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You should retain an attorney and have the $$$ disbursed to the law firm account.
This will give you some time to breathe and decide where you want it to go. You also need a good accountant, for tax issues. To proceed on your own from Day One is crazy, IMHO.
The measures that responsible people will take to avoid them
(whatever the level or severity of the taxable amount).
hth
If the OP is in an inheritance situation...
this tells me their benefactor should have set up a trust to manage the money
at least until the OP has learned *how* things work and demonstrated good judgment.
The measures that responsible people will take to avoid them
(whatever the level or severity of the taxable amount).
hth
If the OP is in an inheritance situation...
this tells me their benefactor should have set up a trust to manage the money
at least until the OP has learned *how* things work and demonstrated good judgment.
The OP question has nothing to do with estate taxes or the avoidance of it
I'm talking over $5million. You don't want "financial advisors" sticking their noses and hands into your money since you already know what you're going to do with it. Big problem is, FDIC only covers $250K. TOTAL... so even if you have 10 accounts at one bank with $250K in each one, you'll only be covered for $250K in the event something happens. So, what do you do? Do you spread this money out over several banks?
Youre kidding right? Those financial adivsors are there to tell you that instead of earning a fraction of a percent on your 5million you should be earning 5-6% in the market in a diversified portfolio to protect you from risk. Its the difference between earning 50k a year and 300k a year. Even if they have a 1% fee youll have 297k in income in the first year by using one.....vs 50k from the bank... If youd rather earn 50k just to keep advisors "noses out of your money" then you don't deserve 5 million dollars.
I am sure no financial adviser or CPA would have a problem with me immediately buying an reasonable condo with furnishings and car. I would then interview a few that has reasonable fees and would understand my goal of creating financial security for the rest of my life, which would be a long time being I'm 24. I would still expect to work and live a nice middle class life style. But it would sure be nice to know that if I loose my job or take a summer to travel, I would not have to worry about loosing my home.
Between sipc, FDIC and ncua you should be able to pull off insured coverage if you wanted to stay relatively risk free(there are still risk involved) without short term us govt debt. Here's how it works
A simple single name account for a husband, one for a wife and one joint account = 1mm in coverage per bank
Add in trust, retirement and other account types and it's not hard to spread it out.
Most of our large clients don't worry about this though we do have two different banks to spread deposits around which means those 3 accounts would provide coverage for 2mm
Tack on enough beneficiaries, use sole and joint accounts, retirement, and others and it is possible to hit $5 million in coverage in one bank.
I think as others said it would probably be more appropriate to spread funds around in various vehicles, such as cash, mutual funds, bond funds, Star Wars figures and others.
Of course, I've always thought, if $5 million was enough to last your lifetime and were not concerned about potential growth, there really nothing wrong with sitting on it all in cash. Sure, there's an opportunity cost there, but there's also an opportunity cost going the other direction. If one spent $50,000 a year and had zero interest on that account, it would take 100 years to spend it all - and that's assuming you have no other income ever.
Tack on enough beneficiaries, use sole and joint accounts, retirement, and others and it is possible to hit $5 million in coverage in one bank.
I think as others said it would probably be more appropriate to spread funds around in various vehicles, such as cash, mutual funds, bond funds, Star Wars figures and others.
Of course, I've always thought, if $5 million was enough to last your lifetime and were not concerned about potential growth, there really nothing wrong with sitting on it all in cash. Sure, there's an opportunity cost there, but there's also an opportunity cost going the other direction. If one spent $50,000 a year and had zero interest on that account, it would take 100 years to spend it all - and that's assuming you have no other income ever.
Your point is obvious but bear in mind that due to inflation in 100 years 50k will be NOTHING.
If you're crazy risk averse, you could put it in Treasuries as well. I mean, if the government defaults on Treasuries, it's not like the FDIC is likely to be paying out either.
Your point is obvious but bear in mind that due to inflation in 100 years 50k will be NOTHING.
Exactly, $50K might only be able to buy a week's worth or groceries 100 years from now.
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