Funds you cannot touch...

[Performance Based]

Recently coming into a large sum of liquid capitol. Looking at setting up a separate portfolio with a different wealth management firm. I am for the most part completely clueless in regards to this.

These funds are solely for retirement purposes, is there some sort of fund or something I can do to not allow myself to withdraw any sum of money from the fund till a certain age? Essentially setting up similar to a trust fund?

Would like to know the basics before I go in and meet with the firm in a few days so I am familiar with whats going on. Spent some time researching but everything I found was mostly in regards to family trusts etc.

 

[madmoe2012]

How much are we talking about?

How much risk can you withstand?

 

[Performance Based]

How much are we talking about?

How much risk can you withstand?

Risk is not an issue. I can retire today if I wanted to.

In regards to the amount lets just say alot. Don't feel too comfortable posting details.

 

[Steak Helmet]

If you have enough to retire today...then if you manage things right, you should have nothing to worry about. If you are trying to grow some cash into a retirement, then you would have some worries. For now, would sit with your advisor and let them figure it out for you. ONce they come to a conclusion on what you should do, do the research on your own to see if that is the best bet.

 

[Randa]

Sit down with your insurance agent. They usually provide financial services and can set up an annuity or a plan that's in your best interest.

 

[ATP]

The first thing to do is make sure you have maxed out all available tax-free investment vehicles. Have you made tje maximum possible conyribution to your IRA? Your 401k? These are roach motels for your money (cash goes in, but doesn't come out... Until retirement age). If you are self-employed, you can contribute much more to your 401k equivalent.

A trust has additional costs to consider--the trust pays taxes, lawyers charge to set it up, and trustees who manage it are not free. If you are passing income to children and want to control distribution, need to insulate assets from creditors or are concerned about avoiding probate, they have advantages, but it really depends on personal circumstances.

Good luck.

 

[Performance Based]

Only looking for information on this one topic guys, everything else is set up to perfection. I appreciate you taking the time to respond though.

Just looking to set up this one lump aside to where I can't touch it for several years.

 

[ATP]

Only looking for information on this one topic guys, everything else is set up to perfection. I appreciate you taking the time to respond though.

Just looking to set up this one lump aside to where I can't touch it for several years.

I thought I did address your issues. To recap: f you want to lock up your money, put as much as possible into a tax-free retirement account. After that, insurance products are probably best, as someone else already mentioned. But, other than tax deferral, why do you want to risk penalties for withdrawing funds? If you don't need them until retirement, don't touch them. But if you get sick, have an accident, need to seize an investment opportunity—why deny yourself the flexibility to respond to these unforeseeables, if there is no economic benefit?

Second, you also suggested a trust. That is generally a bad idea, unless you have a specific reason to do so. Preventing yourself from using the money doesn't justify the expense. Now if you want to keep a family member or spouse from having access to it, that is a different story...

This information is only an attempt to help with your specific request. If I misunderstood something, please advise.

 

[Performance Based]

I thought I did address your issues. To recap: f you want to lock up your money, put as much as possible into a tax-free retirement account. After that, insurance products are probably best, as someone else already mentioned. But, other than tax deferral, why do you want to risk penalties for withdrawing funds? If you don't need them until retirement, don't touch them. But if you get sick, have an accident, need to seize an investment opportunity—why deny yourself the flexibility to respond to these unforeseeables, if there is no economic benefit?

Second, you also suggested a trust. That is generally a bad idea, unless you have a specific reason to do so. Preventing yourself from using the money doesn't justify the expense. Now if you want to keep a family member or spouse from having access to it, that is a different story...

This information is only an attempt to help with your specific request. If I misunderstood something, please advise.

Sorry should have elaborated a bit more, I hold joint citizenship with another country and have that as my primary residence to escape taxation. Taxes aren't an issue any longer for me.

I am attempting to lock up the funds primarily due to my age, someone my age should not have access to this much liquid capitol. As far as medical/emergencies/etc I don't have any worries and am safe in that arena. Just wanting a way to guarantee to myself I cannot touch these funds. Trying to make a responsible decision primarily do to my age, if its not the best long term fiscal decision in regards to growth that is ok as I have enough to be more than comfortable for life.

As far as potential expenses in terms of a trust they would are not a concern.

 

[Steak Helmet]

Only looking for information on this one topic guys, everything else is set up to perfection. I appreciate you taking the time to respond though.

Just looking to set up this one lump aside to where I can't touch it for several years.

give it to me for 20 years so I can live off the interest LOL

 

[way8lifter]

Only looking for information on this one topic guys, everything else is set up to perfection. I appreciate you taking the time to respond though.

Just looking to set up this one lump aside to where I can't touch it for several years.

you need to put it in an Annuity ...you choose how far out it is to be cashed out" ... only go with a AAA rated

 

[bigcat56]

Sorry should have elaborated a bit more, I hold joint citizenship with another country and have that as my primary residence to escape taxation. Taxes aren't an issue any longer for me.

I am attempting to lock up the funds primarily due to my age, someone my age should not have access to this much liquid capitol. As far as medical/emergencies/etc I don't have any worries and am safe in that arena. Just wanting a way to guarantee to myself I cannot touch these funds. Trying to make a responsible decision primarily do to my age, if its not the best long term fiscal decision in regards to growth that is ok as I have enough to be more than comfortable for life.

As far as potential expenses in terms of a trust they would are not a concern.

as others have suggested an annuity is probably best, here is a link explaining some differences:

https://www.fidelity.com/annuities/compare-annuities

If you truly want to stash it away and ensure you can not access any of it no matter what then just buy a US treasury bond, you'll get interest payments every 6 months but wont be able to touch the principal for 30-yrs.

A 10 yr CD is another option

 

[jimmyjones]

PMC, How old are you brother?

 

[Performance Based]

PMC, How old are you brother?

Mid 20s

Thank you for the help guys, meeting with them tomorrow as of now.

 

[Wonton]

Mid 20s

Thank you for the help guys, meeting with them tomorrow as of now.

key is don't be in a rush - don't go for the Mr. Personality if he doesn't have the knowledge or experience - reality is you got money..and they want a cut of it.

References ask them for some - meet with several different firms - bring a note pad , write crap down, ask questions then or after you do your research.

Research every time of investments they want you to dive into..PROS and CONS

From unbiased sources - Google

Take your time

Spread your wealth around if its a huge sum

TAKE YOUR TIME

Take your time

 

[Performance Based]

key is don't be in a rush - don't go for the Mr. Personality if he doesn't have the knowledge or experience - reality is you got money..and they want a cut of it.

References ask them for some - meet with several different firms - bring a note pad , write crap down, ask questions then or after you do your research.

Research every time of investments they want you to dive into..PROS and CONS

From unbiased sources - Google

Take your time

Spread your wealth around if its a huge sum

TAKE YOUR TIME

Take your time

Haha I appreciate it but not my first rodeo When a wealth management companies ranked in the top three in the nation I feel fairly confident leaving this sum with them.

Talked to them today on the phone, I am making it far too complicated. Just going to lock it up with them contractually till I hit 35.

 

[bigcat56]

coincidentally this article was just posted this morning:

Retirement: Investing a $100,000 windfall - May. 18, 2012

 

[triathloncoach]

Dude, enough with the $ posts. Geeez.

I think you should take some of the cash and buy yourself a Mail Order Russian Bride who will do your bidding without complaint. And buy me one for the weekend. I'm poor.

 

[Performance Based]

Dude, enough with the $ posts. Geeez.

I think you should take some of the cash and buy yourself a Mail Order Russian Bride who will do your bidding without complaint. And buy me one for the weekend. I'm poor.

Some of the guys say the same thing actually to me, except latina for me haha. Very basic questions, don't like bringing the family into stuff like this for advice and most of my social circle purely lives off of there salary so not the best for advice. So feel kind of awkward asking but gotta ya know?

 

[Wonton]

Haha I appreciate it but not my first rodeo When a wealth management companies ranked in the top three in the nation I feel fairly confident leaving this sum with them.

Talked to them today on the phone, I am making it far too complicated. Just going to lock it up with them contractually till I hit 35.

So "COUGH" My commission check is on its way ? Lol

Glad you have it all worked out - have a great life man - live below your means but live well...and enjoy

Wonton Out !