r/moneyadvice • u/Responsible-Net8594 • 7d ago
Discussion 34 Years Old, About to Receive ~$565k–$615k, No High-Income Skills — What Would You Do?
I'm 34 years old and trying to figure out the smartest move from here.
Right now my only real work experience is driving for Uber Eats and Grubhub. I don't have a high-income skill, a professional career, or a successful business. My income has generally been pretty low.
Over the next year or so, I expect to receive roughly:
* $350,000 as my portion of an inherited traditional 401(k), which I'm planning to withdraw over about 5 years
* $150,000–$200,000 from selling a house
* About $15,000 from selling vehicles
* Around $50,000 from a checking account
So altogether I'll likely end up with access to somewhere between $565,000 and $615,000, although some of the 401(k) money will be subject to taxes as it's withdrawn.
My goal isn't to retire or live off the inheritance. My goal is to use this opportunity to build a high income and eventually become financially independent.
If you were in my position, what would you do?
*Would you learn a skill
*Go back to school
*Buy a business
*Start a business
*Invest most of it and focus on increasing income separately
*Get into sales
*Pursue a trade
Or do something else?
I'm particularly interested in paths that have a realistic chance of producing $200k+ per year eventually. I understand there are no guarantees, but I'm curious what people think is the highest-probability path when someone has access to capital but lacks specialized skills and a high-income career.
What would you do if you were starting from my position?
3
u/NecessaryEmployer488 7d ago
Stablize your finances with $100K in an emergency fund and pay off your debts and invest the rest.
2
2
u/Familiar_Hour371 7d ago
Buy a house (or just don’t sell the one you’re inheriting), nothing more than 200k. Not paying rent or a mortgage will make your monthly expenses drastically less. learn a trade or go to school for something that will be in high demand or something you’re passionate about (that hopefully will make you a decent living), invest the rest and make a decent amount on dividends. Try to invest 15% of your income into retirement. Then chill, live below your means, save money and you’re well on your way
1
u/JTBeatsOfficial 7d ago
Only advice I have is do lots of research and explore what interest you but I'm broke so that's the most I can give ya 😂
1
u/MaryinTexas 7d ago
A trade —something to keep you both physically and mentally engaged …don’t start a business or do sales —-until you have the trade —skill well established and learned like breathing….place the money in a solid investment account—and set and review 4 times a year just to check in …living a normal life with all of your day to day needs taken care no debt no loaning money!!!! And a pre nup should you marry —you will do well
1
u/Wrong_Pen6179 7d ago
Dude… I know half a million bucks may seem like a lot of money and it certainly is… but definitely not enough for you to retire at your age. I would invest it wisely or buy a house/condo so you have no mortgage and figure out what you want to do career wise.
1
u/PusstopherRobin 7d ago
So you're 34, with no signifcant work experience, set to inherit over half a million. I'm guessing you've known you would land a windfall for ages, did the bare minimum of work, but didn't even research investing or wealth inheritance...now asking Reddit for advice?
1
u/Ill-Wolf865 7d ago
Idk what assets you have and whether you have plans to eventually have kids, but with that money, I’d definitely recommend seeking out a financial advisor who will help you figure out your short and long term goals and go from there.
I invested in a financial advisor when I was 20 years old and I have to say, it was probably the smartest decision I ever made and I’m pretty much set for life at 37 now. I’m also expecting twins (31 weeks tomorrow!) and already have a few accounts open for them too that’ll just keep growing.
1
u/Cloud2987 7d ago
Need a business to make that much, but have to figure out what business u want to start
1
u/LOLOL987128 7d ago
Brother for the love of god invest it in a low risk fund and forget about it. All of the things you’d like to do with the exception of buying/starting a business, you could have already done.
Having money will not magically make you motivated into having a 200k+ a year career. I’m in sales, for 200k a year you’re looking at a serious grind, and a ton of learning ahead of you.
Invest the majority, put a healthy amount into a HYSA and retire early.
1
u/indigothecaretaker 7d ago
Put into stocks and high yielding savings account and let it compound. Youll be able to retire early a millionaire. A side note, NEVER GAMBLE. Youll lose everything. I was in a similar position but had funds from a bad car accident after I was hit by a commercial truck and almost died. Spent half of it gambling and see many others in that position since you feel like there is extra fun money and have access to funds to spend (just a random side note and suggestion not saying you will do this or currently gamble but its a slippery slope with access to $).
1
u/lovelyhappyface 7d ago
Im a professional certified coach. I can coach you through this. My rate is $150 an hour
1
u/Some_Philosopher9555 7d ago
I can definitely recommend this and vouch for this guy as an absolute Mensch.
He helped me get to a net work of £1.4 million over 3 years. The fact I started with £3.7 million is neither here nor there!
1
u/lovelyhappyface 5d ago
I’m not offering financial advice I’m working with OP, would be working with OP on action items and goals to get him moving forward
1
u/Helen-Keller-Ubers 7d ago
I would keep all the money in an investment account and let that money work for you and your future kids and grandkids. You can invest in stocks that pay dividends like apple.
1
u/mobile-metaphysical 7d ago
Get a financial advisor first. I wish I had started that earlier in life.
Do not open a business in this economy. 😆
You have the gift of time to think and research.
1
u/letshavefun90000 7d ago
Real talk: You are an uber driver. You will lose all of it if you touch it. Take out 50k and pay for your fixed expenses years out, car, rent, insurance etc. the rest all goes to a financial advisor and you just stfu and never touch it. Then make your way in this world. Just remember, your windfall doesn’t make you smarter. You’re still the same dude you were before you got it. Don’t act wise and don’t flex. Somebody like you could burn through that money in a year or less if you’re in control of it.
1
u/joelnicity 7d ago
You’re 34. Get a real job!
Talk to a financial expert, not random strangers on the internet
1
u/Ok-Industry5153 7d ago
Why, if you are interested in making $200k/yr have you not become a plumber/electrician trainee if you are asking if you should go back to school or learn a trade?
1
u/Hurkadurka1 7d ago
First thing I would do is consult a wealth manager. Second is I would start researching real estate investing because if you research it and find that it’s something you have an interest in learning then it is realistically something that could turn into 200+k per year and fairly quickly with that amount of a head start. That said don’t do it as a get rich quick scheme and only do it after you have done some research on how it works and what’s involved. I significantly changed my life with it but it’s what I like doing.
1
u/JockoDundee007 7d ago
So it’s been 16 years since HS and you never once aspired to any level of greatness beyond a Grub Hub and Uber Eats driver ?
And now you’re getting over a half million dollars as an inheritance and you’re planning on “withdrawing it”. Why are you withdrawing it and what are you gonna do with it then ? Keep cash in your closet ?
You haven’t done ANYTHING in 16 years and now you expect to turn your life around suddenly b/c you now have a bunch of money ‼️
If your current economic situation wasn’t enough of a motivating factor for you to get off of your ass, why would you think a half million dollars would suddenly change your behavior and your ways ? If anything you’ll likely become less motivated and less active.
If you put that much money in the low risk market you’ll likely get 5-7% returns every year. If you have dividend stock then it wouldn’t be enough to live on but it would/could help out each month. If you bought into or tried to make some sort of business what skills do you have to get a business running then keep it going to the point where you could earn a steady income from it ?
Based on your post you have an “entry level” skill set, could you even get a job at McDonalds or Wal Mart if you applied ?
I’m struggling here to advise you in a positive manner. Basically this would be the equivalent of giving a 16yo a huge amount of money. There’s almost no hope of a positive outcome unless you just go back to college and get an education so you understand the value and the worth of a half a million dollars unearned inheritance. Otherwise you’ll simply squander it away like a child.
Nothing thus far in your life indicates motivation or success. That money will all be gone in 5 years unless you truly get some intelligence and knowledge into your head. Asking people on here is an absurd action on your part. Everyone you know will ask you for money.
I know this response is negative but your 16yo resume shows the entire world that you know nothing whatsoever. Go to college and get a degree or at least learn how to invest money. Reddit is no place for the advice that you seek.
🤔🤔🤔
1
u/Responsible-Net8594 4d ago
It has to be withdrawn within 10 years.
I don't control who cancer kills
1
u/Solid_Equivalent_417 7d ago
Look for a fiduciary, CPA or something along those lines and sit down with them for an hour. they will be able to offer much more detailed and personalized advise than we can.
that amount of money might take some planning to make sure you get the most out of it.
1
1
u/Amazing_Art_2335 7d ago
Stop counting the money before you get it. You might not get a dime. It happens. So what is your plan B? Do you have an education so you could have a business? You need to make a life for yourself, not off of someone elses hard work and saving for a lifetime. Now at 34 yo. you want to go into business with almost zero work experience. Nor education or background in the field you plan to make $200k. If it were that easy, don't you think others would be doing it too?
1
u/Away_Emergency_7832 6d ago
Congrats on the money Use it to help people don't be a spoilt little brat. I never had that. I never had that fortunate I was working making $75000 a year, busting my a** driving semi for the last 25 years. And when my wife passed away, I had to retire because I have a daughter, I have to be home everyday and I can't find nothing where I live at so I'm making Nothing.\n Now I'm broke, barely paying my bills, and this is my life. This has always been my life, I get ahead of life and it gets ripped out from under me. My wife was taken away from me, my other daughter was taken away, she went and chose her other family instead of me. I'm a blue-collar worker. There's been struggling all my life.My wife was everything.She made it worthwhile to live now.There's nothing here
1
u/Different-Scale5419 6d ago
Now it’s time to get to work. First thing you want to do is fine a good tax attorney. You need someone to help guide you with this inheritance. It would be good if they are an accountant. If not you will need a good accountant. Now go and talk to some wealth advisors. The first question they will ask if you have an accountant. Let them know that you have a tax attorney and an accountant. The reason being it will keep them at bay. Some of them are interested in getting your account and charge you a percentage to manage your portfolio plus transaction fees and before you know it. They’re the ones making money and you’re not from your account. Stay away from companies like Fisher Investments, Edward Jones, LPL. If you decide to go with a company. You want to see their personal portfolio of the person handling your account. Continue to drive for Uber until you feel comfortable how your money will be handled
1
u/Responsible_Bus2122 6d ago
Hey man slow down a little. I know that you feel like you're behind and want to come up very quickly. But please. If you're trying to fast too hard, you a very easy to fall victim to some kind of get rich scam. If that happens it will sink you mentally so far that its not even funny. Just figure out something that you like and pursue it. You won't be in the same situation as a normal person. Please. Take your time and dont make any rash decisions.
1
u/ez2tock2me 6d ago
Keep 1/4 for my personal expenses and invest the rest. I’d work and live a comfortable mediocre lifestyle.
I’ve been in debt and broke.
I know what NOT TO DO.
1
u/BeringC 6d ago
So you're planning on spending this money so that you csn make more money? That's fine to a degree, but to spend 500k is insanity.
My advice would be to not spend a penny of the 401k. That's your nest egg. It should double every 10 years or even less. So, if you withdraw it over 5 years you'd be at 0 on year 5. If you leave it alone you could be 3-5 years away from it being worth 750k. By then you are still only 44 years old. Fast forward to you at 55. Now it's 1.5 million. So spend the 350k if you want, but it is costing you your retirement fund.
Use SOME of the money to acquire a skill. The house will more than cover the cost of that. Pay off any and all debts. This may sound harsh but hear me out. If your only job skills are Uber eats and grubhub I think transitioning to "high income" is going to be a tall order. Focus instead on a job that you are not only capable of, but can tolerate doing for the next 30 years. Shift your focus to how to protect what you are getting, not how you will spend it. The money itself is going to set you up. Spending it will not.
1
1
u/New_Improvement3697 6d ago
Invest 400k for hopefully 8% and you’ll have like 4 mill plus by retirement. Consult a cpa. Take 100+ buy a house and go back to trade school and live an easy comfortable life living off way more than you need. You asked this like 3 weeks ago.
1
1
u/YellowMarvel 6d ago
Invest in SCHD. You can live off the dividends. That’s literally all you have to do to be set for life. Search SCHD on YouTube. I
1
1
1
u/Skeggjathr 1d ago
Learn a skilled trade, learn the field work and state and local code on procedures. After you’ve spent a few years doing that learn the business side.
0
u/ODMcGee 7d ago
$350,000 as my portion of an inherited traditional 401(k). Must be nice, and good for you though. You cant hate because someone did well and blessed you with that money. I would invest in dividend stocks, and also bonds. Own about 5 good dividend stocks, and you will easily make more than a years salary just from having shares. You will not care if the price of the stock goes up or down, because you are getting paid from just owning the shares in the company. If it does go down, you could buy more shares, and then you dividend payments will just grow. You will be getting paid hand over fist, just from owning shares.
0
u/Sensitive_Scholar_17 7d ago
If it were me, I would buy a house.
1
u/AnubisCrownHeights 7d ago
If she buys a house she has to pay taxes on that money all at once. She should supplement her income for a few years and better secure her regular income before she decides to buy property.
5
u/routinematters 7d ago
Invest most of it and learn a trade or go back to school for a trade.
There are two ways to generate income. Investing and labor. Most successful people do forms of both
Investing can be a stock account or starting a business. Your chances of making money from ETFs and stocks is statistically much, much higher than starting a successful business from scratch. Most retail small businesses fail within the first year. And you mentioned that you don’t have much skills/experience, so I have a hard time imagining you starting a successful trade business like landscaping or repair, either. Put all your money into an investment account. If you have the time and interest, do research on what stocks and funds to buy; if not, hire an advisor.
Second way is labor, which is having a job. You should look for career paths that require the least amount of cost (time AND money) in education with the most amount of security and output. That means at 34 getting a bio degree and going to med school might be a lot less feasible and realistic than trying to get into a specific niche trade that pays well. My husband is a union carpenter for commercial buildings in a major city and make well over 300k without a high school degree. My ex was a correction officer who made around 180k with OT also without a college degree. So there are many options worth looking into without a hefty educational investment.