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re: Received an inheritance now how to plan for future retirement?
Posted on 2/13/15 at 9:27 am to Chris Farley
Posted on 2/13/15 at 9:27 am to Chris Farley
quote:
Quit peddling the Dave Ramsey BS.
...lol .... My parents were poor, but I paid my debt and house off at thirty. 15 years later I have two condos on the beach, a farm, a small shopping mall and several commercial rentals ....all paid for. Not rich but for someone that has earned every dime of his own money, I can tell you Ramsey's program works...I can only speculate that you are a broker or investment adviser.
This post was edited on 2/13/15 at 9:55 am
1
Posted on 2/13/15 at 9:30 am to Chris Farley
quote:
He'd be crippling his retirement income if he used all the cash to off his house.
Just to clarify it would take approx $178k to be debt free.
Posted on 2/13/15 at 9:38 am to bayoudude
Ok and is that a small or significant portion of what you received?
I wouldn't pay off the low interest stuff. When I was in a similar situation I splurged and bought a new vehicle. I did a sizable down payment and financed rest.
Fwiw the funds I invested are now doubled in the last 4-5 years. That return is much greater than the 3% interest I would have saved on the vehicle by paying cash.
Also go talk to a financial advisor, get a flat fee one that you will pay him for his time. And interview/meet with 2 or 3. So what if it costs you $200-300 each meeting, if it's a size able amount of $ you will be thankful for the small up front investment in the future.
You should also be reading as much as possible, because your due diligence is always worth if.
I wouldn't pay off the low interest stuff. When I was in a similar situation I splurged and bought a new vehicle. I did a sizable down payment and financed rest.
Fwiw the funds I invested are now doubled in the last 4-5 years. That return is much greater than the 3% interest I would have saved on the vehicle by paying cash.
Also go talk to a financial advisor, get a flat fee one that you will pay him for his time. And interview/meet with 2 or 3. So what if it costs you $200-300 each meeting, if it's a size able amount of $ you will be thankful for the small up front investment in the future.
You should also be reading as much as possible, because your due diligence is always worth if.
Posted on 2/13/15 at 9:45 am to eng08
Fairly small portion portion of the total and I have no intentions of making any purchases out of the normal that would require dipping into the funds. I already have boat, rv etc and the house is one that i plan on staying in for a long time. Only reason to move would be 20 or so years down the road in order to retire in a newer home.
Posted on 2/13/15 at 9:52 am to bayoudude
Yeah, it sounds like your situation is quite nice.
I wouldn't sweat it and just wait to do anything if you don't feel ready.
I wouldn't sweat it and just wait to do anything if you don't feel ready.
Posted on 2/13/15 at 10:06 am to bayoudude
Beware the concerned investment adviser....I have found that most of those I dealt with were really only concerned about how much they would earn from my investment.
The stock market is at an all time high.... it will go down significantly at some point. Get in at that time
The stock market is at an all time high.... it will go down significantly at some point. Get in at that time
Posted on 2/13/15 at 10:26 am to mattloc
I'm licensed but dont, nor ever have ever practiced as a broker or advisor.
Just because you own all of these things debt free doesn't mean you made the right choice. The "all debt is bad" theory makes no sense for someone that is trying to save for retirement, and puts you way behind the 8 ball when you blindly focus on low-interest debt as opposed investing.
We've beaten this horse dead on the board more than any other subject, so I'm not going to bother further arguing with you. If you rather pay debt off than save for retirement, that's your choice but it is shite advice for the average human who has any self control or ability to make logical decisions.
Just because you own all of these things debt free doesn't mean you made the right choice. The "all debt is bad" theory makes no sense for someone that is trying to save for retirement, and puts you way behind the 8 ball when you blindly focus on low-interest debt as opposed investing.
We've beaten this horse dead on the board more than any other subject, so I'm not going to bother further arguing with you. If you rather pay debt off than save for retirement, that's your choice but it is shite advice for the average human who has any self control or ability to make logical decisions.
Posted on 2/13/15 at 10:29 am to Chris Farley
quote:
I'm licensed but dont, nor ever have ever practiced as a broker or advisor.
I'm licensed and I do. He needs a good trusted financial advisor. We are in for some rough weather in the markets and he's averse to risk. You need to let this be widely known when you have a meeting with an advisor.
Posted on 2/13/15 at 10:46 am to Chris Farley
quote:
Just because you own all of these things debt free doesn't mean you made the right choice.
I actually agree with this statement ...I am very debt adverse, I think it has somewhat impeded growth of my assets. I think it is the right choice for me personally, because I sleep better at night knowing my family wont have to deal with my debt at my death.
quote:
The "all debt is bad" theory makes no sense for someone that is trying to save for retirement, and puts you way behind the 8 ball when you blindly focus on low-interest debt as opposed investing.
This is more problematic. For me being debt free gave me enough cash flow to make investments in what was at the time, a depressed market. But I certainly see your point that I could have made more lucrative investment by leveraging assets. It was just not a risk I was willing to take at the time.
quote:
it is shite advice for the average human who has any self control or ability to make logical decisions.
This is just dead wrong
This post was edited on 2/13/15 at 11:16 am
Posted on 2/13/15 at 10:26 pm to mattloc
Well, I didn't say buy stocks, did I ?
But to answer your question, if I had a damn good job, like he does and had a years emergency fund already saved. Then I received a nice inheritance, I ABSOLUTELY would invest it I to some sort if retirement plan since he has NONE set up yet.
Yes, I would rather set up my retirement and get the compounding interest started while paying the house off slower because on the Kong run, the retirement with compounding funding will FAR FAR FAR be worth more run if I bury it in a house.
I don't see where you see this guy is taking equity from his home or borrowing against it to invest.
By your theory, NO one who hasn't paid off their home should invest in their retirement! That's about as dumb as you can get
But to answer your question, if I had a damn good job, like he does and had a years emergency fund already saved. Then I received a nice inheritance, I ABSOLUTELY would invest it I to some sort if retirement plan since he has NONE set up yet.
Yes, I would rather set up my retirement and get the compounding interest started while paying the house off slower because on the Kong run, the retirement with compounding funding will FAR FAR FAR be worth more run if I bury it in a house.
I don't see where you see this guy is taking equity from his home or borrowing against it to invest.
By your theory, NO one who hasn't paid off their home should invest in their retirement! That's about as dumb as you can get
Posted on 2/14/15 at 6:25 am to GeeOH
If $178k is only a small portion of the total, then pay off the house n car....but please please go find a fee based investment advisor. And start thinking about your goals: when you want to retire, if you want to assist family w college tuition, etc. an advisor can help you figure out how to get there, but you have to decide where/how you want to go.
Posted on 2/14/15 at 8:58 am to GeeOH
quote:
By your theory, NO one who hasn't paid off their home should invest in their retirement! That's about as dumb as you can get
that's not what I said .....by all means invest in retirement accounts up to the full match percentage permitted by your employer, to receive the tax benefit. However, this money should not be taxable to him, as it is inherited. If you can, you should pay off all debt...and then fully fund your retirement and consider real estate for diversification
I practice Law... I have seen a lot of people lose their homes over the last few years.Perhaps that has skewed my perspective on this subject.
eta....I am no investment advisor... I'm just telling him what worked for me
This post was edited on 2/14/15 at 9:21 am
Posted on 2/14/15 at 9:45 am to mattloc
I have no idea why you said what you did. Guy is well set up and has everything under control except for his retirement. He has come into money and needs retirement set up.....
Then you come out of nowhere asking if I would borrow against my home equity to invest and other hypothetical home situations that were not discussed.
In his situation, there's no need to pay off home, it's at low 4s%. The retirement he sets up should easily return over 4% and COMPOUND which makes it a much better place for unexpected money, IMO
Regardless, he's in a great situation. Just needs sound advice from 3 or 4 pros and make a move from there
Then you come out of nowhere asking if I would borrow against my home equity to invest and other hypothetical home situations that were not discussed.
In his situation, there's no need to pay off home, it's at low 4s%. The retirement he sets up should easily return over 4% and COMPOUND which makes it a much better place for unexpected money, IMO
Regardless, he's in a great situation. Just needs sound advice from 3 or 4 pros and make a move from there
Posted on 2/14/15 at 2:08 pm to GeeOH
maybe you have reading comprehension problems.... in any event... I'm glad I didn't take your advice 15 years ago
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