$50,000 question
 

A coworker of mine called me tonight. His grandmother died which is always sad. He was left $50,000 as an inheritance. He's in his mid 20's just bought a house recently and has a decent job. He is looking for options and has come up with 3 fairly logical options.

1. put towards retirement savings
2. pay off student load
3. buy rental property (Calgary house prices are up 60% comp. to last year)

I offered my opinion but I know that I am fairly conservative. What do you think???

Retirement or pay off more of his house - maybe set it in a simple interest bearing account that the monthly mortgage just gets taken out of ...

Of the things he said, I would rate them 2, 1, and a very distant 3.

What is the interest rate on the student loan?

what part of crack and whores doesn't he understand?

Both of these, in one sense, at a young age he shouldn't pay off a mortgage early, but on the other hand, he should pay off non-deductable debt first.

Donate it to me....a good accountant can make it tax deductible

#3 .....if he has any sense.

A mid70s 911 RSR should be a good investment.

Aurel

Sounds good...a '73 RSR....$50,000???? Good deposit on one. Where would he come up with the rest?

Pay off the student load. ;)

Treat it like found money, pretend it never materialized and invest it somewhere for retirement.

2 women at a time

The best part of this quote it that it comes from the board's moderator!

Buy the rental property, use income to pay off student loan and get more tax deductions.

better yet, buy distressed property and flip it...take extra income and do it again and again and again....then buy 997GT3

DISCLAIMER: Flipping properties does require some work!

Get rid of the debt first. Then he'll be able to purchase investment property at a far better rate and increase his margin of return.