What to do with inheritance money?

Question

I will be recieving about 30K in the next 2 weeks and have know idea what to do with it. Any ideas on where to put the money to make me some money?

Answer 1

I agree with other poster in regarding to paying down debt and saving up an emerging cash fund.

Once you have done both, I would look into starting a real estate investment fund.

If you don't already own a house, consider buying your first property.

If you already have a house, either pay down (or off) the mortgage or use it to buy a second property (rental unit). This is assuming that you have properly taken care all your other financial obligations and would not overleverage yourself if you make the decision to own a second property.

Enyoy your windfall and invest wisely!

P.S. I am of opinion the real estate property prices will hit a bottom pretty quickly. The cost of construction has gone way up the last two years. We are about to hit an equilibrium point pretty soon.

Answer 2

I agree with the other respondent on your age and investing goals being an important factor.  

Apart from some no-load, low expense mutual funds you might want to take a look at real estate.  You could pick up a duplex or a single family home and rent it out.  This asset will continually give you returns and has a good chance of appreciation moving forward.

Good luck!

Answer 3

Put it in a CD for 3 or 6 months, then do research on Investment options.  Read the Warren Buffet way.

I'd pay down debt and open a ROTH IRA as first steps.

Answer 4

SKNY.ob!!! for real

Answer 5

Do nothing for 60 days.

This will take out the euphoria from receiving the money, and help eliminate the urge to start spending or investing it.

You will also want to check to insure that the money is not subject to estate taxes or has unpaid bills on the estate where creditors will seek to recover these debts.

Then, you might want to look at opening and max funding a ROTH IRA.

http://en.wikipedia.org/wiki/Roth_IRA

Then consider dollar cost averaging 1/12 of what you can contribute into the Roth each month, possibly into the S&P 500 Index.

http://en.wikipedia.org/wiki/Dollar_cost...

http://en.wikipedia.org/wiki/S&P_500

I would avoid the gambling posts (penny stocks, trading, etc).

I might toy around the idea of finding a foreclosure property at a "bargain" price and use that toward a down payment if you can wing the house payments.

Answer 6

Sounds like you plan on investing this windfall.  Congratulations on your wisdom!  Most people spend it, which is so short-sighted.

I'd recommend a no-load mutual fund company.  Vanguard is my personal favorite because they are a mutual-type organization and keep their fees very low.  Others to consider are Fidelty and T. Rowe Price.  There are probably more I'm not familiar with.

At first just put it in a money market fund.  Talk with them (great service at their 800 number) and also research the various funds, which you can do online.  When you are comfortable put most of it into an index fund or a balanced fund, such as STAR or Diversified Equity.  

You don't mention your age, which should be a factor in your choices.  Your temperament should also be considered.

Yes, I know people will tell you not to invest in stocks when the market is lousy.  That's like saying you shouldn't shop at Macy's when they have a sale.  

Pat yourself on the back for being wise enough to invest the money.  You can enjoy what it produces for the rest of your life and if you need the principal itself, it will be there for you.

Answer 7

I recommend listening to Financial Sense Broadcast at http://www.FinancialSense.com

Go back several months and listen to the broadcasts.

They have been MILES ahead of everyone else on where this economy is going, what to invest in.

DO NOTHING WITH THE MONEY FOR THE FIRST 60 DAYS.