Inheritance

[Bingo-Player]

I am going to be the sole benefactor to my grandparents estate and stand to inherit just over quarter of a million in the next 10 – 15 years

Obviously im not wishing death upon them as i love them dearly but they are both knocking on now and my grandfather has terminal cancer

we are all aware that the situation is changing daily and have been to the solicitors recently

This is clearly a life changing amount of money and i need to start working out now how to manage it properly

Anyone got an experiences with large inheritance’s / investment strategys ?

cheers

 

[Albatross953]

Understand one thing. Anyone you deal with on a commission basis will have interests that are not the same as yours.

Find a for fee financial planner. Know exactly what you are paying to invest. And run from anyone who says they can outperform the market.

This is enough money to radically change the course of your life. If you handle it correctly.

I have spent twenty years working in the pension industry. I help run over a billion in AUM. I routinely see guys retire with 1-1.6 million. Some do well, some don't and get taken by planners. At 2.75 percent commission per year these mutual fund companies are just looking for guys like you.

 

[speed dawg]

I am going to be the sole benefactor to my grandparents estate and stand to inherit just over quarter of a million in the next 10 – 15 years

Obviously im not wishing death upon them as i love them dearly but they are both knocking on now and my grandfather has terminal cancer

we are all aware that the situation is changing daily and have been to the solicitors recently

This is clearly a life changing amount of money and i need to start working out now how to manage it properly

Anyone got an experiences with large inheritance’s / investment strategys ?

cheers

Only advice I can give you is to honor your grandparent's wishes, if they have any. Keep your family in mind. How would they want you to use their resources?

 

[Oxide]

It's not a life changing amount of money. 2.5 mil is MAYBE a start of that.

250k, and especially in 10 years, is an investment property, or a house. ****, you can't even life off interest if you put it ALL in treasuries or stocks.

 

[dasein]

Assuming your grandparents don't have specific wishes:

1. Buy a modest house or condo if you don't have one already. Carry a small mortgage, larger if you can get a really good longterm fixed rate. Do NOT have all your inheritance tied up in real estate or illiquid assets.
2. Don't run out and buy a new car. I'm a lawyer, have had exactly -one- new car in my life, and it was the deal of a lifetime at under 15k years ago. Buy 3-5 yo cars with 50-80k miles on them.
3. If I were going to invest 250k as a new investor, already had a house, a decent serviceable car, I'd put 100k into an index fund and promise not to touch until retirement. Then I'd start a long, slow, measured, careful process of looking for as much rental property as I could leverage with 100k. Commercial is usually less hassle than residential, but depends... due diligence... due diligence... don't fall in love with the first or 50th thing that comes along. LONG, SLOW, METHODICAL process. I'd split the rest in cash and cash equivalents and a zombie apocalypse stash. YMMV, not specific advice, just a general discussion. Only you can decide for yourself in the end.

 

[Albatross953]

It's not a life changing amount of money. 2.5 mil is MAYBE a start of that.

250k, and especially in 10 years, is an investment property, or a house. ****, you can't even life off interest if you put it ALL in treasuries or stocks.

In a world where your average guy is putting a few hundred in the bank every month, this absolutely is life changing. It's years and years of progress.

- buy a decent house
- invest it and have most of retirement covered if early enough
-start a business **high risk

 

[Oxide]

In a world where your average guy is putting a few hundred in the bank every month, this absolutely is life changing. It's years and years of progress.

- buy a decent house
- invest it and have most of retirement covered if early enough
-start a business **high risk

Do you want to be average? This is a world where average guys can go to guys making 25k a week. On their own.

 

[Albatross953]

Oxide, I'm not saying OP can't be the next CEO of Microsoft or the next Walter White. That is one way to change your life.

But $250 k is enough money to avoid a career worth of mortgage payments. Or enough money to generate $10k in income....forever. And either of those my friend are going to make a big difference.

Incidently, $25 k a week is $1.3 million a year. If you're doing that, maybe you should give me advice.

 

[Oxide]

Oxide, I'm not saying OP can't be the next CEO of Microsoft or the next Walter White. That is one way to change your life.

But $250 k is enough money to avoid a career worth of mortgage payments. Or enough money to generate $10k in income....forever. And either of those my friend are going to make a big difference.

Incidently, $25 k a week is $1.3 million a year. If you're doing that, maybe you should give me advice.

10k/yr is 833/mo. Now think about inflation and what that's going to be actually worth 5, 10, nevermind 15 years down the line.

Look I get your point, sometimes though some people want more. If you still want more read The Fastlane to Millions. That's the best advice I can give anyone who wants to understand the dynamics of working for someone vs working for yourself. I always knew I couldn't work for others. Now I work for myself.

Cheers

 

[Desdinova]

I've been thinking about this subject as well. I'm going to be the sole beneficiary of my parents' estate. They don't have much, just their house which is fully paid off. I've been trying to figure out exactly what I want to do with it.

- Rent it out:
This can make me some extra income. The only thing I'm not fond of it the extra work this will generate; looking for tenants, doing up the paperwork, dealing with appliance malfunctions, repairing damage, etc. This 5hit can come up suddenly and can be time-consuming.

- Sell it:
If I sell it, I'd use the money to pay off my existing house and likely have cash to spare afterwards. The bulk of my paycheck would no longer be going toward a mortgage. Instead, I could hire people to do work on my house to make it nicer and more enjoyable. I ultimately want to hire a maid to do the house cleaning. The more time I get to do the things I enjoy, the more pleasure I will get from life.

I could stuff the money away for retirement, but I'm already doing that. So why not use it to gain some extra pleasure out of my life? I only live once, so I might as well make it worth it.