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Message
Hypothetical - Inherit $1 Million Cash
Posted on 1/12/26 at 12:44 pm
Posted on 1/12/26 at 12:44 pm
Let's say you are mid-30s, making $150,000/year. 2 kids, under 10, wife works full time earning $80-90k/year.
House & vehicles paid, and fairly new.
Then one day you inherit $1million cash after taxes.
What would you invest in (stocks, real estate, a business) to really maximize profits?
Not "needing" the money that was given and it was a surprise so you want to be aggressive or take way more risk than what you would if you had earned the money...
Also - you wanted to buy/start your own business that would cost about $750,000, but you would have to quit your current job. Would this be an option?
House & vehicles paid, and fairly new.
Then one day you inherit $1million cash after taxes.
What would you invest in (stocks, real estate, a business) to really maximize profits?
Not "needing" the money that was given and it was a surprise so you want to be aggressive or take way more risk than what you would if you had earned the money...
Also - you wanted to buy/start your own business that would cost about $750,000, but you would have to quit your current job. Would this be an option?
This post was edited on 1/12/26 at 1:03 pm
19
Posted on 1/12/26 at 12:47 pm to SaDaTayMoses
quote:
Hypothetical
Congrats, baw!
Posted on 1/12/26 at 12:49 pm to SaDaTayMoses
yes
Posted on 1/12/26 at 12:54 pm to SaDaTayMoses
Every situation is different
My wife wanted to stay at home with kiddos at that age so we most likely would have put the money in brokerage and replaced her income that way until she decide she wanted to work again.
My wife wanted to stay at home with kiddos at that age so we most likely would have put the money in brokerage and replaced her income that way until she decide she wanted to work again.
Posted on 1/12/26 at 1:35 pm to SaDaTayMoses
A far more realistic scenario would be with the house not paid off - that way you could introduce that possibility into options
How many mid 30s have their house paid off?
How many mid 30s have their house paid off?
Posted on 1/12/26 at 2:03 pm to SaDaTayMoses
quote:
want to be aggressive or take way more risk than what you would if you had earned the money
Hookers and blow?
Posted on 1/12/26 at 2:16 pm to SaDaTayMoses
Enough in QQQI to make 100k a year and the rest in VOO 
Posted on 1/12/26 at 2:31 pm to SaDaTayMoses
What's your hypothetical target retirement number? How much do you hypothetically have saved now?
I think I'd just keep working and use it to accelerate my target retirement number and keep investments boring with some Vanguard Growth ETF's until I hit my number.
I think I'd just keep working and use it to accelerate my target retirement number and keep investments boring with some Vanguard Growth ETF's until I hit my number.
Posted on 1/12/26 at 2:46 pm to SaDaTayMoses
quote:
to really maximize profits
Buy my book!
Posted on 1/12/26 at 2:48 pm to SaDaTayMoses
People way over complicate this stuff.
Setup a taxable brokerage and invest in VTI and be done with it.
You can carve some dollars to max a Roth IRA annually.
It can be this simple if you allow it to be.
Setup a taxable brokerage and invest in VTI and be done with it.
You can carve some dollars to max a Roth IRA annually.
It can be this simple if you allow it to be.
Posted on 1/12/26 at 5:58 pm to SaDaTayMoses
quote:
SaDaTayMoses
Who gave you a million dollars?
Posted on 1/12/26 at 10:10 pm to SaDaTayMoses
How much do “they” have currently invested?
Posted on 1/12/26 at 11:00 pm to SaDaTayMoses
Pay off house regardless of interest rate, pay off all debt in general, put rest in VOO.
Posted on 1/12/26 at 11:45 pm to SaDaTayMoses
quote:
so you want to be aggressive or take way more risk than what you would if you had earned the money...
Why?
Compounding runway length of 20-30yrs is key. Bank the time and don’t fret so much about ‘greater risk’ for implied higher return. VTI, as stated, is simple and solid advice.
In 20-25 yrs, VTI may produce a value that yields $150,000/year (another salary) and you never have to touch the principle on 4% annual distribution.
I’d focus on the why and outcome desired before pre concluding higher risk for sake of.
Posted on 1/12/26 at 11:46 pm to Craft
quote:No, definitely depends on the rate
Pay off house regardless of interest rate,
This post was edited on 1/12/26 at 11:50 pm
Posted on 1/12/26 at 11:55 pm to saderade
quote:
Pay off house regardless of interest rate, No, definitely depends on the rate
Definitely does!
Build wealth and peace of mind. If can invest for positive spread (earning - cost), do it.
Paying off house ain’t only path to peace of mind. Having it grow to financial freedom or financial freedom and possibly also paying off house are sure ways to peace of mind. Keeping option to payoff house, in so doing, also peace of mind.
Posted on 1/13/26 at 1:54 am to SaDaTayMoses
SPY and chill. That money becomes your new retirement fund. Reduce your future retirement savings to just 401k and enjoy the new play money in your budget
“Hypothetically”
“Hypothetically”
Posted on 1/13/26 at 1:58 am to lynxcat
quote:
You can carve some dollars to max a Roth IRA annually.
Why even bother with this? He’ll have a long term nest egg of $1MM in his 30s, plus whatever retirement fund he has existing. Growth on that will be enough to fund a good retirement. No need to keep throwing more money into it past 401k
Posted on 1/13/26 at 4:55 am to Upperdecker
quote:
Why even bother with this?
He’d build another pile that will be tax free when he withdraws it.
At a return of 7.2%, his monies will double every 10 years. With 4 decades of growth the initial 7000 with double 4 times. Each contribution would compound.
No income or capital gains tax on the Roth IRA- for him or any heirs.
This post was edited on 1/13/26 at 7:49 am
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