inheritance
#1
08-20-2009, 04:13 PM
inheritance
well i found out that i have a distant aunt that died and left me and my sister some cash. i make decent money, but having an extra wad of cash doesnt make me complain. after splitting it up, and a few things here and there, i got $135,000. apparently, she owned the land on what is now Reno, NV. 
why me and my sister never found this out is beyond me. honestly, i dont know what to do with the money. i already own a house, (paying mortgage) but im not gonna start and blow it on cars and stupid stuff most people do. I love my truck and im not getting rid of it for something else like others would do. im thinking about just investing it, or taking a vacation or 2 to somewhere me and my girl have dreamt about. anybody have HONEST and LOGICAL suggestions on what to do with it. i have no debt, and just regular bills along with mortgage that i afford. i put away different amounts of money every month, depending on how much overtime i work. i dont live frivolously. i did buy 2 supercharged Seadoos a year ago and i have a Malibu wakeboard boat, but i dont want anymore toys. this has all just come to me and shocked me...
why me and my sister never found this out is beyond me. honestly, i dont know what to do with the money. i already own a house, (paying mortgage) but im not gonna start and blow it on cars and stupid stuff most people do. I love my truck and im not getting rid of it for something else like others would do. im thinking about just investing it, or taking a vacation or 2 to somewhere me and my girl have dreamt about. anybody have HONEST and LOGICAL suggestions on what to do with it. i have no debt, and just regular bills along with mortgage that i afford. i put away different amounts of money every month, depending on how much overtime i work. i dont live frivolously. i did buy 2 supercharged Seadoos a year ago and i have a Malibu wakeboard boat, but i dont want anymore toys. this has all just come to me and shocked me...
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08-20-2009, 04:43 PM
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08-20-2009, 04:44 PM
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08-20-2009, 04:45 PM
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08-20-2009, 04:53 PM
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08-20-2009, 05:09 PM
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No, but he did say he has a mortgage. I'd take a couple grand and play or just save for a rainy day then either put the rest towards the principal on the house or do like bluejay said and find a secure investment, or a little bit of both. Just make sure that if you invest it, you can liquidate somewhat quickly without huge penalties in case something tragic happens and you need to get your hands on a bunch of cash
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08-20-2009, 05:53 PM
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#13
08-20-2009, 06:07 PM
Pull 6 months of money to run the household out ( post tax income ).
Put 50% in a 3 month CD, and the other 50% in a 6 month CD.
When the 3 month comes due, roll it to a 6 month, and keep going with this. Make sure the interest is paid back into the CD when rolled over.
This gives you the ability to have ready cash on hand if needed.
Balance ( after what your taxes are if any. Check some states are Estate tax, some are inheritance tax, check state and federal tax laws ), put all of it towards the house ( one lump sum ).
A 30 Yr mortgage at 6.75% ( think that is the rate, maybe it is 8% ) will make the total cost of the house be 2.5X what you paid for it.
This means a 200K house taken the full 30 years to pay off, means you paid 500K into it ( if I have the rate correct ).
Remember your interest is based upon outstanding balance of the loan.
If you cut 15 years off of the loan ( lump sum payment all to principal ) , you will be putting more of your monthly payment towards principal retirement, and owning it quicker.
If you can have only property taxes as the yearly outlay to housing, you will be that much father ahead of the game later in life.
PS : If you can do it, take 1 payment / 12 and add it to the mortgage payment also. Just the mortgage, not prop taxes and ins if you have those paid out of an escrow account. This will cut down the loan that much quicker.
Example, a 30 Yr loan, adding 1/12th of the payment per month will reduce it to a 17.5 year loan.
Put 50% in a 3 month CD, and the other 50% in a 6 month CD.
When the 3 month comes due, roll it to a 6 month, and keep going with this. Make sure the interest is paid back into the CD when rolled over.
This gives you the ability to have ready cash on hand if needed.
Balance ( after what your taxes are if any. Check some states are Estate tax, some are inheritance tax, check state and federal tax laws ), put all of it towards the house ( one lump sum ).
A 30 Yr mortgage at 6.75% ( think that is the rate, maybe it is 8% ) will make the total cost of the house be 2.5X what you paid for it.
This means a 200K house taken the full 30 years to pay off, means you paid 500K into it ( if I have the rate correct ).
Remember your interest is based upon outstanding balance of the loan.
If you cut 15 years off of the loan ( lump sum payment all to principal ) , you will be putting more of your monthly payment towards principal retirement, and owning it quicker.
If you can have only property taxes as the yearly outlay to housing, you will be that much father ahead of the game later in life.
PS : If you can do it, take 1 payment / 12 and add it to the mortgage payment also. Just the mortgage, not prop taxes and ins if you have those paid out of an escrow account. This will cut down the loan that much quicker.
Example, a 30 Yr loan, adding 1/12th of the payment per month will reduce it to a 17.5 year loan.
Last edited by SSCULLY; 08-20-2009 at 06:12 PM.
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08-20-2009, 06:16 PM
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#15
08-20-2009, 06:26 PM
Pull 6 months of money to run the household out ( post tax income ).
Put 50% in a 3 month CD, and the other 50% in a 6 month CD.
When the 3 month comes due, roll it to a 6 month, and keep going with this. Make sure the interest is paid back into the CD when rolled over.
This gives you the ability to have ready cash on hand if needed.
Balance ( after what your taxes are if any. Check some states are Estate tax, some are inheritance tax, check state and federal tax laws ), put all of it towards the house ( one lump sum ).
A 30 Yr mortgage at 6.75% ( think that is the rate, maybe it is 8% ) will make the total cost of the house be 2.5X what you paid for it.
This means a 200K house taken the full 30 years to pay off, means you paid 500K into it ( if I have the rate correct ).
Remember your interest is based upon outstanding balance of the loan.
If you cut 15 years off of the loan ( lump sum payment all to principal ) , you will be putting more of your monthly payment towards principal retirement, and owning it quicker.
If you can have only property taxes as the yearly outlay to housing, you will be that much father ahead of the game later in life.
PS : If you can do it, take 1 payment / 12 and add it to the mortgage payment also. Just the mortgage, not prop taxes and ins if you have those paid out of an escrow account. This will cut down the loan that much quicker.
Example, a 30 Yr loan, adding 1/12th of the payment per month will reduce it to a 17.5 year loan.
Put 50% in a 3 month CD, and the other 50% in a 6 month CD.
When the 3 month comes due, roll it to a 6 month, and keep going with this. Make sure the interest is paid back into the CD when rolled over.
This gives you the ability to have ready cash on hand if needed.
Balance ( after what your taxes are if any. Check some states are Estate tax, some are inheritance tax, check state and federal tax laws ), put all of it towards the house ( one lump sum ).
A 30 Yr mortgage at 6.75% ( think that is the rate, maybe it is 8% ) will make the total cost of the house be 2.5X what you paid for it.
This means a 200K house taken the full 30 years to pay off, means you paid 500K into it ( if I have the rate correct ).
Remember your interest is based upon outstanding balance of the loan.
If you cut 15 years off of the loan ( lump sum payment all to principal ) , you will be putting more of your monthly payment towards principal retirement, and owning it quicker.
If you can have only property taxes as the yearly outlay to housing, you will be that much father ahead of the game later in life.
PS : If you can do it, take 1 payment / 12 and add it to the mortgage payment also. Just the mortgage, not prop taxes and ins if you have those paid out of an escrow account. This will cut down the loan that much quicker.
Example, a 30 Yr loan, adding 1/12th of the payment per month will reduce it to a 17.5 year loan.