Reply to Spouse inherited $3 million

Forum Index » Money and Finances

Reply to "Spouse inherited $3 million"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I am not sure there is anything a tax planner can tell us. The investments are in tax-efficient index funds and we are maxing out all tax-preferred savings options.

What is the advantage of I-Bonds? I guess I need to research those more, but I'm hesitant to complicate our portfolio. We have everything at Vanguard except for one 401(k) which is at Fidelity and the HSA at HealthEquity.

I found a podcast "I will tell you how to be rich" that seems to focus several episodes on moving to a mindset where saving is not the ultimate goal. "What are you saving for?" and all that. I feel that way with this additional money. Since I don't want to retire, I may need to work on spending money for enjoyment more.[/quote]
It doesn't sound like you really want advice. None of us know enough about your portfolio to tell you if a tax planner could be helpful, and you have convinced yourself that you know everything. It's just strange to me and sounds very much like the mindset of someone who isn't used to the potential pitfalls of having a large sum of money. At the end of the day, the biggest risk is that you make decisions that significantly increase your tax liability and/or you get a much lower return on your funds than you could, neither of which are a catastrophe. But there are other concerns with whether your money is protected from law suits and stuff.

I grew up with more money than you I'm guessing, and I suspect that informs our different attitudes. Personally, I would at least talk to a tax advisor in case they see something I don't. There is no obligation to following their advice. Think of it like consulting a doctor when you are on the fence about whether something is benign. What's the harm in getting an expert opinion?[/quote]

I agree.  [b]And unlike financial advisors, tax advisors are not angling to skim of 1% of your assets a year in management fees.[/b][/quote]

I don't get the utter contempt many have for financial advisors.  I don't use one, but there are many people who don't spend their free time on money forums and value assistance in navigating what can be a very complex topic.  Yes, an index fund will usually outperform after considering the advisor's fees, but having someone to talk to when the market is down 25% can be helpful for many people to stay invested.  If you don't like their fees, don't use them.  Just like if you don't like the cost of housekeepers, you can clean your own house!  If you don't like the cost of an oil change, you can do it yourself!  And yet no one says Jiffy Lube is "angling to skim money" from your bank account.  Sheesh.[/quote]

The smartest and wealthiest people I know use financial advisors. The people that disparage them (the ethical advisors) either don’t have money, are cheaper than dirt, or think they are better at investing (hence not as smart as they think).

There are terrible advisors out there, but many are very ethical and good. It’s not all
About performance..and if you know that then you actually have money. [/quote]
Not PP, but I think that the issue is that financial advisors when you're in the 7-figure wealth category are a mixed bag. Above that threshold, it's just a lot of work to manage your money. But in the 7-figure range, you can pretty easily put together a diverse portfolio of index funds, RE, and a few more specialized assets. We are in this range, and we talked to a couple of financial advisors who just felt like more time and expense than value. Maybe others don't want to do even the minimal amount we do, but at some point even the time you spend talking to the FA needs to be taken into account.[/quote]

I agree with this.  Not worth it at 7 figures.  A tax accountant and estate lawyer are worth it.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics