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I'm talking on the order of $2 million. I knew my grandparents had money. I didn't think they had quite that much money, though. She's not going to be getting the money at once, but rather in segments throughout the next several years. I've tried asking her how she's going to be spending the money (trips to Europe, the Caribbean ect.), and she's told me that she's still working it out. She already gets a decent amount in dividend income from stocks, so I'm unsure how much would go into additional stock purchases. I assume the majority of it is probably going to go into some kind of special savings account.
If any of you guys ended up getting such a large inheritance from a family member, what would you do with the money? What would be your plan in regards to spending or investing the money?
I'd be very worried that someone will talk her into a stupid "investment" or outright scam. Hope she's wise enough not to fall for the pitches she's bound to hear when the word gets out.
I would go on a holiday, buy the obvious new house/car, and invest the balance for living income in my dotage.
My family lives in an area with a rather low COL when compared to the US average. I think she'll be getting a lot out of it.
Quote:
Originally Posted by 1insider
I'd be very worried that someone will talk her into a stupid "investment" or outright scam. Hope she's wise enough not to fall for the pitches she's bound to hear when the word gets out.
She's pretty smart. She's obviously getting advice from my grandfather on what to do with money once she gets it, so I think her chances of getting scammed are minimal at best.
Quote:
Originally Posted by City Guy997S
7mm was fully invested lump sum......she started spending way more than just dividends!
That explains it, then. If I was in that woman's shoes on the verge of divorce, I would've pushed for smaller payments over the course of a life. I'm a guy, and I don't plan on marrying, so I won't have to deal with any of that legal **** anyway, thankfully.
I would pay off the remaining balance of my house ($215,000), buy a couple new cars, take a few nice vacations and save/invest the remaining $1,650,000.
I would still work another 15 years and would retire at 45 from the full time job (pension starts at 50). I would probably work part time somewhere.
Why is this your concern?
Your Mother is an adult who can make her own decisions without youe input about her finances.
Whatever she does is her choice and I bet she can figure it out.
His/her mother is family. With these kinds of events it's best to plan ahead as a family. Especially if the mom is elderly. Wealth planning is more effective when working together as a family (on the plan). As a result it should be the OP's concern. Hopefully one day you'll be in a position where wealth planning is critical and will see why there's no need to snap at people looking for help.
What would I do with two million dollars? I like real estate, but that is not a passive investment and it is not without risk.
$2m of real estate CAN be a passive investment. At a certain point it becomes feasible to hire a manager to manage your properties for you. In the $2m range you should be getting at ~200k in rental income, thats more than enough to justify hiring a manager or management company.
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