[USER]

Hey everyone, Imagine you just inherited a million dollars at the age of 23 – what would you do? I’m seeking advice and insights from fellow community members on how they would handle this situation.

With such a significant sum of money, the possibilities seem endless, but it’s essential to make wise decisions for long-term financial security and personal fulfillment. Whether you’d invest in real estate, start a business, pursue further education, travel the world, or something entirely different, I’d love to hear your thoughts.

Please share your exact steps and reasoning behind your choices. Your experiences and perspectives could provide valuable inspiration and guidance to others who may find themselves in a similar situation.

Thanks for sharing your insights and ideas!

[Nico]

Don’t tell people. Invest 100% into the market. Enjoy FI at 35 with around 2.5 million.

(Assuming you already have the career you want, otherwise use like $50k to go to college or something.)

[FIrebird]

1. Pay off any debt
2. Invest 50% into index funds
3. Buy a house to live in (so you automatically stop paying rent and save that)
4. Set a target of the amount needed to retire at 40 ($ 1 million is not enough especially 17 years down the line). Then set up a plan to reach that number with the $ 1 million helping to make a start).

Also, personally I would start traveling more and seeing the world. There is absolutely nothing that equates to personal growth by widening one’s perspectives.

Don’t miss: My mother died recently and I am about to inherit a very large sum of money – not sure what to do

[Michelle]

Definitely read “The Simple Path to Wealth” before you make any big decisions.

Do not go on a crazy shopping spree or live off the money thinking you will do something with it when you get it all figured out. The money will disappear faster than you would expect.

[Dean]

1. Pay out any outstanding debt. Car, mortgage etc.
2. Put 90% of the remainder into lowcost indexfund.
3. Put 10% into savings account with some interest rate.
4. Keep living life as if you never got those dimes in the mattress.

[Raman]

Buy a house with half the cash and invest the other half. And coke and hookers with any spare change lol congrats you won in life!

[Shawn]

Follow the money guy’s foo steps. Read simple path to wealth to understand how to invest, it is really fairly simple. Don’t do anything drastic till you have a plan.

Pay off all debt, 6 months emergency fund in a high yield savings account, max out Roth IRA for this year and last year before April 15, open brokerage account put money in safe EFT fund.

Buy any must haves that you need.

That’s a lot of money that can set up your whole future or it can go quickly and ruin your life.

Have you seen: Inheritance Dilemma: Legal Implications of Family Estate Disputes

[Manan]

If I put $900,000 in a low-cost index fund for 30 years, I would be able to retire at 53 with $15 million dollars. So that’s what I would do. Put it in that fund, forget about it, and retire at 53. With the other $100k, I’d find a home I can afford with my salary and use that for down payment.

However, this requires things that most 23-year-olds (including me when I was 23) lack: patience, delayed gratification, control over impulses, and willpower.

[Tyler]

I’d never pay off your mortgage or buy a house cash.

Get a 15 year loan with a lower rate (you can always refi to a lower rate later).

You can earn more interest on that money than you would pay.

Invest as much as possible. Diversify. Maybe 50% into the S&P and then research research research to find some things that create cash flow.

Take a peek at: I inherited an 80k Ira through Edward Jones that I would like to cash out as soon as I can without significant tax implications

[Armando]

Buy 4 houses that need rehabbing so that your all in cost is 250,000 in average in a B class neighborhood low cost of living area, so that when you refi you get back the million.

[Author]

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