Parent passed away in 2022; estate went into probate, we each inherited about $700k cash, jointly received heirship on some community property, and some other random real estate, acreage, and luxury cars that will need to be dealt with in the near future.

For me I'm treating this as a windfall that will slowly move me closer to financial independence. I have a fairly successful career, in the low 6-figures, with decent head room to grow. My lifestyle is pretty low key at a glance but I have a few indulgences that while not flashy, are definitely resource intensive.

I'm setting aside a portion of it to cover 18 months of living expenses, something I've never been able to do before. The remainder, I'm investing as a lump sum according to my current asset allocation (40% US Total Market, 20% Long Term Treasuries, 20% Corporate Bonds, 10% International Market, 10% Gold). The goal is 4-5% returns and maybe I buy a really nice home somewhere in 2030.

For my sibling, the financial picture is quite a bit different. They never completed college, probably makes $40k per year in the service sector, has multiple children from multiple relationships, and has essentially lived paycheck to paycheck for the last 20 years. Most big ticket expenditures are pegged to tax refunds each year. This amount of money is considered life changing for them but already in a very short amount of time, several relatives and friends have come out of the woodwork, either directly asking for a portion of their inheritance, or proposing a variety of business ventures or investment schemes for them to turn the lump sum into an legacy for their children. My oldest nephew has asked for $100k to start a Youtube channel.

My sibling asked me what I would do if I was them and I suggested declaring a 2-year “no decision” window on financial requests to shut down conversation and allow for this new phase of grieving that we're still going through. Also I recommended early on that they do not disclose anything about the inheritance to anyone, mainly for their own benefit but also because it's easy enough for people to infer that I received a comparable amount and have received some not so subtle “check-ins” from cousins and in-laws that I was able to either politely redirect or shut down when the conversation turned to my parent's will or the estate.

In addition to the 2-year hiatus on entertaining other people's investment scheme, I suggested they engage a fee-based financial planner to outline a strategy, and suggested a couple of income-oriented funds from Vanguard: Wellington (VWENX) or Wellesley (VGYAX) and slowly maxing out their tax-advantaged spaces that they haven't been able to touch thus far.

They seemed skeptical of that notion and kept asking “what about NFT or crypto?”. I've followed crypto and blockchain for a decade now and still remain a contrarian skeptic on the concept and told them they wouldn't know what they're doing. The topic then shifted to rental properties and/or AirBNBs but I started to get a bit frustrated with the “grass is greener” mindset and just gave a non-committal answer.

I also floated the idea of them doing an annuity, so that they would have a set monthly income coming from the windfall, and while they were intrigued by the fixed income idea of the strategy, their hope is they can also have something that grows in value for their kids.

Are there any other options one might consider in the above situation? A 3 or 4-fund portfolio sounded viable but rebalancing sounded like a hassle to my sibling. A managed income fund sounded too simple or basic, as did a Life Strategy Fund or Target Date Fund. I think they're hoping for a nice portfolio of assets that otherwise doesn't need to be managed and I personally don't think that's a realistic expectation.

I'm also pretty close to butting out of the whole conversation but want to be a good advocate for my nephews' and nieces' long term best interest and help my sibling be a good steward of their inheritance.

Many thanks in advance!

Edited for typos.