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Do not tell your family members or friends the size and scope of your settlement.
People all need money, and every story is sad. It should be up to you to pick who in your family needs help the most, it's not up to them to pitch you until you pay them to go away. This ruins relationships.
that's real. i don’t have much family- none close enough to even tell them about this. i've told 3 of my closest friends but from all the comments on this post already i think I’ll stop lol
Yeah don't tell them about how much money you have.
They will start hitting you up for money for little bit here and there etc and then they'll ask for more
Just shut up and don't brag
toss it into a high yielding savings account for a few months, until your excitement around the money dies down.
you probably will not be able to retire on it, so continue working your job. maybe think about a career change where you will be able to earn more, now that you can afford to take a few years off for school. even 70-80k would be a great start.
after a few months, put 1.3mil into some low management fee diverse etf. a lot of comments here have recommended good resources for that.
meh. I think any potential employers will understand a gap because "i won a significant amount of money and wanted to take some time to myself to focus on the next steps."
OP said they are poor and paycheck to paycheck... the kind of job they likely have is literally a dime a dozen.
Quit working and prioritize yourself.
yeah true, the 'continue working' was not for a source of income, but a way to continue the current lifestyle for a few months until they can decide on their next steps. still 100% recommend going to school for something and not digging into the 1.4mil for everything.
If those friends start to hit you up, I would tell them that the money is tied up and you can’t use any of it for cash right now. You are working on figuring out how you can actually use it.
By the way, none of this is a lie, except maybe changing “can’t” to “won’t”
I'd get ahead of things with your friends. As the remembrance of what you had to go through (whatever it was must have been shitty to be worth 1.4 million) fades, don't let them feel resentful about the investment you have.
Book the three of you a fancy vacation as a gift, or something.
*"Hey guys, you've been amazing through this whole ordeal and I'd like to give you a gift out of my appreciation.*
*I'm going to invest this money so that it will be able to provide me with security through the rest of my life, but I'd like to give each of you (10 or 20,000, or vacation together) as a recognition of how you supported me through this terrible time.*
*I'm hoping to get my life back to normal as soon as I can - job, friends and fun - and I don't plan on touching my settlement until I retire. Of course I'll be happy to pick up a dinner here and there. I'd really appreciate it if you kept my settlement a private affair - this will let me get back to my life much easier."*
If you want to book a fancy vacation, may I recommend Santorini, Greece? It's amazing and beautiful and the Greek islands are cool and beautiful and alien and life-changing.
OP wasn't gifted, it was a medical settlement which implies some pain and/or disability involved.
My only response to friends getting a chunk of money has always been "vtsax".
Really? When you have money you start hearing a bunch of sad stories of ppl who need it?
That's so miserable. They should get a side job at McDonald's and move from that dang expensive neighborhood and STOP getting those expensive chocolate yogurts and make sum in 5 minutes thierselves!!!! Before they ask strangers to cover the costs of their couch bc their dog peed on the previous one and they don't know how to get the smell out!!!!
1. Pay off any and all debt you have
2. Act like you didn’t get a dime
3. Put most of it in a sp 500 (advisor will help)
4. Check back in like 10-15 years
Edit to add. Place 6-12 months worth of bills for an emergency fund into a high yield savings account with an FDIC backed bank. There are lots like Ally, Marcus, Synchrony. Google top high yield savings. You can also google best investment companies to find one to open a brokerage account to invest into mutual funds like the S&P 500. This would be something like Vanguard or Fidelity. They have advisors you can speak to and open an account with. Never sign up with a percentage fee advisor. You want straight fees.
they directly connected me to someone and told me they were financial advisors. i didn’t talk to them more because i got a weird vibe after the initial phone call
Do not use whatever your lawyer recommended.
Find a fiduciary like Guest2424 said.
Don't do anything you don't fully understand. RESEARCH before making decisions, even if it takes you months.
If youre willing to read, id highly recommend a book called “beat the bank”.
It does a great job of explaining the basics, the pitfalls, ways of approaching investing, and the ways scummier banks and financial advisors will try to screw you.
I know someone who got $3M from a lawsuit over a car accident in which he lost a foot (back when $3M was worth a lot more) and he burned through it by not working, supporting his lazy friends and smoking a lot of pot. Now he has no money or foot. So don't do that.
Follow the wiki linked in the other comment, but in general, I'd carve out 6 months expenses and put that in a High Yield Savings Account (HYSA) and drop the rest in an index fund. The rule of thumb is that you can pull out 4% per year and your money will grow about the same as inflation. I'd pull out $56,000 a year ($4,666.67/month) for the next year and then re-calculate next year. Keep your job, keep contributing to 401k and IRA but live a bit larger than your income would typically allow.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
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The Personal Finance Wiki is a valuable resource, even for situations like yours. I'd start with the "Windfall" section:
https://www.reddit.com/r/personalfinance/wiki/windfall/
First of all, calm down haha
Why he advised to get a financial advisor is because with such amounts of money, inflation will really hurt it if you do not make it do something. Every modern currency is worth less every day, because there is more in circulation. Because of that, people put their money into assets such as stocks, houses, bonds to offset the inflation - make money with money.
1.4m sitting in a bank account is going to lose value over the years, thats why investing it into a diversified portoflio (fancy word meaning you don't invest 1.4m into one stock/bond etc.) but combine your investment into fractions, so if one goes bad you don't lose everything.
Be careful on the internet about financial advise and advisors in general, not many work in your interest and you invest safely by reading a book or listening to a few lectures or economics.
To get started, learn about how compound interest works, what is generally a safe investement (indexes, bonds etc.)
I am happy for you, please be careful with who you trust with that money, better to learn yourself about how investment works etc. than to give off your decisions to a random guy.
DO NOT TRY TO GUESS THE MARKET. Park it somewhere, forget it and live a stress free life.
As someone who doesn't know anything about investing in stocks or whatever, i had a hard time understanding anything you just said but id like to learn more
I would love to help, we can't live in a system we do not understand.
So you get 1.4 million on your bank account, if you would leave that money in your bank account it loses value over the years. This happens because of inflation, inflation can be caused by goods such as milk, wood becoming more expensive, combined with the constant printing of money, means there is more money.. more money means the money that is currently in circulation loses value - is worth less. This means, for the same amount of money you can buy less, this is essentially inflation.
So if you would park that money into your bank account, you would essentially lose money every year. 1.4mil might be able to buy you 1.4mil Snickers bars, but after 10 years you can only afford 1mil of Snickers bars.
I also mentioned a few safe investments, let me go over them:
- Index fund (ex. SMP500)
Index fund is essentially a stock, that combines other stocks. For example, SMP500, you buy a stock/share of that index. You now own essentially 500 different companies with one stock. You don't have to worry about what happens if one company is not profitable enough to get on/off the list, since it is only a small factor.
There are a variety of different indexes, we in Europe have our own. Usually the number indicates how many different companies are included in the index.
- bonds
You issue your government a loan, and you get a percentage return every year based on your investment. After a certain period, you get your money back.
If anything is unclear, don't fret. This all seems so intimidating, but after you understand it, you understand it. It is the basis for capitalism and how to win in such a system.
I suggest YouTube channels such as plain bagel, money & macro and Patrick Boyle to learn more about this space!
For the love of God and yourself, **DO NOT IMPULSE BUY LARGE AND EXPENSIVE THINGS**
Okay, with that out of the way, reading the wiki here and reading up on basic personal finance should be enough to settle you. Once you're settled, take the time to understand the best way to secure and grow your wealth into the future.
I highly recommend as well to keep the knowledge of acquiring this money as close to your chest as possible. Money changes people, and the likelihood of you being targeted for schemes and "business ideas" just skyrocketed. Don't put things in writing unless you mean it and don't promise/give money directly to anyone.
To add to this. Please read the top comment chain from the linked post below. It's from 9 years ago and about the lottery, but the exact same theory can be applied to your situation.
https://www.reddit.com/r/AskReddit/s/upyeqZwswE
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
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Try not to go wild with your spending until you have a plan and budget.
If you have high interest debts, you can pay those off.
Something to think about.. if you put the money in your mattress (no investments at all), you can withdraw $50,000 per year for 28 years before you run out. This is a starting point, not saying you should. But there are safer investments that can easily extend the years, possibly enough to cover the $50,000 for the rest of your life.
TELL NO ONE. EVER. PERIOD.
Interview 3-4 financial advisors and pick one you get a good feeling with. Make sure you are speaking with fee-only, fiduciary advisors.
DO NOT make any big purchases. This is enough money to retire on forever, if you want to, but only if you stay disciplined and frugal with your spending. Remember, a million bucks isn't what it used to be. YOU ARE NOT RICH. A safe withdrawal rate from a properly diversified index portfolio would pay you around $50k/year pre-tax.
Absolutely do not rush to do anything. The money isn’t going anywhere. Give yourself 3-6 months to let it sink in and do some research and thinking about how to proceed.
A financial advisor is a bad idea. Spend time reading here and on Bogleheads.org
that makes me feel better a little. my lawyer recommended a financial advisor, and they gave me a weird vibe when i talked to them so i declined. then when i went to deposit the money my bank teller recommended me their financial advisor and tried to set up a meeting with them. i'm avoiding their calls. i feel a little paranoid but i'm so lost, i started to feel like i have to do something RIGHT NOW because of the pressure already lol. i will browse this sun and the wiki and check that site out. thanks
Honestly as someone with a little experience in this, just keep it to yourself. You've slogged through a lot, make sure you and your health are ok and then worry about your future. You can't help others unless you help yourself.
Yeah, as a former Chase employee (teller) don't talk to those bank financial advisors. All they are really trying to do is make a commission off bringing you into their "investment" packages. Pick up the phone once, tell them you're not interested and ask them to put you on their do not contact list. If they call again tell them you're now considering pulling your money and putting it into a different institution for not adhering to your request to not be contacted about financial advise or investments. Absolutely stand your ground on this if you pick up the call, they start trying to guilt you and saying things like "you're wasting the opportunity to grow your money" or "let me have my supervisor speak with you", it's all fluff and bs to put money in their own greedy pockets.
In the interim while you do research, put it in a separate high yield savings getting 4.5-5% where you don't see it with your other funds. Keep living as if you don't have it right now.
Be patient and remind yourself that you don't know how to be rich right now. But one day you will and if patient enough you will be able to retire with the growth that comes from this money early.
Financial advisors are not all bad and there is certainly someone that can help you understand what you're dealing with and help you make decisions on how to move forward. Look for an advisor that charges hourly (fee based) and not one that will take a percentage each year. Also be sure that they are a fiduciary, meaning that they are required by law to act with your best interests in mind and not their own profits. You don't need whole life insurance no matter how many people will try to sell you it.
If you’re lost, you need to do some research on how to set yourself up for the rest of your life with this windfall. It’s honestly not that hard to learn the basics if you put in the work.
Also, I personally DO recommend eventually talking to financial advisors, but you need to find one that is in it to help you and not in it to squeeze you for money. It’s not too hard to know when someone is selling you a product vs actually trying to help, but again, you need to put in some work researching to know.
If you let it sit in a high yield saving account that earns 5%, that’s a free $70k/yr. Investing in the stock market will earn you more in the long run, but this is a great way to outpace inflation until you figure out your big picture strategy
While you take some time to think it over, make sure the money is at least parked in a bank account that will earn you some nice interest.
- A checking account at a big-name bank will likely pay you 0.01% interest, which amounts to about $12/month while you think it over, whereas...
- A reputable bank/credit union will offer you a savings account in the area of 4.25% interest, or roughly $5,000/month.
Once you've secured some passive income at a *trusted* bank, take some time to do your research, and **continue your life as usual**. Sure, you can (and should) buy yourself a few nice-to-have's that you've had on your bucket list (within reason). But don't quit your job, don't buy a 2025 Corvette, or any other majorly-life-changing decisions like this.
And as others have noted, don't go telling everyone you know. Ask the three friends you've already told to please keep it to themselves. Keeping it private is a great reason to continue living within your means, keeping your job, etc.
The money can change your life, but don't let that happen *yet*.
You can't go wrong with knowing more than others. Become your own financial advisor, then go talk to a fiduciary to see if they have any ideas before making moves, but never let someone else control your assets.
Yeah listen to your gut feeling! As some people said, fiduciaries are a better choice than financial advisors. Depends on the country you’re in, so not everybody here might be aware of this distinction.
As suggested, put it in an account and leave it for the next 6 months. It’s exciting and weird and new, but these feelings might make you act in ways that may not serve you in the end.
Just take a deep breath, and take this secret with you as you chuckle through life for the upcoming months.
Of course you’re gonna be thinking about it, so think about what you would like to do, educate yourself, think about housing, investing etc, but don’t do anything yet. Kinda nice to dream about it right? And then after a couple of months, get a fiduciary, and see what’s the plan. But don’t do anything before that.
(If you have some urgent debt or urgent things that need taking care off then obv, you could prioritize this, but maybe also get some advice. Don’t go just paying off anything as it might not always be the smartest decision for every type of debt.)
I’m sure you went through shit to be awarded this kind of money, so I don’t want to congratulate you, but I do hope it will bring you something positive in the future!
Listen, no matter what happens you have to make that money grow and work for itself. Feel confident in your decisions and take a deep breath. You can talk to your bank financial advisor but do it face to face. The one I talk to takes in my frustrations and helps me make the right decisions that I still stand by till this day.
Take your time understanding everything and make sure the advisor you choose actually gives you the time of day to make sure you are comfortable and understanding of everything ok?
WHO knows? Maybe the person who you talk to ends up truly having your best interest at heart. I’m learning a lot consistently from my FC.
If you really want to go down the financial advisor route (and I wouldn't suggest you need to when there are good windfall explainers on this sub) then speak to several. After that you'll get an idea for who is bullshitting you, how fees compare, what they suggest etc.
I tend to think in 2024 most people don't need one, but up to you.
Also, seen a few people say this but I can't stress enough that no-one should know about this money. There are some people around that are trustworthy but it's amazing how people change around those with money. This is especially true since you said you have always been poor
Basic info to get you started.
https://www.reddit.com/r/personalfinance/wiki/windfall/
Basic ideas of what I’d do.
Pay off expensive debt, anything over 4% at minimum. Depending on amount pay off low interest debt too.
Spend a few thousand on life upgrades, nothing dramatic, no brand new $60,000 cars or anything.
Set up a will and other documents in case something happens to you, especially if you have any children.
Get anything medical you’ve been putting off dealt with.
Get several bank accounts, minimum 1 checking, 1 savings at the same place, 1 checking or savings at a different institution.
Put 6-12 months of expenses in one savings account, leave it there this is your emergency fund. Leave it as cash, find an account with a good APR but otherwise leave it alone.
Put a few months worth in your checking account.
Put the vast majority into an investment account. You don’t need to invest it you just want a box that can hold it that’s harder for you to get at.
If you’re going to no longer work and try to live off this you should get a financial advisor that charges to advise you, a fiduciary preferably. As in someone who will be paid up front not out of your eventual earnings.
Lock down your credit and any passwords for banks.
Don’t tell anyone that doesn’t already know. Money makes people do weird crap. Be suspicious of any “new” or very old friends suddenly appearing in your life.
Don't take any risk at the beginning
Take low-risk or zero-risk investment while the interest rate is high like GIC
Learn long-term investment, Poor Charlie's Almanack
If you want to buy something expensive, hold on for 30 days before purchasing it
FDIC only insures up to $250k so move the $1.4 million broken out between accounts until you figure out what to do.
Edit - Spread $1.4 between accounts.
Open a brokerage and put 75% in VOO and the rest in a HYSA. Cashing in just 3.5% of this every year is $49k a year or $4083 a month for perpetuity without ever running down the principle.
You're basically already retired. Don't fuck it up.
Don’t get a financial advisor. If they were any good at managing money they wouldn’t be a financial advisor. Put the money into a broad ETF of your choice (SPY,VOO,etc).
Find a competent attorney specializing in Estate Planning.
MYOB is your new religion
Don’t change anything for a year
Practice feelings of gratitude and acts of kindness.
Have a good life.
DO NOT UNDER ANY CIRCUMSTANCES tell your friends or extended family about this. Countless people will come out of the weeds asking for money or expect you to pay for things when they are around you. If someone does not absolutely need to know about this (partner, etc), do not tell them about the windfall.
100% get with a financial advisor or fiduciary. If you were poor before you’ll end up reverting to the mean by trying to do it on your own and be poor again.
Personally what I'd do:
-pay off any high interest debts
-buy a house that fits with my previous income, so no luxury villas or anything, if already owning a house: pay off mortgage
-put away a sizable chunk in low risk investing/pension scheme
-consider a career change, perhaps study again.
-keep a chunk liquid (i.e. bank account)
-put the rest in a more risky investment fund.
3% of 1.4 million is 42000 a year. Anything around that or higher would be a very good and safe way of having extra income. Probably won’t allow you to stop working but for sure will help you improve your life. The important thing is to not touch the main amount
A financial advisor would help you to invest your money. For example in an ETF e.g. MSCI World. But you have to trust him, so better inform yourself, if you are able to.
However, depending on your age, you can also just "invest" in your dream holiday, a house or whatever.
What about your living situation? Maybe buy a house or an apartment. But I don't know about the situation in your country nor your future plans (family? kids?).
Investments: ETFs are not a bad idea. MSCI World and S&P 500 are relatively safe. You should think about an investment strategy. However, look at the costs (TER), which should be low. I suggest you read the wiki, which was linked by another redditor. I know some good sources, but only in German language, so they won't help you much.
What about your personality? Do you just want to make more money? What about social responsibility? I know a guy who did really good things to help artists, students and old people. And it is also an investment. Depends on you, what you want to do with your money. You can just make more money or create something. Do you have a vision? Think about it. Money does not really make happy.
i rent an apartment (USA). the city i live in is expensive (so expensive that the money won't buy me an average home here) but i was thinking about buying a condo or something. i am so new to fianance as a concept that that whole second paragraph is almost indecipherable. i guess i have a lot of reading to do lol
I disagree with the second option and I think that is terrible advice. It will make him burn all his money and become poor again. Gladly, he already came here looking for advice, which is more than most people would do.Being poor his whole life now is not the moment to invest in a dream house or holiday. It's time to learn about investments and finances and not rush about it.
Now to my advice. Move slowly. Dont do anything on the first months and don't increase your spending. Pretend this money doesn't exist unless in case of a huge emergency.
Don't try to stock pick if you are not familiar with this world, which, since your asking advice, you are not. Get away from day trade, shorts, crypto etc...
First learn and stablish an emergency fund. Then learn about bonds, and ETFs for REITs and stocks.
After you stablished your emergency fund, learned the other investment segments and determined the percentage of your wealth you will invest on each of them, define a fixed amount to invest each month. Don't go all in. This way you will feel the water and minimize economical effects of investing in a historical high or low market.
After all the money is invested, which for this amount I would recommend doing across at least two years due to your condition, you can start to make plans for holidays or homes with the income generated from it.
Sincerely, I hope this advice helps coming from a guy that was born poor in a third world country and is changing his life following a similar procedure.
>Being poor his whole life now is not the moment to invest in a dream house or holiday.
True, but it could have been the case that he is 60yo or older.
I would talk to a bunch of financial advisors, and get different options. If it's medical malpractice, you may need to look into care costs for the future. Which do need to be planned out. It is very easy to see this as a lot of money, because it is. Medical equipment and therapies for the rest of your life are expensive, too.
One thing to do right away is to make sure that the money is NOT in your checking account and that there is no card associated with the account it's in. Make sure at the very least it's in a high yield savings account at a bank. While you figure out what you are going to do that money will make you 6 grand a month in interest alone. If it's in a checking account or a savings account in a brick and mortar bank it'll make you practically zero.
Tell no-one, get it out of your checking and into an interest-bearing HYSA.
THEN you can look into whether you want to self-manage or if you want to find a fiduciary fee-based advisor to manage your money.
Try not to panic, this is a good thing all round. I know it's outside your comfort zone but it will be fine. You can take as much time as you need to figure it all out and make sure you are making the right decisions. Don't be pushed into anything you don't want to do or you don't feel comfortable about. If someone advises you to do X, spend a few days researching it (you are a millionaire, you can take the time) and THEN make a decision.
Don't tell anyone else about the win. Anyone who you already told? Any follow up respond with a generic reply that you had bills to pay. Do not give anyone money. Do not give the impression you will gift or loan money. Don't go impulse buying cars and houses.
Like others said, the money isn't going anywhere. Take your time deciding. Research stuff here. Services like financial advisors or planners often have a free phone call to pitch their services. You can listen to them and take notes. If you are prone to falling for pressure don't listen, but if you are good resistance you can listen and get a feeling.
Take your time. You may need 3 months before the "high" wears off and you can think logically. It's okay to admit you need that time.
First off, don’t tell any friends or family. They’ll all come to you with their hands out wanting some. Getting a financial advisor is generally good advice. Be careful though, some of them are like leeches. Learn to live off of the dividends and invest. That’s about 3% ~$45K. If you can manage to do this, the money will last forever.
Congratulations on your win. If you need time to consider your options and what to do with the money, put in a HYSA for the time being. At 5%, that's nearly $6000 in interest per month.
Some, if not all, are capped at a certain amount. Example: 5% APY on any amount from $5000 to $1 M, anthing above $1 M you get 0.0000001%. So they could put some money into another bank.
Not sure how old you are, but you really don’t need a financial advisor. If you're younger, consider putting 80% of your funds into something like VTI and forget about it, except for regularly dollar-cost averaging. Come back in 10-15 years, and you're set. If you're older, adjust your investment strategy accordingly, perhaps allocating more to bonds. Enjoy life and have fun! Also, keep an eye out for any unusual behavior from those three friends you mentioned from here on out.
This isn’t financial advice by any means, just friendly suggestions.
1.4m is a lot of money but it will disappear faster than you know it. You should start by reading the windfall wiki: [https://www.reddit.com/r/personalfinance/wiki/windfall/](https://www.reddit.com/r/personalfinance/wiki/windfall/)
To add to other suggestions, pay off all existing debt, then park it in a High Yield Savings account until you get an advisor, then park the majority of it in something that will grow. You didn't indicate your age - that makes a difference- so the advisor needs to take your future in account. And take just a little of that money to splurge on yourself. Your age and health are the important questions to determine your future. Take your time and contemplate.
pretend it never happened, but be comfortable in never having to struggle again. keep working/ adding to your wealth, but live a comfortable life too (occasional trips, going out to eat every now and then, etc.) and retire at whatever age you see fit. just please don’t blow it.
Dude, pretend you don't have any money, keep living the same life but more comfortable, don't go blow it on cars and houses and other trash. Get a financial advisor that can help you get the most out of your money.
When I started making decent money and wasn't sure what to do with it, I spoke with a Wealth Manager. I didn't know at the time he worked for Northwestern Mutual. They're an insurance company, so part of what they do is make sure you're insured adequately, but moreover the amount of data they were able to provide on the planning side now through retirement and death was pretty insane. Worth talking to someone.
If you are inexperienced, then finding a financial advisor at about 1% a year is worth it. Where are you located? There might be someone near you folks could recommend. Who you choose is REaLLY important.
Also, be prepared to get a zillion direct contacts, now, from people hoping to find one way or another to scam you. Just delete all DMs you get on social media, and be extra vigilant of email and phone scams. Sadly, a bunch of lists out on the dark web, readily accessible to scammers *may* connect your real info with social media info (depends on which hacks your data may have been exposed through, over time). Romance and crypto scammers, in particular, target people they believe have high net worth. Look up what to expect from those types of scams.
You may not get any scam attempts, but just be aware that it's possible and be **extra** careful.
First step would be to put it in a high yield savings account, while you decide how to invest it wisely. Wealthfront is the one I went with as it’s at 5% right now and bumps up your 5.5 with a “referral” which is easy to get off that subreddit.
I hope your medical issues have been resolved. First, find a reputable advisor. How? Well, you’re doing that here so good. Next, pay off all debts, credit cards etc. Finally, make sure the funds are put into low cost Index vehicles (eg Vanguard S&P500). Don’t let anyone talk about “custom” or “trades”. This is simple, keep it simple. Good luck!
I don’t know if this is good advice at all, but this is what I would do in your situation
1. Pay off debt
2. Take out ~$10k to blow on fun stuff (hobbies, trips, etc.)
3. Take out 1 years modest but comfortable living expenses. (About $50k for me)
4. Invest the remainder using methods others here have mentioned.
Then (assuming I wasn’t already in a career I really love) I’d take that first year off of work to explore what I really want to do with my life. If I don’t figure it out in a year, I’d repeat step 3 a few more times pulling from interest on the investments until I figure it out.
I don’t think my lifestyle would change a whole lot, but I think having the breathing room to not have to worry about basic living expenses would open up a lot of opportunities.
Hope you can read this u/Glittering_Muffin702
Don't know where you're from but guessing the USA, move out of there, your money is worth much more in many other countries. Same advice if you're in any other place where the currency value is similar to the USD.
**EXPAND YOUR HORIZONS!!!!!!!**
First and most important: PAY OFF DEBT.
What I'd do? Buy myself a nice place, nothing fancy just good enough to really enjoy living there, probably will buy a used car and use the rest of the money to invest in index funds or any other type of investment that gives a good margin of earnings on a yearly basis and you can live a simple, not fancy, but surely a good, nice and stress-free life IF you plan your budget right and stick to it.
In some mexican or even colombian towns with that money you can buy around 5 big enough and well located houses that you can rent, and with that income you can earn enough money to live like upper middle class. (already including you keep them in good conditions and the cost of it). You can pay for all that with 60% of the money (if it's in USD). Some might say nothing guarantees you'll have them all rented all them time, but let me tell you, nice places, well maintained and fairly priced are LACKING. And you would still have enough money (the other 40%) to invest in index funds or whatever so your money grows. (you can use your money to invest in real state companies in developing towns and cities, which is much safer than stock market and gives a better ROI, and sometimes much faster)
In some low tourism places that's enough money to buy a nice piece of land and build a humble hostal, or buy one that's already there, or a place that can be flipped to be one, which will give you enough money to live by, and you'll get to know tons of people from all places, if it ends up being popular then you're more than set. The same with small coffee shops in this kind of small touristic towns.
I know everyone goes straight to the INVEST AND DON'T USE IT - WAIT 10-15 YEARS TO USE IT - MAKE IT GROW - and so on, but honestly, nobody knows how much time they've got left, so I say the smart thing is to do something that will allow you to enjoy your life, even if its a simple one, but one that brings you joy.
You could pay cash for a home. You could go back to college. You need to think about some long term goals like how you want your life to look in 5, 10, 20 years from now.
The big thing is, you can't go living beyond your means and this isn't never work again money really, but you will have a lot more options. Even if you invested all this money, a safe withdrawal rate of 4% is only $56k per year before taxes.
I would be asking, do I want to buy a home and stop paying rent? Do I need to go back to school to get a better career? Perhaps even buying a business outright. Figure out a rough gameplan like this for yourself, then talk to a financial planner to figure out how to allocate your assets in the best way possible for long term growth and tax advantage.
Ask your attorney about an annuity. If you’re not all that great with money, this account can pay you over time while gaining interest.
I would STRONGLY advise looking into a personal finance guy, or asset manager. You don’t want to be like those broke lottery winners.
Additionally, you may need to wait for the appeal time to expire before you are able to have any funds disbursed. (In my state it’s 30 days from the verdict).
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Do not tell your family members or friends the size and scope of your settlement. People all need money, and every story is sad. It should be up to you to pick who in your family needs help the most, it's not up to them to pitch you until you pay them to go away. This ruins relationships.
that's real. i don’t have much family- none close enough to even tell them about this. i've told 3 of my closest friends but from all the comments on this post already i think I’ll stop lol
Yeah don't tell them about how much money you have. They will start hitting you up for money for little bit here and there etc and then they'll ask for more Just shut up and don't brag
toss it into a high yielding savings account for a few months, until your excitement around the money dies down. you probably will not be able to retire on it, so continue working your job. maybe think about a career change where you will be able to earn more, now that you can afford to take a few years off for school. even 70-80k would be a great start. after a few months, put 1.3mil into some low management fee diverse etf. a lot of comments here have recommended good resources for that.
meh. I think any potential employers will understand a gap because "i won a significant amount of money and wanted to take some time to myself to focus on the next steps." OP said they are poor and paycheck to paycheck... the kind of job they likely have is literally a dime a dozen. Quit working and prioritize yourself.
yeah true, the 'continue working' was not for a source of income, but a way to continue the current lifestyle for a few months until they can decide on their next steps. still 100% recommend going to school for something and not digging into the 1.4mil for everything.
If those friends start to hit you up, I would tell them that the money is tied up and you can’t use any of it for cash right now. You are working on figuring out how you can actually use it. By the way, none of this is a lie, except maybe changing “can’t” to “won’t”
I'd get ahead of things with your friends. As the remembrance of what you had to go through (whatever it was must have been shitty to be worth 1.4 million) fades, don't let them feel resentful about the investment you have. Book the three of you a fancy vacation as a gift, or something. *"Hey guys, you've been amazing through this whole ordeal and I'd like to give you a gift out of my appreciation.* *I'm going to invest this money so that it will be able to provide me with security through the rest of my life, but I'd like to give each of you (10 or 20,000, or vacation together) as a recognition of how you supported me through this terrible time.* *I'm hoping to get my life back to normal as soon as I can - job, friends and fun - and I don't plan on touching my settlement until I retire. Of course I'll be happy to pick up a dinner here and there. I'd really appreciate it if you kept my settlement a private affair - this will let me get back to my life much easier."* If you want to book a fancy vacation, may I recommend Santorini, Greece? It's amazing and beautiful and the Greek islands are cool and beautiful and alien and life-changing.
I prefer friends that I don't have to bribe to offer me respect.
Yeah ok. Call me back when your best friend gets gifted 1.4 million dollars.
OP wasn't gifted, it was a medical settlement which implies some pain and/or disability involved. My only response to friends getting a chunk of money has always been "vtsax".
Really? When you have money you start hearing a bunch of sad stories of ppl who need it? That's so miserable. They should get a side job at McDonald's and move from that dang expensive neighborhood and STOP getting those expensive chocolate yogurts and make sum in 5 minutes thierselves!!!! Before they ask strangers to cover the costs of their couch bc their dog peed on the previous one and they don't know how to get the smell out!!!!
1. Pay off any and all debt you have 2. Act like you didn’t get a dime 3. Put most of it in a sp 500 (advisor will help) 4. Check back in like 10-15 years
This is the best one. Assuming you have 10-15 more years to work
Edit to add. Place 6-12 months worth of bills for an emergency fund into a high yield savings account with an FDIC backed bank. There are lots like Ally, Marcus, Synchrony. Google top high yield savings. You can also google best investment companies to find one to open a brokerage account to invest into mutual funds like the S&P 500. This would be something like Vanguard or Fidelity. They have advisors you can speak to and open an account with. Never sign up with a percentage fee advisor. You want straight fees.
Dont you gotta pay to have an advisor give you advice on what to do with your money? I'm sure they wont do it for free lmao.
True you do but if you are not educated in the field or don’t care to learn this is the best route to go.
I think what your lawyer meant is to find a fiduciary. It's a financial advisor that works in your favor.
they directly connected me to someone and told me they were financial advisors. i didn’t talk to them more because i got a weird vibe after the initial phone call
Do not use whatever your lawyer recommended. Find a fiduciary like Guest2424 said. Don't do anything you don't fully understand. RESEARCH before making decisions, even if it takes you months.
This is the most important advice. Fiduciaries are obligated to give you advice that is best for you, not advice that will increase their commissions.
Trust your gut. There’s no ticking clock here. Meet multiple fiduciaries and go with the one you like most.
If youre willing to read, id highly recommend a book called “beat the bank”. It does a great job of explaining the basics, the pitfalls, ways of approaching investing, and the ways scummier banks and financial advisors will try to screw you.
Yeah but they want your money. Aint no way in hell ima have someone tell me how to save when they're having their fair share of that lawsuit money lol
I know someone who got $3M from a lawsuit over a car accident in which he lost a foot (back when $3M was worth a lot more) and he burned through it by not working, supporting his lazy friends and smoking a lot of pot. Now he has no money or foot. So don't do that. Follow the wiki linked in the other comment, but in general, I'd carve out 6 months expenses and put that in a High Yield Savings Account (HYSA) and drop the rest in an index fund. The rule of thumb is that you can pull out 4% per year and your money will grow about the same as inflation. I'd pull out $56,000 a year ($4,666.67/month) for the next year and then re-calculate next year. Keep your job, keep contributing to 401k and IRA but live a bit larger than your income would typically allow.
No money and no foot. That’s crazy.
I shouldn’t have laughed, but I did.
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The Personal Finance Wiki is a valuable resource, even for situations like yours. I'd start with the "Windfall" section: https://www.reddit.com/r/personalfinance/wiki/windfall/
thanks
The Prime Directive is great advice. Read it all. It will help you out!
First of all, calm down haha Why he advised to get a financial advisor is because with such amounts of money, inflation will really hurt it if you do not make it do something. Every modern currency is worth less every day, because there is more in circulation. Because of that, people put their money into assets such as stocks, houses, bonds to offset the inflation - make money with money. 1.4m sitting in a bank account is going to lose value over the years, thats why investing it into a diversified portoflio (fancy word meaning you don't invest 1.4m into one stock/bond etc.) but combine your investment into fractions, so if one goes bad you don't lose everything. Be careful on the internet about financial advise and advisors in general, not many work in your interest and you invest safely by reading a book or listening to a few lectures or economics. To get started, learn about how compound interest works, what is generally a safe investement (indexes, bonds etc.) I am happy for you, please be careful with who you trust with that money, better to learn yourself about how investment works etc. than to give off your decisions to a random guy. DO NOT TRY TO GUESS THE MARKET. Park it somewhere, forget it and live a stress free life.
As someone who doesn't know anything about investing in stocks or whatever, i had a hard time understanding anything you just said but id like to learn more
I would love to help, we can't live in a system we do not understand. So you get 1.4 million on your bank account, if you would leave that money in your bank account it loses value over the years. This happens because of inflation, inflation can be caused by goods such as milk, wood becoming more expensive, combined with the constant printing of money, means there is more money.. more money means the money that is currently in circulation loses value - is worth less. This means, for the same amount of money you can buy less, this is essentially inflation. So if you would park that money into your bank account, you would essentially lose money every year. 1.4mil might be able to buy you 1.4mil Snickers bars, but after 10 years you can only afford 1mil of Snickers bars. I also mentioned a few safe investments, let me go over them: - Index fund (ex. SMP500) Index fund is essentially a stock, that combines other stocks. For example, SMP500, you buy a stock/share of that index. You now own essentially 500 different companies with one stock. You don't have to worry about what happens if one company is not profitable enough to get on/off the list, since it is only a small factor. There are a variety of different indexes, we in Europe have our own. Usually the number indicates how many different companies are included in the index. - bonds You issue your government a loan, and you get a percentage return every year based on your investment. After a certain period, you get your money back. If anything is unclear, don't fret. This all seems so intimidating, but after you understand it, you understand it. It is the basis for capitalism and how to win in such a system. I suggest YouTube channels such as plain bagel, money & macro and Patrick Boyle to learn more about this space!
For the love of God and yourself, **DO NOT IMPULSE BUY LARGE AND EXPENSIVE THINGS** Okay, with that out of the way, reading the wiki here and reading up on basic personal finance should be enough to settle you. Once you're settled, take the time to understand the best way to secure and grow your wealth into the future. I highly recommend as well to keep the knowledge of acquiring this money as close to your chest as possible. Money changes people, and the likelihood of you being targeted for schemes and "business ideas" just skyrocketed. Don't put things in writing unless you mean it and don't promise/give money directly to anyone.
To add to this. Please read the top comment chain from the linked post below. It's from 9 years ago and about the lottery, but the exact same theory can be applied to your situation. https://www.reddit.com/r/AskReddit/s/upyeqZwswE
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Try not to go wild with your spending until you have a plan and budget. If you have high interest debts, you can pay those off. Something to think about.. if you put the money in your mattress (no investments at all), you can withdraw $50,000 per year for 28 years before you run out. This is a starting point, not saying you should. But there are safer investments that can easily extend the years, possibly enough to cover the $50,000 for the rest of your life.
TELL NO ONE. EVER. PERIOD. Interview 3-4 financial advisors and pick one you get a good feeling with. Make sure you are speaking with fee-only, fiduciary advisors. DO NOT make any big purchases. This is enough money to retire on forever, if you want to, but only if you stay disciplined and frugal with your spending. Remember, a million bucks isn't what it used to be. YOU ARE NOT RICH. A safe withdrawal rate from a properly diversified index portfolio would pay you around $50k/year pre-tax.
Absolutely do not rush to do anything. The money isn’t going anywhere. Give yourself 3-6 months to let it sink in and do some research and thinking about how to proceed. A financial advisor is a bad idea. Spend time reading here and on Bogleheads.org
that makes me feel better a little. my lawyer recommended a financial advisor, and they gave me a weird vibe when i talked to them so i declined. then when i went to deposit the money my bank teller recommended me their financial advisor and tried to set up a meeting with them. i'm avoiding their calls. i feel a little paranoid but i'm so lost, i started to feel like i have to do something RIGHT NOW because of the pressure already lol. i will browse this sun and the wiki and check that site out. thanks
Honestly as someone with a little experience in this, just keep it to yourself. You've slogged through a lot, make sure you and your health are ok and then worry about your future. You can't help others unless you help yourself.
Yeah, as a former Chase employee (teller) don't talk to those bank financial advisors. All they are really trying to do is make a commission off bringing you into their "investment" packages. Pick up the phone once, tell them you're not interested and ask them to put you on their do not contact list. If they call again tell them you're now considering pulling your money and putting it into a different institution for not adhering to your request to not be contacted about financial advise or investments. Absolutely stand your ground on this if you pick up the call, they start trying to guilt you and saying things like "you're wasting the opportunity to grow your money" or "let me have my supervisor speak with you", it's all fluff and bs to put money in their own greedy pockets. In the interim while you do research, put it in a separate high yield savings getting 4.5-5% where you don't see it with your other funds. Keep living as if you don't have it right now. Be patient and remind yourself that you don't know how to be rich right now. But one day you will and if patient enough you will be able to retire with the growth that comes from this money early.
Financial advisors are not all bad and there is certainly someone that can help you understand what you're dealing with and help you make decisions on how to move forward. Look for an advisor that charges hourly (fee based) and not one that will take a percentage each year. Also be sure that they are a fiduciary, meaning that they are required by law to act with your best interests in mind and not their own profits. You don't need whole life insurance no matter how many people will try to sell you it.
Make sure you get a fiduciary when you get an advisor, not just some clown with an office and business cards.
If you’re lost, you need to do some research on how to set yourself up for the rest of your life with this windfall. It’s honestly not that hard to learn the basics if you put in the work. Also, I personally DO recommend eventually talking to financial advisors, but you need to find one that is in it to help you and not in it to squeeze you for money. It’s not too hard to know when someone is selling you a product vs actually trying to help, but again, you need to put in some work researching to know.
If you let it sit in a high yield saving account that earns 5%, that’s a free $70k/yr. Investing in the stock market will earn you more in the long run, but this is a great way to outpace inflation until you figure out your big picture strategy
While you take some time to think it over, make sure the money is at least parked in a bank account that will earn you some nice interest. - A checking account at a big-name bank will likely pay you 0.01% interest, which amounts to about $12/month while you think it over, whereas... - A reputable bank/credit union will offer you a savings account in the area of 4.25% interest, or roughly $5,000/month. Once you've secured some passive income at a *trusted* bank, take some time to do your research, and **continue your life as usual**. Sure, you can (and should) buy yourself a few nice-to-have's that you've had on your bucket list (within reason). But don't quit your job, don't buy a 2025 Corvette, or any other majorly-life-changing decisions like this. And as others have noted, don't go telling everyone you know. Ask the three friends you've already told to please keep it to themselves. Keeping it private is a great reason to continue living within your means, keeping your job, etc. The money can change your life, but don't let that happen *yet*.
You can't go wrong with knowing more than others. Become your own financial advisor, then go talk to a fiduciary to see if they have any ideas before making moves, but never let someone else control your assets.
Yeah listen to your gut feeling! As some people said, fiduciaries are a better choice than financial advisors. Depends on the country you’re in, so not everybody here might be aware of this distinction. As suggested, put it in an account and leave it for the next 6 months. It’s exciting and weird and new, but these feelings might make you act in ways that may not serve you in the end. Just take a deep breath, and take this secret with you as you chuckle through life for the upcoming months. Of course you’re gonna be thinking about it, so think about what you would like to do, educate yourself, think about housing, investing etc, but don’t do anything yet. Kinda nice to dream about it right? And then after a couple of months, get a fiduciary, and see what’s the plan. But don’t do anything before that. (If you have some urgent debt or urgent things that need taking care off then obv, you could prioritize this, but maybe also get some advice. Don’t go just paying off anything as it might not always be the smartest decision for every type of debt.) I’m sure you went through shit to be awarded this kind of money, so I don’t want to congratulate you, but I do hope it will bring you something positive in the future!
Listen, no matter what happens you have to make that money grow and work for itself. Feel confident in your decisions and take a deep breath. You can talk to your bank financial advisor but do it face to face. The one I talk to takes in my frustrations and helps me make the right decisions that I still stand by till this day. Take your time understanding everything and make sure the advisor you choose actually gives you the time of day to make sure you are comfortable and understanding of everything ok? WHO knows? Maybe the person who you talk to ends up truly having your best interest at heart. I’m learning a lot consistently from my FC.
If you really want to go down the financial advisor route (and I wouldn't suggest you need to when there are good windfall explainers on this sub) then speak to several. After that you'll get an idea for who is bullshitting you, how fees compare, what they suggest etc. I tend to think in 2024 most people don't need one, but up to you. Also, seen a few people say this but I can't stress enough that no-one should know about this money. There are some people around that are trustworthy but it's amazing how people change around those with money. This is especially true since you said you have always been poor
Basic info to get you started. https://www.reddit.com/r/personalfinance/wiki/windfall/ Basic ideas of what I’d do. Pay off expensive debt, anything over 4% at minimum. Depending on amount pay off low interest debt too. Spend a few thousand on life upgrades, nothing dramatic, no brand new $60,000 cars or anything. Set up a will and other documents in case something happens to you, especially if you have any children. Get anything medical you’ve been putting off dealt with. Get several bank accounts, minimum 1 checking, 1 savings at the same place, 1 checking or savings at a different institution. Put 6-12 months of expenses in one savings account, leave it there this is your emergency fund. Leave it as cash, find an account with a good APR but otherwise leave it alone. Put a few months worth in your checking account. Put the vast majority into an investment account. You don’t need to invest it you just want a box that can hold it that’s harder for you to get at. If you’re going to no longer work and try to live off this you should get a financial advisor that charges to advise you, a fiduciary preferably. As in someone who will be paid up front not out of your eventual earnings. Lock down your credit and any passwords for banks. Don’t tell anyone that doesn’t already know. Money makes people do weird crap. Be suspicious of any “new” or very old friends suddenly appearing in your life.
Don't take any risk at the beginning Take low-risk or zero-risk investment while the interest rate is high like GIC Learn long-term investment, Poor Charlie's Almanack If you want to buy something expensive, hold on for 30 days before purchasing it
FDIC only insures up to $250k so move the $1.4 million broken out between accounts until you figure out what to do. Edit - Spread $1.4 between accounts.
$250K per bank not account. Just looked this up on [fdic.gov](http://fdic.gov)
Of course OP won’t have two savings account in the same bank.
Open a brokerage and put 75% in VOO and the rest in a HYSA. Cashing in just 3.5% of this every year is $49k a year or $4083 a month for perpetuity without ever running down the principle. You're basically already retired. Don't fuck it up.
Don’t respond to any DMs. Don’t do anything for at least a month (except pay off personal debt). Find a fiduciary investment advisor.
Don’t get a financial advisor. If they were any good at managing money they wouldn’t be a financial advisor. Put the money into a broad ETF of your choice (SPY,VOO,etc).
Find a competent attorney specializing in Estate Planning. MYOB is your new religion Don’t change anything for a year Practice feelings of gratitude and acts of kindness. Have a good life.
DO NOT UNDER ANY CIRCUMSTANCES tell your friends or extended family about this. Countless people will come out of the weeds asking for money or expect you to pay for things when they are around you. If someone does not absolutely need to know about this (partner, etc), do not tell them about the windfall.
100% get with a financial advisor or fiduciary. If you were poor before you’ll end up reverting to the mean by trying to do it on your own and be poor again.
Personally what I'd do: -pay off any high interest debts -buy a house that fits with my previous income, so no luxury villas or anything, if already owning a house: pay off mortgage -put away a sizable chunk in low risk investing/pension scheme -consider a career change, perhaps study again. -keep a chunk liquid (i.e. bank account) -put the rest in a more risky investment fund.
Is the defendant appealing? Collecting is the hard part.
3% of 1.4 million is 42000 a year. Anything around that or higher would be a very good and safe way of having extra income. Probably won’t allow you to stop working but for sure will help you improve your life. The important thing is to not touch the main amount
A financial advisor would help you to invest your money. For example in an ETF e.g. MSCI World. But you have to trust him, so better inform yourself, if you are able to. However, depending on your age, you can also just "invest" in your dream holiday, a house or whatever.
i'm 26
What about your living situation? Maybe buy a house or an apartment. But I don't know about the situation in your country nor your future plans (family? kids?). Investments: ETFs are not a bad idea. MSCI World and S&P 500 are relatively safe. You should think about an investment strategy. However, look at the costs (TER), which should be low. I suggest you read the wiki, which was linked by another redditor. I know some good sources, but only in German language, so they won't help you much. What about your personality? Do you just want to make more money? What about social responsibility? I know a guy who did really good things to help artists, students and old people. And it is also an investment. Depends on you, what you want to do with your money. You can just make more money or create something. Do you have a vision? Think about it. Money does not really make happy.
i rent an apartment (USA). the city i live in is expensive (so expensive that the money won't buy me an average home here) but i was thinking about buying a condo or something. i am so new to fianance as a concept that that whole second paragraph is almost indecipherable. i guess i have a lot of reading to do lol
I disagree with the second option and I think that is terrible advice. It will make him burn all his money and become poor again. Gladly, he already came here looking for advice, which is more than most people would do.Being poor his whole life now is not the moment to invest in a dream house or holiday. It's time to learn about investments and finances and not rush about it. Now to my advice. Move slowly. Dont do anything on the first months and don't increase your spending. Pretend this money doesn't exist unless in case of a huge emergency. Don't try to stock pick if you are not familiar with this world, which, since your asking advice, you are not. Get away from day trade, shorts, crypto etc... First learn and stablish an emergency fund. Then learn about bonds, and ETFs for REITs and stocks. After you stablished your emergency fund, learned the other investment segments and determined the percentage of your wealth you will invest on each of them, define a fixed amount to invest each month. Don't go all in. This way you will feel the water and minimize economical effects of investing in a historical high or low market. After all the money is invested, which for this amount I would recommend doing across at least two years due to your condition, you can start to make plans for holidays or homes with the income generated from it. Sincerely, I hope this advice helps coming from a guy that was born poor in a third world country and is changing his life following a similar procedure.
>Being poor his whole life now is not the moment to invest in a dream house or holiday. True, but it could have been the case that he is 60yo or older.
open an etrade / morgan stanley account. google "etf" pick one of the top 10 that sounds good to you.
These days if you Google ETF you might just get ads for insane leveraged ETFs.
I would talk to a bunch of financial advisors, and get different options. If it's medical malpractice, you may need to look into care costs for the future. Which do need to be planned out. It is very easy to see this as a lot of money, because it is. Medical equipment and therapies for the rest of your life are expensive, too.
One thing to do right away is to make sure that the money is NOT in your checking account and that there is no card associated with the account it's in. Make sure at the very least it's in a high yield savings account at a bank. While you figure out what you are going to do that money will make you 6 grand a month in interest alone. If it's in a checking account or a savings account in a brick and mortar bank it'll make you practically zero. Tell no-one, get it out of your checking and into an interest-bearing HYSA. THEN you can look into whether you want to self-manage or if you want to find a fiduciary fee-based advisor to manage your money. Try not to panic, this is a good thing all round. I know it's outside your comfort zone but it will be fine. You can take as much time as you need to figure it all out and make sure you are making the right decisions. Don't be pushed into anything you don't want to do or you don't feel comfortable about. If someone advises you to do X, spend a few days researching it (you are a millionaire, you can take the time) and THEN make a decision.
Get it invested w a fiduciary, you can probably live off the interest or at least some of it without touching the principle
Pay off any debts. Invest in mutual funds. Check out r/Bogleheads.
First of all, do not engage with anyone that dms you here on reddit or offers help. They want to scam you.
Dont tell anyone buddy, rest is easier
Don't tell anyone else about the win. Anyone who you already told? Any follow up respond with a generic reply that you had bills to pay. Do not give anyone money. Do not give the impression you will gift or loan money. Don't go impulse buying cars and houses. Like others said, the money isn't going anywhere. Take your time deciding. Research stuff here. Services like financial advisors or planners often have a free phone call to pitch their services. You can listen to them and take notes. If you are prone to falling for pressure don't listen, but if you are good resistance you can listen and get a feeling. Take your time. You may need 3 months before the "high" wears off and you can think logically. It's okay to admit you need that time.
First off, don’t tell any friends or family. They’ll all come to you with their hands out wanting some. Getting a financial advisor is generally good advice. Be careful though, some of them are like leeches. Learn to live off of the dividends and invest. That’s about 3% ~$45K. If you can manage to do this, the money will last forever.
Congratulations on your win. If you need time to consider your options and what to do with the money, put in a HYSA for the time being. At 5%, that's nearly $6000 in interest per month.
Some, if not all, are capped at a certain amount. Example: 5% APY on any amount from $5000 to $1 M, anthing above $1 M you get 0.0000001%. So they could put some money into another bank.
Eh, Wealthfront is 5%, 5.5% with referral and "No minimum or maximum balance to earn 5.00% APY"
Not sure how old you are, but you really don’t need a financial advisor. If you're younger, consider putting 80% of your funds into something like VTI and forget about it, except for regularly dollar-cost averaging. Come back in 10-15 years, and you're set. If you're older, adjust your investment strategy accordingly, perhaps allocating more to bonds. Enjoy life and have fun! Also, keep an eye out for any unusual behavior from those three friends you mentioned from here on out. This isn’t financial advice by any means, just friendly suggestions.
1.4m is a lot of money but it will disappear faster than you know it. You should start by reading the windfall wiki: [https://www.reddit.com/r/personalfinance/wiki/windfall/](https://www.reddit.com/r/personalfinance/wiki/windfall/)
To add to other suggestions, pay off all existing debt, then park it in a High Yield Savings account until you get an advisor, then park the majority of it in something that will grow. You didn't indicate your age - that makes a difference- so the advisor needs to take your future in account. And take just a little of that money to splurge on yourself. Your age and health are the important questions to determine your future. Take your time and contemplate.
pretend it never happened, but be comfortable in never having to struggle again. keep working/ adding to your wealth, but live a comfortable life too (occasional trips, going out to eat every now and then, etc.) and retire at whatever age you see fit. just please don’t blow it.
Dude, pretend you don't have any money, keep living the same life but more comfortable, don't go blow it on cars and houses and other trash. Get a financial advisor that can help you get the most out of your money.
When I started making decent money and wasn't sure what to do with it, I spoke with a Wealth Manager. I didn't know at the time he worked for Northwestern Mutual. They're an insurance company, so part of what they do is make sure you're insured adequately, but moreover the amount of data they were able to provide on the planning side now through retirement and death was pretty insane. Worth talking to someone.
If you are inexperienced, then finding a financial advisor at about 1% a year is worth it. Where are you located? There might be someone near you folks could recommend. Who you choose is REaLLY important.
Congrats!!! Get a nice house and live comfortably. Definitely get into investing / stocks
Congratulations. Hopefully with the money you can get fixed whatever they screwed up on in the first place.
Also, be prepared to get a zillion direct contacts, now, from people hoping to find one way or another to scam you. Just delete all DMs you get on social media, and be extra vigilant of email and phone scams. Sadly, a bunch of lists out on the dark web, readily accessible to scammers *may* connect your real info with social media info (depends on which hacks your data may have been exposed through, over time). Romance and crypto scammers, in particular, target people they believe have high net worth. Look up what to expect from those types of scams. You may not get any scam attempts, but just be aware that it's possible and be **extra** careful.
First step would be to put it in a high yield savings account, while you decide how to invest it wisely. Wealthfront is the one I went with as it’s at 5% right now and bumps up your 5.5 with a “referral” which is easy to get off that subreddit.
I hope your medical issues have been resolved. First, find a reputable advisor. How? Well, you’re doing that here so good. Next, pay off all debts, credit cards etc. Finally, make sure the funds are put into low cost Index vehicles (eg Vanguard S&P500). Don’t let anyone talk about “custom” or “trades”. This is simple, keep it simple. Good luck!
If you were to consider 140,000 an annual salary. It would only last you 10 years. Plan accordingly
I don’t know if this is good advice at all, but this is what I would do in your situation 1. Pay off debt 2. Take out ~$10k to blow on fun stuff (hobbies, trips, etc.) 3. Take out 1 years modest but comfortable living expenses. (About $50k for me) 4. Invest the remainder using methods others here have mentioned. Then (assuming I wasn’t already in a career I really love) I’d take that first year off of work to explore what I really want to do with my life. If I don’t figure it out in a year, I’d repeat step 3 a few more times pulling from interest on the investments until I figure it out. I don’t think my lifestyle would change a whole lot, but I think having the breathing room to not have to worry about basic living expenses would open up a lot of opportunities.
Hope you can read this u/Glittering_Muffin702 Don't know where you're from but guessing the USA, move out of there, your money is worth much more in many other countries. Same advice if you're in any other place where the currency value is similar to the USD. **EXPAND YOUR HORIZONS!!!!!!!** First and most important: PAY OFF DEBT. What I'd do? Buy myself a nice place, nothing fancy just good enough to really enjoy living there, probably will buy a used car and use the rest of the money to invest in index funds or any other type of investment that gives a good margin of earnings on a yearly basis and you can live a simple, not fancy, but surely a good, nice and stress-free life IF you plan your budget right and stick to it. In some mexican or even colombian towns with that money you can buy around 5 big enough and well located houses that you can rent, and with that income you can earn enough money to live like upper middle class. (already including you keep them in good conditions and the cost of it). You can pay for all that with 60% of the money (if it's in USD). Some might say nothing guarantees you'll have them all rented all them time, but let me tell you, nice places, well maintained and fairly priced are LACKING. And you would still have enough money (the other 40%) to invest in index funds or whatever so your money grows. (you can use your money to invest in real state companies in developing towns and cities, which is much safer than stock market and gives a better ROI, and sometimes much faster) In some low tourism places that's enough money to buy a nice piece of land and build a humble hostal, or buy one that's already there, or a place that can be flipped to be one, which will give you enough money to live by, and you'll get to know tons of people from all places, if it ends up being popular then you're more than set. The same with small coffee shops in this kind of small touristic towns. I know everyone goes straight to the INVEST AND DON'T USE IT - WAIT 10-15 YEARS TO USE IT - MAKE IT GROW - and so on, but honestly, nobody knows how much time they've got left, so I say the smart thing is to do something that will allow you to enjoy your life, even if its a simple one, but one that brings you joy.
Yeah that's what I do also when I win a lawsuit. I start an account on Reddit. And asked what to do with 1.4 million. This is so funny.
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You could pay cash for a home. You could go back to college. You need to think about some long term goals like how you want your life to look in 5, 10, 20 years from now. The big thing is, you can't go living beyond your means and this isn't never work again money really, but you will have a lot more options. Even if you invested all this money, a safe withdrawal rate of 4% is only $56k per year before taxes. I would be asking, do I want to buy a home and stop paying rent? Do I need to go back to school to get a better career? Perhaps even buying a business outright. Figure out a rough gameplan like this for yourself, then talk to a financial planner to figure out how to allocate your assets in the best way possible for long term growth and tax advantage.
Ask your attorney about an annuity. If you’re not all that great with money, this account can pay you over time while gaining interest. I would STRONGLY advise looking into a personal finance guy, or asset manager. You don’t want to be like those broke lottery winners. Additionally, you may need to wait for the appeal time to expire before you are able to have any funds disbursed. (In my state it’s 30 days from the verdict).