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Thread: What would you do?

  1. 12-04-2009 01:47 AM #1
    Anon
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    What would you do?

    I came into some money recently (inheritance from a grandmother that passed away) and I have some things to figure out as far as what to do with it. I've met with a couple different financial people and they tell me to invest, invest, invest. I agree with that, but I'm wondering if I should invest all of it. One of the guys asked me if I wanted to change my life now or change my life in the future. My instinct is to change both. So, my initial plan was to pay my house off in full when my fiance and I buy a new house and just rent my current house out. It would provide about $1k per month income since I won't have a mortgage.

    One of the financial guys showed me some figures and based on a 10% return (APY, right? I don't know the terms...), it was a difference of about $4 million when I am of retirement age. Of course it sounds great to have $8 million when I retire instead of $4 million, but do I really need that much money when I retire? I'm also not sure that it's necessary to leave THAT much money to my family. I guess my main reason is that I can't sell my house right now without losing a pretty huge chunk of money and I don't want to be obligated to a mortgage while renting it out. And I want to live comfortably in my life now rather than just getting by until I have this huge nest egg when I retire.

    Thoughts?? (Also, I posted this in anon for safety reasons since I'm talking about money.)
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  2. 12-04-2009 05:56 AM #2
    rubytuesday
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    If you get a 10% return on your money in this market, I think it would be a miracle. Then pendulum has swung back away from the 9% return and that was the average high during this derivative funded hey-day.

    To be honest, I would go back and talk to more financial people. Don't start off by telling them you have money to invest from a reasonable sized inheritance. Instead, make them give you an education in the investment market so you will have a much more solid grounding. i.e. when they say based on a 10% return, ask them if that is average and how it is to be obtained. Make them explain themselves. Don't just take their answers at face value.

    They work off commission in essence, so they will be looking at your investment as a gravy train. Make them earn anything they get. An investment counselor worth their salt will not only not mind you asking the 'stupid' questions, but welcome them. Their answers should also be somewhat consistent across the board.

    Remember, the gravy train is gone for now. Anyone that promises pies in the sky has their head tucked up their ass.
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  3. 12-04-2009 11:57 AM #3
    Lioness
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    I would put a healthy chuck in an IRA, that is a good way to have a nice retirement. I would also pay off all debt if you can. What is left over I would invest in some properties now, and when the market gets back up (and it will) then sell or take on renters.

    When my granddad passed on, my husband and I came into a bit of money and that is what did last year. It has worked well for us.
    Ever wonder about those people who spend $2 apiece on those little bottles of Evian water? Try spelling Evian backward. ~ George Carlin
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  4. 12-04-2009 08:56 PM #4
    sprankified
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    i don't know much about finances and whatnot.
    but my gut says invest SOME- so that you may be comfortable when you retire. however, there are no promises that even you'll live that long, so if i were you i'd enjoy a little more luxury (maybe a nice car) and a little less stress (pay off the mortgage) for the time being.
    but that's me. i don't plan on living into retirement age. haha.
    'Cause I'm that fool that broke the key- I'm unlockable so don't check me- I got weight on my shoulders and things on my mind- The sky is falling and I'm falling behind... No shame in my game just par for the path- I try to hone my craft because at hand's the task- But I find I'm not playing with a full deck- I'm up to my neck like Toulouse Lautrec
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  5. 12-05-2009 12:27 AM #5
    Greaser
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    yeah why be the guy to slave an entire life to hopefully live into a plush retirement and then tragically die before then would def use some now and put some a side but not all of it
    When it comes to pink butterflies i could give a flying fuck.
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  6. 12-05-2009 01:41 PM #6
    Bubbabuddy
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    Poster, did I happen to mention that your hair looks really nice today?
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