Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So I have been blessed with an inheritance of approximately 102k. I'm turning 50 in June and have no retirement savings, its been a rough 20 years.
My plan currently is to pay of a 25k home equity line of credit that I've been making interest only payments on for 10 years, its currently up to 4% interest and now rates are rising, and pay off about $4,400 in credit cards.
That will leave me debt free but for the mortgage which is being paid for by tenants now in that house, I live with my SO and pay only TV/internet and half the cell phone bill, about $230 total, my auto insurance at $268 a month and new car payment at $328 a month.
After paying debt, if I did my math right, I'll have about 72k to invest. I have 10k in liquid savings. I'm currently "unemployed". Knowing the money was coming I left my job, (which was the plan anyway), to become a full time realtor like my SO. (been licensed for years but had to hold down a steady job to pay for stuff, like a new roof on the house). I've taken whats becoming about a 3 month hiatus from work to lose weight and get many projects done around the house. The projects are almost done, just a few more weeks, I'm down 15 lbs so far, and soon it will be time to get back to work. I have no retirement age goal, pretty aware I may be working until the end of my days, however thats my incentive to work hard. I'm in Florida which is a fairly good place to be an agent, at least right now, 2008 was another story. Oh I also sell my crafts online to the tune currently of about 9k a year.
Anyway, thats the situation, am I doing the right thing by paying off my money soaking line of credit and then just worrying about the best way to invest 72k? I think I am, its just a little difficult to hit that button on my computer for "pay additional principal". :-)
Then, how to invest the 72k? I realize real estate is not a quick money maker, usually, so I have my 10k for expenses (need some professional clothing, lock boxes, signs, cards and basic other start up stuff. My craft business usually gives me enough to pay some or all of my monthly bills, depending on how good the month was. The new car was a needed purchase since my 2001 saturn wasn't really real estate professional looking and I sold it to a friend of mine for his son. I picked a fuel efficient car and obtained it with financing while I still had the employment. My RE office takes their cut from my commission, no desk fees.
Way too long and rambling for long story short, just wanted to make sure I gave all the info I could so as not to waste anyones time. Thanks in advance for any opinions.
Don't forget that you will probably have to pay income taxes on this money, so don't spend it all. Put back at least 25 percent of it for taxes if it hasn't already been deducted by the time you receive it.
invest in a conservative low risk portfolio and start an IRA for your retirement
why are you paying $268/mo for auto insurance in a state with the lowest rates
when i was there i had a new car and lots of tickets, was still under $100/mo
How long ago were you here? I have 2 vehicles, the new car with full coverage and my former craft show van at lower coverage. I have accident forgiveness with Geico and a 10 year history with them. They all just keep raising rates in Palm Beach County, supposedly because of all the bad drivers and risk.
Having a huge amount in bonds while paying 4% on a home loan does not make sense...
So you think that paying off the line of credit is the right thing to do? As I'm planning to? Again, after paying that and my 2 CC's I will have 72k left, and I'm still wondering what I should do with it.
So you think that paying off the line of credit is the right thing to do? As I'm planning to? Again, after paying that and my 2 CC's I will have 72k left, and I'm still wondering what I should do with it.
What are the interest rates on cc's, heloc, mortgage, and car note? Does the HELOC have a balloon payment?
Don't forget that you will probably have to pay income taxes on this money, so don't spend it all. Put back at least 25 percent of it for taxes if it hasn't already been deducted by the time you receive it.
As far as I know, inheritances are tax free except for special cases involving real estate gifting. If it's just a cash inheritance no taxes are due. Put it in a low cost ETF and pretend you never got the money.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
