My dad died and he left me with all this insurance money.?

Question

I dont even feel like i derserve it, i only got it from his demise at a stupid construction site a big freak accident.

I whas thinking of investing it in something mabey real estate i dont know but something that give me a nice return. Any one have any ideas. the money he left me behind is about 650k dollars thats alot of money for a 20 year old if you aske me. i really need guidance someone help.

Answer 1

The one thing you absolutely must avoid .. the dumbest thing you could do ... is go on the internet and tell everyone about it. Some freak will track you down and take the cash.

Oooops, too late ...

Answer 2

I am sorry for the loss of your father .... This must be very hard for you..... I am sure he is somewhere up there looking upon you and helping you to make the right decision..... Dont feel like you are not deserving of the money, because I know your dad would want you to have a stable secure future and the money is for that.... He wants you to be happy , trust me, somewhere up there in heaven or whatever you might call it, there is a man watching his son.....

As for right now, dont even worry about the money... put it safely in a high interest savings account and deal with more important things, like your own feelings, your family and such things .... the money isnt going anywhere.....

Whenever you feel ready , consider all the options mentioned above, but use what you need now for school and basically put the rest away to earn interest(bonds savings etc ) .... you could also do a combination and invest some money in Real estate , like a condo or something like that..... whatever you do , dont tell anyone about the money you have inherited , and dont let people take advantage of you, make sure you always do enuff of your OWN research on the internet books etc....

Again, I am sorry about what happened, 20 years is very young to loose a father, remember the good memories and times you had with him and know in your heart that no matter what , your Dad loved you very very very much !!!

Time heals all wounds .....

Answer 3

My grandfather died and left me quite a bit of money while I was still in college so, for whatever its worth, with 20/20 hindsight, this is what I *should* have done and would advise you to do....

Park it someplace really safe, as in a Certificate of Deposit or Treasury Bond type safe, where you can't easily get to AT LEAST 95% of it, for about 18 months. You won't be maximizing your investment but hey, its a temporary state while you adjust to and learn to accommodate the change.

So, now that the money is safely locked away for a period, do as much research on your own as possible on investing it, and use what you learn and any recommendations from relatives to help pick out a knowledgable and trustworthy advisor. Use BOTH your head and your relatives' experience - don't rely on one or the other exclusively.

Decide, with your advisor, how you're going to manage the money for the long-term. Resolve to live your life as though you hadn't gotten the inheritance....don't buy a new car just because you can; don't buy a house when everybody else your age is renting and you're not even sure you want to stay here; don't live off your money. Pick an age, sometime AFTER 30, and resolve not to touch the money (except in an emergency) until then.

Continue to learn more about investing....use your advisor to learn but also find a mentor to help you learn more on your own. Between the two and with your own efforts, you should become more and more qualified to direct things competently.

Don't get me wrong, you shouldn't let the money become too important - its simply a means to an end - but it will be vastly more useful to you after the age of 30 than before, especially if you start out your adult life learning how to cope without dipping into it all the time and how to manage what you've got. It's liable to make you a real asshole and consequently life will be much harder for you as you get older if you start immediately making use of what you've inherited (as though it were something you'd earned, rather than handed to you).

Answer 4

You do have a lot of money.....my suggestion is take a large portion and put it in an online savings account that pays like 5% interest. You can get one from HSBC at hsbcusa.com. That's guaranteed payment that you don't have to worry about whether or not you're making money or losing it. The rest you can invest a little more aggressively.....don't take risks you don't understand....don't buy stocks on the stock market without doing at LEAST 10 hours of research on the company. Use finance.yahoo.com, it's your best friend. You might want to also consider CDs, which are guaranteed payments. You're so young, you can afford to have lower interest rates and still have enough to retire when you're older. The important thing is to put the money away and FORGET THAT YOU HAVE IT. Pretend you're broke no matter what the situation, but don't spend your savings.

I am sorry for the loss of your dad. You deserve the money because he's not there for you, and he would want you to use it to become a successful person. I know you'll make him proud!

Answer 5

First let me say, my condolences for your father....

I do not recommend investing in real estate for someone with out experience because it is not a very liquidable investment... and it cost a fortune in fees and stuff... Plus the housing bubble...

Second... Please please please dont do any of those stupid real estate get rich quick things...

I advise not telling ANYONE how much money you have.

Temporarely buy some CDs at your bank so you can earn interest on the money...

Also look for a professional financial advisor... but be careful because many are just salesman that will try to tell you junk stocks.... I suggest watching the movie "boiler room" so you can see what i mean.

I say use the money to go to school... get an education... most valuable asset you can have... Now that you know you can afford it.

Just becaause you dont feel like you deserve it doesnt mean that you shouldnt take care of it, grow it and do something nice with it...

Just becareful... the one thing i learned... the more people that know you have money the more people will try to take it.

Dont tell anyone... the people that you told already.. be weary of

unfortunately money makes people do things they wouldnt normally do.

good luck and take care

Answer 6

I'm sorry to hear about your father. I hope you're doing okay.

I just read in BusinessWeek magazine (August 21/28 Issue) an article about some very good investments firms.

1) Renaissance Technologies Corp. - 35% average return after fees since 1989.

2) D.E. Shaw & Corp. - 21% average return per year for the past 17 years without a single losing 12 month stretch.

I hope that helps! Take care and best of luck.

Answer 7

First of all, don't hire ANYONE who responds to you on this site. I would recommend that you pick 3 financial planners, someone like Fidelity, TIAA-CREF, and PWC. Ask all 3 to come up with their recommendations on what they would do with that investment. At your age, a nice combination of some annuities (which are fee free at fidelity), some stocks and bonds which will be managed by someone (either for a flat fee, or a % of value - I recommend a flat fee), will do you best.

DO NOT let yourself get suckered into all of the people who are hurting and need help. Get your financial house in order, and then, when you're a few years older and understand more how the money works, you can pick and choose charities. Remember, Bill Gates didn't start his philanthropy until he was a multi-billionaire.

$650k may seem like alot of money, but you could burn through it very quickly - don't start buying cars and stuff, their value goes down.

It sounds like you're angry at the money - and I'm sorry you lost your dad, I lost mine last year, but it was after years of pain and suffering. Use this last gift of his wisely and in his name - think of it as his guardian angel to you, to help you in college or in life. Good luck.

Answer 8

If I were you I would lock it up in the bank in some kind of guaranteed investment. A bond, or GIC, or something like that. Go to your own bank. I'd lock it up for a minimum of 5 years. You are too young to know what you want. This way you ll get interest but no be tempted to touch it.
If you wait until your 30, you'll be a very wealthy young man. Remember if you do ever marry.....never put the money in both your names. Inheritance does not have to be shared but once you use to buy a family home or put in both names....shes entitled to half.
Be careful! Sorry about your DAd!
Good luck

Answer 9

Immediately seek out a fiancial advisor with a minimum of 10 years of experience. Then set a side 3 different piles. 1st. Short term needs. 50-100k. 2nd. 5-10 years. 150-250k. then 3rd. the rest for long term...ie retirement. I would drop this one in a solid variable annuity for the tax deferred benefits. Never pay taxes on the dividends. Do not put it in a index annuity under any circumstance.

Also, if you are having problems with the money slipping through your fingers so to speak then go a speak to your financial advisor again. This is a tremendous burden for you and it can be heaven or hell. You need to control the money not the other way around.

Hope this helps and my prayers are with you and your family

Answer 10

I am so sorry for your loss. You do deserve it. It was not about the money to your dad. He loved you, and this is the legacy he wished to leave you. Honor him by being smart with it. Do not squander it, and plan safely and with education so that you too can leave his legacy to your children, his grandchildren when you have them. I have many clients that have dealt with this same problem. Do not put all your eggs in one basket. Real Estate may be a little overwhelming right now. I can help you with some sound advice and never charge you a dime. Let me know if I can help.