I have inherited around 8,500 in cash which will be coming through shortly (probably this week) also a house but there is a charge on the house for a third share so i will be left with around 50k so about 55k once i have had a couple of treats. I have 10k debt so need to pay that off. My dad owns a few houses ad has some with mortgages of around 50k so he has offered to sell me one but hime keep an interest in the property e.g if i buy one for 50k but its worth 100k we would own the house 50-50, good idea but I'm not really very settled at the moment and am thinking about a career change because i'm a receptionist on£6.25 an hour and bored out of my mind. please help.
Thanks in advance
xxx
2006-09-24 08:46:01 · 21 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
forgot to mention that my Dad wouldn't want anything to do with the property when it was mine and also that i had an idea to rent it out for a year whilst i decide what i want to do for a job (might nanny in london or somewhere for this time)
2006-09-24 09:18:41 · update #1
Put your money in a CD and let it build for 5 years. If you live in the same town that your Nan's house is, and you don't own your own home, I say move into it. Or, if your dad wants to buy it from you, you could do that too, or rent it out. The extra income could be nice enough for you to help get you on your feet, go to school or create a new career to help you. But, don't spend it! Make it grow, it seems like a lot of money I know, but it can be bigger in a few years time!
Good luck Hon!
2006-09-24 08:56:23 · answer #1 · answered by Gothic Martha™ 6 · 1⤊ 0⤋
Put some of your money in bonds or something else that is interest bearing and won't lose value. If you withdraw some money, is there any way to avoid paying a big chunk in taxes? If you don't know, ask a tax professional. Depending on where you live, I would highly recommend you invest in some real estate- it is the best way to grow wealth. Prices have dropped dramatically and now is a good time to buy- once again, depending upon where you live. For example, I bought a house 10 years ago for $92,500 (I live in SoCal). It is worth over $250,000 now and at the height of the real estate market in 2005 was probably worth around $600,000. Now is the time to get into real estate. Just find someone you trust who can help you find a good investment property. Be careful who you trust to give you advice. It is sad what people will do to get money from someone. Good luck and God bless you.
2016-03-27 07:26:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Don't sink it into a debt your dad wants out of. Business deals with family are ALWAYS a bad idea. I suggest putting your money in a high yield CD or money market account. I personally recommend opening the Internet Only Money Market with Zions Bank in Utah. They're currently offering 5% interest with a minimum deposit of $1,000. If you get their free checking at the same time, you'll have easy access to the money.
You could also set aside half and use the other half for a vocational school to learn something more marketable in a field you're interest in. But please don't blow it on a car or other expensive things you don't need. Getting a windfall like that is a great opportunity. If you save it for a while and let it grow, in a few years you can buy the home of your own choosing.
2006-09-24 09:47:50 · answer #3 · answered by misslabeled 7 · 0⤊ 0⤋
Congrats on planning for your inheritance instead of just spending it with out a plan.
You are right to pay off your debt first.
As far as investing in real estate with your father, be sure to have a written contract and treat it just like you would a business with a stranger. Think about the deal he is offering you. If a total stranger offered you the same deal would you be interested?
If the answer is no, I would recommend that you avoid this venture.
If you are interested in going back to school to learn a new trade or profession, that would be an excellent investment of your money. You have to work your whole life, and this inheritance gives you an opportunity to improve yourself and seek a better job.
Good luck.
2006-09-24 08:53:56 · answer #4 · answered by bookbyte 3 · 0⤊ 0⤋
Well, don't be tempted to go on a spending spree. I like your dad's suggestion because it gives you an equity investment in real property, which is one of the safest investments around. I think you should look upon this money as your nest egg for the future, be it buying a house of your own when you marry or retiring comfortably. I would strongly resist the urge to spend some of the money on treats over time. Your focus should be on building your equity and net worth.
2006-09-24 08:51:12 · answer #5 · answered by Perplexed Music Lover 5 · 0⤊ 0⤋
Ignore all the people that say put it into an account. The problem you have is that inflation is at 2%, bearing in mind that the best savings rates are approx 4.7 % (most rates over this have got conditions attached - max you can save etc..) then you get 2.7% minus 20% for the tax man. This means that you get 2.16% NET, which I'm sure you'll agree is poor!!!
IF you want your money to work for you....invest in in a Maxi ISA. There is an element of risk involved, however the returns are far greater....on average 15%!!!
Savings accounts are for people who want their money to stagnate!!
2006-09-25 00:21:59 · answer #6 · answered by matt g 2 · 0⤊ 0⤋
A & L currently offer a savings account with 12% interest on for the first year, that means in 12 months with 50k in that account you would earn around £6,500 in interest. That may well be worth looking into, a £100,000 house won't earn you that in 12 months even with full tenancy.
2006-09-24 13:16:11 · answer #7 · answered by Bealzebub 4 · 0⤊ 0⤋
Well done for stopping to think about how you proceed. You're clearly aware of how important it is to look after the money.
As your situation is quite complex, it might be good to talk to an Independent Financial Advisor, they are unbiased and will be able to offer you a number of options and help you work out exactly what you want to do. (See 1st link below).
If you just want more information on the different types of products, investments and other savings options, the BBC has an excellent section for general advice on money. It's where I go for financial advice most often!
Good luck!
2006-09-24 09:00:24 · answer #8 · answered by scottish_stuart 3 · 0⤊ 0⤋
High interest rate in a building society, have the profits transferred to a current account, should pay for a holiday each year, and it does not touch the invested money.
2006-09-24 08:49:31 · answer #9 · answered by Anonymous · 0⤊ 0⤋
1. Pay off all debt, or if it exceeds the inheritance, as much as you can.
2. Invest the money wisely - foreign stock, domestic stocks, and at least a money market account (something that is a little more liquid than stocks).
3. Buy yourself something you've been wanting but can now afford. That's why she left you the money. Good luck.
2006-09-24 08:54:51 · answer #10 · answered by Anonymous · 0⤊ 1⤋