<prompt> Human: So I will be graduating in the Spring of next year 2018, and my parents have told me that they are willing to invest 300,000 USD in my name upon graduation as a gift. Their initial thought is to invest that money into a house in the United States.I am currently living in Japan, and I plan to work in Japan after graduation, while my parents live in the United States. Their plan was to buy a house in the United States in my name and then rent that house out to somebody else, with the rent payments going into my bank account which I could use to help pay for rent here in Japan. I was curious if that was the best way to go about it, and my parents told me to suggest something if I had any other ideas.Ive read the commontopics and investing section of this subreddits wiki. Would investing that 300,000 into some sort of index fund be a better course of action? What would be the best balance of investing part of that money for the long-term, while making part of it available for short-term use?I will most likely be making no more than about 30,000 USD a year during my first few years on the job here in Japan, and I currently live in an about 1000 a month apartment relatively cheap by Tokyo standards. My parents thought I could at least aim for a 2000-3000 per month apartment. Considering my salary and my parents investment, would this be a wise choice? Thank you in advance for any advice.  <response>: The house isnt a good plan. Youre concentrating pretty much your entire portfolio in one sector and youll have to pay a management company to deal with the rest. Its also not tax-efficient.Dont rent an apartment 3 times more expensive just because your parents want you to.Would investing that 300,000 into some sort of index fund be a better course of action? What would be the best balance of investing part of that money for the long-term, while making part of it available for short-term use?This would be the better, easier, safer, and more tax-efficient option. 1. Determine what your financial goals are, how much theyll cost, and when they will occur e.g. you want to retire at age 65 with x dollars or you want to buy a new car in 10 years.2. Figure out what your fixed expenses are for 3-6 months and set aside that amount in a liquid savings account. 3. If you have any planned spending in the next 5 years, set aside that amount too. 3. If you have any high interest debt, pay that off.4. Figure out what your risk tolerance is. You can check out a few online questionnaires that will help.5. Based on your risk tolerance and goals, come up with a broad asset allocation between stocks and bonds that meshes with both. You should almost always have at least 10 in bonds.6. Invest in index funds to match your asset allocation. Generally, a total market or SP500 fund should form the bulk of your stock allocation, with a portion going towards international stocks. If your risk tolerance is high, you could consider allocating a portion to small-cap and value funds or alternatives like REITs. For your bond allocation, Id just use a total bond fund.7. Consider getting professional advice from a fee-only CFP if you dont know what youre doing 