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Does EY P check for references?
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Additional Posts in FIRE Financial Independence Retire Early
Custodial or 529 for child?
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Ok seriously - save 6 months emergency fund. Where do you live? Perhaps look into real estate in your area. A duplex if possible - set aside the cash for a deposit. Whatever is left over, invest the rest into the stock market. DCA if you like, but stock are on sale right now. Try and diversify your portfolio when investing.
I don’t think financial planners are worth it for most regular people without insanely high amounts of money or asset complexity. That said, I would definitely invest that cash beyond a 6 month/1 year emergency fund that you keep in a savings account since it’s ultimately deflating over time. There are lots of investments depending on your personal risk tolerance but some good rules of thumb are that time in the market almost always beats timing the market and to first max out your 401k and IRA to the legal maximum then put percent of your age in bonds and the rest in an S&P mirror (so you at 34 would be 34% bonds, 66% zero/very low fee S&P mirror). I personally have more risk tolerance so I put almost nothing in bonds and put it in a BlockFi USD backed stablecoin interest account instead since the returns are much higher for something I view as low risk and still very liquid but that’s my own personal choice and certainly not something I recommend for everyone. You worked hard for your money so put it to use!
That’s a lot of cash
That’s a lot of cash
That's a lot of cash
Did anyone say this? No?
That’s a lot of cash
Read common sense investing by John Bogle
Get that cash into index funds
This is really it. You’ll pay someone a ton of money to tell you to put all but six months reserve of it in an index fund. Use a roboadvisor if that seems scary.
Other advice includes regularly putting money in your 401k/Roth, picking a bank based on interest rate, and maybe doing a 529 if your kids exist and are young. There’s nothing too wild and exciting beyond that that’s not a scam.
That's a lot of cash
Hire a Certified Financial Planner. They charge a fee for planning but not a percentage of assets.
Many FPs won’t charge for the plan preparation but for AUM management. In fact, most prefer Investment Management. The one shot FP is a transactional deal which won’t yield good results as your plan would need constant updates as your life changes. In my 21 years in the industry, I’m still yet to see a single-plan client who has stuck to the original plan.
Lmao. Working in public accounting the independence rules were so complicated that I said fuck it and have just been stashing cash under my pillow at night rather than investments. I just left public so now I’m free!
https://www.bogleheads.org/wiki/Lazy_portfolios
Bond offerings for secondary alternative assets are gold- IF you can afford it & are in the know, don’t discount these! Almost 20% ROI
If you don’t have the discipline and desire to manage it yourself go a financial planner. Just don’t buy full life insurance from them 😁.
Thanks for the post, OP. We are in very similar scenario.
Do you have short term plan with your cash? If not I’ll invest some amount in stock market.
Are you maxing out your retirement accounts and HSA?
Roth is post tax money whose interest is tax free. You can withdraw the principle after five years penalty free, but you have to leave the interest in to avoid a penalty just like with a 401k. Google backdoor Roth for how to articles. There’s also a thing that some 401k plans allow called a mega backdoor roth. Physician on FIRE has a good write up of how to do it.
Lots of folks here shitting on FAs. They earn their keep most of the time. They manage your investments, they harvested tax losses, they minimize taxes by recommending tax free investment vehicles... you may want to do yourself, but probably don’t have the time to do it
OP, I know many people mentioned the financial planning side of things. If you want to speak to someone about estate planning I can provide the name of a fantastic attorney. I unfortunately had to work with him because my father died in April, but he’s been an estate attorney since the 70s and really knows his stuff. Feel free to DM me if you want his contact info.
That’s a lot of cash
Where are you located?
California