question.... (Orange, Newport Beach: apartment, rental, house)

[loneranger456]

I am twenty six years old live in the Chicago suburbs. I am set to inherit a little more then two million dollars after taxes from my grandparents once I turn 28. I think this will be enough money to live comfortably in California for decades. I plan on renting an apartment In newport, which will be about 1500 dollars a month. Dont want to purchase a house and have a third of my money gone. Or is renting a bad idea?

I plan on having the money in bank accounts FDIC insured and some precious metals. Don't trust the stock market right now. Anything I should know about before making the big move in less than two years?

I plan on getting a job eventually, maybe two or three days a week. Possibly a bartender or something fun.

No kids, not married.

[CAVA1990]

Originally Posted by loneranger456

I am set to inherit a little more then two million dollars after taxes....Anything I should know about before making the big move in less than two years?

My daughter's phone number?

[pacific2]

My daughter's phone number?

[Vascodagama]

Originally Posted by pacific2

My daughter's phone number?

This is California ...

My son's phone number

[ferretkona]

Why CA? you could buy a tropical resort and live well for decades

[EscapeCalifornia]

Originally Posted by loneranger456

I plan on having the money in bank accounts FDIC insured and some precious metals. Don't trust the stock market right now.

You really need professional asset management advice. Sticking all your money into low-yield savings accounts will hurt you over time as inflation reduces your buying power. What if those metals tank in value?

[Count David]

Did you call the Dave Ramsey show?

I personally would buy a home outright, keep some liquid, and invest much of the rest in mutual funds. I'm not a fan of metals, we haven't used them as currency for quite awhile. You can always sell the house, and if you can't sell it, you'll always have a place to live.

The great thing about your situation is that you don't have to get a job if you don't want to, especially if your money is invested properly. You'll also have the luxury of getting married and having kids and not having to worry too much about money, unlike many Californians.

When (not if ) I'm in your situation, I probably won't work. But I'm one of those boring married guys. If I was single, I would probably find some fun job to do to pass the time...good plan.

[aring633]

I would re-think your plan a bit. $2 M sounds like a lot, but without an additional income stream, it will go faster than you think.

Talk with an accountant or financial advisor. I would think he'd advise you to purchase property for the tax write-offs. A good option would be a duplex - a place to live with rental income on top of it.

Newport Beach is the most extravagant place to live in Orange County. I'm 35 and have lived here all my life, so I'm speaking from experience. Single guys living at the beach burn through money. Especially without a job to keep you occupied (if you're working, you're not spending money!), it will be very easy to fall into the trap of eating out all the time, buying gadgets & clothes to keep up with your neighbors, and spending tons on your dates.

I would also consider the financial situation in California. The state is in trouble. It's a wonderful place to live in terms of weather, sports & activities, culture - we really have it all. But it comes at a price. Speak to a financial professional so you can really take advantage of your windfall. Best of luck.

[BRinSM]

have you considered muni bonds? Put most of the money in there and live on the tax free interest it generates. If you can find a 5% yield bond for your $2M, that would generate $100k/year that would be tax exempt. You could certainly afford to rent in newport with that kind of money coming in and you won't be eating into the inheritence at all.

[loneranger456]

Originally Posted by EscapeCalifornia

You really need professional asset management advice. Sticking all your money into low-yield savings accounts will hurt you over time as inflation reduces your buying power. What if those metals tank in value?

You make a good point but I am not too worried about it. Take in mind I will be working a few days a week which will help with some expenses. I dont drink, dont smoke, etc. I dont really do anything that is extravagant.