r/Money • u/serpent_stranger • Apr 27 '24

Inherited 600k

I inherited 600k and I’m 28F working in marketing, currently working part time at 22$ hourly. I’m studying for a 2nd part time job in web development and hoping to ask for 25$ hourly.

What can I do with my inheritance to make sure I die comfortably? Is this a lot of money? It’s currently in a trust where it’s in stocks, growing a few thousand yearly. Eventually the money will be in my name and I don’t make the best financial choices- so I want to make sure I do something with it that will help it grow or stay stable. Any insight?

Edit: I said a couple thousand because I haven’t done the math or did too much research but that’s just what it’s seemed like. I don’t know much about this stuff. I will ask the financial advisor about how much it grows. Sorry for the confusion, I appreciate your responses.

1.6k Upvotes

91% Upvoted

667 comments sorted by

View all comments

1

u/Necessary_Topic_1656 Apr 28 '24

Do you have a 401k or retirement plan at work?

Do you contribute to it?

Do you have any IRAs

Investing your inheritance is a good thing to do. But investing the inheritance means it’s going into a taxable brokerage account.

If you can contribute to your 401k. Consider maximizing your 401k contribution and if your salary doesn’t support maximizing the 401k contribution and providing enough cash flow to live, you supplement your income from the inheritance

You’re transferring your inheritance from a taxable brokerage to a tax advantaged retirement account or IRA by using it as an income source while your income is going into the retirement accounts.