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by troydavis 2192 days ago
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.)

1 comments

Thanks. I’ve been digging into both those subreddits quite extensively for a couple weeks. Tons of great info, but nothing I’ve found that walks me through the uber elementary and practical steps of receiving and holding that money for the short term. Like when I’m asked for wire instructions, where do I have them send the money?

I’ll see if I can get some time with a financial planner, but would love to learn how others here have handled it, and if there are any “best practices.”

Sure. Sign up for https://www.fidelity.com/cash-management/faqs-cash-managemen... and Fidelity will give you a routing and bank account number. As long as you choose Fidelity FDIC-Insured Sweep as your sweep (uninvested cash) account, it’ll be there until you decide what to do with it.
Yeah, some preliminary research on Insured Sweep after your first comment suggests this may be a good way to go. Much appreciated.

Any quick thoughts on parking it in a TIPS ETF?

It shouldn’t be there long enough for yield to matter, so I don’t know why one would take on that complexity. Step 1, put it somewhere absolutely safe and fairly simple. Step 2, talk to someone and decide what to do with it longer term (which probably won’t be bank deposit or TIPS).

In step 1, the goal isn’t to keep pace with inflation because, for the few months required to do step 2, inflation doesn’t matter.

(My meta-comment is: spend the time you’d spend reading r/FatFIRE or asking HN on finding and talking with a planner instead. I assumed you just found out because, if it’s already been a few weeks, there’s no reason to still have this question. I don’t mean to offend you, but: a few hours with a professional who knows your specific situation will be more helpful than anything you’ll find online.)