DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing How to Invest Large Chunks of Money?
Nov 26, 2025
Investing large sums can be daunting, especially for new investors. Allie and Logan discuss important strategies for using an inheritance for retirement. They emphasize starting with clear financial goals to guide investment decisions. The hosts highlight how different objectives can shift risk tolerance and asset allocation. They also suggest easing into the market and using dollar-cost averaging. Additionally, they caution against the pitfalls of annuities that can lock up liquidity, urging education on market volatility.
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Begin With Goals, Not Allocations
- Start investing decisions by defining concrete goals and required cash flows first.
- Use the required return from goals to determine how much risk and which vehicles to use.
Cash Needs Dictate Risk Level
- You can choose very conservative holdings if your cash-flow needs are low even with large principal.
- Conversely, wanting to grow an estate requires taking more risk, so objectives change allocation.
Ease Into Market Exposure
- Ease previously cash-only people into market exposure using dollar-cost averaging.
- Move slowly toward the target allocation so they learn to tolerate volatility.