My student loans are paid off and I carry no credit card debt.

Press J to jump to the feed. If you are thinking of using part of it for something in 5 years, invest that part in something very safe. I am currently a second year college student, who is still fully supported by my mom. Read Could selling a vacation property affect government pensions? I am unsure what would be considered “safe,” yet I know I should start thinking net worth and building on this nest egg. I can provide post-dated checks for additional security, maybe even a land title for dad's land in province. Dapat BPI sana, but they require an income slip that will prove the legitimacy of my TIN number (my mom helped me apply for one when I was 18), but BDO doesn’t require that (according to their website). I'm sorry for the loss of your brother. Park the assets in a high interest savings account until the emotional fog begins to lift. There is no rush. Cash is king and 500k won’t last long.

If you want to let it grow for decades, index funds are great. I am not an investor by any means (I have a TSP at work and moderate savings in a regular online savings account) that was my brother's forte. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. My son's college tuition is fully funded by my MIL so there's no reason to save for that. My parents were both in agreement that I should receive all the money/assets, but my father has since changed his mind and decided to keep his half of the money (surprise, surprise).

I don’t need the money anytime soon (so I want to park the money there for around 3-5 years) since I still don’t have any responsibilities. Finish school, save the money , enroll yourself in any MBA program, and save the remaining amount to MP2. First my wife and I have no debt besides our mortgage. Hi!

2) Payback the Past. Andrew Fox is a certified financial planner with Fox Wealth Mangement in Calgary.

I still have available limits in my BPI Visa Signature and can avail of this ( bit.ly/sipctc43 ) .. but , I'd like na yung profits eh sa iyo na lang mapunta kesa sa BPI/Ayalas na naman? Add at least half of that to your retirement account by increasing your contribution level. about ~200k is cash in banks, ~300k is in annuities. Allow yourself time to grieve. 2, and 4 year old children. I’d just keep it all in a single savings. The time horizon determines everything. He was a finance guy, I am an IT guy so most of this is foreign to me. I have spoke with multiple friends and family about potential investment vehicles, but would appreciate any feedback on what YOU would do. I'm not really sure what to do with this money. If you insist on playing with digital banks, I suggest you keep most of it in traditional easy cash access banks and keep 100k in digital. Take 1/3rd of the inheritance and invest it into a non-registered investment account (how you invest the money is actually the easy part and perhaps a discussion for another day). This account can act as future retirement savings, emergency fund, etc.

There is also a college fund for me as well, so that won’t be a problem. I would strongly recommend that you meet with a financial advisor (with fiduciary responsibilities) to get an accurate view of your retirement picture.What type of lifestyle do you expect to live when you retire? The market is down right now so think twice before investing your money. Put some in traditional like bpi.

I recently inherited 500k cash.

Just keep it in a bank account. Cookies help us deliver our Services. Emergency fund currently has about 12 months of living expenses. MoneySense will always make updates and changes to correct factual errors. As far as I'm concerned about money (with no windfall of the fortuitous or unfortunate kind in sight), there's not really any reason to deviate from this guide on the wiki/sidebar. APR is 3.25% and I would venture we have at least 60k in equity in the house. This thread is archived. Share on Reddit That would really lower your income tax liability this year (and probably the next) while ensuring you take advantage of as … 1) Invest for the Future.

Thanks! My philosophy on life as well as financial planning is:  Invest for the future, pay back the past, and live for the now. My wife and I have been throwing around some ideas so I’ll tell you about my situation and what we have been thinking. A: Thanks for your question, Ellis. Q: My parents recently passed away and I inherited close to $500,000. My brother passed away unexpectedly a few months ago and left behind a pretty substantial estate. © 2002-2020 Ratehub Inc. All rights reserved. Is your credit card’s travel insurance enough?

Payoff the car, and pay off enough of the mortgage where you arent paying PMI. Where to buy real estate now: How we found the best deals in Canada, A guide to the best robo-advisors in Canada for 2020, Best high-interest savings accounts in Canada 2020, Compare the Best GIC Rates in Canada 2020. Press question mark to learn the rest of the keyboard shortcuts. It sounds like you are not that involved with your investments. I'm definitely going to pay off the truck loan, but I don't think I will do anything with the mortgage. I do have a BDO and BPI Savings Account and I’m planning to get a BDO UITF Peso Bond Fund. Are there investment firms I should be vetting? Share on Linkedin Join our community, read the PF Wiki, and get on top of your finances! Calculating how much money you’ll need at retirement. My question is: what do I do with $500,000? Or it could make you miserable if you blow through it. I found spending inherited money to be very emotional. Investment/Financial Advice. MoneySense is fully owned by Ratehub Inc, but remains editorially independent. My Mom has already started writing out checks to me, my wife, and our son. An inheritance of $500K isn’t enough for a major change in your lifestyle. My TFSA is capped in a mix of ETFs. But it can make your life a whole lot less worrisome if conserved and invested. What to do with 500k inheritance?

I really appreciate your advice, do you have any suggestions as to where I should start regarding investing a portion of the money? Press question mark to learn the rest of the keyboard shortcuts. Something more advanced you could do as an option is to try and live off the new "cash" influx and increase your contribution to your TSP. Special to MoneySense  on June 19, 2018, By  Married. Havent made any move to transfer to my accounts yet. That would really lower your income tax liability this year (and probably the next) while ensuring you take advantage of as much of your tax-advantaged space as possible.

Put it in a 6 Month CD, and use that time to make a plan. The total I will receive when it's all said and done will be at least $200,000. Again, I'm sorry for your loss and hope you can honor your brother's memory by contributing positively to your financial future. We worked at the same place, lived within a mile of one another and spoke every day.

Thank you so much, my brother was my best friend. Read The upside to waiting until age 70 to take CPP benefits. I have a VA home loan so I don't pay mortgage insurance. Special to MoneySense  on June 19, 2018. Personally, if I had a windfall like this I would ensure that my emergency fund is well padded (say, 6 months of living expenses), then I would pay off the vehicle loan (since it likely has a higher interest rate than your mortgage) and a large chunk of your mortgage. You wanna lend to me a certain percentage? Something more advanced you could do as an option is to try and live off the new "cash" influx and increase your contribution to your TSP. Are you currently on track? I never would have thought of that. Love the idea about living off of the windfall funds to reduce tax liability.

By using our Services or clicking I agree, you agree to our use of cookies. Thanks again for your kind words and advice. Furthermore, at the point of publication, we do our best to ensure the information we produce is accurate, however, sometimes prices and terms of the products are changed by the provider without notice to us. Give yourself permission to follow your dreams. I currently live off my own salary with ~40% of my after-tax income going towards rent and car payments. Orrr to be safe, save 80% of that as part of your EF then the remaining 20% you can gastos for necessary finances such as tools for online classes.

Is this a good idea? First thing you need to do is decide what your goals for this money are. My general recommendation is to Americans buy into USA equity index funds. This is assuming that both you and your wife are on track for retirement savings and truly don't have any other type of higher-interest debt (like a credit card). Some people are super uncomfortable with any debt. My wife and I are in our early 30's and our son is 3. Read Severance, pensions and unemployment at 65: Should you apply for a pension if you get laid off? I am 24 years old working as an engineer-in-training in Toronto with an annual salary of $65,000. Currently I have it parked in ING and CIMB (taking advantage of the high interest rates), but I still want the money to grow.

If you invest the money, take the time to educate yourself first. The gift of an inheritance is bound to the sadness of loss. I’m 20 years old and my step-dad died recently and left me 500k.

Thank you! 0.5% a year sounds small, but adds up massively over 30 years. This means probably paying off all of her debt above 5% interest rate, and buying a nice, 2-4 year old car with reasonable mileage that costs a reasonable amount (unless a new car is actually comparable in price). 13% Upvoted.

However, this varies from person to person. Read Should you sell your home to your kids? Any suggestions/advice would be greatly appreciated. Pay off the highest interest debt: the car loan, and then invest the rest.

Sorry for the open-ended questions, I am just looking for advice. Press J to jump to the feed. Read Unconventional ways of investing in a family RESP. Don’t make important decisions for at least three or four months.

*You NEED to minimize fees. I’m 20 years old and my step-dad died recently and left me 500k. Our goal is to provide the most relevant and up-to-date information as possible, but, as with all things you read on the internet, we recommend you digest our content critically and cross-reference with your own sources, especially before making a financial decision. What your SO needs to do, especially since you called her your SO and not your fiancee or anything like that, is to decide how to make her own personal financial situation better first. I wanted to do MP2 sana instead of this, but I’m still weighing my options! Don't touch it muna while you're still not sure what to do with it. share. I also have an emergency fund. If your interest rates on your mortgage and car loans are low, then it generally makes more sense to invest the money rather than pay the loans off. 31 years old. Think outside the box. For Filipinos interested in stocks, bonds, mutual funds, ETFs, forex, crypto, banking, business, insurance, and any other topic related to investing money, making money, or growing money in the Philippines. I'm 23 years old and getting a 100k inheritance but have no idea what to do with it. What would you do with this money if you were in my situation and why? Share on Facebook