I just Inherited 2.7 million dollars?

Question

hi, I just Inherited 2.7 million dollars....i can't believe it...I have been poor for years and now I am wealthy....any ideas on what to spend it on?

Answer 1

I would invest it into mutual funds. I don't know your age, but the younger you are, the more aggressive investor you should be, meaning you invest only in equity mutual funds. The older you are, the more conservative you should be, meaning you invest in a mixture of mutual funds and bonds.

Lets say you are young in your 20-30s and you invest in a large growth fund or an aggressive growth fund. Let's say this fund had an average rate of return of 14% in the past 25 years. I don't know how it will do in the next 25 years, but lets say it does 12%. If you invest 2.7 million into this mutual fund, in 25 years you will have $450.719 million!

Or you invest 1.7 million and put the rest into a high-yield savings account or a money market account. If you invest $1.7 million at a 12% rate of return, in 25 years you will have $283.786 million! That's a pretty good lump sum for retirement.

If you put a million into one of the online savings banks such as HSBC or EmigrantDirect, they get about 5.05% interest on it. Though you need a checking account at your local bank to link up to your online savings. You can spend $4200 every month without affecting the million dollar balance!

That's what I would do anyway. You can adjust the amount of how much you want to save for retirement and how much you want to put into a savings account.

If you want to take on a bold adventure of starting your own business like owning your own restaurant, I would start something small and see how it goes. Though, you might want to read some books that talks about success and having focus on your goals and setting your priorities.

Answer 2

At least your question tells us why you've been poor for years. Anyone whose first thought after inheriting $2.7 million is "what to spend it on" will be poor again in no time. By the way, this is assuming you actually did inherit anything, which I highly doubt.

Answer 3

If you are serious, first of all congrats. Lucky you. The main thing people would do is to set themselves up financially for life. Do your investment research before you physically receive the money and look into the tax implications with your accountant. I would invest heavily in real estate in all the continents and in businesses which you would know have a big return. With travel, go and visit the places you've always wanted but don't fritter it all on needless spending, it's a mistake people make when they come into lots of money. Don't forget your family and friends if you want to keep them and be careful of dodgy people hearing about how much money you're coming into. If you haven't thought of how to spend it, they will do the calculations for you. Find a way to enjoy your money and let it work for you. Don't forget to help people less fortunate than yourself, there are many good causes that will give you satisfaction in knowing you've done something worthwhile. Many people can benefit from your donations. Good luck in your life.

Answer 4

Don't spend it.

I know someone who inherited $2m around the time he was 18. Wasted it all. He's broke and an alcoholic now, and he's not even 35.

Invest it, and live off the earnings. You could easily have a yearly income of $150,000 off of that. For a percent, I'd be happy to help you invest it. ;-)

Answer 5

I truly hope when you said "Any ideas on what to spend it on?" that you werent referring to going on a shopping spree. Now adays 2.7 or being a millionaire doesnt mean your life is carefree now, just as easy you got it, you can easily lose it. You need to change your perception and attitude towards money otherwise you will get in trouble. I would look into getting a financial advisior if I was you.

Answer 6

If you liked being poor, just take all the advice you pick up off the net. A good attorney would be my first pitstop, then a Bank and Trust. It's your money, only deal with established officials that you feel a good relationship is in the offing.

Answer 7

You can start by sending some my way! ; )

Having a home of your own (if you don't already) is the best way to start. From there, I'd definitely get some stock in Delta Airlines. Bonds, cds, stock, mutual funds, etc. Then maybe a nice car...nothing too fancy, but something that is good quality and will make you feel special. Charity is a good way to spend your money, also.

Answer 8

Bradszky,
I seriously doubt that anyone who came into that kind of money would take time out, log onto yahoo answers for advice.
IF it is true u haev this money,(yeah right) then i first recommend you go get phsychitriac counseling, because if you think annoynmous people on yahoo answers could properly advise you on your new found wealth, then you are at the very least delusional.
Good riddance.

Answer 9

Hi, I am in need of money. Lend me $120,000 for 6 years and I pay you monthly with interest. I can also be your personal advisor as I am both an Accountant and a free-lance fortune teller. It is my fate that I got into financial problem. Anyway you can ask me for any free advice thru email - [e-mail].

Answer 10

Invest in tax free municipal bonds and live off of 1/2 the gains so it will also grow.