Submitted by kyle_knightmare t3_1042ldj in personalfinance
My wife and I have received an inheritance that I think should set us up for life if we manage it correctly. Not life changing just comfort.
We received about 800k in assets, we've liquidated risky investments and are confident in our decisions in this department. We now have about 400k of investable liquid money and in a few years will have another 200k of investable money once we sell a house that currently has a tenant in it after they move out.
I'm 39 and my wife is 35, I'm maxing my 401k contributions at work to what they match. We have NOT done any roth IRA investing which I know is a mistake but we're able and willing to get on the right path now.
After meeting with an advisor at our bank, he didn't mention roth IRA at all and said they would create a mutual fund and manage it. This is done for a 1.1% fee which I have no way of coming to the real number myself but in my head a red flag went off that I might be paying too much to have this managed. The other thing is that i've read time and time again that rather than do a mutual fund, maybe I should just dump it in S&P or some comparable index fund as no mutual fund would outperform it. The advisor says the benefit of the mutual fund is that they can stop the bleeding when the market is in a downward trend by moving assets around.
I don't know what to make of this and maybe I could get a consensus from you guys on what to do.
My gut tells me start Roth IRA and max it yearly for my wife and I, and put the rest in S&P and call it a day.