Huge amount of money in savings?

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Jack Douglas
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Re: Huge amount of money in savings?

Post by Jack Douglas » Sat Nov 04, 2017 10:16 pm

glassynails wrote:
Sat Nov 04, 2017 7:52 am
Hello.

I inherited a HUGE amount of money! Of course we all know that HUGE is relative, but it's close to six figures and to me that's a pretty large amount. Anyways, what's better than simply throwing it into a savings account? I'd rather not risk any of it at this moment. What's the next best besides a savings account? I mean as far a risk vs interest.
Hi Glassynails,
There’s risk free and fee free which will essentially leave you with dealing with a bank savings account. You would be advised to seek the consultation of a reputable financial advisor who will charge you a fee and can advise you of the variety of investment possibilities. Investment possibilities come with risk, but offer higher rewards than a standard savings account. They may suggest you open a ROTH or IRA account; they’ll explain the difference.
Also, there are upfront fees to get your funds in the various investment vehicles and I suspect 4% is not out of the question.
Here’s the important thing. A lump sum of less than 100k can be easily frittered away. Get your funds invested or simply put in a bank CD so you don’t have the temptation to spend a little here and there.
You’ve put it out here on Delcamp, but if I were you I would cease making ‘I just inherited a huge amount of money’ statements.
I wish you success in finding a trusted financial advisor and making wise investments.
Jack
Hauser III 2014!

dory
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Re: Huge amount of money in savings?

Post by dory » Sat Nov 04, 2017 11:17 pm

I also inherited quite a bit of money. My dad died 3 weeks ago-- 11 months after my mom died. I already had a financial advisor although I was very far from rich. I am goung to ake his advice about investing. Find someone you trust. What lu do NOT want to do is leave the money in a savings account. And I have not bought a single new guitar. I want to make my money last.
Dory

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Paul Janssen
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Re: Huge amount of money in savings?

Post by Paul Janssen » Sat Nov 04, 2017 11:48 pm

dory wrote:
Sat Nov 04, 2017 11:17 pm
I also inherited quite a bit of money. My dad died 3 weeks ago-- 11 months after my mom died. I already had a financial advisor although I was very far from rich. I am goung to ake his advice about investing. Find someone you trust. What lu do NOT want to do is leave the money in a savings account. And I have not bought a single new guitar. I want to make my money last.
Dory,

My condolences on the loss of both your parents in such a short period of time. I can only imagine the emotional roller coaster you must be on right now.

Best,
Paul

Rasputin
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Re: Huge amount of money in savings?

Post by Rasputin » Sun Nov 05, 2017 8:13 am

dory wrote:
Sat Nov 04, 2017 11:17 pm
And I have not bought a single new guitar. I want to make my money last.
Yeah, but there are no prizes for dying with a lot of money in the bank. It's there to be spent at some point (unless you have kids and want to pass it on, maybe). Spending money on a nice guitar that is going to see a lot of use is not frittering it away.

dory
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Re: Huge amount of money in savings?

Post by dory » Sun Nov 05, 2017 3:07 pm

Thank you for the condolences.
Dory

dory
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Re: Huge amount of money in savings?

Post by dory » Sun Nov 05, 2017 3:08 pm

I always seem to ruin glassy's threads with my own losses. Sorry glassy.
Dory

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Andrew Fryer
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Re: Huge amount of money in savings?

Post by Andrew Fryer » Sun Nov 05, 2017 4:32 pm

There are many types of advisor, though. When my civil service department closed, advice clinics were offered, and I met someone who came out of one very disappointed, as the advisor seemed to be totally uninterested in amounts less than £250,000.
1975 Calatayud y Gisbert, Yamaha CG131S.

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dng
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Re: Huge amount of money in savings?

Post by dng » Sun Nov 05, 2017 6:03 pm

I would cease making ‘I just inherited a huge amount of money’ statements.
exactly... in this world where the internet hackers reign... it's an invitation to trouble...

besides, it reminds me the ever so famous Nigerian scam... " hello, I'm a widower... I just inherited a huge sum of money blah blah blah..." :D
"Nothing is more beautiful than a guitar, save perhaps two.”
-Frederic Chopin

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Casey
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Re: Huge amount of money in savings?

Post by Casey » Mon Nov 06, 2017 12:29 am

This is why I like coming here. Thoughtful people accustomed to diligent study and reflection and it shows in all phases of life.

My 2 cents - your currency is not safe in a US bank. It's not even yours. Read your account agreement, title to the currency passes to the bank, and you are merely an unsecured creditor with respect to that currency and totally dependent on the solvency of that bank.

In these times where the world's governments are all running their printing presses with dials set at "11" and asset bubbles are everywhere, your first rule is not return on capital but preservation of capital. Your typical safe haven assets of real estate, sovereign bonds and high quality corporate bonds are imho all in bubbles. Fine art and collectibles as well. The only exception I am aware of is precious metals, meaning gold and silver. They have a role to play in your portfolio but you need to make sure you understand them thoroughly first.

Be careful, take your time (but not too much), do your research, and good luck.

franks59
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Re: Huge amount of money in savings?

Post by franks59 » Mon Nov 06, 2017 3:21 am

Casey wrote:
Mon Nov 06, 2017 12:29 am
My 2 cents - your currency is not safe in a US bank. It's not even yours. Read your account agreement, title to the currency passes to the bank, and you are merely an unsecured creditor with respect to that currency and totally dependent on the solvency of that bank.
In the US, checking, savings and CDs are insured by the FDIC up to $250,000 for a single depositor.

Frank

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Casey
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Re: Huge amount of money in savings?

Post by Casey » Mon Nov 06, 2017 2:08 pm

The FDIC's liquidity is only a tiny fraction of its potential liability in the event of a systemic bank failure. Trust the US govt if that is your preference, I prefer to sleep at night.

Rasputin
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Re: Huge amount of money in savings?

Post by Rasputin » Mon Nov 06, 2017 2:12 pm

And don't forget that aliens could attack at any moment.

franks59
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Re: Huge amount of money in savings?

Post by franks59 » Mon Nov 06, 2017 3:26 pm

Casey wrote:
Mon Nov 06, 2017 2:08 pm
The FDIC's liquidity is only a tiny fraction of its potential liability in the event of a systemic bank failure. Trust the US govt if that is your preference, I prefer to sleep at night.
In the event of a systematic bank failure, the only assets that would count are food, shelter and security, though the dollars stuffed under you mattress may come in handy as kindling. :)

Frank

Rasputin
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Re: Huge amount of money in savings?

Post by Rasputin » Mon Nov 06, 2017 4:23 pm

No, I think he has that covered with his precious metals. Gold I'm sure would still have exchange value. Could he keep it safe though??

Bury a small amount under a large number of different trees, is my advice. Just don't lose the map. Or train a team of squirrels to bury and retrieve it on command.

Salvatore Lovinello
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Re: Huge amount of money in savings?

Post by Salvatore Lovinello » Mon Nov 06, 2017 4:29 pm

franks59 wrote:
Mon Nov 06, 2017 3:21 am
Casey wrote:
Mon Nov 06, 2017 12:29 am
My 2 cents - your currency is not safe in a US bank. It's not even yours. Read your account agreement, title to the currency passes to the bank, and you are merely an unsecured creditor with respect to that currency and totally dependent on the solvency of that bank.
In the US, checking, savings and CDs are insured by the FDIC up to $250,000 for a single depositor.

Frank
That should read single account. A family of four could theoretically insure up to $1 million. This is possible though multiple accounts, ie; my account, my spouses account, first child's account, second child's account and all the combinations of joint and custodial accounts.

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