My sister and I are inheriting about $700k total.
The account containing the majority of the money was in a Vanguard (VFIJX) and produced a taxable distribution over the course of a year of about $12-15k, so about $1.3k a month give or take.
We're likely going to leave this in place until the end of the year before we decide what we're going to do.
The way I see it, there are two reasonable options here:
- Keep the money together as a lump sump and grow it aggressively
- Split it 50/50 right now and go our separate ways
I have about $30k in student loan debt, and a car loan of $21k (total debt = $51k), make a salary of $120k/year. I have about $50k in a 401k. And another $17k in savings / $4k in brokerage account (VOO for reference).
My sister has $150k in student loan debt (she has a thousand degrees), and a car loan of $10k (total debt = $160k), is currently unemployed but will likely gain employment in the near future prob. making about $60k/year. No savings.
Neither of us have children or extended families to take care of. We don't own homes. We're both in our mid-late 30s.
My argument is that we don't really need to touch the principal for any of our needs right now (both of us are extremely employable and I'm not worried about either of our prospects in the near or mid term at all) and that we should just aggressively invest in another Vanguard vehicle, forego any distribution and let this puppy compound for 10 years and then dump the money into a safe vehicle again and collect our 5% distribution, call it a day. The goal would be to grow the principal to $3.2 million-ish as fast as possible. As an example, I was thinking just dump it all in VITAX. But I'm open to other asset allocations that make sense (would like to stay with Vanguard).
We'd obviously be joint account owners and would have to check each other on any withdrawals that would reduce the principal. We're both reasonable people, are very close and implicitly trust each other.
Does this plan make sense?
Submitted October 07, 2018 at 04:26AM by hexavocado https://ift.tt/2y4G32L
