Inherited $200K… now what?

I’m not a numbers guy. I’m a carpenter, and I just don’t have the time to fully understand investing. I get the basics, but this whole ‘market’ thing still feels confusing.

I inherited about $200K from my dad. He worked his whole life for this money, and I don’t want to mess it up. The economy is all over the place, and I’m worried about losing it.

I’m 25, and I have insurance coming next year. What’s the smartest thing to do? Should I pull it all out? Move to something safer? Maybe split it—keep some secure and invest the rest?

I asked my financial advisor, but let’s be honest, he’s got his own interests in mind.

I have no one else to talk to about this. Any advice would mean a lot.

Look into broad market ETFs and the Bogleheads approach.

I personally go with VTI, but some people prefer VT for international exposure. Either way, just put it there and leave it.

If you don’t touch it for 30 years, that $200K could easily turn into over a million. That’s your future self thanking you!

@Haru
Agreed on VTI. My biggest holdings are VTI, IAU (gold ETF), a corporate bond fund, and a couple of CDs locked in at 5.4%. Out of all of these, VTI and gold have done the best.

I also keep a small chunk for short-term trading. Any gains above 30% get moved into VTI.

Also, check out SPAXX and SGOV as high-yield cash options. Right now, they pay around 4.4%.

@Finnley
How’s that short-term trading working out?

@Haru
Yep, VTI and relax.

@Haru
I’ll look into these after work.

The frustrating part? I was already on track to hit a million by 40. But now, with all this economic mess, I have no idea what the future looks like.

At least I’m marrying a lawyer, so that helps!

Thanks for the advice.

@Baer
Sounds like you’re in a great spot. Just be patient and play the long game.

Good luck!

Here’s what you need to understand:

$200K is a lot of money. It won’t let you retire, but it can change your life if you handle it well. It’s too much to just ignore.

You said your dad worked his whole life for this. That means you owe it to him—and to yourself—to take time to learn about investing. Don’t rush into anything until you know what you’re doing.

You got a huge head start. If you invest it properly and earn 10% per year, that’s $20K a year in growth alone. That’s a massive financial cushion.

Take an hour to google ‘VOO stock chart’ and see how it’s performed over 25 years. Then use a compound interest calculator to see what $200K turns into if you just leave it alone. The numbers will blow your mind.

The good news? You don’t need a financial advisor to make 10% per year. But before doing anything, make sure you understand the tax situation and long-term effects.

Lol don’t pull anything. Over 10+ years, the stock market beats pretty much everything else.

Tobin said:
Lol don’t pull anything. Over 10+ years, the stock market beats pretty much everything else.

What about pulling $20K for a car? I know the market is down, but I could take it from my money market funds to buy something that’ll last me 5-10 years.

Thoughts?

@Baer
If you need a car, get a used Toyota Camry from around 2015.

Micah said:
@Baer
If you need a car, get a used Toyota Camry from around 2015.

I was actually looking at the 2025 RAV4 Hybrid. Love Toyotas.

Baer said:

Micah said:
@Baer
If you need a car, get a used Toyota Camry from around 2015.

I was actually looking at the 2025 RAV4 Hybrid. Love Toyotas.

Selling stocks and buying a brand-new car are two of the worst moves if your goal is to protect this money.

Just put it in a passive index fund and don’t touch it for 20 years.

@Davin
I just need a reliable car. Not an investment, just something to get through winter. Would it be dumb to pull some out for that?

Baer said:
@Davin
I just need a reliable car. Not an investment, just something to get through winter. Would it be dumb to pull some out for that?

Be honest with yourself—were you planning to buy this exact car before getting the inheritance? Or did the idea just happen to pop up afterward?

@Davin
Yeah, I was already planning to. I got the inheritance 4-5 years ago.

If you want a truly set-it-and-forget-it option, look at a target date fund.

Are you saying you inherited +$200K (you received money) or -$200K (you owe money)?

Just a pet peeve—when people use ‘+/-’ to mean ‘about.’ You meant to use ‘~’ (as in ‘~$200K’ to say ‘around 200K’).

Is the money in stocks or cash?

Cove said:
Is the money in stocks or cash?

Mostly stocks, with about 35% in a money market fund.