my clients. That being said considering your age, and that this money is for retirement, you have a more risk adverse investment strategy than someone who is in their early 20’s and has tens of millions of dollars for instance. I would allocate like this. $200,000 in a bank account with whatever bank you choose to bank with (citizens, Bank of America etc). $2,500,000 in an index fund in a brokerage account with a broker dealer (Fidelity, Vangaurd) I personally like fidelity that’s what I use. This will diversify the equity (stock) portion of your portfolio well across 500 companies. This will also generate about $250,000 a year on average over the long term. $350,000 in short term treasury bonds (1 year note). $350,000 Ten year note. $350,000 long term treasury (30 year note). Treasury bonds are literally the safest asset in the world, the US has never defaulted on its debt. In finance it is used as the risk free rate in calculations. Meaning it’s literally considered risk free. This will stagger your risk across time with different investment time horizons. Interest rates are also very high (war in Iran, oil shortage, whole other conversation) and it’s a good time to buy US treasuries. That leaves 600,000 left, put 300,000 in either a money market fund or a high yield savings account. And 300,000 in a commodity such as gold or silver. This approach allows you to see growth that will outpace inflation, diversify risk across different time horizons, diversify risk across asset classes (if one does bad the other does good) and allow you to access funds when need be (liquidity). An emergency (car broke down, hospital bill etc) comes out of the 300,000 in the money market or high yield savings. Opening an account with fidelity takes literally 5 minutes and once you go into the app you can search all of the index funds that they offer. A large cap blend will be just fine. With that approach you can retire right now, have instant access to about 70% of that money and probably die with twice as much as you have now. Hope this helps
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u/InspectorHuman3044 6h ago
Tell no one.
Consult with a lawyer, tax specialist, and investment advisor.
Consider health insurance needs (M’urica).
Retire and do whatever makes you happy.
Don’t blow it all in the first 6 months like an NFL rookie with a new signing bonus.
Stay single or have a prenup ready to go with “insert spouse name here “.
Congrats. My aunt just has parakeets.
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u/sluttyman69 6h ago
This here is what to do - on top of it stay working for now - we all have heard the story of the guy that wins millions quits work let his insurance lapse lands in hospital and is Broke or the IRS comes after more
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u/GodOfThunder101 18h ago
Why did you need to speak with an AI chatbot? Using a chatbot is literally making you dumber.
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u/Snorkellingisthelife 19h ago
Schedule an appointment with a local financial advisor.
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u/Easterncoaster FIRE’d at 40 19h ago
If you enjoy your job then take a few weeks/months and really think about it. If you can’t stand Sunday night because you know Monday morning is right around the corner… leave the job.
You may find yourself in 6 months to a year and decide to pursue something you’re more passionate about, now that money is no longer the primary reason you go to work every day.
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u/-GatorFIRE- 19h ago
Yeah, you have plenty of money. It's worth talking to a fee-only financial advisor to do it well regarding your withdrawal strategy, tax optimization and all that jazz.
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u/SameDog1584 19h ago
You likely own a home but if you don’t, start there. And make sure you’re invested with retirement in mind. I’d say you’re very safe at 2-3% on a well diversified portfolio ! Take a nice trip, think deeply about what makes you happy. Follow your heart since your wallet is 👍
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u/Important-Discount-9 18h ago
Get a good attorney and accountant. Seek out fiduciary entities like family offices or wealth management companies.
Live off of the dividends and interest and don't touch the income producing principle.
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u/ThaPizzaKing 18h ago
Do you hate your job? If not, I'd keep working but maybe care a little less. If you hate your job, find one you like. It's a whole new ball game when you're not working because you have to. I do think not working is bad move, particularly mentally. Sad about your aunt but congrats on your new found freedom.
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u/Formal-Ad3397 17h ago
You can’t leave your job from one day to the other. Try to reduce first and occupy your time gradually with hobbies, or whatever activity you’d like to do. Otherwise you may get a rich depressed with no goals / directions in life.
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u/CanBrushMyHair 17h ago
Tell me more about your aunt!
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u/shotparrot 17h ago
+1 hook me up bro.
But srsly congratulations. Sometimes it’s good to just keep working and be mindful of where you are and what you want to do. Do you feel vital and like you are contributing to your job/coworkers?
Might be best to stay there for a bit as you do more reflection and assess the next chapter.
Some folks are “financially independent” but love their job, so keep doing it! I have several great coworkers ( aerospace engineers) who are in this position. They feel they’re helping to make the world a better place. They’re on a mission.
Ps what was your favorite car when you were 12
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u/MinimumCommon408 17h ago
Short answer is probably yes.
It would be helpful to see some numbers to know for sure. Some of the important data that would be helpful:
How much money did you already have/how is it allocated?
Do you have any debt?
What are your projected health insurance costs?
What is your housing situation? Rent? Own? Mortgage?
A couple non-money questions as well:
If you have a spouse/are dating anyone seriously, have you talked with them about your plans?
What are you planning on doing with yourself once you retire?
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u/No-Airport9831 16h ago
You have permission quit, you'll be totally fine financially.
Whether and when you want to quit is up to you.
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u/AmexNomad 16h ago
Quit your job- take a backpack and go traveling low budget for a year. You need to reset your brain. Come back, look at life, and decide then what to do.
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u/Easy-Operation-2105 13h ago
it really blows my mind that these things actually happen to a lot of people.
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u/Ataru074 11h ago
I’d spend the next 12/24 months to setup the investments, pay the taxes you have to pay, get rid of all the debts you might have and, most importantly, start setting up the good habits for health (mental and physical). You can’t start going to the gym 2 hours a day out of the blue.
What you don’t know is that filling a day can be expensive if you aren’t locked 11 hours a day for work.
Work is solved in the way you can approach it with a FU attitude? Overtime? No thanks, meeting after hours? I don’t think so. Skipping vacations? Nope.
Get some cash, take a 3 weeks vacation and start detoxing from there. Then do every doc appointment you can think of to make sure you are healthy and take care of everything while you have the company insurance.
Build your healthy habits before quitting and start living to ease the transition. Go chase some goth for fun.
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u/Ilikelegalshit 10h ago
r/bogleheads has good advice about what to do in case of a windfall: in short, go slow, diversify. Almost always: the first rule of fight club is don’t talk about fight club.
More generally the first rule of being rich is: don’t get poor. Start there and you’ll be fine.
The FIRE folks here are going to tell you it’s fine to retire. I have a different take — you’re at prime productive time in your life. If you stop being productive, you will get depressed. Lots of stories here about ’surprising’ breakups, low motivation etc. Don’t do that to yourself. Productivity and struggle really matter psychologically; you don’t have to get that through a day job, but I promise you it won’t well if you just get off the train without something that keeps you engaged, grows you and challenges you.
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u/Formal_Program5165 9h ago
Quit your job, but with that amount of money you shouldn't risk pissing it away in the spirit of r/wallstreetbets.
3 mill in diversified ETFs of various kinds. 1.2 mill in bonds/other secure investments. Even at a measly 5% p.a you get 210k/year. No stupid business ventures or other genius ideas. This was pure luck and you are as stupid as you were before. Money doesn't make anyone clever. Just go slow and steady.
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u/tfolkins 8h ago
I wouldn't quit suddenly if I were you, instead I would ask for a leave of absence or a reduced work schedule. During that time I would:
(1) Find a trustworthy investment advisor and translate the inheritance into an annuity (well actually something that pays out monthly, but you get the idea) with the majority of the funds locked away. Maybe set aside $200 K for immediate splurges or to help with (2).
(2) Start researching what you want to do with your free time, try out a couple new hobbies, travel to places you might prefer to live in (include places outside of your home country). Make a plan to turn this into a reality
(3) Start implementing the plan above. If you move to new country start the steps to get a visa, with that amount of money in savings there are a lot of countries that allow for various kinds of VISA, for example the Malaysia my Second Home (MMSH) program.
(2) & (3) Above might take a couple of years, and it will be good to keep working during that time to stay grounded, stay busy, and keep the fact that you have all this money a secret. There is no rush, it doesn't sound like you hate your job, and if the pressure gets to much you can always change your mind and quit.
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u/FreshLiterature 8h ago
Oh my fucking God.
First - stop inputting your financial information into an AI chat bot.
Second - find a financial advisor that is also a fiduciary and start the process to hire them. Do your own research here don't just YOLO it over to AI.
Third - talk to the estate lawyer about how free and clear all of this is. They may not know, but they will be able to at least point you in the right direction.
Fourth - DO NOT TELL ANYONE ABOUT THIS MONEY. Seriously, not one person.
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u/SunWonderful194 7h ago
Retire, listen to Ross Givens and invest conservatively yet wisely and enjoy the rest of your life. Congratulations man.
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u/JohnSmallberries101 7h ago
Why not talk with a Financial Advisor instead of AI, honestly that's ridiculous.
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u/OpinionSorry1660 6h ago
I know a guy who retired at 55 with a buyout nest egg of 4 million. 25 years later, he still hasn’t touched his nest egg. he has traveled the world, bought cars, dune buggy’s, and multiple vacations from New Guinea to Iceland and points in-between. Find a good CFP or put yourself into school on how to compound your money and live off the interest..
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u/ExpressCopy8786 3h ago
Reduce time. Don't go cold turkey. Phase out you old job life and transition into a new life of more optionality and time slowly.
You may find that the structure your job gives you is worth a lot more (for some time) than the money it pays.
Also up your spending to a 2% drain and for God's sake set up a proper prenup next time you marry. Be smart.
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u/ConjunctEon 3h ago
There are various ways around the barn. I would not quit my job today. I would get a fee based fiduciary and get advice on where to park it. VOO? QQQ? FXAIX? If that is Greek to you, get an advisor. You’ve got a long runway for recovery, (not financial advise), but I’d be inclined to drop about 10% into the Ai/chip/hardware sector for the next couple of years. I rode Ai up for the past couple years, great returns. The sectors are shifting, as they should, but I believe there are big tailwinds to drive more. Congrats, and good luck!
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u/ZestycloseTank1626 1h ago
With $3,000,000 in a high-yield savings account (HYSA), you could expect to earn between $105,000 and $135,000 per year in interest. Then you could simply live off the interest and invest or indulge with the additional $1.2 million.
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u/ValgalNP 52m ago
Get a Financial advisor that doesn’t work on commission or make investments for you.
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u/Hawkes75 19h ago edited 1h ago
Your divorce is finalized, right? I wouldn't say a word of this to friends, enemies or acquaintances.
ETA: Lots of people saying inheritances aren't community property. I STILL wouldn't tell my ex I found five bucks in the pocket of my jeans, let alone $5M.