How would you make inheritance work for you?

[Insomniator]

If you inherited $250k+, what would you do to make the most out of this money? I know it depends a lot on age but I know a guy that is 26 and just received 300k last year.

He is now down to a few hundred bucks in his bank account, has no job and mooches off his girlfriend who works for like 15 bucks an hour struggling in NYC to make rent each month.

He just blew threw 100k in traveling and bullshit, and bought a 200k apartment in Vancouver that he rents out for some retarded amount.. like 1k a month.

Is that not the worst possible use of that kind of money? WTF an apartment in Canada?! His reasoning.. "he didnt want the money in a volatile economy like the US" Now I'm no economist/financial ad visor... but I see no actual point of buying that apartment.

I can now see why he had no job at the age of 26... he's a fucking retard. Can't believe his girlfriend let him blow threw that money while still buying him groceries and not making him pay rent.

 

[Juddog]

I would pay off my house.

 

[chalmers]

Not another one of these...please

 

[BoomerD]

$250K? Even at my age, that's not enough to retire with. It would pay off all my bills and leave me debt free with plenty to spare for hookers and blow.

 

[Bu B3ar]

pay off debt, buy a new car, travel a little, invest the rest

 

[child of wonder]

After paying off house, two cars, student loan, and small CC debt there would be $70,000 left over.

We'd just put that money into savings so that my wife could go to college and not need to work while she goes.

 

[BeauJangles]

It really depends on the person. In my case, I'd spend a small amount of it (probably about $8,000) on some outstanding expenses and invest the rest of it.

 

[Mojoed]

THROUGH.

 

[nick1985]

I would do what any reasonable person would do.

Promptly invest it in TechboyJK's startup. :thumbsup:

 

[darkxshade]

Originally posted by: Insomniator
He just blew threw 100k in traveling and bullshit, and bought a 200k apartment in Vancouver that he rents out for some retarded amount.. like 1k a month.

Is that not the worst possible use of that kind of money?

Provided the apartment does not depreciate... an income stream of $1k/mo or $12k/year on $200k isn't too bad.

 

[ViviTheMage]

pay off debts, put 15,000 in savings, to use if needed, pay off mortgage, that leaves me with about 100-150k. I'd put it in a 1year CD, and look for a new house.

 

[drum]

Originally posted by: nick1985
I would do what any reasonable person would do.

Promptly invest it in TechboyJK's startup. :thumbsup:

:laugh:
you just made my day :laugh:
:thumbsup:

 

[K1052]

Originally posted by: nick1985
I would do what any reasonable person would do.

Promptly invest it in TechboyJK's startup. :thumbsup:

Actually I think spending a $100 to get him a hooker then investing the balance would be the way to go.

 

[TridenT]

Probably use it to pay for my college, a car(insurance as well), living expenses and blahblahblah for like 5-7 years. Then after I have my Bachelors/Masters I'll go out into the workplace with a car, no debt, and a degree ready to make money.

If I didn't do that... Probably put 50% of it in retirement then the rest for college.

 

[sandorski]

Originally posted by: darkxshade

Originally posted by: Insomniator
He just blew threw 100k in traveling and bullshit, and bought a 200k apartment in Vancouver that he rents out for some retarded amount.. like 1k a month.

Is that not the worst possible use of that kind of money?

Provided the apartment does not depreciate... an income stream of $1k/mo or $12k/year on $200k isn't too bad.

Also, Vancouver is a very good Real Estate Market. Even now Property Values are Increasing. $1k/month seems awfully low for Vancouver though, must be outside the Municipality of Vancouver. Perhaps Surrey or other place that far out.

I'm gonna say that this OP Friend's purchase was probably the best thing he did with his $. Needs to get a Job and stop mooching though.

 

[stag3]

pay off house and car
i'd have nothing left

 

[Ricochet]

Originally posted by: darkxshade

Originally posted by: Insomniator
He just blew threw 100k in traveling and bullshit, and bought a 200k apartment in Vancouver that he rents out for some retarded amount.. like 1k a month.

Is that not the worst possible use of that kind of money?

Provided the apartment does not depreciate... an income stream of $1k/mo or $12k/year on $200k isn't too bad.

Was thinking the same thing. His decision to buy the Vancouver apt to generate income isn't necessary bad. The part where he blew 100k, now that's a different story. That 1k a month should go to help his g/f. Honestly they shouldn't be in NYC if they can't afford it.

 

[Koing]

$100k is a lot to travel, so we better hope he travelled to some very sweet places or spent a CHUNK of time travelling. Money spent traveling is a very worth while expereince, but he did spend a lot.

The apartment doesn't seem so bad. It's his and it will always be his and he gets $12k a year on it.

I'd pay the rest on my house. If the sh!t hits the fan I always have my house to live in. Thats piece of mind imo. OR go mental and CFD that f0cker

Koing

 

[JS80]

Originally posted by: Insomniator
If you inherited $250k+, what would you do to make the most out of this money? I know it depends a lot on age but I know a guy that is 26 and just received 300k last year.

He is now down to a few hundred bucks in his bank account, has no job and mooches off his girlfriend who works for like 15 bucks an hour struggling in NYC to make rent each month.

He just blew threw 100k in traveling and bullshit, and bought a 200k apartment in Vancouver that he rents out for some retarded amount.. like 1k a month.

Is that not the worst possible use of that kind of money? WTF an apartment in Canada?! His reasoning.. "he didnt want the money in a volatile economy like the US" Now I'm no economist/financial ad visor... but I see no actual point of buying that apartment.

I can now see why he had no job at the age of 26... he's a fucking retard. Can't believe his girlfriend let him blow threw that money while still buying him groceries and not making him pay rent.

Why do you care? Why are you upset?

 

[Gunslinger08]

I'd pay off our student loans and cars first (like $65k total). I'd probably put the rest into the bank and stocks. Not really worth it to pay off my house yet, since I'm paying 95% tax deductible interest.

 

[PricklyPete]

I would probably buy a few rental properties, put a bit away for my future kids college education.

 

[lokiju]

I'd become 100% debt free then save and invest the rest.

 

[waggy]

i would pay off the house and get a new vehicle for my wife and I then put the rest in the bank (would still be over 100k).


A mutual friend of my wifes little brother inherited 300K + a house when he was 20. he promptly purchased a $94k hummer (orginal ones) a $45k pickup truck and gave out money to anyone that asked.

2 years latter the house was seized for failure to pay taxes (it was paid off) and he was declareing bankruptcy. I should mention when he got the money he was in college but figured 300k was enough for him to live on so he dropped out.

last i heard he sold the truck but kept the hummer and was living in a apt with a friend.

 

[nick1985]

Originally posted by: waggy
i would pay off the house and get a new vehicle for my wife and I then put the rest in the bank (would still be over 100k).


A mutual friend of my wifes little brother inherited 300K + a house when he was 20. he promptly purchased a $94k hummer (orginal ones) a $45k pickup truck and gave out money to anyone that asked.

2 years latter the house was seized for failure to pay taxes (it was paid off) and he was declareing bankruptcy. I should mention when he got the money he was in college but figured 300k was enough for him to live on so he dropped out.

last i heard he sold the truck but kept the hummer and was living in a apt with a friend.

Why are people so stupid? Hopefully you asked him for some money before he ran out :laugh:

 

[CPA]

Originally posted by: joshsquall
I'd pay off our student loans and cars first (like $65k total). I'd probably put the rest into the bank and stocks. Not really worth it to pay off my house yet, since I'm paying 95% tax deductible interest.

sorry, but that is poor justification. You are paying 5-6% interest to save maybe 25% of that on taxes. You don't get it dollar for dollar, so why would you keep it?

Example (in simplest form)

House Paid Off:
Wages $100K
Tax Bracket: 25%
Taxes: $25K

House Not Paid Off:
Wages $100K
Interest $10K
Taxable income: $90K
Tax Bracket: 25%
Taxes: $22.5

Tax Savings: $2.5K So you paid $10K to save $2.5K. Does that look like good financial prudence to you? When you have the opportunity, PAY OFF YOUR HOUSE!