My father passed away at the beginning of the year and had a life insurance policy that put 500k in a trust for me. I will receive ⅓ when I turn 29 (in 8 months), ½ at 34, and the balance at 39. I also was already given 20k which I will use to help max my Roth 401k this year.
About me: I am 28 and work as a software developer (2 years exp) making 80k a year. No debt, 10k in my emergency fund, 10k in 401k, and 30k in AAPL that I bought in 2014. I didn't even know what an IRA was until this inheritance prompted me to finally start understanding personal finance. I’ve read The Simple Path to Wealth, Bogleheads Guide to Investing, and this forum to help my understanding so I don't burn through this money.
The money in the trust is being managed by Morgan Stanley. The financial advisor and the trustee have the final say on how the money is invested, but they are asking that I provide input on what I would like them to do with it.
My thought is to ask them to keep 40-50k liquid (20k to max my roth again next year, 10k to increase my emergency fund, 10k to eventually buy a 13ft Boston Whaler to honor my dad).
Then invest the rest in VTI and VXUS. I would prefer the ETF versions for ease of transfer between brokerages.
Does this seem like a decent suggestion to make? My worry is the money ending up in high fee mutual funds that don’t transfer out of Morgan Stanley easily and then I am stuck having to create taxable events to move the money to low cost index funds in the future. I am also walking this line of not wanting to come off as arrogant, or a know-it-all as I am not the client, the trustee is, and don’t want to offend anyone.
They are also recommending that I open a personal Morgan Stanley account to add the disbursements to. I know what J.L. Collins would say but do you see any reason that I should do that rather than managing the money myself in my Fidelity brokerage account?
About me: I am 28 and work as a software developer (2 years exp) making 80k a year. No debt, 10k in my emergency fund, 10k in 401k, and 30k in AAPL that I bought in 2014. I didn't even know what an IRA was until this inheritance prompted me to finally start understanding personal finance. I’ve read The Simple Path to Wealth, Bogleheads Guide to Investing, and this forum to help my understanding so I don't burn through this money.
The money in the trust is being managed by Morgan Stanley. The financial advisor and the trustee have the final say on how the money is invested, but they are asking that I provide input on what I would like them to do with it.
My thought is to ask them to keep 40-50k liquid (20k to max my roth again next year, 10k to increase my emergency fund, 10k to eventually buy a 13ft Boston Whaler to honor my dad).
Then invest the rest in VTI and VXUS. I would prefer the ETF versions for ease of transfer between brokerages.
Does this seem like a decent suggestion to make? My worry is the money ending up in high fee mutual funds that don’t transfer out of Morgan Stanley easily and then I am stuck having to create taxable events to move the money to low cost index funds in the future. I am also walking this line of not wanting to come off as arrogant, or a know-it-all as I am not the client, the trustee is, and don’t want to offend anyone.
They are also recommending that I open a personal Morgan Stanley account to add the disbursements to. I know what J.L. Collins would say but do you see any reason that I should do that rather than managing the money myself in my Fidelity brokerage account?
Statistics: Posted by Bootleg6124 — Thu May 23, 2024 12:30 pm — Replies 5 — Views 663