#InheritanceMoney #InvestingAdvice #HelpMeOut
Hey there! So I recently came into some inheritance money, and let’s just say I’ve had a little too much fun spending it on things that aren’t exactly considered responsible. But now I’m at a point where I realize I need to take control and make this money work for me.
I’ve got it sitting in a credit union account right now, but I know there has to be a better way to manage it, maybe even make it grow through investments. I’ve had people suggest buying a house, but with the amount I have, that’s just not feasible in my area.
I’m pretty clueless when it comes to investing, so I need all the advice I can get. Got any tips or ideas on how I can make the most of this money? Let’s figure this out together! 💸📈
What should I do with my inheritance money?
a) Invest in stocks
b) Start a small business
c) Consult a financial advisor
d) Other (comment below)
Drop it in an SAP index fund and retire off of it at 60 years old.
Assuming 100K, 100,000*1.07^40 = 1.5 Million dollars after accounting for inflation.
>For a few years I’ve been told by different people that I should use it to buy a house—a house with at least some property, no condos or trailers. You cannot buy a house in my area with what I have, and I’ve talked to a real estate agent already who has let me know I wouldn’t get much of a home loan based on my current income.
Would you be able to afford the associated upkeep on a home, property taxes, and whatever mortgage you did take? It will likely be a lot more expensive in the first 5 years compared to renting. Do you even want to commit to a home and is it worth it to you?
>Pretend I have no idea how to invest or in what, because I don’t!
I don’t understand why people choose to leave lump-sum inheritances with no restrictions to people who have little financial education (as you are transparent about). They should at least require you to take a class or something before disbursing it.
If you have a low or moderate income and several decades till retirement, you are better off getting 50-75% of this into retirement vehicles over the next 5-10 years and using the rest to invest in raising your income.
I can’t see using it towards a house. You would buy something your income doesn’t support and the purchase is not going to make you money over time. I would use the above mindset and focus on using the gift to increase both your current income and retirement prospects, then you can buy a home with your own income.
For a gift in the 6-figures, think of it as a ticket to a funded retirement and the tools you need to get a high income (certifications, licence exams, training, or school). You should keep growing this plant rather than pulling all of the roots and having one dinner.
I put a chunk of mine into a Vanguard account. Signed up for Digital Advisor, answered some questions and bam. I’ve been pretty happy with its growth and it’s not as easy to get to. I also put a chunk into an easily accessible HYSA for emergencies. My 2 cents!
First, have a one or two months of your salary in an easily accessible account, such as an HYSA. This is your emergency fund. Get laid off, end up in the hospital, your car gets totaled, whatever, this is for those types of crisis.
Have one month’s salary in checking. Use the money in checking to pay bills as soon as they come in. Then you replenish it from your salary.
The rest is for investing. You’ll get a lot of investment advice, but I’m a boring person and I would say just get an S&P 500 index fund and put the money there. Using it for a down payment on a house is not a bad idea, assuming you can find a house you want at a price you can afford.
Look up bogleheads forum and go there and explain your exact situation. They know everything about finance, they set me straight.