Quite literally what the title says. I'm a 17 y/o turning 18 soon and I'm recieving 150K from my fathers life insurance thingy. I’m terrified in receiving such a large sum of money at my age. I barely know what to do with 200 dollars.. let alone tens of thousands. I don't want to blow through this money, it's my fathers blood sweat and tears and I'd feel like a real piece of shit if I mishandled it. I'm currently banking with chase, as they are really teen friendly, but I don't know if I need another account somewhere else or something? I'm seriously losing my mind, and turning to my family doesn't seem like an option as both parties seemingly want or have asked for some (or all) of the money. I'm not sure who to talk to so this is my last resort (suffocation, no breathing). I'm nervous even posting this because even talking about a sum of money this large feels like putting a target over my head or something. If anyone has any sensible advice on how to stretch or preserve this money or even just a good bank to hold it all in It'd be much appreciated. Thank you for your time.
Expecting Life Insurance payout on my Birthday. What Do I Even Do?
byu/Mindless-Building-80 inpersonalfinance
Posted by Mindless-Building-80
12 Comments
Open a few online Fidelity accounts asap. When the money hits, you can have a Fidelity person manage the funds for you after letting them know your goals.
You need to put it in an account. – Look for a high yield savings or if you have a day to learn, set up a VERY BASIC INVESTMENT ACCOUNT.
Then,
DO NOT TOUCH IT.
forget it exists.
Come back to it when you are a little more grown up, have a job, and know how to handle money.
I think you will get different advice, but, please, listen to me. Forget the money exists for a couple years.
Also, yes right instincts. You should mention this to as few people as possible.
You will get tons of great advice, but you are too young and inexperienced to really take any of that advice.
AND, if you and your family is poor, you probably dont know anyone who is qualified to actually help you with this.
Lock it up. Come back in a few years.
Take some accounting classes.
People telling you otherwise have never been in the TREACHEROUS position of being a young person who just got a bunch of money and has no one they can ask for help.
get.
it.
out.
of.
your.
checking.
account.
asap.
Are you going to college? What are your goals in the next few years?
I’m sorry for your loss.
Do you have any trusted adults in your life to talk to? Teachers? Religious leaders?
I would:
Read through the PF Wiki. Attention to the age appropriate sections, Windfall, and Prime Directive.
* https://www.reddit.com//r/personalfinance/wiki/teachme
* https://www.reddit.com/r/personalfinance/wiki/windfall
* https://www.reddit.com//r/personalfinance/wiki/windfall
Since you’re already with chase, park that money in a chase high yield savings account (HYSA). That’s the immediate move. Let it sit until you can do more research about paying off debt, investing, etc.
Sorry for your loss, but congratulations on your windfall. $150k is worth getting a financial counselor. They can help you navigate such a large sum of money. They can help you set up a mix of investments, bonds, etc.
Don’t mix family and money.
Find a fee based fiduciary. You don’t know what you don’t know and if you’re starting from nothing and you don’t have the skills or support to navigate it’s ok to incorporate someone’s help here.
So sorry for your loss. I’m so glad you had a Dad who made sure you had something when you wouldn’t have him ♥️
It’s alot of money. But not as much as you think. If you start spending it, it will dwindle away faster than you realize. This money could either set you up so much better in life, or slowly disappear if you let it.
Don’t tell anyone about it. People are gross and will surprise you how many of them will try to get some. Only spend it in ways you know your Dad would have wanted for you- education, housing or even just let it sit in a high yield account for awhile while you figure out your next steps.
Hysa first. Learn, study, educate yourself. Then put it into a low cost s&p index fund. During your investment learning decide what your gonna do with life…school? Job?
Stick it in wealthfront (online bank with HY) and then study about finances. This will start you with a 3.5% yield (not much but better than nothing), pay off any debt, do you’re scotch free, and then talk to a financial advisor to look into interesting to grow the money. Only spend what you need to for a bit and slowly figure it out.
find a finicial rep who only makes money when you make money. if you need my guy i’ll send it over to you!
As a banker here in NYC. take that money, put it in a brokerage account thats moderate, and come back in 5 years.
Alternatively, take out $10,000 and pay bills and take a international vacation to open your mindset at your young age… and put the $140,000 in that account. In 5 years when you’re 22-23, you’ll be happy if you have $150,000-$160,000 still in there.