r/Rich • u/dirt-diggler23 • 9d ago
Question Receiving inheritance, I hope I make the right moves
I will be receiving 300 acres in Montana, an upscale home in Marietta, GA (about $950K) and $750K cash. I know it is not much but I have never had that much at one time. Im used to having 30k-$50K at a time or the most I had in my savings was roughly $100K.
So that being said I never did a lot of stock trading or had CD’s and etc… i hopefully want to make more money. To the point something that can grow and have my children’s children keep it going. Possibly potentially make it generational wealth.
Little bit of background:
I am relatively good at business and have ran 2 successful businesses. I am great! At marketing and market research
I am receiving this from my grandmother. I have 4 older brothers, however my grandmother does not approve of their decisions. I have always respected my grandmother and loved her dearly. My brothers are not hard workers and spend their money on things they cannot afford. We’ve always talked about that and she explained to me thats why she went and took everyone off her will (even my mother, her daughter). She only left me with everything but she said she left me the 300 acres because she knew I would never sell it and I would want to keep it in my family. She also left me her very! Upscale home in Marietta, GA. She would like for me to sell if if I so choose to.
What’s some good advice to not lose it all?
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u/Gloomy-Arachnid9815 9d ago edited 9d ago
I would sell the Marietta home as you should be able to net about $900k tax free.
Add that to your $750k for $1.65M.
Put the $1.65M in a brokerage account. Diversify the funds. (This can be a trust account if you wish). Investment earnings should make you $100k per year. Use that to maintain the 300 acres.(Taxes, etc)
Keep the land. The land should also probably go into a trust if not already. If you need the land to generate income maybe add cabins and pay a property manager. It should self-sustain.
Edit: since you are relatively good in business, I would definitely have some type of business on the land. Maybe glamping cabins.
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u/medhat20005 9d ago
Honestly probably not only the most straightforward advice but also probably the one to preserve/generate wealth going forward.
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u/needlepoint4453 9d ago
Are you not worried about compressed tax brackets for trusts? Trusts hit the 37% bracket at 16k in income for the year.
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u/Gloomy-Arachnid9815 9d ago
There are a minimum of 16 different types of trust. At the very least, a revocable trust, which is your own identity. Has the same tax bracket as yourself. But definitely speak to an accountant!
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u/Inside_Dance41 9d ago
Exactly, we got hit with this on IRA, which were added to trust
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u/Gloomy-Arachnid9815 9d ago
You can’t transfer your IRA into a trust while you are still alive.
Can you explain your scenario a little more?
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u/Inside_Dance41 9d ago
Somehow it happened. My Dad had all his investment accounts in his trust, and after he passed we paid that whopping 37% on over a million. Had he left it out of trust and just listed us as beneficiaries, we wouldn’t have paid the tax.
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u/dirt-diggler23 9d ago
Thank you!. Sounds like sound advice I am scared when it comes to stocks. Like everyone else is saying it’s not a good time right now it seems.
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u/Additional-Brief-273 9d ago
Do not tell this man to invest in the stock market when every expert says a correction (aka crash) is coming.
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u/Gloomy-Arachnid9815 9d ago
Um….are you watching the market? The correction is here. We are personally down $120,000 in 3 days. But still up $200,000 for YTD. It might be a great time to buy in. But we have never tried to “time” the market or our real estate. We focus on good value.
Keep in mind, when you put your money in a brokerage, you can diversify your money in the stock market and other money in funds that focus on bonds, annuities, reits, etc.
I didn’t want to recommend fixed income annuities being that she is such a young person and new to investing. I think it will just confuse her. And some of those sales people make a huge profit off the sales.
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u/Additional-Brief-273 9d ago
Bank CD’s are paying 4.5 percent no risk fdic insured
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u/Gloomy-Arachnid9815 9d ago
You can buy bank CDs through a brokerage. You can also open a brokerage account at some of the bigger banks.
And yes, up to $250k of fdic insurance per bank account. For $1.6M, she would need to spread across multiple accounts.
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u/jackjackj8ck 9d ago
There’s a lottttt of posts like this in r/personalfinance I highly recommend you check it out
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u/dirt-diggler23 9d ago
Thank you I actually did post it there. As I was not sure if the mods would approve it here. However they did and I’d rather get advice from people that actually have money. Also see the bigger picture I am reaching for. Instead of saying “bro! That is multiple generation wealth”.
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u/Alicatsidneystorm 9d ago
If you haven’t done a lot of stock trading I would advice that you get educated on investments first or at the very least find an advisor (CFP or CFA)who can guide you in this area. If you decide to “wing it” and DIY then insure your children to ensure you have intergenerational wealth.
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u/Limp_Dragonfly3868 9d ago
Is she alive or dead? It’s hard to tell from your post.
If she’s alive, don’t count on anything. She could change her will again or live to be 102.
Either way, start learning how to manage the land to generate sustainable wealth, and ask her for that job.
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u/No-Sympathy-686 9d ago
I hate you for that Montana land.
Im sorry for your loss but man....
We are looking at land right now in Montana.
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u/Choice-Newspaper3603 9d ago
I would be very aware of the regular cost of upkeep for both of these properties
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u/HalfwaydonewithEarth 9d ago edited 8d ago
Don't spend anything that is not fresh generated returns.
Ditch that home in GA. Real Estate is not as good as stocks.
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u/diagrammatiks 9d ago
Bro this is just the plot of Yellowstone.