Reply to All you rich folks - looks like I'm (almost) one of you. What should we do?

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[quote=Anonymous]Financial advisers who are fee only would probably charge you several hundred dollars (maybe up to $1000) for a comprehensive review of your finances and advice on how to invest the inheritance money.  But ask up front about costs and how they charge.

I would recommend this for your situation because it is pretty much what you need right now -- a check up. (I'm not an adviser, I am just someone who tries to know about money management, and I am the PP who went to the adviser friend and got some good free advice.  I also know I am going to inherit a fair amount someday, so I am trying to educate myself now).

Many other advisers charge a percentage based on the amount of your account which they are managing for you (often it's 1%; often they have a minimum to open an account).  That's probably not what you want right now.  I wouldn't recommend your giving the inheritance money over to an adviser to manage as that's a big commitment, and as you said, you may want do other things like pay down the mortgage, college savings, etc.

The other thing is if you go to an adviser who charges a percentage, they will be foaming at the mouth to get you to open an account with them with the inheritance money. I find that to be a potential conflict of interest.  So I tend to think the fee only route is the way to go.  That way, you are just paying for their expertise and they have no incentive to steer you in a particular direction which could benefit them.

Someday you may want to open an investment account or roll over a 401K or Roth IRA and allow an adviser to manage it for you and take a percentage.  But I think you are far from that (most of us are!).   Advisers who charge a percentage will also give you general advice, but their primary goal is to have an account which they manage for you and maximize the returns from that account so their percentage is maximized.  Make sense?

Good luck.[/quote]

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