Advice on inheritance etc

You wrote about getting an inheritance. As a financial coach (different than a financial planner), I concur with some of my colleagues. Look at the percentages on your debts and pay off the highest percentage rates first, at the very least. Since you will have some money left over, I can see where you would want to invest it. It would make sense, though, to park it somewhere, like a money market account or a 3-9 month CD while you look at your choices. Both of where you want to invest, and who you might like to invest with.

My colleague is right, it’s not a whole lot of money (in the big picture). But it is a substantial sum, and in this economy, people will want their hands on it to “help” you figure it out. There are so many kinds of investments that the regular person doesn’t think about. There’s way more than stocks and bonds. Right now the volatility of the market is at an historic high. While prices to buy stocks are low (and thus a bargain), don’t necessarily think that you would want to run out and buy. We are likely to be in for quite a ride in the short term and getting some guaranteed income back rather than losing your shirt makes more sense, particularly for someone not used to investing.

There’s nothing worse than putting your money into an account and then watch it slip away like folks have been doing for the past several weeks. So, park it, interview at least 5 financial advisors, and also find a realtor or mortgage broker than works with investors to find out about real estate investing. Though that market is depressed as well, there are some interesting things happening.

There are a number of places to find real estate investing information (if you are interested – if you’re not, skip this part), but beware – these people want your money too! Before you invest in anything, talk to folks in the know, who also know you and care about YOU. Find the folks in the family who have money (I assume the person who left some to you is not the only person in there with money) and ask their advice. Hope this helps.

Dont do anything. One, is because you really dont know what you want to do. Two, because 75k is not a whole lot of money. Three, it is bad when money change you or your life 180 degree. Just deposit it somewhere until you know how the money can make your current life better or lighter.

You may also want to consult a financial planner. I found these links for financial planning networks in an article by Liz Pulliam Weston, who is one of my favorite writers on finance topics:

http://www.napfa.org/

http://www.garrettplanningnetwork.com/

It’s possible that a small investment in getting some help with planning how to use that money will really pay off.

Paying off debt is a great idea.  I would wait and take time before doing much with the remainder.  You could park it in a Roth IRA perhaps. Or even in bank account, they are insured up to $ 100,000 until you decide how long you want to tie it up. If you tie it up long term (retirement plans), it is less accessible than using it for living expenses. The poster who said it is not much is right.  $75,000 is not near enough to live on “forever”.

As a banker, and putting myself in your shoes, I would personally pay off all my debt. Put the rest in a few different CD’s at different terms, so a few times a year you have penalty-free access to some funds should you need them. (Like maybe half in a 6 month CD and half in a 12 month, so every six months you can get at cash if needed.) Then once you feel comfortable about locking it up, decide what else to do with the money.

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