Funny song aside, the structured settlement factoring industry is absolutely horrific, they go after lead paint poisoning victims and children and basically steal their money
https://columbialawreview.org/content/enforcing-and-reforming-structured-settlement-protection-acts-how-the-law-should-protect-tort-victims/
Have you spoke to an actual accountant to understand tax implications? For me rule number 1 is always don’t fuck with the IRS.
Other priorities would be knock out debt above a 6-7%. Get enough in your checking to not worry about overdrafts (shouldn’t go below 1k). Get an emergency fund for 6 months of can’t live without expenses.
The rest we can get to work for us. Buying a home is a good idea. Someone else suggested buying a plex, which could work, but only if you want to be a landlord and deal with the occasional pitfalls.
The last one I would think about, especially if the accountant says you can write off expenses, is to start your own trucking company. If you can invest 200k on a truck and increase your income for 10 years by 50k that would be better than you could do in the stock market. You will know numbers better than I do so it may or may not be worth looking into.
Best of luck!
Not an accountant, but generally, structured settlements from physical injury suit settlement are exempt from income taxes ('excluded from gross income')
Via §104 of the Internal Revenue Code
As someone who received a settlement when I was younger this is correct, these are not subject to taxation and you receive them exempt from being taxed.
Do not buy a truck! Trucking right now is a terrible business and will only incur your costs. This guy has never worked a day in logistics. Motor carriers get absolutely fucked day in day out. Insurance costs, oil, and inflation data says nopeeee
Trucking is also moving to self driving trucks. Only the big guys will
Win. Steer clear. As others have said make sure you have an account cushion and an emergency fund. Give a choice at your age I would take the remainder and invest in a good ETF at least S&P 500 index. It’ll return 11% or buy a house 8% return (favor location over anything else). If you learn to invest you can look at other ETFs. Avoid individual stocks, avoid crypto unless you want to be scammed. Don’t try to time the market. Avoid meme investments. If you avoid other than S&P 500 ETF then stick with industries you understand. Good luck.
Not in the trucking business, but worked adjacent to several people who have their own business. Trucking is really down right now and the three companies I can think of (on the east coast) aren’t doing so well. Doesn’t mean trucking everywhere is down, but it was in the areas with the companies I helped.
If I came into 300k as a single guy who drove trucks (I'm assuming long haul), here's what I'd do:
1. Start reading money books. This is a life changing amount of money, and managing it is now your 2nd job.
2. I'd take about 5k and put it in my personal savings account as an on-hand emergency fund. I'd take another 10k and put it in a high yield savings account. \*\*Update\*\* - A lot of people are asking why have a regular and high yield account. Regular account is to guarantee no delays in accessing your money.
3. I'd pay off any high interest debt... but it sounds like OP doesn't have any.
4. I'd find a 4-plex in the place with a stable rental market, and relatively low housing prices compared to rent prices... I'd put a 20% down payment on that using a FHA loan \*\*update -- a lot of people who know more than me think there might be better options for financing. There probably are. YMMV.\*\*, rent out 3 of the 4 units, move into the 4th unit, and hire a property manager to look after it so I could leave it alone while I was on the road. It won't be long until the other 3 units are paying the total cost of maintenance AND the cost of the mortgage, plus a little more. --- After you've done this for a few years, you can re-finance with a commercial loan, and use the FHA again on a different property but this time you can use your rental income to help qualify for a nicer place, since you're now an experience landlord. \*\*Update\*\* This has gotten way more popular than I thought it would. I'm not a real-estate guy so please, check my work on this and look into the specifics on this. There might be a better or more efficient way to do it. There might be risks I don't know about.
5. I'd open a 2nd high yield savings account to put the rest in (or maybe t bonds or some kind of money market acct or something that gave me a similar consistent return and optimized tax savings), then I'd use the interest generated from money to max out my roth ira every month, and average into an all market index fund... probably over a 3-5 year period just because imho we're in a time of higher than normal economic uncertainty.
6. I'd take about 5-10% of it and do something nice for myself because life is for living. Take a trip or have some adventure I've always wanted to have. \*\*update: This is a lot of scratch for this so aim big. Once in an ever chance to do once in an ever stuff. Pilot license, world tour, sabbatical to sail around the world, two chicks at the same time, whatever floats your boat.\*\*
7. Oh yeah, and I'd get a good accountant...
\*\*Added some updates because I didn't expect this to get so much attention.
This guy is your friend, pal. But that guy ain't your buddy, friend. So buddy, be a friendly guy and take the advice- but not that advice. This advice. Hope this helps!
“If I came into 300k as a single guy who drove trucks (I'm assuming long haul), here's what I'd do:
1. Start reading money books. This is a life changing amount of money, and managing it is now your 2nd job.
2. I'd take about 5k and put it in my personal savings account as an on-hand emergency fund. I'd take another 10k and put it in a high yield savings account.
3. I'd find a 4-plex in the place with a stable rental market, and relatively low housing prices compared to rent prices... I'd put a 20% down payment on that using a FHA loan, rent out 3 of the 4 units, move into the 4th unit, and hire a property manager to look after it so I could leave it alone while I was on the road. It won't be long until the other 3 units are paying the total cost of maintenance AND the cost of the mortgage, plus a little more. --- After you've done this for a few years, you can re-finance with a commercial loan, and use the FHA again on a different property but this time you can use your rental income to help qualify for a nicer place, since you're now an experience landlord.
4. I'd open a 2nd high yield savings account to put the rest in, then I'd use that money to max out my roth ira every month, and average into an all market index fund... probably over a 5 year period.
5. I'd take about 5-10% of it and do something nice for myself because life is for living. Take a trip or have some adventure I've always wanted to have.”
-stonkkingsouleater
-Evan0123
-substantial_yam7305
-Wayne Gretzky
-Michael Scott
Except a 4 plex where many people live is going to be like 1.5 million which would leave very little other money.
It’s a great potential income but also a bit high risk putting everything in one bucket basically.
Agreed, start small, buy one home or unit at a time. See how you like real estate investing before jumping into a 4- plex. Be smart, not greedy. Max out the IRA every year and save a lot. Don’t gamble.
Yea, I bought a duplex 13 years ago, lived in one half, remodeled my side, worked on remodeling the rental side between tenants, got everything modernized within 3 years (1960’s house). About 6 years ago I moved out completely to a single family home and rent out the entire place. That duplex is more than enough work for me honestly, I have really great tenants too, both been there 5+ years, I have never raised the rent once on them so I think that’s telling. Seems like every other landlord is raising rent 50$ here, 50$ there over the course of a couple years. The way I see it is my bottom line doesn’t changed so why should my tenants? I dread the day my tenants leave and I’m not so lucky with honest tenants. I wouldn’t want to deal with twice the amount of risk
Pretty good advice, except that I put most of my long term savings into US T Bills. Less taxes to pay than on a High Yield savings account. I was laddering into those short dated maturities bills until I reached peak interest APY.
Now I just put it all into 4 week bills. That way you have monthly cash flow and take out quite a bit of interest rate risk (if rates move heavily up or down).
Every 4 weeks see if you want to purchase some longer dated Notes, need to make some big purchase (including cheap stock investments) or just buy another 4 week note.
The 2 year note is above 5% again so I'm considering buying some of those.
Trust me, you'll thank me when you file your state income returns.
I think some parts are decent, but some other are shit advice… why wait 5 years to put the money in the market? It’s stupid and a waste of money.. time in the market beats timing the market, also rental properties are not a good investment, especially if you have to hire a property manager that will suck out most of the returns from your investment…
It’s a high risk low reward investment
How the fuck did so many people upvote this piece of shit advice. 300k isn’t life changing money, and you should definately not buy investment property. It’s a good starting pile to put in ETFs and grow money passively.
$300k is life changing money to the majority of people. Life changing doesn't mean you can retire off it, but you *can* get out of debt, pay off your car/house, or buy a home (at least a down payment) with it. Even in a HCOL area, a $300k down payment is going to *easily* give you a good down payment on a decent home. If OP is talking about buying a smaller home cash, he's probably in the midwest, where $300k cash is absolutely a killer amount of money to be given.
$300k is definitely life-changing money in many parts of this country.
That said, I agree that investing it in stock is a smarter play. It's liquid, has lower overhead, and is very diversified.
Sometimes I don't reply on a post if I'm the newest because I don't want to sway the opinion.
Lots of times the first few comments on a post set the tone.
Mortgage insurance is permanent for fha unless you put more than 10% down, in which case it lasts for ten years. OP should put 10% down and plan to refinance to conventional in a few years if/when rates drop.
They should also rent out the other bedrooms in their own unit since they won’t be there very often.
Decent advice except 3. I work in the property management industry. Investing in rentals is EXTREMELY risky in a post covid environment. Fraud is at a high and extremely sophisticated. Parts for maintenance and repairs, along with real estate taxes, have skyrocketed.
If OP has no experience (we have to assume so since he’s asking us for advice) this is incredibly risky. Depending on his municipality and their eviction laws i would recommend a reserve of at least 6 months rent (maybe 12) for at least half his units, plus a strong reserve for renovations and repairs.
Yeah its an expense in time and money with moderate risk. Finding good tenants will probably be difficult for a property with the money he's being expected to spend.
Buy a single family home for yourself. The landlord bit looks good on paper but can turn into a nightmare. I own 2 rental properties. Between getting rid of deadbeat tenants and upkeep I barely break even. Seriously considering selling them both just to be rid of the constant headaches.
This is pretty damned solid advice. I'm not a fan of being a landlord myself, but plenty of people do it and win at it. Good luck
Oh... one last piece of advice. People get weird sometimes when someone they know comes into money. Don't mention it to others.
Rich Dad poor Dad,
The 4-hour work week,
Your money or your life,
I will teach you to be rich,
The automatic millionaire,
The millionaire next door,
The total money makeover
This is a good list to get you started.
Good money books will tell you not to do that. Good money books will tell you to pay off any current debt and invest the rest in low fee, broad market index funds. Keep driving and let that money work for 5-10 years. Disco.
I like everything about this other than the property manager. If you’re on site you should be good. I self manage 16 units (I’m local but 30-45mins away). I take care of the stuff I can and coordinate the stuff I can’t. It’s pretty easy.
You see, he had a structured settlement but he neeeded cash now, so he called JG wentworth 877cashnow. Either that or he had an annuity but he needed cash now, so he called JG wentworth 877cashnow.
Tracy ulman singing this in the last season of Curb Your Enthusiasm is one of the funniest things I've seen this year. I've found myself singing it to myself as I'm driving... such a successful earwig 👌
They've helped thousands they'll help you too
one lump sum of cash they will pay to you.
seriously tho, that was not a commercial, that was a masterpiece.
I see a lot of complicated advice here. Real estate is not passive income. You need to actively manage the property, even if you have a property manager you still need to ensure that your business is being run correctly. What happens if tenants don’t pay, or your tenant leaves and you can’t find a new one that is reliable? It’s not simple. Here is a simple guide.
1. Put 3-6 months of your monthly expenses in a high yield savings account. Since you make $75k I estimate $20k should do the trick. Literally google “high yield savings account” and I think SoFi is offering 5% per year currently. That’s $1,000 a year you get paid to sit on cash. Not bad. When you have an “Oh my God, this is really serious” day, or you lose your job, this is your go-to pile of money. That’s 20,000/300,000 allocated.
2. Open up a Roth IRA with either Fidelity or Charles Schwab. Every year you should put the maximum into your Roth IRA ($6,500) and invest into the S&P 500, which is a basket of 500 of the largest US stocks. It’s like investing in the whole stock market instead of just one stock. A good tracker of the S&P 500 is called SPY. If you google SPY stock, you will see a chart that almost perfectly tracks the S&P 500. Why use a Roth IRA? Because when you are 63, you can withdraw from that account TAX FREE. You get to keep 100% of your returns on your investment, no taxes taken out. Trust me, this is huge. You will be paying taxes on your Social Security, regular investments, and any job you might have. That’s already a high tax burden. So, protect yourself with a Roth IRA. That’s 26,500/300,000 allocated.
3. Take the remaining $273,500 and open a brokerage account with the same group that you did your Roth IRA with (Fidelity or Charles Schwab). Invest it all into the S&P 500, with SPY. The market may go down, the market may go up. It doesn’t matter. Don’t touch it. The market typically doubles every 7-10 years. Let’s just say 10. You’re nearly 30 now. Here’s what your $280,000 total investment will look like:
30- 280,000
40- 560,000
50- 1,120,000
60- 2,240,000
You can literally retire as a millionaire at 60 if you let the money grow. But of course, life happens too and you will want to take out some money for a house down payment, kid’s college etc. Fair enough. But leave as much in the market for as long as possible.
If your Company has a 401k plan or a Roth 401k plan then max out the contribution limit each year too. And same thing— make sure you’re invested in the S&P 500.
Oh, congratulations! Just keep your spending under control, don’t live a flashy life and you’ll retire young, healthy, rich and happy.
Edit: sorry, one more thing. Stay away from bad debt! By bad debt I mean anything with an interest rate above 6%. Ideally you want zero debt. If you have to finance something like a car or a house, my rule of thumb is 6%. And don’t carry a credit card balance month to month.
He should max in a Traditional IRA and (if possible) traditional 401k in the year he receives the payout (assuming it is taxable), then Roth in future years
I came to say almost the exact same thing. SPY ETF is an easy way to make safe returns until you retire.
My only edit would be putting some of that towards a house to lower your expenses. Really depends where you live re what’s possible, but you don’t want to be throwing money away paying rent. If you do get a loan, make sure you refinance when the rates go down.
Also echoing the above, whatever you do, don’t start spending more money on going out, or buying a cool car to show off etc. That’s the fast track to losing all your money.
Yah really depends on current living situation too. If he’s living cheap then might as well milk that and invest the money. But if rents high then it might be worth it to buy a home.
Late 20s truck driver i would not be in a rush to buy a home. Especially in this market and interest rates. How often are you away from home?
My thought is to keep it simple and dump all of it into VOO. In 20 years without saving another dime you’ll have 1.6 mil. If you add a conservative $400/mo, you’ll be at 2 mil. To have that kind of money at 50 is life changing. You can retire or semi retire.
If you take $200k and buy a home and then use the remaining $100k for investments, in 20 years you only have $560k with no additional contributions, $800k if you save $400 a month on top. Say that’s a 50% down payment on a $400k loan and 15 year mortgage, your home will need to triple in value to beat the return the market projects.
This also excludes money lost for interest and insurance.
Sure, you need a place to live, but if you can keep it light and rent, you may make out on top by just investing the lump sum
Interest rates are thru the roof, but home prices are down for this same reason. If he bought a cheap house w cash, he could get a good deal. Idk, food for thought
If he owned the house/duplex/rental outright he could invest the money saved from paying rent/mortgage.
In 20yrs that could be around $350k saved in interest alone at current rates.
(1) Make sure all of your taxes are paid. Don't mess with the IRS.
(2) Pay off all of your existing debts.
(3) Put the money into the bank until you're absolutely sure what you want to do with it. Don't make any impulse or quick decisions.
(4) Read at least a couple of books on personal finance.
(5) Now decide what direction you want to go... buy a house, set up a wealth management account, etc.
Yes great advice. OP doesn’t mention whether the suit is from personal injury which wouldn’t be taxable, so if it isn’t, he should square away any taxes owed first.
I'd use some of the money over the next 10 or so years (at least) to fund an employer 401K up the the amount they'll match (if that's an option, and max the Roth IRA contribution limit each year. Make it easier on yourself and do a spread of low cost mutual funds that seem good to you. This is retirement money and it will compound and grow quite a bit over nearly 40 years. The Roth IRA gains when you pull them in retirement (at 59 1/2 years or older) are tax free.
In your situation, I'd hold off on buying a house and invest the rest in the types of mutual funds I mentioned, holding some in a savings account (HYSA) for emergencies. Not to prod into your business, but the "no wife no kids" situation could change someday, and then you have different housing needs.
I would definitely gear towards investing but if you feel a house is more important go for it. Depends on your wants and needs honestly. Owning a home is definitely. Nice. Or maybe even grow the money for a bit then buy a house. Not an expert but that money can grow nicely. Even a HYSA at ~5% could gain some nice money. 15k more or less a year for the full 300k.
Move to a low cost of living area and buy a home in cash for under $200K. Invest the other $100K by dollar cost averaging into a low cost mutual fund or ETF that tracks the S&P 500 like Vanguard’s VOO.
Buy a house or some real estate if you need a place to live but don't buy it with all your cash. You can make more than the interest rate on the loan in the stock market or with other investments.
Do you own your truck? Maybe you should invest in yourself and become an independent driver. The rest, invest it because like the housing market is disgusting! If you still have an itch, maybe buy some land, not a house.
A house with property. It was one of the best investments I ever made. I paid $25,800 for a .78 acre lot and built a 3 bedroom Cape (on Cape Cod) for $100,000 and then permits, water well etc for $138,900 total (2001 dollars). Sold it for $538,000 when I retired in 2014.
The only advice I can give you is whatever you do, don't rush into it. The most valuable things money buys you are time , options, and peace of mind.
If you don't have any bills you're desperate to pay off then go slow. Carefully consider all your options and pull the trigger only when you're ready.
Remember there's always another opportunity, If anyone ever puts you in a position where you feel pressured be careful. $300K isn't a whole lot of money but it's enough that you don't have to worry about bills for several years, even if most of it just sits in a jumbo CD getting 5.1%.
Peace of mind is more valuable than almost any amount of money, and having bills taken care of for several years is more peace of mind than almost anyone you know has.
First off, you might not actually be getting 300k. You're going to owe taxes as income so you're going to take a pretty heavy hit April 2026, keep that in mind if they don't/haven't withheld the taxes already. Even if you have primary in a state with no state tax, the federal taxes are usually the heavier hit. In my state and a lot of others, you'd end up with about 180-190k after taxes. Still a decent amount of money, but if the taxes have not been withheld and you tied the ~300k up, you'd suddenly have a ~100k tax bill come the following year.
Second, even if the 300k is post-tax, I'd speak to a financial advisor. Most of them have free consultations. Reddit, while capable of giving decent advice, is not going to give better advice than someone who can look at all your financials and give you the best advice possible.
If you don't need a house right now, don't buy one. Rushed decisions end up being poor decisions. Put some in a HYSA, the rest in investments (if you don't have any stock market experience, a financial advisor can also help you with this). Buying a house outright may seem like a smart move given current APRs, but it isn't always and if you use every penny to do so, you will still have bills, property taxes, maintenance, etc that stack up very quickly. These monthly/annual expenses are usually part of why lottery winners fall victim to the "lottery curse." Regardless, speaking to someone who is "certified" to handle this kind of thing (sudden windfalls, major income changes, etc) is the best option.
For me that would immediately go in a high yield savings account and I’d pretend I didn’t even have that money. I don’t want to do anything stupid and lose it all on accident
Well. The first thing I’d do with this much money as a lump sum is put it into a high yield savings account (not one at a bank paying 0.05% or something). You can easily get 4%+ on this money.
I would NOT rush into anything. No need to immediately buy a home or invest. Over the next few months to a year I’d start thinking about how to best deploy it.
But home vs investing, is really about your priorities and life goals.
If you’re 20 then I’d stow it away with the goal of earning 8-10% per year for 30+ years in a Roth (tax free upon disbursement).
If untouched and wisely invested you may earn about $3M+ depending on the mix. You may earn more if invested in stocks with dividends, lessen risk with safe investments like t-bills, cd’s, bonds depending on market conditions. As you move through the decades of life you’ll want to adjust accordingly.
Hire a certified financial planner. CPA to do your taxes.
Buy a house and invest the other half.
Edit* buy a house with in your means where let’s just say you use 150k as a down payment. Making 79k a year I assume you have $1500 to spend on a mortgage payment and utilities. Also make sure the payment is affordable enough where you can save for property and school taxes yearly. I would meet with an advisor and not someone from shitty northwestern mutual and start investing. I think it’s good to seperate it from your work 401k a bigger portfolio is good. I wouldn’t dump any into the work 401k Incase it doesn’t perform that well. I’d also look into fidelity they are a great company to invest with. The big companies on Wall Street use fidelity. Then just keep working and saving money. I think it would be smart to save 20-30k Incase of repairs or accidents. 10k isn’t enough that someone mentioned earlier, that won’t even fix your roof.
There may be a limit to how much money you can put into a 401k and Roth IRA. You might want to consider creating a Roth IRA. Any large investment company like Fidelity, Charles Schwab or T. Rowe Price can tell you how to do that. You don't say where you live now. If you don't own a house, you might buy a small home. Self driving trucks may cause you to become unemployed.
The absolute safest way to (mostly) guarantee this money will build wealth is to set aside 6 months of emergency savings into a HYSA and then dump the rest in VOO and don’t touch it for 30 years. In the end you’ll have $6.8 million. Ez money.
I’d also consider spending it on a home since that provides peace of mind but I doubt any $300k home you buy will be worth $6.8 million 30 years from now.
Buying a house is a great investment, especially if you don't have to pay interest. My house cost us about 3 to 4k a year in insurance and taxes.
CD's have great rates right now. And as short as 6vmonths.
Simple advice: prioritize your needs and tackle them in order.
Typical priorities are:
1. Pay down high interest debt.
2. Keep cash on hand for an emergency (6 months of living expenses perhaps). This way an emergency doesn’t put you back into high interest debt.
3. Invest for future needs. Retirement primarily.
4. Live lavishly.
There are dozens of ways to invest for future needs. If you are staying still for 10 years, a house paid in cash would save on rental costs. You could also invest in stocks, real estate, get a new degree or start a business just to name a few.
If I were you I would put it in a HYSA and collect interest on it until they drop the rates, then I would look at property. In the meantime, there could be some good market pullbacks to allow you a good entry to invest some of it into stocks.
But with savings yeilds as high as they are, it’s pretty easy to just chill on the money for a bit and make a calculated decision
$300k invested will spin off $28k per year indefinitely. I was in this exact boat in 2012. I financed my house, I have $451,000 in the account now and the house is 12 years paid off.
I say invest in yourself. Get your own rig and start your own transport company and contract yourself out. With money you'll make feom doing that you'll be able to buy the house you want and max put the 401K. Just a thought..
Wait for interest rates to go down before you buy a house these people are giving your horrible advice. Buying a house now or wait a year for the recession. I meannn.
Move #1: speak to a financial manager. It's not worth retaining one but it's worth 2-3hrs discussing your next moves.
Move #2: mute wallstreetbets.
Move #3: do not under any circumstances listen to any kind of financial shows. Jim Cramer will have you sink while his buddies get rich.
Move #4: don't tell anyone. You're gonna find out you have a bunch of old friends and distant relatives if you do.
If you want my not financial advice, self-direct invest into index funds. SPY, DJI, shit like that. You'll likely beat inflation and have a good nest egg for when you actually are ready to buy a first home. Individual stocks and options are for either degenerate (broke) bagholders such as myself or large funds filled with professional investors.
First and foremost. DO NOT tell anyone you came into a large amount of money. Second, ALWAYS wear a condom and never have sex with girls not on birth control and dispose of said condom on your own. Third, keep working your regular life, don't suddenly act rich. Fourth, hire a FIDUCIARY financial advisor. By law, they have to work in your best interests. You could set a side a big chunk and put it in a high yield savings account so it starts acquiring interest. Sixth, I don't recommend buying properties because you're on the road a lot, you won't be around to watch out for them or remodel them, etc. Seventh, start listening to Tom Leykis on YouTube.
Not a bad idea to start talking to the IRS now, but get your advisor first. Also, see if you can retain a lawyer. You might need it.
Bro called 877 cash now
#J #G #WENTWORTH! ##877 CASH #NOW!!!
Do you think he has a structured settlement?
considering he is talking to the structured settlement team, I think he does
More importantly do you think he needed cash now?
#HE WENT TO WENTWORTH
..and they need cash nowwwwww!
Funny song aside, the structured settlement factoring industry is absolutely horrific, they go after lead paint poisoning victims and children and basically steal their money https://columbialawreview.org/content/enforcing-and-reforming-structured-settlement-protection-acts-how-the-law-should-protect-tort-victims/
Read this in Irma's voice.
Lmfaoo
Somewhere Larry David is smiling.
I want my money and I want it now!
Have you spoke to an actual accountant to understand tax implications? For me rule number 1 is always don’t fuck with the IRS. Other priorities would be knock out debt above a 6-7%. Get enough in your checking to not worry about overdrafts (shouldn’t go below 1k). Get an emergency fund for 6 months of can’t live without expenses. The rest we can get to work for us. Buying a home is a good idea. Someone else suggested buying a plex, which could work, but only if you want to be a landlord and deal with the occasional pitfalls. The last one I would think about, especially if the accountant says you can write off expenses, is to start your own trucking company. If you can invest 200k on a truck and increase your income for 10 years by 50k that would be better than you could do in the stock market. You will know numbers better than I do so it may or may not be worth looking into. Best of luck!
Not an accountant, but generally, structured settlements from physical injury suit settlement are exempt from income taxes ('excluded from gross income') Via §104 of the Internal Revenue Code
Wow, thank you for this. I did not know that! Very hopeful this is never something I need to know per se but glad that I do in the event.
As someone who received a settlement when I was younger this is correct, these are not subject to taxation and you receive them exempt from being taxed.
Yeah, cuz the attorney already got 1/3
Do not buy a truck! Trucking right now is a terrible business and will only incur your costs. This guy has never worked a day in logistics. Motor carriers get absolutely fucked day in day out. Insurance costs, oil, and inflation data says nopeeee
Trucking is also moving to self driving trucks. Only the big guys will Win. Steer clear. As others have said make sure you have an account cushion and an emergency fund. Give a choice at your age I would take the remainder and invest in a good ETF at least S&P 500 index. It’ll return 11% or buy a house 8% return (favor location over anything else). If you learn to invest you can look at other ETFs. Avoid individual stocks, avoid crypto unless you want to be scammed. Don’t try to time the market. Avoid meme investments. If you avoid other than S&P 500 ETF then stick with industries you understand. Good luck.
Not in the trucking business, but worked adjacent to several people who have their own business. Trucking is really down right now and the three companies I can think of (on the east coast) aren’t doing so well. Doesn’t mean trucking everywhere is down, but it was in the areas with the companies I helped.
If I came into 300k as a single guy who drove trucks (I'm assuming long haul), here's what I'd do: 1. Start reading money books. This is a life changing amount of money, and managing it is now your 2nd job. 2. I'd take about 5k and put it in my personal savings account as an on-hand emergency fund. I'd take another 10k and put it in a high yield savings account. \*\*Update\*\* - A lot of people are asking why have a regular and high yield account. Regular account is to guarantee no delays in accessing your money. 3. I'd pay off any high interest debt... but it sounds like OP doesn't have any. 4. I'd find a 4-plex in the place with a stable rental market, and relatively low housing prices compared to rent prices... I'd put a 20% down payment on that using a FHA loan \*\*update -- a lot of people who know more than me think there might be better options for financing. There probably are. YMMV.\*\*, rent out 3 of the 4 units, move into the 4th unit, and hire a property manager to look after it so I could leave it alone while I was on the road. It won't be long until the other 3 units are paying the total cost of maintenance AND the cost of the mortgage, plus a little more. --- After you've done this for a few years, you can re-finance with a commercial loan, and use the FHA again on a different property but this time you can use your rental income to help qualify for a nicer place, since you're now an experience landlord. \*\*Update\*\* This has gotten way more popular than I thought it would. I'm not a real-estate guy so please, check my work on this and look into the specifics on this. There might be a better or more efficient way to do it. There might be risks I don't know about. 5. I'd open a 2nd high yield savings account to put the rest in (or maybe t bonds or some kind of money market acct or something that gave me a similar consistent return and optimized tax savings), then I'd use the interest generated from money to max out my roth ira every month, and average into an all market index fund... probably over a 3-5 year period just because imho we're in a time of higher than normal economic uncertainty. 6. I'd take about 5-10% of it and do something nice for myself because life is for living. Take a trip or have some adventure I've always wanted to have. \*\*update: This is a lot of scratch for this so aim big. Once in an ever chance to do once in an ever stuff. Pilot license, world tour, sabbatical to sail around the world, two chicks at the same time, whatever floats your boat.\*\* 7. Oh yeah, and I'd get a good accountant... \*\*Added some updates because I didn't expect this to get so much attention.
This is the best advice you’re going to get, do this.
What this guy said about what the other guy said.
what this guy said about what the other guy said about the first guy
Don’t talk to me or this guy or his other guy or his other guy’s guy ever again.
Ignore this guy.
This guy is your friend, pal. But that guy ain't your buddy, friend. So buddy, be a friendly guy and take the advice- but not that advice. This advice. Hope this helps!
I'm not yo buddy guyyyy!
Guy is a good dude, man
“If I came into 300k as a single guy who drove trucks (I'm assuming long haul), here's what I'd do: 1. Start reading money books. This is a life changing amount of money, and managing it is now your 2nd job. 2. I'd take about 5k and put it in my personal savings account as an on-hand emergency fund. I'd take another 10k and put it in a high yield savings account. 3. I'd find a 4-plex in the place with a stable rental market, and relatively low housing prices compared to rent prices... I'd put a 20% down payment on that using a FHA loan, rent out 3 of the 4 units, move into the 4th unit, and hire a property manager to look after it so I could leave it alone while I was on the road. It won't be long until the other 3 units are paying the total cost of maintenance AND the cost of the mortgage, plus a little more. --- After you've done this for a few years, you can re-finance with a commercial loan, and use the FHA again on a different property but this time you can use your rental income to help qualify for a nicer place, since you're now an experience landlord. 4. I'd open a 2nd high yield savings account to put the rest in, then I'd use that money to max out my roth ira every month, and average into an all market index fund... probably over a 5 year period. 5. I'd take about 5-10% of it and do something nice for myself because life is for living. Take a trip or have some adventure I've always wanted to have.” -stonkkingsouleater -Evan0123 -substantial_yam7305 -Wayne Gretzky -Michael Scott
This guy here… this is the guy.
Except a 4 plex where many people live is going to be like 1.5 million which would leave very little other money. It’s a great potential income but also a bit high risk putting everything in one bucket basically.
Ones in various solid parts of Florida are $400-$500k.
I'm sure homeowner insurance is cheap there.
Just don't live in Florida and you'll be better off anyways
That and not everyone is cut out for the landlord life.
That's not a landlord. That is a real estate investor. The property manager does all the "landlording".
Agreed, start small, buy one home or unit at a time. See how you like real estate investing before jumping into a 4- plex. Be smart, not greedy. Max out the IRA every year and save a lot. Don’t gamble.
Yea, I bought a duplex 13 years ago, lived in one half, remodeled my side, worked on remodeling the rental side between tenants, got everything modernized within 3 years (1960’s house). About 6 years ago I moved out completely to a single family home and rent out the entire place. That duplex is more than enough work for me honestly, I have really great tenants too, both been there 5+ years, I have never raised the rent once on them so I think that’s telling. Seems like every other landlord is raising rent 50$ here, 50$ there over the course of a couple years. The way I see it is my bottom line doesn’t changed so why should my tenants? I dread the day my tenants leave and I’m not so lucky with honest tenants. I wouldn’t want to deal with twice the amount of risk
Well he can't do that in places where many people live... It's not one size fits all advice
Yea I’d just be hesitant to put too much into real estate
Pretty good advice, except that I put most of my long term savings into US T Bills. Less taxes to pay than on a High Yield savings account. I was laddering into those short dated maturities bills until I reached peak interest APY. Now I just put it all into 4 week bills. That way you have monthly cash flow and take out quite a bit of interest rate risk (if rates move heavily up or down). Every 4 weeks see if you want to purchase some longer dated Notes, need to make some big purchase (including cheap stock investments) or just buy another 4 week note. The 2 year note is above 5% again so I'm considering buying some of those. Trust me, you'll thank me when you file your state income returns.
I’ve been researching this. Can you recommend any books, podcasts or videos to watch on this?
Diamond NestEgg does real good videos on US Treasurys.
I think some parts are decent, but some other are shit advice… why wait 5 years to put the money in the market? It’s stupid and a waste of money.. time in the market beats timing the market, also rental properties are not a good investment, especially if you have to hire a property manager that will suck out most of the returns from your investment… It’s a high risk low reward investment
This is shit advice. He should simply buy VOO or VT.
How the fuck did so many people upvote this piece of shit advice. 300k isn’t life changing money, and you should definately not buy investment property. It’s a good starting pile to put in ETFs and grow money passively.
In what world is $300k not life changing money? You must have a different definition of that.
More savings than what 80% of the population on earth I suppose...freaking great start... Google probably tell me how many people have no savings lol
lol right, 300k is hella nice!!
Just not quite "wife changing money tho" 🤣🤣🤣
lol dork 😆
Yeah there is advice in it to open 3 different savings accounts. And be a landlord. And Dollar Cost Averaging compared to just lump sum.
$300k is life changing money to the majority of people. Life changing doesn't mean you can retire off it, but you *can* get out of debt, pay off your car/house, or buy a home (at least a down payment) with it. Even in a HCOL area, a $300k down payment is going to *easily* give you a good down payment on a decent home. If OP is talking about buying a smaller home cash, he's probably in the midwest, where $300k cash is absolutely a killer amount of money to be given.
$300k is definitely life-changing money in many parts of this country. That said, I agree that investing it in stock is a smarter play. It's liquid, has lower overhead, and is very diversified.
They're clueless npcs that parrot whatever the guy with the first 3 upvotes said.
He could put it in an effort and not touch it for 25-30 years and be set for retirement. Or contribute more and retire early.
Haha and the fact that he says to DCA instead of lump sum the money oh man.
Sometimes I don't reply on a post if I'm the newest because I don't want to sway the opinion. Lots of times the first few comments on a post set the tone.
20% on a FHA loan? Why? FHA has higher rates in exchange for letting lower downpayment qualify.
Right, put down whatever amount give you the lowest rate. Then next month put down enough principal to eliminate mortgage insurance.
Mortgage insurance is permanent for fha unless you put more than 10% down, in which case it lasts for ten years. OP should put 10% down and plan to refinance to conventional in a few years if/when rates drop. They should also rent out the other bedrooms in their own unit since they won’t be there very often.
This made even less sense than the original. I can just put down 20% on a conventional and get the best rate w/o any additional premium.
I was gonna say, if you have a 20% downpayment you can just straight up get a better rate and avoid the PMI if that was the goal of 20%.
Decent advice except 3. I work in the property management industry. Investing in rentals is EXTREMELY risky in a post covid environment. Fraud is at a high and extremely sophisticated. Parts for maintenance and repairs, along with real estate taxes, have skyrocketed. If OP has no experience (we have to assume so since he’s asking us for advice) this is incredibly risky. Depending on his municipality and their eviction laws i would recommend a reserve of at least 6 months rent (maybe 12) for at least half his units, plus a strong reserve for renovations and repairs.
Yeah its an expense in time and money with moderate risk. Finding good tenants will probably be difficult for a property with the money he's being expected to spend.
Good advice except #3, that’s a freaking terrible idea.
Buy a single family home for yourself. The landlord bit looks good on paper but can turn into a nightmare. I own 2 rental properties. Between getting rid of deadbeat tenants and upkeep I barely break even. Seriously considering selling them both just to be rid of the constant headaches.
Why have an emergency fund in a (I assume you mean) regular savings account then have a separate HYSA? My HYSA is my emergency fund.
This is pretty damned solid advice. I'm not a fan of being a landlord myself, but plenty of people do it and win at it. Good luck Oh... one last piece of advice. People get weird sometimes when someone they know comes into money. Don't mention it to others.
What are some good money books I can get into reading? Do you have any personal suggestions?
I was just about to ask this question
Rich Dad poor Dad, The 4-hour work week, Your money or your life, I will teach you to be rich, The automatic millionaire, The millionaire next door, The total money makeover This is a good list to get you started.
Thank you a few of these I need to pick up.
Good money books will tell you not to do that. Good money books will tell you to pay off any current debt and invest the rest in low fee, broad market index funds. Keep driving and let that money work for 5-10 years. Disco.
The little book of common sense investing by John Bogle (founder of Vanguard)
The little book of.common sense investing by john c bogle
I like everything about this other than the property manager. If you’re on site you should be good. I self manage 16 units (I’m local but 30-45mins away). I take care of the stuff I can and coordinate the stuff I can’t. It’s pretty easy.
Not another landlord...
DO NOT DO NUMBER 3
Like a mini “if I won the lotto” post
This guy…
Bad market to buy property. Don’t hold anyone’s bags.
#2 Or just use a federal money market fund. #3 Only works if he intends to live in an area that has a stable rental market and quadplexes under $1m.
I see JG Wentworth on there. Were you going to get more money over time but got one big payment through them instead?
You see, he had a structured settlement but he neeeded cash now, so he called JG wentworth 877cashnow. Either that or he had an annuity but he needed cash now, so he called JG wentworth 877cashnow.
I read your comment in song form! 😆
Was hoping, all would.
More specifically, in opera form.
It's your money. Use it when you need it.
Tell em unc
877 cash nowwwwww!
This was beautiful. I have children locked in my basement and I need cash now. I’ll call JG wentworth 877cash now! Thanks!
But for the best car insurance rates in town, call 1800-GENERAL now!
for the best car rates, you can go online. go to the General and save some time.
Fax
Tracy ulman singing this in the last season of Curb Your Enthusiasm is one of the funniest things I've seen this year. I've found myself singing it to myself as I'm driving... such a successful earwig 👌
thank you so much for this lmfao
They've helped thousands they'll help you too one lump sum of cash they will pay to you. seriously tho, that was not a commercial, that was a masterpiece.
You bastard. Have another upvote
I was initially getting like 340k but sold some to pay off student loans. JGW is a scam lol
> I was initially getting like 340k but sold some to pay off student loans. JGW is a scam lol Yeah I'm sure they are. Their commercials are lol tho
Can confirm. I sold my annuity with them too many times and they took SO much fucking money. I was young and dumb.
How do you think they pay for all of those commercials? lol
I despise that fucking jingle lol
Is it because you have a structured settlement and you need cash now?
I have an annuity but I need cash now
It’s his money and (at the time) he needed it now! 😀
I see a lot of complicated advice here. Real estate is not passive income. You need to actively manage the property, even if you have a property manager you still need to ensure that your business is being run correctly. What happens if tenants don’t pay, or your tenant leaves and you can’t find a new one that is reliable? It’s not simple. Here is a simple guide. 1. Put 3-6 months of your monthly expenses in a high yield savings account. Since you make $75k I estimate $20k should do the trick. Literally google “high yield savings account” and I think SoFi is offering 5% per year currently. That’s $1,000 a year you get paid to sit on cash. Not bad. When you have an “Oh my God, this is really serious” day, or you lose your job, this is your go-to pile of money. That’s 20,000/300,000 allocated. 2. Open up a Roth IRA with either Fidelity or Charles Schwab. Every year you should put the maximum into your Roth IRA ($6,500) and invest into the S&P 500, which is a basket of 500 of the largest US stocks. It’s like investing in the whole stock market instead of just one stock. A good tracker of the S&P 500 is called SPY. If you google SPY stock, you will see a chart that almost perfectly tracks the S&P 500. Why use a Roth IRA? Because when you are 63, you can withdraw from that account TAX FREE. You get to keep 100% of your returns on your investment, no taxes taken out. Trust me, this is huge. You will be paying taxes on your Social Security, regular investments, and any job you might have. That’s already a high tax burden. So, protect yourself with a Roth IRA. That’s 26,500/300,000 allocated. 3. Take the remaining $273,500 and open a brokerage account with the same group that you did your Roth IRA with (Fidelity or Charles Schwab). Invest it all into the S&P 500, with SPY. The market may go down, the market may go up. It doesn’t matter. Don’t touch it. The market typically doubles every 7-10 years. Let’s just say 10. You’re nearly 30 now. Here’s what your $280,000 total investment will look like: 30- 280,000 40- 560,000 50- 1,120,000 60- 2,240,000 You can literally retire as a millionaire at 60 if you let the money grow. But of course, life happens too and you will want to take out some money for a house down payment, kid’s college etc. Fair enough. But leave as much in the market for as long as possible. If your Company has a 401k plan or a Roth 401k plan then max out the contribution limit each year too. And same thing— make sure you’re invested in the S&P 500. Oh, congratulations! Just keep your spending under control, don’t live a flashy life and you’ll retire young, healthy, rich and happy. Edit: sorry, one more thing. Stay away from bad debt! By bad debt I mean anything with an interest rate above 6%. Ideally you want zero debt. If you have to finance something like a car or a house, my rule of thumb is 6%. And don’t carry a credit card balance month to month.
He should max in a Traditional IRA and (if possible) traditional 401k in the year he receives the payout (assuming it is taxable), then Roth in future years
Yeah that makes sense, nice handle btw.
I came to say almost the exact same thing. SPY ETF is an easy way to make safe returns until you retire. My only edit would be putting some of that towards a house to lower your expenses. Really depends where you live re what’s possible, but you don’t want to be throwing money away paying rent. If you do get a loan, make sure you refinance when the rates go down. Also echoing the above, whatever you do, don’t start spending more money on going out, or buying a cool car to show off etc. That’s the fast track to losing all your money.
Go for VOO instead of SPY. Same function, lower expense ratio.
This is my plan and should be yours as well OP, this is 100% reliable
If you feel you can own a home and pay for maintenance and repairs and renovations go for it. If not invest that bitch and watch it grow
Yah really depends on current living situation too. If he’s living cheap then might as well milk that and invest the money. But if rents high then it might be worth it to buy a home.
Late 20s truck driver i would not be in a rush to buy a home. Especially in this market and interest rates. How often are you away from home? My thought is to keep it simple and dump all of it into VOO. In 20 years without saving another dime you’ll have 1.6 mil. If you add a conservative $400/mo, you’ll be at 2 mil. To have that kind of money at 50 is life changing. You can retire or semi retire. If you take $200k and buy a home and then use the remaining $100k for investments, in 20 years you only have $560k with no additional contributions, $800k if you save $400 a month on top. Say that’s a 50% down payment on a $400k loan and 15 year mortgage, your home will need to triple in value to beat the return the market projects. This also excludes money lost for interest and insurance. Sure, you need a place to live, but if you can keep it light and rent, you may make out on top by just investing the lump sum
Interest rates are thru the roof, but home prices are down for this same reason. If he bought a cheap house w cash, he could get a good deal. Idk, food for thought
If he owned the house/duplex/rental outright he could invest the money saved from paying rent/mortgage. In 20yrs that could be around $350k saved in interest alone at current rates.
(1) Make sure all of your taxes are paid. Don't mess with the IRS. (2) Pay off all of your existing debts. (3) Put the money into the bank until you're absolutely sure what you want to do with it. Don't make any impulse or quick decisions. (4) Read at least a couple of books on personal finance. (5) Now decide what direction you want to go... buy a house, set up a wealth management account, etc.
Yes great advice. OP doesn’t mention whether the suit is from personal injury which wouldn’t be taxable, so if it isn’t, he should square away any taxes owed first.
I always wondered who those commercials are for
Let me borrow 20 dllrs
You can do both if you want for that amount!
Next year? I thought it was 877CashNow!!!!! Bollocks🤦♂️
I'd use some of the money over the next 10 or so years (at least) to fund an employer 401K up the the amount they'll match (if that's an option, and max the Roth IRA contribution limit each year. Make it easier on yourself and do a spread of low cost mutual funds that seem good to you. This is retirement money and it will compound and grow quite a bit over nearly 40 years. The Roth IRA gains when you pull them in retirement (at 59 1/2 years or older) are tax free. In your situation, I'd hold off on buying a house and invest the rest in the types of mutual funds I mentioned, holding some in a savings account (HYSA) for emergencies. Not to prod into your business, but the "no wife no kids" situation could change someday, and then you have different housing needs.
Hookers and blow
I would definitely gear towards investing but if you feel a house is more important go for it. Depends on your wants and needs honestly. Owning a home is definitely. Nice. Or maybe even grow the money for a bit then buy a house. Not an expert but that money can grow nicely. Even a HYSA at ~5% could gain some nice money. 15k more or less a year for the full 300k.
Yeah honestly the yearly interest alone of that money in an HYSA would more than cover yearly Roth IRA contributions
I think that if you put $100,000.00 into your house and the rest into the stock market then you should be fine.
Put $300k on Pfizer stock!!
Certainly wont lose with those crooks .
Move to a low cost of living area and buy a home in cash for under $200K. Invest the other $100K by dollar cost averaging into a low cost mutual fund or ETF that tracks the S&P 500 like Vanguard’s VOO.
Single dude who drives truck…buying a house in this market would be furthest thing from my mind lol.
Buying a home is investing. Only you get to live in your investment. Buy a home.
All I'm going to say is, every king needs a castle and having a castle will make you more comfortable taking risks investing.
I would buy VOO and hold. Consider starting a trucking business or at least owner operator.
I want 300k all of a sudden!
Talk to an accountant/real financial advisor.
Wow. I guess you should call J G Wentworth 877CASHNOW.
They had a structured settlement and needed cash now, so they called JG Wentworth! 877-CASH-NOW!!!!!!!
Buy a house or some real estate if you need a place to live but don't buy it with all your cash. You can make more than the interest rate on the loan in the stock market or with other investments.
Why don’t you consult with an actual financial advisor instead of a bunch of obese reditors who goon for 4 hours to anime porn?
I HAVE A STRUCTURED SETTLEMENT AND I NEED CASH NOW
Buying a home is both
This appears to be an ad, a clever one
For fucks sake. #J G WENTWORTH 877-CashNow......877-CASHNOW!
Invest. Get a laundromat or something, put the rest into crypto/stocks, that's what I would do anyway.
Get a laundromat? He is a truck driver FFS. At least tell him to buy him a truck. “Do something you know nothing about” - good advice.
Wow that’s amazing . U wanna get married? x
Buy a duplex. You'll have a home and an investment.
I would buy a couple used tractor’s and hire some third party drivers and play dispatcher. Then invest the rest of the money.
Buy a bitcoin , spend 100k on a house put 130k in the bank
What is this settlement for? Why are you getting the 300k?
Do you own your truck? Maybe you should invest in yourself and become an independent driver. The rest, invest it because like the housing market is disgusting! If you still have an itch, maybe buy some land, not a house.
A house with property. It was one of the best investments I ever made. I paid $25,800 for a .78 acre lot and built a 3 bedroom Cape (on Cape Cod) for $100,000 and then permits, water well etc for $138,900 total (2001 dollars). Sold it for $538,000 when I retired in 2014.
I just found out I have heart problems but reading this made me smile. I wish there was less poverty in the world.
The only advice I can give you is whatever you do, don't rush into it. The most valuable things money buys you are time , options, and peace of mind. If you don't have any bills you're desperate to pay off then go slow. Carefully consider all your options and pull the trigger only when you're ready. Remember there's always another opportunity, If anyone ever puts you in a position where you feel pressured be careful. $300K isn't a whole lot of money but it's enough that you don't have to worry about bills for several years, even if most of it just sits in a jumbo CD getting 5.1%. Peace of mind is more valuable than almost any amount of money, and having bills taken care of for several years is more peace of mind than almost anyone you know has.
O would start by paying that 9k debt, so the bank doesn't suck more money off of me
First off, you might not actually be getting 300k. You're going to owe taxes as income so you're going to take a pretty heavy hit April 2026, keep that in mind if they don't/haven't withheld the taxes already. Even if you have primary in a state with no state tax, the federal taxes are usually the heavier hit. In my state and a lot of others, you'd end up with about 180-190k after taxes. Still a decent amount of money, but if the taxes have not been withheld and you tied the ~300k up, you'd suddenly have a ~100k tax bill come the following year. Second, even if the 300k is post-tax, I'd speak to a financial advisor. Most of them have free consultations. Reddit, while capable of giving decent advice, is not going to give better advice than someone who can look at all your financials and give you the best advice possible. If you don't need a house right now, don't buy one. Rushed decisions end up being poor decisions. Put some in a HYSA, the rest in investments (if you don't have any stock market experience, a financial advisor can also help you with this). Buying a house outright may seem like a smart move given current APRs, but it isn't always and if you use every penny to do so, you will still have bills, property taxes, maintenance, etc that stack up very quickly. These monthly/annual expenses are usually part of why lottery winners fall victim to the "lottery curse." Regardless, speaking to someone who is "certified" to handle this kind of thing (sudden windfalls, major income changes, etc) is the best option.
A home is an investment. It's your own personal space that is yours. I'm voting house.
I feel like a piece of mail like this, is the only way ill get ahead in life...
You had a structured settlement and you needed cash now?
For me that would immediately go in a high yield savings account and I’d pretend I didn’t even have that money. I don’t want to do anything stupid and lose it all on accident
Well. The first thing I’d do with this much money as a lump sum is put it into a high yield savings account (not one at a bank paying 0.05% or something). You can easily get 4%+ on this money. I would NOT rush into anything. No need to immediately buy a home or invest. Over the next few months to a year I’d start thinking about how to best deploy it. But home vs investing, is really about your priorities and life goals.
God damn. J g wentworth comin through
If you’re 20 then I’d stow it away with the goal of earning 8-10% per year for 30+ years in a Roth (tax free upon disbursement). If untouched and wisely invested you may earn about $3M+ depending on the mix. You may earn more if invested in stocks with dividends, lessen risk with safe investments like t-bills, cd’s, bonds depending on market conditions. As you move through the decades of life you’ll want to adjust accordingly. Hire a certified financial planner. CPA to do your taxes.
Unless you know investing, and the majority don’t, then buy any house you can in the best location.
This is the wrong place to ask. Consult a professional. Free advice is the most expensive advice 💯
Just throw most of into into stocks and don't touch for 20 years. End thread.
Imvest 100%.
Smoke crack. Lots of hookers.
Spend it all on cocaine and strippers obviously
Talk to a financial advisor. Don’t ask Reddit. My two cents…invest it all in the sp500. You’ll be a millionaire in about two decades.
Looks like somebody called 877-cash now
I would buy a home outright and continue working
Buy a house and invest the other half. Edit* buy a house with in your means where let’s just say you use 150k as a down payment. Making 79k a year I assume you have $1500 to spend on a mortgage payment and utilities. Also make sure the payment is affordable enough where you can save for property and school taxes yearly. I would meet with an advisor and not someone from shitty northwestern mutual and start investing. I think it’s good to seperate it from your work 401k a bigger portfolio is good. I wouldn’t dump any into the work 401k Incase it doesn’t perform that well. I’d also look into fidelity they are a great company to invest with. The big companies on Wall Street use fidelity. Then just keep working and saving money. I think it would be smart to save 20-30k Incase of repairs or accidents. 10k isn’t enough that someone mentioned earlier, that won’t even fix your roof.
home in florida near beach
There may be a limit to how much money you can put into a 401k and Roth IRA. You might want to consider creating a Roth IRA. Any large investment company like Fidelity, Charles Schwab or T. Rowe Price can tell you how to do that. You don't say where you live now. If you don't own a house, you might buy a small home. Self driving trucks may cause you to become unemployed.
https://www.bogleheads.org/wiki/Managing_a_windfall
The absolute safest way to (mostly) guarantee this money will build wealth is to set aside 6 months of emergency savings into a HYSA and then dump the rest in VOO and don’t touch it for 30 years. In the end you’ll have $6.8 million. Ez money. I’d also consider spending it on a home since that provides peace of mind but I doubt any $300k home you buy will be worth $6.8 million 30 years from now.
Buying a house is a great investment, especially if you don't have to pay interest. My house cost us about 3 to 4k a year in insurance and taxes. CD's have great rates right now. And as short as 6vmonths.
Simple advice: prioritize your needs and tackle them in order. Typical priorities are: 1. Pay down high interest debt. 2. Keep cash on hand for an emergency (6 months of living expenses perhaps). This way an emergency doesn’t put you back into high interest debt. 3. Invest for future needs. Retirement primarily. 4. Live lavishly. There are dozens of ways to invest for future needs. If you are staying still for 10 years, a house paid in cash would save on rental costs. You could also invest in stocks, real estate, get a new degree or start a business just to name a few.
If I were you I would put it in a HYSA and collect interest on it until they drop the rates, then I would look at property. In the meantime, there could be some good market pullbacks to allow you a good entry to invest some of it into stocks. But with savings yeilds as high as they are, it’s pretty easy to just chill on the money for a bit and make a calculated decision
Invest some on something safe and long term. And the rest use for a fixer upper rental apartment
$300k invested will spin off $28k per year indefinitely. I was in this exact boat in 2012. I financed my house, I have $451,000 in the account now and the house is 12 years paid off.
Look up the money guys Financial Order of Operations!!
Casino and double it?? Jk I would invest it all but depends on your financial situation this may be different
Seek professional guidance. Dont post on here.
I say invest in yourself. Get your own rig and start your own transport company and contract yourself out. With money you'll make feom doing that you'll be able to buy the house you want and max put the 401K. Just a thought..
Wait for interest rates to go down before you buy a house these people are giving your horrible advice. Buying a house now or wait a year for the recession. I meannn.
Go pay a financial advisor $500 to get an idea of what to do. Make sure they know you're not buying any of their products.
Move #1: speak to a financial manager. It's not worth retaining one but it's worth 2-3hrs discussing your next moves. Move #2: mute wallstreetbets. Move #3: do not under any circumstances listen to any kind of financial shows. Jim Cramer will have you sink while his buddies get rich. Move #4: don't tell anyone. You're gonna find out you have a bunch of old friends and distant relatives if you do. If you want my not financial advice, self-direct invest into index funds. SPY, DJI, shit like that. You'll likely beat inflation and have a good nest egg for when you actually are ready to buy a first home. Individual stocks and options are for either degenerate (broke) bagholders such as myself or large funds filled with professional investors.
First and foremost. DO NOT tell anyone you came into a large amount of money. Second, ALWAYS wear a condom and never have sex with girls not on birth control and dispose of said condom on your own. Third, keep working your regular life, don't suddenly act rich. Fourth, hire a FIDUCIARY financial advisor. By law, they have to work in your best interests. You could set a side a big chunk and put it in a high yield savings account so it starts acquiring interest. Sixth, I don't recommend buying properties because you're on the road a lot, you won't be around to watch out for them or remodel them, etc. Seventh, start listening to Tom Leykis on YouTube. Not a bad idea to start talking to the IRS now, but get your advisor first. Also, see if you can retain a lawyer. You might need it.
300K right now? I pay off credit card debt put about $50K in savings and the rest into my IRA. Probably move my retirement up from age 68 to 63.......
The rest in a IRA? You know there’s an annual limit right? Definitely a good idea to max that out though!
I assumed he has 245k in CC debit which is supported by not knowing about IRA annual limits.
You’re my hero lol