I just inherited some money...?

Question

im in high school and they wanted me to use it for when i start a family after college, what should I do with it?

Answer 1

Truly think about your future. What do you think is best for you.
Definitely invest some of it and maybe give to your favorite charity or organizataion. Just spend it wisely.

Answer 2

Truly depends on how much it is.

While not optimal in a strictly financial sense, I would suggest not using it for college, but rather take student loans. Just don't take student loans and then blow all your inheretance money having fun in college. The reason is that it always a good idea to have some cash for things people won't lend money to you for, or for which the rates are very high. A downpayment on a house, a first car, unexpected medical expenses or a million other things are hard to finance, education is not.

Answer 3

You are in a great position and have a huge advantage. I hope you can keep it.

consider this:

If you are 18 today, go to college, get married, buy a house, have a family and survive a few of life's little catastrophes, and manage to build a $1 million portfolio by the time you retire at 67, that will safely generate $60K/year. But when you are 67, that 60K will only have the buying power of a little over $13K/year(like living on minimum wage). It gets worse though, because at 67, you will still probably have 30 more years to live and that 13K will shrink each year until it’s only worth $6-$7K/year at age 90.

more and more we are asking to take on the bulk of expenses for retirement and medical. So your generation is going to be stuck with all the costs and none of the benefits, and you need to be prepared and educated in investing far more then your parent were.

here's what you need to do and know

Step 1.
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank, with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me things that are better for them…. So I use http://www.scottrade.com because it’s cheap and easy with low frills. I like their streaming quotes and I do my own research and make my own investments. But any low cost internet brokerage service is fine.

Step 2. get a subscription to Barrons or Investors Business Daily… Do this for 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to understand the terms and things that investors are looking for and what they are afraid of

Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and second you have some homework in Step 4 to do before you do any investing.

Step 4. Go out to the internet and search on the following subjects. Become very familiar with the concepts.
Asset allocation
Long term investing
inflation
Roth ira vs ira
Large med small cap
Value vs growth
Indexed mutual funds
No load mutual funds
ETF
Sector funds
Bonds CD preferred stock
dividends
International funds
Market cycles
volatility
Fundamental analysis
Technical analysis
In most cases, I think it is wise to use indexed mutual funds and ETF to build the base of your portfolio.

Step 5 go to http://clearstation.etrade.com/ and sign up for a free account. Play around there by looking at graphs and fundamentals. If you click on the graph names, you will get clear information about what the graph is based on and how to interpret it. I think it’s also a good idea to pretend you have $10,000 and start buying and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money then real money….
WARNING: don’t rely on technical analysis alone. These graphs are good at telling you WHEN to buy and sell, but now WHAT to buy.

Step 6. It’s always a good Idea to see a CFP (certified financial planner). Their job is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits, insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types to keep away from.

Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.

Don’t get involved with futures, currency, options (unless you get stock options at work), commodities, annuities or other derivative type investments at this time.


Good Luck

Answer 4

Try contacting Primerica Financial Services. Their services are free and they will give you a complimentary Financial Needs Analysis. This will give you information that is specific to your situation in life and based on what you want to achieve (ie, debt-freedom, children's education, financial independence, etc). They are listed in the phone book and also have a website.

Answer 5

Put it in a savings account, and when you go to college, see what grants you are elligible for first. Then if you need money, take it out. Try very hard not to waste it.

Answer 6

A Certificate of Deposit (CD) is a deposit account that provides a fixed rate of return for a specific period of time. CDs offer you peace of mind and great earnings potential, without risking what you have worked hard to save. They are FDIC-insured, and your CD balances can help you qualify for Crown BankingSM, our premier checking account package, with no monthly service fee. We offer several CD options with a variety of benefits.

Answer 7

You should probably put it in an secure investment for college or whatever. At least until you are mature enough to find a practical reason to use it.

Answer 8

You should use it to pay for college, and of course after college, and you would be debt free when you get out of college.. Lucky you are !!

Answer 9

That sounds good to me. Use it for your college education, purchase a car, dorm room for college???

Answer 10

Put it in a CD