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01-21-2019, 03:04 PM
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#1
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Dryer sheet wannabe
Join Date: Jan 2018
Location: Marietta
Posts: 23
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Inheritance of $250,000+
Longtime Lurker. First Time Poster.
About me.
58 Years old widower, laid off a few years ago. Semi-retired have not started to take Pension yet. Basically living on savings and short term contract work. House is paid for no debts. 401k and IRAs total over a mil. Savings of $500k. Two daughters college accounts of $150k a piece might not be enough, might have to supplement a bit depending on a schools.
My actually rich Uncle passed. I was expecting to get something eventually maybe enough for a new car someday. But it seems I am getting something more than that. His net worth was something north of $10 mil maybe as high as $20 mill. So $250,000 is the bare minimum of what I will get. So I ponder other than a few cars since mine are 15 and 20 years old (nothing extravagant) what would you all do?
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01-21-2019, 03:11 PM
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#2
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,302
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Keep that information to myself and invest it in low-cost index funds, withdraw 4% per year.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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01-21-2019, 03:24 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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Works for me. Buy that car you want and invest the rest.
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01-21-2019, 03:41 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 2,518
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How do you arrive at a bare minimum of $250,000 if your uncle’s estate is estimated at 10 to 20 million. $250,000 equals 1/40th of 10 million. Do you have any idea what percentage of his estate you will inherit? Estate/inheritances will of course reduce the gross estate.
__________________
"Luck favors the prepared mind"
Pasteur
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01-21-2019, 03:42 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
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Quote:
Originally Posted by Walt34
Keep that information to myself and invest it in low-cost index funds, withdraw 4% per year.
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+1
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01-21-2019, 04:03 PM
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#6
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Dryer sheet wannabe
Join Date: Jan 2018
Location: Marietta
Posts: 23
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I do not know my share yet. I am being a pessimist to not go crazy.
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01-21-2019, 04:05 PM
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#7
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Moderator
Join Date: Nov 2015
Posts: 13,879
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First, I would wait and see and not get my hopes up until probate and all that was finished. Larger estates take longer to get resolved.
Second, I would keep my mouth totally shut. Not even discuss w/family (never know who is angling for your piece). Don't tell your kids - it might not pan out and they don't need to blab at school.
If and when it becomes a reality, I'd probably do a minor splurge, then wait till both kids are safely in college since you have an unknown expense there, and then consider dropping the part time work since you'll probably be 60 by the time all that comes to pass.
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01-21-2019, 04:14 PM
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#8
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Moderator
Join Date: Jul 2017
Posts: 5,664
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Keep my mouth shut. And after receipt: invest in very low cost broad based index funds (probably total stock/ total bond through vanguard) 75/25 stocks/ bonds.
__________________
Use it up, wear it out, make it do or do without.
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01-21-2019, 04:24 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 1,608
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Once the estate is settled and money transferred I'd buy a new car and invest the rest in index funds. Oh and enjoy life!!
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01-21-2019, 04:32 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,534
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I'd do what I did this year. Put part in an inherited IRA, and part in a new brokerage account. Haven't spent a dime yet...keeping my eyes on the RE prize!
Sounds like you could use most of this as a buffer to enhance your retirment savings...might allow you to retire altogether!
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01-21-2019, 04:49 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,233
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Quote:
Originally Posted by powerplay
Once the estate is settled and money transferred I'd buy a new car and invest the rest in index funds. Oh and enjoy life!!
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+1
__________________
TGIM
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01-21-2019, 04:56 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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I agree with all that say tell NOBODY. Google broke lottery winners and see what can happen. Some are bankrupt, some have been murdered, etc,
BUT by coming here you are ahead of the game.
Nobody in our +55 park has a clue as to how much we have, until the 2 new cars appeared in the driveway. I just casually mentioned car payments, but did not say we were making them.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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01-21-2019, 05:07 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,111
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Agree, tell no one that you are hoping for an inheritance let alone anyone if you receive a portion of the Uncle's estate. Unless some of what you receive was in Uncle's IRA then this will not be an inherited IRA (with special withdrawal requirements).
$250,000 is a nice sum but you will be surprised how fast it can be spent.
If you have income in the year of the inheritance receipt fund your personal IRA to the max.
Agree, put it in low-cost index funds. Buy a car but consider whether or not you want your kids to use your older cars during college. Keep a modest profile, don't change your lifestyle least you become a victim of a gold-digger or thief.
__________________
Duck bjorn.
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01-21-2019, 05:21 PM
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#15
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Moderator
Join Date: Jul 2017
Posts: 5,664
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Quote:
Originally Posted by Brat
Agree, tell no one that you are hoping for an inheritance let alone anyone if you receive a portion of the Uncle's estate. Unless some of what you receive was in Uncle's IRA then this will not be an inherited IRA (with special withdrawal requirements).
$250,000 is a nice sum but you will be surprised how fast it can be spent.
If you have income in the year of the inheritance receipt fund your personal IRA to the max.
Agree, put it in low-cost index funds. Buy a car but consider whether or not you want your kids to use your older cars during college. Keep a modest profile, don't change your lifestyle least you become a victim of a gold-digger or thief.
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There is no amount of money that people can't blow through. Conversely, a well handled inheritance can add to/ insure security and add to enjoyment throughout your retirement.
__________________
Use it up, wear it out, make it do or do without.
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01-21-2019, 05:42 PM
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#16
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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I try not to give advice, but if the amount is anywhere near what you mentioned, I think I'd retain a elderlaw/financial advisor type of professional, to guide the way through taxes and investment. At the least, a few thousand dollars in fees would be worth the peace of mind.
Whatever, a wonderful gift...
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
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01-21-2019, 06:04 PM
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#17
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gone traveling
Join Date: Dec 2018
Posts: 1,196
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If you have long lost friends and or family come out of the woodwork and reappear in your life you need to use extreme caution in these situations.
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01-21-2019, 06:47 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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Quote:
Originally Posted by MarieIG
There is no amount of money that people can't blow through. Conversely, a well handled inheritance can add to/ insure security and add to enjoyment throughout your retirement.
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My cousin, who I believe was put on earth to be a bad example, blew through 2 inheritances and proceeds from her mother's house.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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01-21-2019, 06:55 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,534
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My first college room mate won a lawsuit over a dog attack. He bought a brand new Camaro, and some other toys. $ were gone his freshman year! LOL.
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01-21-2019, 08:00 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
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Check to see if your state has an inheritance tax. Pay that before you do anything else. Then buy your car and invest the rest.
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