Hey everybody!
One of my parents passed away recently after battling cancer for a couple of years (god bless their soul) and left me roughly $1mm and I wanted to know your advice and recommendations.
To give you guys a bit of background I am a college finance student currently interning at a PE firm (Private Credit) and I have an investment banking internship for next summer as well. Frankly, I know no one cares, but I do have at least an above-average understanding of the investment landscape more or less. Still, it is very different working at a firm that deals with money, than actually having the money yourself. I am 19 years old, so even then it feels like a ton of responsibility and this money means a lot to me, so I want to invest almost all of it to build long term wealth and be successful.
I have an excel sheet breaking down how I am thinking about allocating the capital. I have around $225k in Robo-advisors (Wealthfront, Betterment, M1Finance), with their “aggressive”/90% stock allocation. I chose Robo-advisors after a recommendation from a hedge fund friend and after doing some research I found the auto-hedging and diversification (International bonds/stocks, US stocks, bonds, emerging markets, it’s, etc) attractive. Then around 200k for Fidelity Index funds/ market ETFs. Another 200k for Fidelity, single stock/sector ETF picking. Another 100k-200k for 1-2 investment properties (20% down). (725k-825k used). Another 30k for a business I am running (cutting and selling vinyl sheets and rolls online). I am paying down the only debt I have (college dorm) and I want to buy a used car for around 8k max. That still leaves with around $150k, which I could have in a high yields savings account as dry powder in case the speculative market pops (tech) [my opinion] and then scoop up some attractively priced blue-chip stocks.
I have not started working full-time yet, so until then I do not have a regular earned income stream, but I have been blessed and fortunate for this windfall, but I do not want to rely on it to be successful. However, it does give me the ability to build wealth, but I still feel a bit lost, honestly.
Thanks and sorry for all this information I want to hear different opinions before making a decision.