HACKER Q&A
📣 moneyanoney

How do I handle a $Ms windfall for the short term?


I’m coming into a low $Ms windfall from a personal investment and am looking for advice on how to handle the receipt and management of these funds for the short term.

This is the first time I’ve ever come into this kind of money, and want to take ~6 months to cool down and shore up my financial intelligence before making any moves. I’m deathly afraid of fucking up, and losing it all.

How do I handle the wiring process — send it all to one account? And how do I hold this money safely for the short term — multiple high-yield savings accounts, treasuries, money market, etc?

Any advice and stories of your own experiences would be greatly appreciated.


  👤 troydavis Accepted Answer ✓
Here are places to start:

* the r/FatFIRE subreddit - many people have asked variants of the same question: https://www.reddit.com/r/fatFIRE/comments/hf99ez/large_inher... . The r/personalfinance “windfall” page comes up occasionally: https://www.reddit.com/r/personalfinance/wiki/windfall/ (it links to lots more similar questions).

* Past HN submission: https://news.ycombinator.com/item?id=18600220

* If you don’t have any experience at all, you may want to start with an hourly financial planner who is also a fiduciary: https://www.napfa.org/find-an-advisor?q=&exp=Fee+Structure%3... (note: the “Hourly” filter is checked), https://www.napfa.org/financial-planning/fiduciary-101, https://www.forbes.com/sites/baldwin/2019/10/13/hourly-plann.... They’ll help you answer these questions and charge an hourly fee, much like an attorney would.

(The best-insured place to park it would be a bank/brokerage with multi-bank sweep account, like Fidelity’s FDIC-Insured Sweep: https://accountopening.fidelity.com/ftgw/aong/aongapp/fdicBa.... However, talk with a professional first.)


👤 cell9840179419
Do not trust anyone. Including your relationships and spouse.

Make three lists of items - things you will want for yourself rest of the life, things you need to live, and things you want to invest for the time after you. Examples for each list: a good house in a good place, a set of low risk investments that will give you 250k p.a. perpetually, invest in a durable enterprise that will outlast you.

Then go about living as if nothing had happened.

When it comes to investment, choose boring non-exclusivist models. Aka. avoid maddoxes.