What do you do with inheritance?

[Joeaksa]

Originally Posted by Rufblackbird

tell your wife she can have access to (part of) the money as soon as she gets you out of the armpit of california

That sure is the truth!

[Racerbvd]

You could what Dad did, spend racing cars & boats.

[McLovin]

2 chicks at one time.

[Leland Pate]

Originally Posted by McLovin

2 chicks at one time.

Classic.

[schamp]

Guys, he said it was the first check, meaning there may be a second or third. We may need to enlarge the picture some. I would first pay off any debt, look for some good utility stocks, meaning dividends, rental property, and maybe some raw land. Picked in the right spots vacant land can be a good investment. Look for some vacant lots in sub-divisions which are mostly built out. Might be able pick up a couple at a good price. See if you can get our host on the phone for a conversation on investing. Good luck.

[stealthn]

Hey it's free money, fly to Vegas and throw it all down on black, if was meant to be you have a bigger problem (money) if not, it wasn't meant to be.

[Leland Pate]

Originally Posted by schamp

Guys, he said it was the first check, meaning there may be a second or third.

I simply cannot imagine that would be the case as my grandparents were of very modest means. But, that is what my uncle said. I didn't feel it was appropriate to start diving into the issue of whether or not there would be more as the shock of what I was hearing hit me hard. In a matter of minutes I experienced a whole range of emotions. Disbelief to excitement to humility to anticipation to embarrassment to shame and guilt.

I also feel a little shame because although I loved my grandfather deeply, I didn't take the time to be with him as often as I could have. ...which a lot of us do.

I am beginning to feel a certain amount of responsibility attached to this gift as it represents the accumulation of my grandparent's life's work. They were so frugal, as many who lived through the depression were/are and were incredibly happy despite living what most of us would describe as a very modest life. Many of us could learn a lesson from people such as this.


ANyway, thanks for the feedback and advice folks. I don't know why I have a habit of turning to this web forum for what amounts to personal advice so frequently. It just comes naturally to me and I think a lot of it has to do with the fact that many of us are very alike in a lot of ways so I have really come to expect good feedback, even if it simply reaffirms what I was already thinking.

There won't be any fancy cars or the like in my future. I may expand my reloading equipment a bit or purchase another bolt rifle... but nothing drastic. My pappy would approve of that at least.

[David]

I had a similar thing happen a little over 10 years ago when my grandfather set up a trust for his children and grandchildren before he died.

A couple of the grandchildren had only met our grandfather a few times and some only once.

Watching the family dynamics since then has been interesting.

It hasn't been stupid money but I guess it's been enough to live on if you lived frugally. Unfortunately unearned money doesn't get spent that way.


I've tried to save and spend wisely but that's not as easy as it sounds. Just look at the engine in my 930


Either way, I'm very thankful especially because our grandfather still had fun with his money when he was alive.

Good luck!

[MRM]

Leland, I'm going to offer some very serious advice. I hope you are able to wade through the advice you're getting and select the good from the bad.

First, congratulations on your windfall. Your grandparents did this because they wanted to give you a gift. Accept it as a gift in the spirit it was offered to you. Do not get all bound up in the details and forget to celebrate and enjoy the experience. This is literally a once in a lifetime event, receiving an inheritance out of the blue. Savor it. Dream a bit, have some fun with it. Then get down to the real work of deciding how to take care of it and what to do with it.

Second, be ready for this to change your life, and not necessarily in a good way. I used to do a lot of work with structured settlement people who handled payouts to people who receive personal injury money. They used to tell me that studies shown two things. First, the most money a single person or household can absorb without it changing their life is about $100,000. Any more than that and the money starts tearing at the fabric of the family and changing the people. That's why lottery winners often have such bad stories. Second, something like 80% of people who receive 6 figure plus settlements spend the whole thing within a year unless they buy an annuity that locks the money away.

Third, do not take any tax or financial advice from anyone who is not a professional of your choosing. Start with the lawyers for your grandparents' trust. They apparently have done their job well; that is how you got your money. Start with them for initial tax advice and handling instructions. Have them recommend an accountants and tax professionals. You are now in an asset class where you need professional money management. Sit back and have a glass of champagne with your wife as you get your mind around that concept: you have so much money you have to hire someone to help you manage it! It's true. You might no always need a professional's help, but you need it now and into the foreseeable future.

Finally, take some of the money and enjoy it. Take the rest and invest it. Never risk the principle. Spend, risk or enjoy the income off the trust. Don't ever risk the principle and you'll never go wrong. Don't worry about the type of investment for now. Just remember that over 5 years, an S&P 500 index fund beats 85% of all fund managers, and after 10 years it beats something like 95%. Don't get too clever.

On a personal note, I couldn't be happier for you. We've almost never spoken on line, but I've been a fan of yours since the days you and Warren used to post all hours of the night about the crazy troubleshooting you were running down and Jack was selling you his old seats out of BBI. It's been a lot of years and I've and the pleasure of following you from your wild and crazy AF days and watching you blossom. If anyone can use this money well and not be changed by it for the worse, it is you and your wonderful wife. Good luck and God bless to both of you.

ROT911 and Dueller both handle a lot more trusts and estates than me. They'll chime in soon. Take their advice. It will be correct.

Mike

[imcarthur]

Originally Posted by Leland Pate

I am beginning to feel a certain amount of responsibility attached to this gift

Good. This is what you should feel. Spend or invest it accordingly. I had an uncle who left all of his nieces/nephews $10,000 15 years ago. It helped me buy a house after my life reversal (divorce). I knew that he would approve.

Ian

[Groesbeck Hurricane]

Mike,

Very wise words, worth MUCH more than you could ever know!

And yes, unearned money tends to slip through most people's hands.