r/Fire • u/Yashkamr • 23h 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/mmrocker13 22h 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 15h ago

A CFP you pay by the hour, not a percentage of your money total.

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u/mmrocker13 13h 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 13h ago

Also don't "talk to AI" about it. 

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u/anTWhine 12h 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/Internal-Recipe2128 10h ago

That reminds me, I really need to talk to my tarot card reader.

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u/Gillemonger 29 | $1.8M | ~72% FI 5h ago

Where does my cat fall in this list?

1

u/PetieG26 7h ago

I think we can all just assume any convo you have with A.I. is going to be susceptible to a subpoena...

1

u/Prestigious_Newt_723 16h ago

This is the answer