if you had a lot of money left to you

[luvmyfam444]

how are you investing it?

 

[Iceman93]

Define "a lot" of money.

 

[tvguy]

Annuities.

 

[EllinK]

I suggest that you ask your question on an investing site like Bogleheads.

 

[soccerdad72]

With our investment advisors

 

[Kitty 34]

At my age.....just my Money Market.

 

[Disneylover99]

Real estate

 

[slo]

Depends on how much money is “a lot” of money.

If it’s an amount that will pay for DD19‘s entire college tuition for the next 6-7 years, then 100% of it is going into her college fund my DH set up.

If it’s an amount that surpasses her college tuition, then the amount needed for her college will go to her college fund and the remainder will go to what our financial advisor & DH feels is best. I know nothing about this stuff, this is my DH’s area. I keep telling him I should know more, he keeps telling me I should know more, but I just don’t want to - LOL! I know who our financial advisor is in the sad event that something should happen to my DH - then I’ll have no choice but to know.

 

[LuvOrlando]

Without a doubt, zero out literally everything owed, have 2 years liquid in a FDIC bank account, get a summer place and put my kids names on it, give my kids deposit money for their own homes (so what if they pay tax on it I'll give them extra for taxes), start 529's for future grandkids.

 

[china mom]

I just had this conversation with my financial advisor. We are tentatively planning our departure from the workforce in 2025 so we would invest it concretively and keep it as liquid as possible so we are likely to go with stacking CDs (yes, there might be some money coming our way this fall when an estate closes).

I am jonesing to buy a small cottage in town and rehabbing it but probably wont take the risk.

 

[QueenIsabella]

You need to define "a lot". $20k? $200k? $2M? $20M? The answers would be very different.

This is a case where your best bet is to leave it as is, in whatever investment vehicle, until you've educated yourself. If you're not a savvy investor, there are financial planners who can help you. When my sister's husband got a large medical settlement, her lawyer sent her to a planner. Sis ran his advice by me (I'm more of an investor than she is), to make sure she was getting sound advice.

A couple things you need to be careful of:

If you've received an inheritance that's in retirement accounts, there are rules on withdrawals and taxes may be owed. Do NOTHING until you understand this.

If you've inherited because you've lost a loved one, do only the minimum for a year. A lot of people, in their grief, make bad decisions. Leave the money alone for a while--it'll still be there.

You need to look at your overall financial picture, not just a stand-alone windfall. Do you have kids going to college? Is your retirement set? Do you have debt? Some "standard" advice, like paying off your mortgage, might not be the right choice for you (if the payment is manageable and you've locked in a low interest rate, for example).

 

[china mom]

You need to look at your overall financial picture, not just a stand-alone windfall. Do you have kids going to college? Is your retirement set? Do you have debt? Some "standard" advice, like paying off your mortgage, might not be the right choice for you (if the payment is manageable and you've locked in a low interest rate, for example).

100% this. Unless you purchased recently, you will get a higher rate of return that you are paying in interest, plus your interest payments are tax deductible.

I currently have mortgages ranging from 2.5% and 4.625%. I can invest in a CD for as much as 6%.

Also, heavens forbid, something life changing happens and you need an influx of cash, it is easier to take it from an investment than sell or borrow against a house.

 

[darnheather]

Like others it depends on "a lot". If 50k then I would use it as a down payment on a house. If 500k, I'd still use 50k for the house and the rest with a financial advisor. If 5 million then I'd also take a really nice vacation. LOL

 

[NannyBeBe]

We did inherit a large amount of money after the deaths of three loved ones in a short amount of time. We purchased two homes, one for us and one for our daughter and her family. Having no mortgage payments is very comforting.

 

[barkley]

give my kids deposit money for their own homes (so what if they pay tax on it I'll give them extra for taxes),

YOU would be taxed not those you gift money to.

 

[LuvOrlando]

YOU would be taxed not those you gift money to.

That's ok too, can't take it with me. Only solution to sharing wealth between generations is a long term infusion.

 

[luvnwdwgal]

Depends on how much. I’d love to have enough to build a new home. Nothing elaborate, just a simple small ranch style, but also add to our retirement account which has nowhere near enough in it and we’re already in our 60’s.

 

[FrannyFrogs]

1. More DVC points
2. Club 33!

Is that wrong? Lol

 

[tvguy]

You need to look at your overall financial picture, not just a stand-alone windfall. Do you have kids going to college? Is your retirement set? Do you have debt? Some "standard" advice, like paying off your mortgage, might not be the right choice for you (if the payment is manageable and you've locked in a low interest rate, for example).

I guess the best answer is "one size does not fit ball". Kids college and hoping to retire early were reasons we worked to pay off our mortgage early. Took us 17 years, but we had it paid off 5 years before our oldest hit college. The equity in the house would be a reserve for tuition if we needed it. Our $1,100 a month payment instead went into the college fund for 5 years, and then went directly to paying tuition for the 8 years we had kids in College. Then that $1,100 went directly to retirement savings with the equity in the house a reserve for retirement.
But my wife and I were the first generation in our families to have a mortgage. Our parents were of the mind set you bought a house you could afford to pay cash for. In my parents case, they bought a 1 bedroom 1 bath $2,500 house and over 10 years added on to it until it was a 3 bedroom 2 bath house. They did almost all the work themselves. In my wife's case, her dad was career Air Force and had (free) base housing until he retired. In 24 years he was able to save enough to pay cash for a modest $15,000 home.
And I just look at the lady across the street. She and her husband bought their house 44 years ago and the husband liked to invest any equity they got in the house in other things, some good, some bad, and many not very liquid if you needed to raise money. Husband died 6 years ago, and she is sitting on a $65,000 mortgage after 44 years on a house that cost $75,000. Where did all that equity money go?

 

[china mom]

TV Guy, My old boss was like your neighbor. I almost died when he pulled $30K out of his house to put in an above ground pool...yes, you heard right, $30K! And then he hated it every day after it was installed because it ruined his view and took up his entire yard and the family didn't use it. And he did stuff like that every time he built up any equity. Today, he is stuck in the same house, paying a mortgage.