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Financial advice needed

Within the next six months I will be inheriting some money (approximately $85,000) and I have no idea what I should do with it (how or where to invest or save it) and I don't want to screw it up doing something foolish and end up broke.

I have been trying to read up on financial and investment information since I found out last month I was to inherit this money but I still have no idea what the best thing to do with this money is, and there are times that just the thought is pretty scary to me. Not the receiving the money part, but the thought that I might totally screw it up and could really use some advice or direction.

I'd gratefully appreciate any advice that you could give me.

by Anonymousreply 3809/08/2013

Warning... this is probably too much information on myself and my finances, feel free to skip it if you can give me advice without reading it.

My financial life up until this point has really pretty much been just surviving. I make enough money for what I have to spend.

I have no debt at all, no credits cards or things bought on payments. I was raised by my grandparents who grew up during the Great Depression and I heard so many stories about people losing everything because of things bought on credit. Another reason I've never had credit cards is because I never liked the idea of paying more (in credit card interest) for something because I couldn't afford to buy right then. I've always saved and waited until I could afford to buy things outright.

I also don't own much. No house, no car. I wouldn't want or need to buy a car because I am partially disabled. I am epileptic as well as having spinal problems that I take heavy duty pain medication for. Even tho I could get a drivers license because I haven't had a seizure in nearly three years, I wouldn't take the risk hurting others.

I work nearly full time, at a salaried job, and make enough money to get by on. I anticipate being able to work and make enough money for the foreseeable future.

I don't really need anything right now except maybe a new pair of glasses and a new couch.

I'd like to have some plan on what to do with this money once I get it. I think I'll be ok and not go on some wild spending spree. Though I also don't want to have the money just sitting in my savings account where I'm afraid I could be tempted to spend it on something stupid that I'd regret, or start spending a little bit here and there on 'extras' that I don't need and end up spending a lot of money on foolish things.

Sorry if all that is too much information, but I am about to start work and won't be able to watch the thread to answer questions and figured too much is better than not enough?

As I said in my first post, I'd gratefully appreciate any advice that you could give me.

Thank you

by Anonymousreply 109/06/2013

I have no idea how old you are, but invest it all in MGM stock-- the gambling industry is coming back, and they will own the internet gambling market... this money will be worth A LOT in a couple of years!!!!!!!!!

by Anonymousreply 209/06/2013

Put it into a 5 year FDIC certificate of deposit and do not touch it. This will give you security and time to figure out that you can live off your paycheck and still know that you have $$$ in the bank it kinda takes the edge off of the anxiety of life.

by Anonymousreply 309/07/2013

R3 is giving OK advice. But you should look into laddering your CDs.

The stock market is not for everybody, even with no-load mutual funds.

It takes time to learn how to manage money. What you have is a nice nest egg. Maybe use it as a jump start on a saving and investing routine. Add to it monthly,

$50...$100, whatever you can.

How old are you?

Oh, but first buy that couch and some glasses.

by Anonymousreply 409/07/2013

We have anew project we would like you to invest in.

by Anonymousreply 509/07/2013

Hey OP,

First off, congratulations on your sagacious and prudent philosophy on debt, credit cards, and living within your means.

There's no real need to pressure yourself into making these decisions now. You can't lose the money or "screw up" in any way if you don't invest it. I would recommend putting it all in a simple savings account at a real (FDIC insured) bank, sans the cash for your glasses and that new couch, and let it sit there while you consider your options.

If you want to put it into a CD, I would still suggest keeping 5k in your savings account for emergencies, so you're not forced into breaking the CD and paying penalties.

(How old are you by the way?)

If you're anticipating buying a house in the next few years, I would keep it to be used as a down payment.

Don't invest in stocks or bonds until you have more cash set aside.

by Anonymousreply 609/07/2013

You will get 20 different opinions here. Get yourself a certified financial adviser. They will look at your whole financial picture - your assets, income, goals, etc. and help you tailor a plan according to your needs and ability/desire to risk in investments. Don't rely on a forum to tell you what to do with such a large amount of money.

by Anonymousreply 709/07/2013

keep 5 or 10 thousand in a money market and the rest in a one year CD. Then over the next year you have time to learn and think about the money without the pressure of doing much with it.

Inheriting is like getting out of rehab---no big decisions for a year.

(Ally bank has the best rates BTW)

by Anonymousreply 809/07/2013


Keep in mind that financial advisers are usually paid by the companies whose products they sell, so they tend to push you to buy insurance policies and (God forbid) annuities.

If you want to go to one, agree beforehand on a flat rate for their advice ONLY. (So you would pay them for an hour of their time for advice, but not to push fin. products.)

But save the 85 for a home.

by Anonymousreply 909/07/2013

If only every certified financial planner gave good, unbiased advice.

Most represent the products of teir firms.

For one thing...go to a fee-only financial planner.

And trust your common sense...if you don't understand something, don't invest in it.

by Anonymousreply 1009/07/2013

write to Suze

by Anonymousreply 1109/07/2013

Put it in a money market account. Get yourself to the library and check out some books on personal finance.

How old are you, OP? If you are close to retirement or even middle-aged, keep these assets liquid. Just trust me on this.

by Anonymousreply 1309/07/2013

Just put it in a money market account at a regular bank - like a savings account.

Do not invest it at this time.

Investing it is over-rated - especially in a volatile market where you could lose it.

If CD interest rates eventually rise a bit, you could put it into a CD or two at the bank, but otherwise just leave in in a money market account or savings account for now so you don't lose a chunk of it.

by Anonymousreply 1409/07/2013

Just re-read your post, OP.

Definitely put it in FDIC insured Certificates of Deposit (or just one) at your regular bank. They are called CD's.

That way you won't be deducting any of it from a money market account or savings account.

by Anonymousreply 1509/07/2013

Buy Unilever, Shell, Nestle, Proctor & Gamble, Johnson & Johnson, and you will be happy for the rest of your life.

by Anonymousreply 1709/07/2013

R10 is right OP: but any financial planner may also try to sell you financial products for which they receive a commission, or worse, an ongoing 'trailing commission' which will reduce your investment returns.

You may also need to adjust your attitude to debt to put yourself in a more secure financial position. Paying rent in later life isn't an attractive proposition, so you may want to consider using some of the money as the deposit on a home, which will require a mortgage - i.e. debt. But debt used to purchase an asset that may increase in value is 'good debt'. Depending on where you live, and what you purchase, you may find that you're paying very little more than what you're paying in rent, for a solid asset you will eventually own.

by Anonymousreply 1809/07/2013

Might you be interested in funding the comeback career of a former Hollywood superstar?

by Anonymousreply 2009/07/2013

Boy howdy, R12 is just hee-LAR-ious! Really!

by Anonymousreply 2109/07/2013

Still haven't heard how old you are.

by Anonymousreply 2309/07/2013

Well, we haven't heard how old YOU are! What are the rumors?

by Anonymousreply 2409/07/2013

Is it too late for the person who is leaving you the money to create a Trust account? You will lose half of it to taxes otherwise.

by Anonymousreply 2509/07/2013

I advise you to get a financial planner/adviser/broker whatever you want to call it.

Sit down with a professional and tell him/her what you goal is (ie when you want to retire with what amount of money). They'll take a list of your earnings, assets, (current and projected) and liabilities and give you plans to review.

You won't regret it if you get a good planner.

Good luck!

by Anonymousreply 2609/07/2013

I disagree that the OP must hire a financial planner.

It's just not necessary, and financial planners often have vested interests in what direction they suggest and what instruments.

by Anonymousreply 2709/07/2013

OP, marry ME!

by Anonymousreply 2809/07/2013

This being DL no one including OP mentions SPENDING a small portion of this inheritance to take a trip or do something enjoyable.

NO. Live like a miser so you can retire then live like a miser so you can make your money last and leave your estate in order. The secret for a happy life.

by Anonymousreply 2909/07/2013

Don't be so one percenty. Give it to the IRS.

by Anonymousreply 3009/07/2013

Let me just interject a word for my specialty ... taxes. While an inheritance, per se, isn't USUALLY subject to income tax, there are exceptions ... such as inheriting an IRA or 401K (which is fully taxable to the beneficiary, as it would have been to the deceased), or annuities, proceeds from sales of stock or property, or US Savings Bonds, which may be partially taxable. Know the possible tax bite before you spend anything.

While I don't give financial advice, let me point out that $85K isn't a huge amount to invest, and I really don't think a professional financial advisor is necessary. You can put it in time deposits, or perhaps a diversified mutual fund with an appropriate risk factor depending on your age. Your health is another reason why I don't think you need to be sharing the money with a financial advisor. Perhaps you can max out your 401K at work, and contribute to a Roth IRA, which would make some of your money tax deferred until you actually need it.

by Anonymousreply 3109/07/2013

Thank you for all the advice. The last time I looked at the thread last night there was one reply and I figured it was going to die on the vine.

I'm 32 yrs old

by Anonymousreply 3209/07/2013

Invest some of it in Tesla Motors(TSLA).

by Anonymousreply 3309/07/2013

No advice on how or where to save or invest your money OP, just some advice based on what I've seen and experienced in my life. Be careful who you tell about your inheritance and what you tell them about it. While it's not a huge amount of money it's enough that could make you really popular among the wrong kind of 'friends'. When I inherited money I became really popular among of group of people who acted like I was the hottest, most intelligent, amusing guy as long as I was picking up the check, buying the drinks or giving them personal 'loans'. It didn't take long to figure it out and drop these friends, but if it could happen to me it could happen to anyone. You seem to have your life together in a way I didn't when I inherited but I figured I'd warn you anyways. Also watch out for people who have amazing investing ideas or ideas on starting a business that would involve too much of your money.

by Anonymousreply 3409/07/2013


As a CFP(R) practitioner, I disagree with most of the posters on this thread who are either telling you what to buy or discouraging you from speaking with a professional. You should speak with a financial planner. You have a significant health challenge, and relatively few assets with which to take care of yourself--much less carry you through decades of retirement. In my experience, folks with fewer assets are often more in need professional guidance--even if it is to prepare for medicare/medicaid realities.

A competent financial planner will take a few hours to help you get all of your needs out on the table, OP. What is your income? How do you need to spend money today? That is a good indicator of how you will need to spend money in the decades to come, PLUS inflation costs. How many sources of income will you have in the future? Do you have a pension plan or access to Social Security benefits? You may need to build your own personal pension through insurance. Time is definitely on your side.

A competent financial planner will also help you diversify your wealth and investment risk into "buckets"--long-term needs (for retirement income, which can sustain more risk as it looks for long-term growth), medium-term needs (the new couch, a nice vacation, potential down-payments) and short-term needs (for your emergencies, glasses, and "go-to" cash if the markets are unfavorable--this bucket would require CDs and cash-equivlents).

OP you can start a well-reasoned plan at your relatively young age. I'd rather work with you than a 60-year old, panting to retire, who has accumulated fewer assets and has debt. A good planner will help you maximize your taxation situation and work with any tax preparer you already have for your betterment. Do you have your legal documents in place for your estate? I'd help you find resources to get it done.

Finally, at the $85k level you'd qualify for flat fees with my firm, which almost always turn out to the investor's benefit. But the choice would be yours to pay that or retail. As some have said on this thread, be wary of any financial advisor who pushes proprietary product for higher commission. A good planner will have access to the investment universe and transparency with regard to fees. Some RIA's can create a plan, for a fee, and then you take the plan to engage elsewhere (or online for yourself). As far as fees, everyone in the investment world gets paid, OP. Everyone. A good planner will show you how different investments get paid, and the risk associated with them. Also, a good planner will know a lot about you before they even come pushing investment products into your face. Beware.

I like my clients to not only know WHAT they are investing in, but WHY. It goes a long way to help with what I like to call the "sleep-ability" factor.

Your needs are unique to you, OP. They are not like mine or anyone else's on this thread. You need a plan customized to you. Don't be afraid of working with a planner if you get good value for your money. You should never have to pay for an initial consultation, and you may even be in a city that offers free Financial Planning Days. The one I'm volunteering at in Denver is next month. Wish I could chat with you.

by Anonymousreply 3509/07/2013

r29 ?????? I recommended he stash on OZ of coke and an oz of H. Don't forget a good supply of spikes.

by Anonymousreply 3609/08/2013

r35 = a financial salesperson recommending a visit to a financial salesperson.

r35, what is your flat fee rate?

r35, google 'boglehead forum', then read and ask questions. Look up their recommended reading list and read some of the books on the basics of investing. Post questions to that forum and study the responses. There are people on that site who are very experienced with finances. There will be many eyes double checking the advice you will get.

A typical financial salespersons flat rate is 1% of your assets. Most people aim to live off 4% or less of their assets in retirement. Do you really want to give away 25% or more of your gross income in retirement to a financial salesperson?

Here, I googled for you:

by Anonymousreply 3709/08/2013
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