Just got $534k inheritance wut do misc?

[MacGoodyear]

Let's be honest here, you want to hear great way to make money off your money but in truth you want to blow it all off on hookers and fun nights out. People won't tell you the secret ways they make money because a lot of the time more people doing what they do is a disadvantage to them. With that said I would say for you to fill up your 401k then hold your money in Government bonds/ HI Savings accounts and speak to a financial Adviser( becarefule here alot are trashy) Good luck OP hope you figure it out.

[rpric]

Buy Crypto and HODL on a hardware wallet

[yochrisss]

pay off any debt
buy rental property
invest in crypto
mutual funds
spend 10k on yourself

[deadhead6391]

Put it all in cardano and be a billionaire. Its a crypto and theyre installing atms all over japan this upcoming quarter. The coin is about 60 cents per coin now and its projected to reach 10 a coin by the end of the year.

[sabresEH]

Take 34k and blow that money on women and *******.

Be smart with the other 500k. If done correctly this should be able to let you live a comfortable life.

[MichelleLnne]

If I ever got my hand on money like that, I would try to live my life the way it is, maybe use some of the money to improve my general quality of life, use it for vacations, and other more minor things. 500k is for sure a lot of money but once you have that kind of money- I think you realize it isn’t that much money.. and not enough to maintain a lavish life style. Investing is also a good idea, as long as you know what you’re doing.

Pretty sure I just put all that thought into a possible troll thread lol

[solidus2k3]

payoff high interest debt first

[wickedman]

Looks like you should have listened to the Crypto guys brah.

[DrWilliam]

Real estate investment

[shoelaces]

Buy a house.

[friesbruh]

> save 8-10k for emergency fund
> pay off all debt & save enough to finish college
> pay cash for home
> pay cash for car
> keep working and invest the rest OR use it to start a business
> if business, give yourself ONLY a certain amount to succeed with. some people fail at business b/c they have too much money, IE, they keep taking & taking until they are dead broke. set a limit.
> continuing on with business, test the market with whatever product or real estate it is, IE, selling small amounts of product OR seeing is small piece of real estate does well with flip, buy & resell, etc.)

[DrWilliam]

> save 8-10k for emergency fund
> pay off all debt & save enough to finish college
> pay cash for home
> pay cash for car
> keep working and invest the rest

I wouldn't pay cash for a home when I could leverage that cash and buy more houses.

Consider investing in the midwest where you can buy a house for 100k that rents out for 1000/month. You can put down payments on 20 houses and still have some left over. Assuming you can cash flow 300-400 per house that's 6-8k a month passive income coming in.

[friesbruh]

I wouldn't pay cash for a home when I could leverage that cash and buy more houses.

so he's supposed to take that 100k he was gonna use to buy a home, use it to buy another home to rent out for, what, $400/mo profit? great idea bro. meanwhile OP is still renting & throwing money down the toilet because he hasn't bought a home yet.

[wincel]

invest it in a franchise

[KRANE]

Congratulation. You're now well on your way to an early retirement. Max out as much as possible to that tax free protection and long-term invest anything that's left.

Allow yourself a single (reasonable) creature comfort. Other than that, you shouldn't be spending any of that money.

payoff high interest debt first

Why? Refinance and and get lower rate. There's no rush to pay off anything. Instead, use the money to make more money.

[meenman83]

invest it in a franchise

Hooters would be a goldmine in ND with all the oilboyos up there starved for poocy

[fressssh]

OP FOR THE LOVE OF GOD DON'T **** THIS UP

Check out this thread on reddit

https://www.reddit.com/r/personalfinance/wiki/windfall

Seriously. The personal finance subreddit is solid. Don't fall for the "oh reddit is all cuck soy boy" bs. I also had a windfall and reddit was very valuable in learning how to not **** it up. Good luck, boyo

[friesbruh]

re-entering OP

I only have two words to say

Dave. Ramsey.

look it up.

[DrWilliam]

so he's supposed to take that 100k he was gonna use to buy a home, use it to buy another home to rent out for, what, $400/mo profit? great idea bro. meanwhile OP is still renting & throwing money down the toilet because he hasn't bought a home yet.

Did you even read what I wrote? He could take 400k of that money and invest that into as many as 20 rental houses.

You can buy rentals in midwest towns for 100k that rent out for 1000/month. You'd need 20% down, so 20k per house, 400k / 20k per house = 20 houses

For each house you are putting 20k down and getting an 80k conventional loan at probably 5% interest since it's an investment property. That means your PITI (Principle Interest Taxes Insurance) would be roughly 600 bucks, and you pay a property manager 50 bucks a door, and 50 bucks a month for maintenance, that's $300 cash flow per house.

$300 x 20 houses = $6,000 per month passive income

Now he still has $134k to put into his own personal residence. He could put $100k down for a $500k house and live in a mansion somewhere, or he could do an FHA loan and put only 3.5% down, whatever he wanted to do. And he'd still have money left over.

Do you not see the logic in this?

[IH8RICE]

Sorry brah, maybe if it was 534M. Lol. Seriously though, what are good investments? I don't want to be taken advantage of by some fukin investment firm idiots.

Yet you come here to a bunch of basement dwellers who will never sniff anywhere close to 534k?

notsureifsrs

Did you even read what I wrote? He could take 400k of that money and invest that into as many as 20 rental houses.

You can buy rentals in midwest towns for 100k that rent out for 1000/month. You'd need 20% down, so 20k per house, 400k / 20k per house = 20 houses

For each house you are putting 20k down and getting an 80k conventional loan at probably 5% interest since it's an investment property. That means your PITI (Principle Interest Taxes Insurance) would be roughly 600 bucks, and you pay a property manager 50 bucks a door, and 50 bucks a month for maintenance, that's $300 cash flow per house.

$300 x 20 houses = $6,000 per month passive income

Now he still has $134k to put into his own personal residence. He could put $100k down for a $500k house and live in a mansion somewhere, or he could do an FHA loan and put only 3.5% down, whatever he wanted to do. And he'd still have money left over.

Do you not see the logic in this?

Your logic will have him 534k in debt in no time. You're logic is based on the absolute perfect scenario where he's able to find 20 properties for 100k that don't need any rehab prior to renting. Then those properties rent 100% of the time and they're all great tenants who pay on time plus nothing breaks ever. Then you suggest he take most of the rest and buy a half million dollar house that needs furnishing, taxes paid, closing cost, etc. You're logic is the reason so many Americans are in debt up to their teeth and can't see their way out.

[redmelly]

Just put it into a money market account for now. Don't do anything big right away. The first thing is to pay off all of your debts. You are in school? You must have loans, right?

Then I'd open an IRA and put a chunk in there. Set aside some (small percentage) to party with and buy a reasonable car. The rest should be placed in a diversified portfolio. Someone posted Mr Money Mustache. I'd read up on investing there. I wouldn't buy individual stocks, but look at index funds, no load (no fee).

I'll add: That money could disappear like a fart in the wind unless you basically stay with the same standard of living. It's really not that much when you look at the big picture. I wouldn't change my standard of living. It's not enough to invest and live off the interest. At 7% annual you would gain only 30k per year in interest.

Edit: I came into 250k and the first thing I did was pay off all debt and I felt so good being debt free. Then I invested in a condo = which I turned over a couple years later and made 200k off it, which I put into a house. I also took a few vacations with the money. The rest I have in equity in the house.

[IH8RICE]

re-entering OP

I only have two words to say

Dave. Ramsey.

look it up.

Ramsey is basically for getting out of debt. Once you're there, you need someone geared towards investments and making your money work for you.

[KRANE]

I see a lot of people suggesting paying off debt. Why? The goal is not to get out of debt, the goal is to use money to make more money. Maximizing income. That's the first and foremost priority.

[redmelly]

I see a lot of people suggesting paying off debt. Why? The goal is not to get out of debt. The goal is to use money to make more money. Maximizing income. That's the first and foremost priority.

For me I just don't like being in debt.

[300BLK]

Invest in Tax Sales. Buy some Tax Liens so you're guaranteed to get paid a year or two later. Buy a Tax Deed, fix the place, sell it or rent it out, mortgage free. Repeat until you have your own real estate empire.

[deadhead6391]

invest it in a franchise

This.

[TitusVI]

You simply buy real estate. Then when you ahve it people pay rent. So you get rent for your investment. But now since you get rent you can do further investments because the bank knows you have money in the future. So now you invest your future money into even more real estate and even more rent that you get. See I thought this threw rofl.

[jimberee]

you'll blow it. It's in your nature. Just enjoy the time whilst blowing it.

[DrWilliam]

Yet you come here to a bunch of basement dwellers who will never sniff anywhere close to 534k?

notsureifsrs

Your logic will have him 534k in debt in no time. You're logic is based on the absolute perfect scenario where he's able to find 20 properties for 100k that don't need any rehab prior to renting. Then those properties rent 100% of the time and they're all great tenants who pay on time plus nothing breaks ever. Then you suggest he take most of the rest and buy a half million dollar house that needs furnishing, taxes paid, closing cost, etc. You're logic is the reason so many Americans are in debt up to their teeth and can't see their way out.

Not all debt is created equal. You should invest in assets where you have debt that is going to create more wealth than the debt costs you.

I outlined a very basic strategy, there is obviously a lot more that goes into it. You want to find properties where you can pull rental comps with proven rent values in that area. You want to find properties that have little to no deferred maintenance or at least properties where you can factor in the cost of those major maintenance items (Roof, HVAC) to your acquisition cost. For example maybe you find a turnkey house for 100k that had recently had a new roof/HVAC, maybe one at 75k that needs 25k in work, maybe one at 90k that just needs a new roof and a couple small items, etc. You aren't just blindly buying these houses, you are analyzing each individual deal, and it may take a year or two to buy them. And then obviously you'll factor in some vacancy loss although if you charge a hefty security deposit, non refundable cleaning deposit, write your lease in a way that protects you as the landlord, etc. then vacancy loss should be pretty minimal.

I wouldn't actually recommend buying a 500k house, I'm just saying he could if he wanted to. I'd buy something in the 200-300k range. Closing costs are also almost nothing for a buyer, less than 1% of the overall purchase price typically.

My logic is not why a lot of people are poor. A lot of people are poor because they buy shiny things like houses, TVs, new cars, etc. on credit cards. Most people in this day and age after the 2008 crisis are not suffering because of a mortgage. In fact, most people who own multiple rental properties are upper middle to upper class people.

[anonkunbrah]

OP lookin for some twinks to spoil