I am 39 and about to receive a $1 million inheritance from my grandparents. I have a plan on how to invest this, but wanted to run it by this group to see if I'm on the right track.
My wife and I currently have around $760k in retirement assets, including maxing out Roth IRA's and HSA's each year. We also have 529 accounts for our kids. Our household income is $220k and we save 25% of our pre-tax income to retirement each year. Our total net worth including home equity is $1.3 million before this windfall. My current allocation across my portfolio is 80% VTI, 10% VXUS, 10% BND.
The money will be coming over from four different firms, but the majority from Merrill Lynch. I've already told the advisors I will be self-directing and I won't be opening an account with them.
All the money I will be getting should be cash, outside of around $10k from an IRA. With that cash I plan to put $100k into a money market account to beef up our emergency fund a little, use around $25k of it to splurge on a family vacation to Hawaii to celebrate this blessing my grandparents have left me (my grandparents always wanted to go to Hawaii but never did), and then use some for a couple home reno projects we've been putting off.
The remaining $900k I would invest at 80% VTI and 20% VXUS. Being a taxable account I don't think I'd want any BND in this account.
Is there anything I'm missing in this plan or areas I could improve?