An individual earning $40,000 annually received an $800,000 Roth IRA inheritance and a $400,000 money market account. First step is to calculate monthly expenses to tailor decisions. Priority should be eliminating high-interest debt to reduce vulnerability given modest monthly income. Avoid high-risk investments and preserve principal in low-risk vehicles. Confirm the money market APY; at 3% it would generate about $12,000 annually (~$1,000 monthly). Consider a CD ladder to secure yields and maintain liquidity. Consult a financial advisor for personalized tax, withdrawal, and estate planning guidance to protect and pass on wealth.
I can't offer any suggestions on what to do with the money if I don't know more information about someone's finances. The advice for managing the $800k Roth IRA and $400k money market account will be different if someone spends $5,000 per month or $20,000 per month. The Redditor is earning $40,000 per year, which comes to roughly $3,333 per month before taxes.
Someone who is earning $3,333 per month may be more vulnerable to debt, such as credit card debt. Squaring off those balances first with the money market account may be the best first step to take. We don't know the APY on the money market account, and I would want to know that if this person wanted suggestions from me. However, if it yields 3% APY, the $400k account is generating $12,000 per year, which comes to $1,000 per month.
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