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.
@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%.
$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.
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.