From: kastnna 
Newsgroups: misc.invest.financial-plan
Subject: Re: Financial Help needed- inheritance
Date: Tue, 24 Jul 2007 08:21:27 -0500
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On Jul 24, 7:26 am, "Postal68"  wrote:
> I have just come into a lump sum of money, unfortunately it was through an
> inheritance.
>
> But this amount is might be enough for me to give up my job and enjoy the
> rest of my life doing what I want to do everyday.
>
> I am looking for some opinions on ways to invest this to carry me for about
> 40 years(hopefully I live longer, but let's estimate.)
>
> 1) What is the best way to limit my taxation on this income?
>
> 2)How do I invest it ?
>
> Should I use the money aggressively and try to make more money? any ideas
>
> Should I play it safe and just use it to make some small money but I know
> the risk will be limited? any idea?
>
> Should I do a little of both?
>
> I am totally new to this besides my current 401K plan, where my options are
> limited as to what I can do with that money.
>
> Thanks
> Charlie

I am sorry to hear that someone close to you has passed.

A few more details would help us with your questions. How old are you?
We need to be sure that 40 years is the correct time horizon. You can
expect to statistically live into your early 80s, but most financial
planners err on the side of caution and use 90-95 as a planning base.

Exactly how much money did you inherit? Is it safe to assume the
inheritance has already cleared probate and free of estate taxes? If
it was a large estate, are there any trusts or estate planning
vehicles that stand in your way? You will have drastically different
answers based on how much and how accesible the money is.

What is your current asset/liability profile? Mortgages, auto loans,
college tuition, credit card debt?

Lastly, how much do expect to need annually?  It is common to hear
that you may need as much as 16-25x your expected annual income to
sustain yourself through an expected life span. Its overly simplistic
and we'll be able to provide better insight once we know more, but its
a decent starting place.