Personal FinanceCanva: jeremyiswild from Getty Images Signature and DougBennett from Getty Images SignatureDavid BerenThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.One of the best things that can happen to anyone is that you establish good money habits to start saving for retirement. Arguably, the most important thing is that you can put enough away to enjoy your retirement without worrying about anything financially related.
This individual has already established good financial habits.
Their whole life is now turned upside down after a multi-million dollar inheritance.
The question is now what they should be doing to achieve FIRE status.
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In the case of one Redditor who posted in r/fatFIRE, they had already established good money habits on their way to FIRE. With a $600,000 net worth at 26 years old, they were already showing great financial discipline only to find out they were receiving a $5 million inheritance, which now begs the question of what to do next. This scenario proves that good money habits can be instilled in individuals looking to set themselves up for the rest of their lives, even at a young age. Good Financial HabitsThis windfall is unsurprisingly life-changing for our 26-year-old Redditor earning $70,000 in a professionally licensed field with income expected to rise over time. The initial goal was to retire at around 40, but now, with $5.6 million set aside, there is a question about what to do next, whether it’s retirement or to keep going. Better yet, this Redditor is asking the right questions about how to move forward and help this money grow. Of course, I am not a financial advisor and don’t play one on television, so our Redditor should set up a plan with someone more qualified. We know that he has a $192,000 mortgage left on a $550,000 condo, so there is a consideration around paying off the mortgage and being able to invest more. However, the Redditor smartly recognizes that he needs to talk to a tax professional as dividend earning will push him into a higher tax bracket. So, the real question is, what’s this Redditor’s next move? The Recommendations First and foremost, yes, this Redditor should immediately take steps to talk to a qualified financial advisor. He needs to work with someone to ensure that this money is being set up so that it can grow based on his level of risk tolerance and decide whether he still intends to retire now or keep pushing in the wo