Im 22 finishing up college, and I was informed that I got a beefy inheritance (7 figures!) from a relative. I don’t want to spend it, but instead secure myself and my family for the future, which has led me to researching CDs and MMAs. Those would only yield 1-2.5% and in much lower amounts. I’m asking you guys for advice on where to hit 4% interest safely on 7 figure sums, preferably long term. I know about risky 8-9% investments, but I’d rather steer clear of those. I’ve read about huge interest on Ukrainian bank accounts, maybe those are viable? If you need an exact amount for whatever reason, I can PM if necessary. I’m located in the USA. Any advice is appreciated.
Welcome to the community! You can’t hit 4% “safely,” because risk and reward are inseparable…and even safety has its price. FDIC-insured savings accounts and CDs will prevent you from losing principal, but the value of your investment declines over time because the rates you can earn don’t keep up with inflation and taxes.
It can really help to have a comprehensive, fee-only financial planner help you assess where you want to go in life and come up with a financial plan to get you there. Wealth at that level stops being a DIY project, especially if it comes in a windfall.
The XY Planning Network is one place to look for referrals, as is the National Association of Personal Financial Advisors. (It’s important to find someone who is fee-only vs. fee-based. Fee-based planners also accept commissions, which could influence their recommendations.)
Let us know if you have any follow up questions!