[nemild]

One more to add is Reddit's Personal Finance, where this question gets asked a lot. The wiki (second link, search for Windfall) esp has a number of great articles on topics like this.

https://www.reddit.com/r/personalfinance/

https://www.reddit.com/r/personalfinance/wiki/index

[alex_sikora]

I'd probably recommend https://old.reddit.com/r/FatFIRE over /r/pf as it's more likely to have people that have experienced getting a large lump sum like this.

[monktastic1]

FatFIRE is for people who want to live large off their savings (usually understood as >$100k/yr passive income, which generally requires $2.5M+ in invested assets). That doesn't seem to describe OP's position. If FIRE is an interest, then https://www.reddit.com/r/financialindependence/ is a better bet.

[Justin_K]

4% roi is far worse than market and real estate averages.

[icedchai]

4% is what FIRE folks consider "safe" over long periods of time. It is based on the well-known Trinity study: https://en.wikipedia.org/wiki/Trinity_study

[Justin_K]

...but it's still worse than market averages.

[voisin]

I think it is 4% nominal, which leaves some excess returns to keep pace with inflation.

[doingmyting]

Yes, that's why it's considered the worst case and a safe bet to withdraw

[rabidrat]

Not anymore.

[Justin_K]

Based upon what?

[dmoy]

It's not 4% ROI, it's 4% withdrawal rate. And even that is not super safe if you're retiring for many decades (the RE part).

You can use a variety of online calculators to back test a 4% withdrawal rate - maybe 80% safe, but 20% of the time you'll go broke before dying.

[koolba]

I really appreciate linking directly to old reddit rather than the crap default.

[BbzzbB]

PF will say the same thing as always (not that it's wrong), i.e. SPY if you're risk-tolerant, some Vanguard I don't recall (VOO?) if you're less so.

[arcticbull]

VOO and SPY are basically the same thing, SPY is older and structured as a trust, VOO is an ETF. Both track the S&P 500. They'll probably recommend some combination of equity and bonds, probably a split between VOO (slightly lower fees and more efficient payout of dividends -- I do mean slightly) and TLT (20+ year treasuries).

VOO and TLT have limited correlation as treasuries are seen as a safe-haven. We've seen huge spikes in treasury funds recently, since they go up in value when interest rates go down. It's a bit unintuitive, but treasury funds have to cycle through their holdings over time to track the index, so when interest rates on new issues go down, older issues command a premium in the amount of pre-paid interest.

[reducesuffering]

VOO is the same index as SPY (SP500), so that can't be it. Maybe you meant BND, a highly popular total bond market ETF that would be for the risk-intolerant?

[csmiller]

Maybe VTSAX?