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I have inherited some money(a lot to some, not a lot to others) and have been contemplating what to do to create some kind of income stream, or if I should at all. I currently have the majority of money in CDs, I have other in an IRA.
I have a small business in which work comes in waves, married, 2 kids, a wife, and middle aged....home and vehicle paid off.
I realize there isn't 1 answer to every situation. I just don't like sitting home twittling my thumbs and ruminating. I have contemplated properties, and other businesses, but have not pulled the trigger on any.
I of course could go and get a part time job somewhere but would much rather stay self employed if able.
For me a lot of it boils down to wanting to "stay busy" and to feel like I'm "contributing" more instead of the current coming in waves work I currently have.
I would focus more on the current work I have, but I almost feel there isn't much more that I can do to expand/grow.
CDs are safe. You'll have your little supplemental income and your money will be there. You can get your hands on the money of you have an emergency.
I don't know what your small business is, but if you invested funds to expand could it become larger and more reliable? With the warning that it isn't much fun to have employees with the current worker attitude that no one should have to actually work for their paycheck.
You've got two kids so have college expenses coming up. If the kids are doing well in school, that's fine. If they aren't doing so well, perhaps a few of those dollars invested in tutors to bring them up to speed. Invest a little bit in their future so that they can grow to be successful adults and independent of their parents.
I am invested in real estate, but it is not passive income and there is a lot to know if you hope to not become another casualty. I don't know where you are, but there are a few states where I would absolutely never consider being a landlord. If you are in one of those states, forget about investing in real estate.
I have a small business in which work comes in waves, married, 2 kids, a wife, and middle aged
home and vehicle paid off. ... ...but would much rather stay self employed if able.
...I almost feel there isn't much more that I can do to expand/grow.
Your own business alone?... Rather than any sort of payroll job too? Assuming it's viable focus on maintaining it at least.
But improve it all too; maybe hire a great employee, maybe sell at some point.
iow ... stick to your knitting regardless of "the rest of the story"
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I have inherited some money ...
Explore and learn but on the whole plan to cool your jets about doing anything 'aggressive" too quickly.
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...to create some kind of income stream, or ...
I'll say no; not yet. Focus on growth of the invested portfolio... not income.
You already have the income thing covered; or at least well enough for the foreseeable future..
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I currently have the majority of money in CDs, I have other in an IRA.
That's perfect for the immediate term... Stocks, Index Funds, Etc before too long.
Consider your skills, hobbies, and interests and get creative about ways to capitalize on them.
For instance, my husband is a former sports journalist. So he'll go to local games and write stories for our small newspaper. He's freelance so he can pick and choose. He's doing something he enjoys and is making a few dollars doing it.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by WillowsIvy
I have inherited some money(a lot to some, not a lot to others) and have been contemplating what to do to create some kind of income stream, or if I should at all. I currently have the majority of money in CDs, I have other in an IRA.
I have a small business in which work comes in waves, married, 2 kids, a wife, and middle aged....home and vehicle paid off.
...
I would focus more on the current work I have, but I almost feel there isn't much more that I can do to expand/grow.
Any input would be greatly appreciated!
Some businesses plateau, (maybe your's)
If it's managable and worth it... keep it going.
Having kids at home, you may be a bit sequestered, but it is a terrific education to engage them in the family business, or create one for them. Preferrably something they are interested in growing to support them through college / career. Since we homeschooled, many kids in our 300 student group had their own businesses, some became very successful and they sold the business, or turned the management over to their siblings / friends. Getting them into Roth IRAs using their earned income at about age 8 would be a good idea. IRAs do not count against financial aid (FAFSA). Tho it is accessible for educational expense.
Franchise is another investment that can become passive as it grows. It's quite popular for ex-CEO / finance professionals to buy a franchise with their severance payout.
If enough $$ to form a self managed portfolio that will earn adequate income... kick back and stay home with the kids and go back
to work (if you must) after they leave home.
Good luck,
Enjoy the family and the windfall.
Use your time as a benefit, we never are assured a tomorrow.
Thank you all very much! I offer a large list of property services(think property maintenance)...it's pretty much myself and a couple helpers sometimes. Favorite service is cleaning out homes and hauling away the items and try to sell some of the more valuables...but it honestly has become intermittent. Surprisingly what has hurt is craigslist not being busy as it once was. I had creative advertising in a large area rather then a couple towns and it did well.
Believe me, one of my strengths is being creative and I have contemplated so many things but where some dont mind taking a chance regarding money...I'm kinda the opposite, rather have it there if needed.
I do think like I said above a lot of it is mental. I want to feel as I am contributing and I don't think I feel like I'm contributing with money that has been passed to me. If that makes sense.
This is your opportunity to talk to yourself and involve your spouse to find out what your goals in life are.
If you already reached your goals before getting the inheritance you need to find out if that's enough for you and concentrate on your next generation.
There are new skills you need to learn to protect and maintain your inheritance. Talk to your home insurance and business insurance company and get personal liability policies for both areas covering several million $$. It's not expensive as an add-on.
Investment advisors should be used only after you have done work on your own to learn about investing. Many advisors work mainly to make money for themselves and their company, not primarily for you.
If you were 80 years old what do you want to look back and see you did when you were the age you are now?
In my earlier post I glossed over the longer term viability of the current 'business' that you're involved in.
Your comments and then the later post don't bode well for that.
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Originally Posted by twinkletwinkle22
This is your opportunity to... to find out what your goals in life are.
Excellent point.
Don't give up on the current income and day to day BUSY-ness of the business anytime soon ...
but absolutely plan and work toward some other future while the inheritance continues to earn (CD) interest ...
and while you learn about and decide on how best to handle (INVEST not spend) the money.
Allowing yourself six months or even a year to get through these stages is entirely reasonable.
Maybe some other small business? Maybe a real job with a real company; with benefits?
The what is all up to you Good luck with it all.
Thanks again. I would venture to say quite a large portion of my situation is mental. I think with my self employment being quite intermittent, I don't feel like the provider I should be... strictly because some of the money I use has been passed to me. Even though I honestly feel I am set financially very well, my mentality that I am not using my own ventures to provide for my family sometimes, makes me feel somehow less then I suppose.
I know most would not even consider letting them get bothered by this, but I suppose I am different.
Does this make sense?
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