View Full Version : What to do with my $300,000.00 inheritance???
05-02-2008, 04:41 AM
I have recently received an inheritance of $300k and was wondering what one would do with it.
I want to invest into something that I don't have to babysit. I have been looking into apartment complexes (I've been involved in real estate for the last 5 years). Or maybe some type of bond/financial investment(?).
Does anybody know what kind of return one could expect in any cretin investment?
Im open to any excellent business ideas that require cash to get it off the ground.
Im assuming I will have access to harder to "get into" investments given the amount I have on hand.
Something that's pretty safe and generates a monthly income.
...So the big question here is what do you think I should do?
Thank You in advance for your input!
I'm not that heavily in to investment but found myself in the same situation 2 years back. After all the investment stuff going wrong lately I am now even more sure about this: only invest in stuff you know!
If you want to get to know stuff, only play with a little bit of your money, never more than you can afford to lose.
So I bought a bargain boat that needed a big problem fixed.
05-02-2008, 07:41 AM
Welcome to the board. I am not sure how to take your post. If you had been in the real estate business for five years, you would know that $300,000 will not buy you any decent apartment.
That aside, property is cheap as hell now, and will only get cheaper for the next 2-4 years, depending on how quickly banks write off bad mortgage loans. Done right, you can get some great properties for pennies. Done wrong, you can get some externally beautiful homes that need new wiring, beams, studs, roof, water pipes, water heater, boiler, gutters, kitchen, bathroom, toilet,......
Don't jump into anything. $300,000 is not a lot of cash in the long run. The flip side is analysis paralysis, which is just as bad. The real question is how old are you? In your 20s you can afford to bet on some pretty risky investments that offer zero to 20% return, but if you are 55, then you want to buy $250k worth of Northern States Power Company stock, a $20k vacation, and a new car.
05-02-2008, 10:00 AM
Go see a CFP (Certified Financial Planner) and pay him a couple hundred bucks for a solid strategy.
05-02-2008, 01:52 PM
Donate it to the blind; I'm right here so its easy for you. ;)
I would put it into a 6 month CD at the best interest rate you can find with your current, main bank. This will lock it away from you so you cant spend it rashly, and give you time to plan things out so it does not all go on things you don't really want and don't need anyway. Once you have afew months of "I could buy this but I wont" things get easier to not buy in general.
Plus your bank will treat you like a king while they use that money for the 6 months to make millions.. but thats a different thread. The important thing right now is to make sure you have time to plan, and locking it away in a fixed incoem investment will do that and allow you to make money.
And talk to a stock adviser about NYSE:O, inside a roth.
Stake me in a World Series of Poker event. We'll split the winnings, 50/50. :)
I had something similar to me happen when my father and grandparents died. I used part of it as a 20% down pmt on our home, paid off some bills, bought some useless stuff. The remainder is in a Roth IRA.
05-02-2008, 11:15 PM
Donate it to the blind; I'm right here so its easy for you. ;)
I tell you what. You invest in what I'm doing. <grin again>
Now is the time to invest. It's all cheap. That's what my investment friends tell me. Buy property NOW. If you can hold onto it, it will go up.
05-02-2008, 11:26 PM
I agree that investing in property right now is a bargain...IF you know what you are doing. If you don't know what you are doing, you could lose regardless of the deal. Just like anything, study your butt off before you invest regardless of the investment.
Personally, I recommend a mix of mutual funds, index funds, bonds, and assets such as properties and/or businesses (such as storage units or car washes). I really like the idea of putting it ALL in a 6 month CD to get past the money burning a hole in your pocket bug.
05-03-2008, 04:20 PM
Putting it into a CD at this stage of the economic cycle is a bad idea. Rates are low because they want you doing other things with your money.
A High interest savings account will probably get you a better rate. However, none of them will keep up with inflation. You'd be much better off in managed mutual funds.
05-03-2008, 10:05 PM
Re-read that post jetpack. That advice was right on. Getting that money out of your hands for 6 months is probably one of the best things you could do.
05-03-2008, 10:34 PM
Thank you all for your input!!!
I have been in the real estate biz for a while (foreclosure acquisition). I think I will use the $$$ to finance a couple of apartment complexes (100k down ea.) that are in foreclosure (buy them at a really good value). Then have an onsite property manager to take care of the daily drama.
I know real estate really well so I think thats what Im going to stick with. And with the foreclosure market, rents and low vacancy will only increase.
Thanks again every one!!! Keep the ideas coming.
I just see bargain apartment complexes a pretty safe bet (thorough inspection of course).
05-04-2008, 12:34 AM
Honestly, I think you would be crazy to not diversify (i.e. put 200k down on some apartment buildings)...spend the few hundred bucks to talk to a professional.
05-17-2008, 10:43 PM
I'm an active options and forex trader and worked for10+ years in the mortgage industry.
I'm writing from Buenos Aires while I'm on vacation. I make my living from investments (meaning I do not have a job). I've made and lost money twice (meaning lost it all) and I will never ever go broke again.
First pay off any credit card debt or car loan if less than $50k. If you have higher debt, call a CFP right now. Split the money between 3 banks in high interest or money market accounts (the rates aren't very high at the moment).Please take into account deposit insurance maximums in your country. Link the accounts to your checking accounts so that you can use the interest. If you don't need the money, let the interest accrue. Don't buy anything, or invest in anything for 6 months. You can do what you want with the interest. If you want to try investing for a living, start small and work your way to larger positions.
As previously posted, hire a CFP for a financial plan. They will ask you all types of questions about risk tolerance as well as look for any problems you may have.
Then look to have a portfolio built, also known as asset allocation. I hope this helps you.
05-18-2008, 01:30 AM
I think a financial adviser is a good idea.
05-18-2008, 03:39 AM
Go to vegas! you can turn that 300k into 300 mil!
05-18-2008, 08:30 PM
YES I will see a CFP.
YES I will not invest for at least 6month (or blow a chunk of it on a bunch of crap)
NO Im not going to Vegas (Im not a gambler nor do I want to stack anybody on a poker game)
NO Im not going to donate to the blind, sorry but no.
AND you would have to have a very kick ass muse for me to pony up:)
Have any idea what type of interest I could expect? Oh and its not 300k its 500k (pleasant surprise).
Im trying to figure out a way to live good and travel off the interest. I've traded in the stock/option market in the 90's and worked for Stock Market Institute of Learning (Wade Cook). Im very good at technical analysis. I was thinking of writing covered calls but not sure if the premiums would be worth it on stocks that are pretty solid.
Then I say to myself, Dude, you dont want to invest in the stock market when your a bear on it and a bear on the US dollar and on the economy for that matter.
Perhaps a real estate fund? Where its backed by real estate.
I am a very experienced residential real estate bird-dog (I "bird dog" deals for investors and put it together).
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