I have lost a lot of family members in the last few years which has left me to inherit $200,000.
Whilst this is a great start to life, I would trade it back in a instant for my loved ones.
However I want to make the best of this situation.
So i'm asking what would you recommend me to do or what you would do with the money.
I'm thinking about investing in a cheap flat and renting it out because currently I live rent-free. But I want to hear your creative ideas or advice!
I'd go with this option, although depending on your current income level and risk tolerance you might want to look into using the remainder to put into both the small flat option and some other kinds of investments (e.g. shares) to spread out the risk a little.
That much money at such an early age would basically set you up for retirement because its such a head start so early in life, so good on you for looking into your options for making the most of an unfortunate circumstance you find yourself in.
20k sounds abit much for a 21 year old to use on a world trip. Unless he absolutely loved his trip, I think he might come to regret spending so much
In my mind I was planning to go for two years and make it a working holiday, but as you say, it is a big chunk.
No way $20k would be doing Europe and USA on the cheap for half a year. I think mskeggs plan is perfect!
Blackjack and hookers…
Actually you know what, forget the blackjack.
Also forget the hookers too
and the black jack
maccas/kfc/pizzahut/dominos/chinese/mexican/italian/indian/thai/bistro/porkrolls all day every (other) day. oh yeah and maybe gym and movies.
Watch Hangover movie 1,2,3.
Sorry to hear about your family members.
Buy a flat. It's a smart idea. Just make sure you choose a good area as location is everything even if it means a smaller flat.
The first rule of fight club is don't tell anyone that you have cash.
You need to become a bit selfish and you might be able to set yourself up for life, as your departed loved ones intended.
The best investment is your education or ability to earn more income. if you feel stuck, put 5k into Telstra… Interest is so small from the bank compare to their dividend yield and franking credit. Sorry about your loss too
Seriously that is a 21 year olds dream getting that much cash, I would say have some fun but just don't blow it all the invest the good proportion of it.
BMW M3, then go do other stuff.
Just property
Good advice.
I would buy a house or apartment.
are you renting ? studying ? what are you passionate about ?
=> If renting then save 120k$ for deposit…
=> spend or save 25K for study( depends what you studying), pay rest from working part time
=> what ever left save it for emergency.
last would say, focus your mind to right things which help build your future career plus pay of your mortgage by the time you hit 35yrs.
ps: dont muck around with girls if you are not serious or have fun but don't waste money on unnecessary things unless you know if thats person you will spend life.
House debt can be paid off in years time but debt of marrying wrong person, will scar your life
My friend is a Nigerian Prince and he could really use your help.
OMG my friend is a Nigerian Prince too, maybe…
Bugger it I'll take it on myself.
my friend like 'princely' sums of money :)
I had a cousin inherit 200k also .. (early 20's) took less than 6months and he blew it all away on cars and partying with his fake @$$ friends.
What I found funny was before he got it I told him I'd help him set himself up for life… I never heard from him till after when the money was gone and he needed my help to get his life back on track. Of course I hung up after supporting his @$$ for 4yrs while he was broke and never got any love for it after.
/breaths out
OT - yup, dump it into a flat but even better a house! even if the house costs a little more you could get the extra from the bank and leverage the rent to pay the outstanding amount off.
edit - when you get a missus, I suggest you bring up pre-nup EARLY, if they don't like it then boot their @$$ to the curb cus if its true love then they'll sign on the dotted line. it's your insurance.
Invest in solid stocks now ie. <ASX=4900.
Or, Buy house/land/unit. Still overpriced I guess.
Or, stick it in ING at 3.5%. Invest later.
Don't blow a penny. Use this to supplement your life and travel.
Oh yeah, and don't blow a penny. Lucky breaks don't come along often.
My inheritance was $5,500 total. Sorry to hear about your family.
Be careful with those interest rates on high $$$ accounts as they tend to decline the higher the balance. (ING = 2.5% for balances between 99k and up to $149k and 2.25% for 200k and above)
Definitely agree with Bargitrage though - don't blow a penny!!
Do you have capacity to borrow? You could get a whole block of units with that deposit.
I hate body corporates. You could BE the body corporate… if you were so inclined you could be your own on-site manager.
Or what do you want to do for a career? You might be able to get a business in that field if you reckon you're up for it.
In a 3% savings account, it's:
$6000 free money a year or
$500 a month or
or $125 a week.
Not bad for no work and no effort eh? Or to put it another way, each week you are being given for free the equivalent of 5-6 hours worked (at minimum wage).
"Work ethic"? F that. Interest, pal!
ubank.com.au
USaver with Ultra
approx $6636 per year or
$553.97 p/m
Depends which state you live in property may not be a good idea at the moment unless finding one at the right price.
in South Australia there are some good buys at the moment.
Where are the good buys in SA?
Any clues appreciated
stock market is cheap, nab and anz giving your 7% dividend with fully franked, yeah price might up and down, as you said early 20, you have many years, and what is the chance 4 pillar to be collapse ( still got 1% chance).
Other option go to QLD area find the home land package that offer you positive gearing, some times ago one of real estate agent offering me $70k deposit no more to pay and i will get $400 gross positive gearing , after paying internet only loan and 8% real estate agent fees. so it is all up to you as you are so young and many potential ahead of you. GOOD LUCK
Put $20k away for emergencies, $20k to fund your round the world trip, and use the rest as a deposit on a flat.
Assuming you haven't got unmentioned burning desires to open a business or study and MBA at Harvard or some other investment in yourself.