He died when i whas 2 years old. I want this money to grow grow grow whats the best place for it? im thinking of a CD? or mabey buy a house i guess and pay cash for it, then rent it out and have a monthly positive cash flow?
2006-09-13 18:49:46 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Well it breaks down like this every birthday i have i get a anuity payment in the amount of 35k 1 year and the the next year 40k and so on and when im 30 i get 1 last payment of 350k dollars as my last payment.
So when im 30 the annuity payments will have been completed. Right now im in school and stuff and im using some of the money for school.
2006-09-13 18:58:30 · update #1
It may be wise to see a professional money manager. A ''Certified Financial Planner" would be a good bet. Find someone that charges a 'flat fee' and not 'commissions' for their work.
Best wishes and good luck.
2006-09-13 18:53:12 · answer #1 · answered by Doctor J 7 · 0⤊ 0⤋
It sounds like you are getting exactly what your father wanted to give you.
He had to set this up in his will and he determined that he wanted you to give X amount per year with the last payment at $350,000 at age 30. This is your share of his Estate paid to you exactly how he wanted you to get it.
The best thing you could do is get Educated and get straight A's. That will be the base of your future success.
You should divide your current savings into two parts.
Part 1 for the next several years.
Part 2 for retirement.
With part 1 you should buy your home. Buy it 50% cash & 50% mortgage. This of course is when school is over and you are working. Buy your car with cash. Save one or two years of income in reserve. Reserve money to start a business, if you have ambitions to do this at some point. If not don't or maybe you want to manage a vacation/investment home. If you do save a reserve for this.
That is all you will need for part 1. Your employment income will fund everything else you will need for this part of your life.
Everything else should go into part 2 including the $350,000 Lump-sum when you get it.
20% should go into ETF's through Ameritrade.
10% should pre-fund your life insurance program for your lifetime in Equity Index Life. http://www.joesalvemini.com/life_insurance_quote Also buy disability insurance and at age 45 buy Long-term care insurance for you and your spouse.
70% should go into SAFE MONEY products and they are the following:
1. Fixed Index Annuities ------Where your account value does NOT Decline in Value. -----Where the Credited Interest to your account does NOT Decline in Value. -------Where the interest you earn each year is based ONLY on the Upside of a Stock Index (You would accept a Cap on the Upside of say 8% in exchange for not having your account decline in value, wouldn't you???? I know I would!!!!) The Cap varies by company & annuity and is usually guaranteed for 1 year. Other crediting methods are also available. To Learn more Visit: http://www.jdsannuities.com/index_annuities
By the way, the way the insurance company is able to vary the interest you earn which is based on a stock index is by the use of a derivative for the interest part only.
2. Fixed Deferred Annuities - Where you have a wide selections of multi-year guaranteed rates or for 1 year, 3 years or 5 years. most are 5 to 10 year products. To Learn more and see most of the rates for yourself visit: http://www.jdsannuities.com/annuity_rates
To view the overall website for Annuities visit: http://www.jdsannuities.com
Remember, you father set you up for life. Take advantage of it and don't lose any of it!
By following the above formula you will enjoy your lifetime and be wealthy in an early retirement. Most importantly you will not blow yourself up financially like many others have in the past. Also, make sure you get an air tight prenuptial agreement before you get married.
Learn, Live, Work and have fun with you life. You are very fortunate.
Good Luck!
2006-09-14 02:44:16 · answer #2 · answered by Joe the Expert 2 · 1⤊ 0⤋
I am assuming that your total annuity has a value of 350K.
Get with a qualified financial planner who can help with your investments. Remember that there are always risks when investing in the stock market, trust funds, etc.
Also remember that you want to diversify your portfolio.
Good luck.
2006-09-13 19:06:16 · answer #3 · answered by no nickname 6 · 0⤊ 0⤋
get with a good stock broker. Cd's are good but they are low yielding. Real estate is always good but being a landlord is expensive and it sucks!
2006-09-13 18:52:37 · answer #4 · answered by fdmedic84 2 · 0⤊ 0⤋
Get free rates
2015-02-08 21:47:18 · answer #5 · answered by Deane 1 · 0⤊ 0⤋
annuity? as in you get 350k each year, annually, or you mean inheritance as you get 350k once?
2006-09-13 18:54:04 · answer #6 · answered by Phat B 1 · 0⤊ 0⤋