My daughter inherited a large sum of money. Whats the best way to handle this? She is very good with money.?

Question

My daughter is 20 years old and is better handling her finances than most people I know. She has no idea what to do with this money because she does not want to spend it , nor does she want to tie it up until she is ready to retire. She wants to be able to have access to it should she need it for something important.

Answer 1

Education is a good idea BUT in case that is already taken care of:

It depends on her penchant for risk - at her age she is supposed to be willing to take on more risk than the avg. investor. If she wants to not tie up the money then a short-term CD at a bank will offer a decent guaranteed return AND it is insured, check online for competitive rates.

The best way to secure your financial future is to invest your money in some way, either starting your own business, buying part of businesses (stocks, etc.) or getting into real estate - but all require some education to make good decisions and not waste the money, it all depends on what she is willing to do.

I personally totally agree with the real estate suggestion because I have done that myself and reaped great rewards, especially on land rather than houses, the only issue is that land doesn't generate ongoing revenue, you count on the appreciated value when you sell it and of course it takes research.

Best of luck

Answer 2

Some of that money could be invested in a good education and if there is any left it could be used to purchase real estate. property value is going up every day.