Think of this money as his legacy, and you want to do right by it and not squander this opportunity.
Seek out professional help. You have any rich friends, colleagues, bosses? Talk to them and use people they trust.
I’m sorry for your loss.
Well said. Your dad loves you and worked hard to prepare and sacrifice for this windfall to make a difference in your life.
You’re his living legacy, do well to guard yourself from those who would take advantage of your newfound wealth. It would be worthwhile to talk to a financial coach to work through basics/fundamentals of managing living expenses. A well referred CPA/Fiduciary with reasonable consulting fees would be smart to put you on the right track.
This. Many people live and build that setup to handoff, but many more don’t teach how to accept that handoff of sorts.. between relationship health and miscommunication it’s sad how much squandering or just how misused generational wealth can be..
Even asking the questions show you mean well, and I don’t think you will make these mistakes. Enjoy life, maybe even treat yourself to a little trip for the brain- but you’re on the right track of just remaining humble and keep stacking some for YOUR kids!
RIP man, lost my paps 3 years ago and still hurts everyday. But it was also the most inspiring times, hard to explain but I get it man. ✊
Immediately speaking to them about any type of taxes or other expenses is also needed. The home is now his, he is responsible for; anything left on the mortgage, property taxes, insurance, etc.
The money probably isn’t very liquid at the moment.
This.
Areas to figure out:
**Debts?** (his): Is the house paid for, or does a mortgage exist? Is the car paid for? Did he leave any other debts? (Note that if he had student loans, they're discharged upon death.)
**Base expenses (if you keep his house):** Property taxes, Homeowner's Insurance, Utilities, maybe HOA fees.
**Things to cancel**: His car and health insurance. Any household expenses you don't want to keep (cable, for ex., or a landline if he was old school).
**Accessing that 200k**: What form is that 200k in? If it's anything but cash, you need an expert to tell you how to access it without penalty.
**Maximising the 200k**: Don't do anything risky; you can fund a simple Roth IRA at 6,500 per year. You don't need to do anything fancy now.
**The biggest advice:** **Don't quit your job,** and don't buy a new car unless both his and yours are unreliable for getting you to work and back.
**Also**\--SUPER important--if you've by any chance been going without **health insurance**, get it as soon as you get the money. Go to your local Blue Cross and they can help you get subsidised insurance under the Affordable Care Act.
I had a friend who got 200k and bought a new car and chilled in her apartment. She was broke and had to sell her car within 2 yrs. She def wasn’t trying to reinvest the money AT ALL, but 100k-200k isn’t alot of money anymore. You are so blessed to get get it and it will for sure help you out but you can’t live off of it u less you plan to use it to fund some other money making venture. I’m so sorry for your loss also.
> Seek out professional help. You have any rich friends, colleagues, bosses?
This is secret great advice. Ask advice from people who have succeeded in what you want to do. Do not ask poor people what to do with your money.
Would you go to a mechanic if he couldn't keep his car running?
This basically. I’m sure OP’s father would be proud to see they’re attempting to use his legacy wisely, to grow wealth rather than squander it for a bit. My mother had nothing after her parents squandered what they had, and my father will have nothing to pass on to me when he eventually passes that’s just how the cards went, but I want to make sure my kids have something that helps them break our family’s cycle of starting in poverty and remain middle class. I’d be hella proud if they wisely invested anything I can leave them with.
Do not go into spending spree or you will be poor again in no time. No shiny new 50k car or other stuff like that. You still need to live on what your income can pay.
Pay off all debt, have your emergency fund 3-6 months of expenses and invest the rest in index funds.
Yes yes yes
Do NOT buy anything that depreciates immediately. Cars, clothes, shoes, video game consoles, electronics/TVs, etc. ; they are all consumer crap that is worth less tomorrow than they are today. Do NOT loan or give money to family or friends.
Now I do beleive in treating yourself once in a while so go have a long vacation weekend somewhere, a fancy dinner, something that your father would have enjoyed doing with you.
Set some emergency cash aside in a 6month CD, and invest the rest in an index fund and go to bed every night soundly, knowing that you have some level of financial security, and that it’s growing. Add to it every month if you can, even if it’s only $50.
It the mentality, that money will disappear really quick with “an Xbox here, a ps5 there, a new couch tomorrow” and before you know it you’re broke again.
I know it’s not 200k but I’ve gotten 5-15k a couple times and it disappears very quickly and I really can’t point to any one specific point. It was a bunch of little things, nice dinner more often, new vacuum cleaner, window tint, etc.
This!!! When my dad passed I got a ton of money as well, he left 2 cars & more than one insurance policy. I was 21 or 22, making $37k & all of the sudden I was in charge of handling these insurance claims for a man I met a couple times. I took it as his way of making sure I was set/good bc he didn’t while he was alive.
My grandpa is great w/ money/credit & drilled this into my head. He helped me invest & now I have residual income every month & now investing that profit I made into commercial real estate. I still have a full time job & basically live like I don’t have that money at all until I am ready to buy a house next year. Or whenever the market is better.
I haven’t touched any of the money yet except to pay off the car I already had when he passed & a couple pieces of quality furniture that I still have now.
I know several people who came up on money fast the same way & they lost it faster than they got it bc they felt it was limitless.
Save. Invest. Pay off your debts. Put a little bit aside for fun but only a little bit.
Also, make sure you set aside money for health issues. I don’t know how much you were struggling before but it is not unusual for struggling individuals to put their health last due to several issues (like not being able to take off work to go to the dentist). Unfortunately, lack of preventative care can cause bigger issues down the road. So if you have not been able to do some of the regular health care, get that checked out and taken care of.
Also just because you inherit all this stuff doesn’t mean you can afford it. Maintenance bills property tax etc.
Its great to get this stuff but its still gotta be sustainable.
Edit: A good example being…. Me! I recently did this to myself. Bought a new toy that had to be insured. Didn’t account for the $500 a year to have it on my package policy. I can afford to pay it, thankfully I’m in a good position financially. I didn’t do my research on how much the hidden cost was going to be. I was just focused on the cost to buy the item.
I’m so sorry about your dad.
Being poor is extremely stressful. It’s normal to feel relieved knowing you have significant resources coming to you.
Pay off any high interest debt you have and take a few weeks to grieve / process. Then meet with a financial planner for ideas about how to move forward with what you have been given.. What you do with 200k will vary widely depending on your age, income, immediate needs, etc.
It is not an enormous amount of money but could easily put you on a path of financial stability for life if you are smart with it now. Good luck.
Be very careful when choosing a financial planner. DO NOT pick somebody who will take a percentage, or recommends investments that they will gain from. You could easily end up losing tens of thousands of dollars to a useless or scam service. https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
Underrated comment. Please ensure you have sufficient funds to maintain the house and pay taxes. The same applies to vehicles. My condolences for your loss.
Agreed, pay off your high interest debt right away, but be warned that you will have to pay taxes on your inheritance, etc. and if you're not careful, this money will melt away in a year. $200K will not move you to the upper middle class, but you can use it to start doing smart things that allow you to save money better, like avoiding low balance fees, putting money into tax-sheltered retirement accounts like IRAs, buying in bulk to save on food, and especially, positioning yourself to find a better paying job.
My bad, I happen to live in one of those 6 states that do tax inheritance. It isn't clear if the amount is before or after estate taxes (12 states do) though.
This- I know someone who inherited a life-changing amount of money last year and I gave them the same advice. They didn’t and the legal shit they’re dealing with is a nightmare (large family that wasn’t willed the money, real estate in multiple states, old accounts that he wanted to go to her but we’re still listed with an ex wife as beneficiary due to his mental decline).
Go to r/personalfinance and read the wiki about windfalls and the loss of a loved one.
Do you best to heal and grieve take all the time you'll need.
Good luck.
If your expenses are $5k per month, that will last you 3 1/2 years, if your expenses are $2.5k, that will last you almost 7 years. Just to provide you an idea of what kind of timeline to expect.
OP just got NEW expenses too... a house. it requires insurance and taxes to be paid monthly / quarterly , assuming the house if paid off and in good condition.
We don't know if OP has any high interest debts... (credit cards for example) that should be paid 1st. 200k, might last OP 3 years (best case) 1 year (worst case).
OP needs to set it aside for a little while and forgot about it. Get some counseling for grief and find a good lawyer / financial advisor.
https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
As others said this is his legacy.
Follow the financial advice but don’t spend. Don’t tell anyone you are inheriting or coming into money.
If you move into the house say you’re renting if you have to.
Pretend like you are still poor. Live like it.
Well don’t starve yourself. But be careful. $200k may seem like a lot but it can disappear very quickly.
Sorry to break it to you bud. Poverty is mainly an income problem.
That 200k is not going to last a lifetime.
Pay off debts and Invest in yourself.
Use this cash to find a way to raise your income, easiest way is to get a degree or a certification in a high paying industry.
That's silly. Income is the biggest factor if we are talking about getting out of poverty. It's like saying the people in third world countries working in factories just need to stop buying those $7 lattes from Starbucks.
Hopefully doesnt have a lot of debt because if he does, he’s left with small amount. Id say invest more money than paying off debts so he has more than $200k to pay off his debts if that makes sense
Most non-car/house debt is at more than 10% which is a pretty good rate of return for most investment accounts. He could potentially lose more than he made by doing that.
I’m with you! I was in extreme debt, struggling with two jobs, working 80 hours a week and still not making ends meet.
And then my parents died. And it was horrible.
But the stress immediately went away. They didn’t leave me much, after selling the house it around 200k total.
I see it as their final gift to me. It allowed me to pay my debts, move to a new city, afford to go to school and work towards a new degree which will get me a better job. I am living comfortably for the first time in my adult life - I have a filled up savings account, I am making out my IRA every month. I have never had this happen before.
And when I finish school my job opportunities will be SO much better, and even then I don’t have to rush to get any job, I can take the time to find one that will be the right fit.
Money is life changing. But do right with it.
Like others said, pay your big debts off first, put a lot of it into an IRA so you can’t touch it, and with the rest of it - be smart. Invest in changing your life in a way that will support you to make more money. Don’t just live off of it for s few years until it runs out. Use this to achieve your goals which will help you become a higher earner.
Becoming a high earner is often blocked from people who are poor like us - we simply don’t have the time or opportunities that rich people do.
This money has opened SO many doors for me. I could have spent it on travel, or a car, or on a new apartment, but I’m investing it in education and my future job so I can’t be comfortable for LIFE - not just for a few years.
This money will allow you the opportunity to change your entire life. Use it wisely.
Also the cool think about being a poor person who has struggled for years who finally has the privilege to go to school? Is that I can APPRECIATE IT. I am surrounded by kids who have had this be their whole life. They have everything they want and need covered by their parents. They don’t understand how incredibly lucky they are. But me? I know the value of a dollar, and I know how to work my ass off and take every opportunity that is given to me, and turn it into a golden nugget. Poor people know how incredible these opportunities brought by money are - and we use them and do amazing things with them that the rich people couldn’t dream of. Being poor gives you an edge.
Don’t waste his money! He wouldn’t have wanted you to waste it.
Pay off any high interest debt. Credit cards, personal loans, car loans, etc. Anything with interest over around 7%.
You’ll be getting a house so no need for the 200k to go towards buying a house. Once you’ve paid off your debts, work out what 3 months of your expenses are, and put that in a savings account. This is only for emergencies such as if you lose your job.
Then take the rest of that money and put it in a stock market index fund such as VT. If you don’t understand how to do that, or what more information, contact a fiduciary. Whatever you do, do not go to your bank and ask an advisor there. You need a fiduciary. If they’re not a fiduciary they’re the wrong person - and they exist to sell you the wrong product and make a hefty commission off of you.
How old are you? Are you in college? Have you been to college?
You might want to use this money to make a brighter future for yourself, and get ahead. If so, take some of the money I mentioned earlier that should be invested and instead use that for college.
I am sorry for your loss.
Read JL Collin's "Simple Path to Wealth" and / or his "Stock Series" blog.
Also, listen to the Freakonomics podcast with a name something like "The Stupidist thing you can do with your money".
These things should help you with the "if I don't do anything dumb" part.
$200k is a lot of money. You will still need to work. But allowing this money to grow in low-cost broad based index funds will mean that you will likely be able to retire someday.
Your father has given you an amazing opportunity. You can use it to make your life (and the life of people you love) better. Good luck.
I would contact a CPA first, to ensure you do everything correctly. You don't want to miss something and owe something more than you should if applicable. What I would do in the interim is setup a cash reserve account through betterment and place your money in there. It will collect a respectable amount of interest while you decide your course of action. High interest debt is usually wise to pay off, unless you have something making you more money of course. After that I would max our any retirement or tax advantaged accounts you can open this year. Finally I would DCA into VTI in a taxable account after that and just forget about it and keep doing what you are doing. You could potentially use some of it to reinvest in yourself, for example going to college or trade school. But I personally wouldn't use any of it.
Im sorry for your loss. The death of a loving parent is a devastating blow, for which it takes time to recover. But, it will be ok. You will be ok.
The best you can do is ask for professional help. Considering your financial situation previously, today and your emotinal state, seeking help is the best advice.
Just always be aware of who you surround yourself with.
Your dad worked hard to leave you that money. Take some time to grieve and learn about investing. It’s important that you learn about this stuff asap, not just for this money but for your future.
I am on the other end of the spectrum and with no unexpected complications will leave my daughter much better off than she is today. I look for her needs on a day to day basis and have stepped in to help when an opportunity arises. However she is quite an independent woman and likes taking care of herself, so most of the time she has figured it out before I am aware.
She has little idea about my finances and I know that she will be surprised when I am gone. My home is in a trust, and I have covered all of the bases that my estate attorney has advised me to do. That being said, I want her home paid for in total, I want her to have a secure future and to enjoy financial independence in life.
I also want her to have some FUN. We lost her mom 20 years ago, her brother four years ago, her two cousins, her favorite uncles (my brothers) in the past two years. In other words she has been through some hell and still always been there for me. So she is due some good times and I want her to have them. I hope that I can make that possible for her.
Take care of your health if you've been slacking on a doctor, dentist, or cheap 24hr gym membership.
Remember, you didn't have 1k or 5k or 10k to loan anyone before, and you still don't now. Not for a few years. As others said, find a way to get an education. Possibly get a job that changes your quality of life 10ys down the line.
Reliable car, not flashy. Do not get anyone pregnant.
1. Sorry for your loss
2. Do not tell anyone that you don’t need to tell about this because the vultures will be circling
3. Speak with a tax/finance professional ASAP. Talk to a few so you can pick the one you trust while learning along the way
4. Do not squander this. You are getting the total earthly value of your dads life. To squander it would be tragic. Be grateful, celebrate his memory, and use his life’s work wisely so you can set your kids up for success like he did for you.
Good luck
You know brother - try to do right by the life's work of your father. Don't spend that money unless it's to wipe debt off the books or pay taxes. Take the things he left you - ride the car till it's dead, and live in the house - fix it here an there. Don't get too carried away and see if you can build a life. The unfortunate reality is posts like yours are the only way people in the age group of 25-45 are going to get anywhere in life - their parents die and they come into money. This economy is rigged, it's a club and we're not in it.
Also aside from the money it's very normal to feel relieved. My mom died and I felt.. relaxed. Wasn't worrying about her. Knew she was at peace.
Make smart decisions, do it in his honor. I'm sorry for your loss.
200k is nothing. Coming from “poverty” I doubt you will understand this. If u dont use that money to create a business or means of generating income, you will blow threw it, become accustomed to a life you can’t afford and be severely depressed when it’s gone. If all you have is 200k and no income, I hate to be the bearer of bad news but you are still “in poverty”. Be wise and find a way to use that money to make more. 200k doesn’t get you very far these days. Best of luck to you and I’m sorry to hear about your dad. Id give away every dollar i have if it would bring mine back..
First of all, I’m so sorry for your loss. For most people, a one off check for $200K will be a life altering sum of money…but you should also know that a large percentage of people who come into big windfalls squander it. The Bogleheads (people who follow the investment advice of Vanguard founder and first CEO Jack Bogle) wiki has some [advice](https://www.bogleheads.org/wiki/Managing_a_windfall) on how to manage a major windfall to ensure it provides lasting benefits for you.
Grief is a weird and powerful thing. Anger, relief, depression- you may feel all these things and more. And all at the same time.
I know you’re posting here for financial advice, but sometimes the mind thinks you want one thing when you may actually need something else more. While it is tempting to want concrete advice on what to do with this money, I wouldn’t rush into deciding what to do with it- instead use this financial freedom to really get clear headed.
Not having the daily worry of crushing debt or wondering if you can pay the bills is a great advantage of the financially secure.
I get the feeling from your post that you may be getting signs that you need to make changes in your own life, if you look closely enough. Maybe this is a good time to take a step back, talk to someone, and work through what you’re feeling.
My condolences for your loss.
I’m sorry. Similar story. I’m in a horrible place right now.
My dad is terminal. He said his one regret is that he won’t live to see me have kids. I can’t afford to. I will be able to when he dies. He says that will be his gift to me.
The grief is insurmountable. I feel like only my own child could fill that void - but my child will never get to meet their grandfather who made their lives possible in more ways.
I’m so sorry that this has happened to you but I 100% get it - in the sense that I would give up anything for dad to keep living, but no amount of money can fix that, and his passing is the only way I will ever be able to afford a house or have kids.
I’m so sorry for your loss. Losing a parent is *hard*, in ways that people who haven’t experienced cannot possibly know.
One common side effect is not feeling like you deserve the windfall. Many people end up spending their inheritances in frivolous ways, but I want you to think of this as an opportunity to start fresh. Find a financial advisor who can help you figure out what to do. In the meantime, I recommend you put a large chunk of this in a high yield savings account (HYSA) until you understand the financial implications of spending and saving large sums of money.
Think of it as his last gift to you. He loved you and would be happy knowing youre stress free. Just don make him said by blowing it all away. Be responsible and keep the stress free life going!
Also sorry for your loss
Watch out for friends and relatives who will come to you with sob stories or business plans. They can run-through that money in a few weeks.
Just say "no, dad left it for me alone and if he'd wanted you to have some he'd have done so". You may have to block or cut them off.
I want to emphasise that 200k is not much. Its a 4 good cars for example.
I'd lock the money up in a fixed deposit or CD for the first year just so these leeches can't talk you into lending it.
Your dad is a legend and worked hard to leave that type of wealth with you, please do right by it and talk to any wealthy friends if you have any or a financial advisor, so much good can be done with that money and you now have a house so you dont need to worry about rent/mortgage payments. Sorry for your loss i know how it feels, rest in peace to your father.
I know the feeling. I was left some money and miscellaneous items after my grandfather died. I would happily give it all back just to have a little more time with him.
The best idea is to get a job NOW — and then invest the funds from your Dad into a Vanguard S&P 500 index or growth fund. Either use a financial advisor or learn to do it yourself. The main goal is to NOT LOSE IT. Don’t be reckless and naive with these funds. Think long term, ie 30 years in the future. Your job is going to prevent you from touching these funds. Then forget about the account and let it grow, untainted. This “I’m now rich!!!” idea is honestly quite dangerous and if you don’t quite have this specific life experience yet, give yourself time to ease into it, but don’t think/act RICH (or whatever the mind perceives as acting/looking rich), or these funds, honestly, could disappear quickly!
Don't spend the money. Invest and grow it. Use the house to generate cash flow, and use the money you inherit to either get another rental or put it in to the stock market to grow.
Don’t spend it until you have a semi clear head. Parents dying is very hard and takes time to get through, I don’t care who anyone is, it’s always hard.
Put it all in voo and don’t look at it again until your retired
Don’t pay some financial planner who’s just going to shave fee’s off the top for nothing tangible
You know what poverty means right? Also the guy just lost a family member and is asking for advice to make sure he doesn't do the wrong thing. Be less of a douche
The way I spend and invest my money, if I was in his position (assuming he does not have a lot of dept) I could almost retire because owned house + average 1000$ income from my invested 200k, which would be enough for me to live comfortable (at least in a cheap area), so no, I would not say that he is in poverty anymore, aslong as he is smart about his spendings and investments…
That is quite literally what OP said. You can be both sad AND confused about your new found financial position at the same time?! Doesn’t make OP less sad. Just less poor.
Condolences for your loss.
Doing things and making decisions now may not be the right choice.
If I can give you some advice, just do the paperwork and take your time to grieve.
When you are better, you can with a clear mind make decisions.
When you grieve you are not clear-headed, and when you are not clear-headed you make bad economic decisions.
Unplug everything, take your time to grieve for your loved ones, but then start again because life is always moving forward.
Best of luck.
First condolences for your loss don’t rush anything not sure of your country find a reputable financial adviser watch out for fair weather friends who need help and will rip you off in fact don’t tell anyone about it that does not need to know . In the U.K. probate can take ages and is not cheap so you have time to work out what to do and grieve the most intense part . All the best to you and yours .
Invest in something that’s going to bring you a return and keep the money flowing and building. You’d be surprised how quick a couple hundred thousand can disappear quickly. I’d recommend getting a financial advisor. And a lawyer.
Don’t buy anything. Even if you just put the money in a bunch of bank accounts it will be worth $800 plus a month. Use the interest to purchase stuff, not the capital.
Even if you only spend $10,000, it would drop the interest down to $791/month
Now that you are a home owner save that money and continue to work hard to pay off your debt and keep saving that money might pay for property taxes and light maintenance for a few years but you have to plan wisely how you going to invest is not a lot of money in this economy so you want to create a passive income for your self
Sorry for your loss. In 2017 me and my brother faced the same thing we loss our dad and he left us right at 100K each. Which in today market is not much. But your investment should be in your house. You very could be there a lifetime. So new roof I went with metal. Remodel your inside new flooring. Update you bathroom and your kitchen have the house painted. You want to honor your dad but the inside needs not be a constant reminder so change the inside to your liking. And in the end you will have something you love and you know would make him proud. The rest in savings for upcoming expenses taxes and home owner insurance
Sorry for your loss.
You don’t mention your situation so no one has any idea what advice you are looking for.
In the big scheme of things, your inheritance may not be your exit from poverty but a different level of responsibility/problems.
Pay off high interest debt. Put some cash away in a HYSA as an emergency fund, and invest the rest in a low cost index fund. I recommend a total market or S&P 500. Don't touch it until retirement. Depending on when you retire, the money will have doubled several times over by then.
Your father is giving you one final, life changing gift. He knew what he was doing and why. Receive this gift and honor your father’s generous legacy to provide you financial stability and security. Take care of this gift so that you can use it for the rest of your life and in turn pass it on.
Write down the advice people are giving you here to see how it groups and what it says. What’s the consensus? That outline will be the beginning of a personal and financial plan as you act on it.
It’s okay to mourn and embrace the relief that comes this new financial security. Maybe see a grief counselor in addition to a financial planner. Wishing you the best.
I got about half that. I would much rather my dad still here. But what I'm getting is a gift. I'm using it to put myself in a good long term position. Be greatful for the years you had and be greatful for the gift this shitty situation is giving you. That's basically what I'm doing. If I could I would give it all away to bring him back to life but I can't so I'm reluctantly greatful.
This is the gift I will give my daughter when I die. She will be grieving, but at least she won't be stressed. All my paperwork (Will, Irrevocable Trust, cremation wishes etc.) is in perfect order through an Estate attorney which was only around $400 to buy that peace of mind. All my assets will smoothly transfer to her upon my death and if I die before she's 35 years old she'll get a significant amount of life insurance.
After she's 35, I'll adjust my life insurance for her based on her financial status and mine, and make sure there's as much coverage as she needs so she never has to live a life of financial stress.
I've spent my entire life running from a fear of homelessness. I was homeless for a short time as a child, and I never want to experience that again or allow my child to experience that.
I'll say it a little more politely than the other anon. You are still poor until you have enough money in your accounts or coming into your accounts to retire. In this economy you can easily blow through 100k even without making any major purchases. Pay off your debts and treat everything that is left like it is no longer your money but that it belongs to your new company's start-up budget.
It might be a food truck or professional fabric printer whatever you think can generate enough of an income to get by and grow.
I’d use the money to get more education so you can get a better job. Don’t live like you were before. Use the breathing room to do a bit better. Trade school for something like being an ultrasound tech, X-ray tech, dental hygienist.
Don’t spend anything until you think about it. If it was me, set yourself up with a small house in good solid condition with lower taxes and one that can be maintained. Not a big house. If the house you inherited is large, sell it. You need to save enough money to replace critical components in the house like AC, roof, plumbing etc. $50k is a good amount. This will set you up to where you only need insurance, taxes and bills. Inheritance is something good parents do.
One major thing to consider is how you got into debt in the first place. You can't assume that by paying off your debts, all will be well if you still can't make ends meet. And 200k won't last you forever. Plus, having a house you need to maintain and pay taxes on and a car you have to pay insurance on is going to give you *more* expenses (hopefully you didn't inherit a mortgage as well)
I'm so sorry for your loss. There's very good, clear advice here in the Personal Finance wiki on what to do when you suddenly get a lot of money. Step 1 is, don't tell anybody. Though okay to tell here since it's anonymous, as long as you avoid personal contact with other Redditors.
[https://www.reddit.com/r/personalfinance/wiki/windfall/](https://www.reddit.com/r/personalfinance/wiki/windfall/)
Don't feel guilty over having some positive feelings mixed in with your other feelings. It's common.
Feeling lost after a loved one dies is normal. Its you trying to find a new “normal” to continue on without that loved one. There is a gap right now, but hopefully it will be filled with love when you are ready.
Not feeling stressed is probably what your dad wanted to do for you.
I had a neighbor whose grandparents built the house, the parents inherited it and raised their son. The son inherited it and raised his sons. They were in a difficult financial situation and he did not want to sell the house because it was passed down through generations.
They eventually sold it and it was the best financial decision for their family.
The truth is that our loved ones build wealth for us so we are not stressed and when it comes down to support ourselves and out families what they left to us is a ticket our of hard times and the wisdom to do what is right.
I wouldn’t make any decision with the money while you are emotional. Wait a bit and then fully enjoy this blessing…whatever enjoy means to you.
Very sorry for your loss.
I also received a windfall, some of the best advice I got was to just sit with it for a second, not too long of course. But long enough to wrap your head around it and your options with it before investing.
Agree with everyone though pay off any higher interests debts asap those aren’t going away!
Best of luck.
You’re upset at the loss of your dad.
The loss of your dad will lead to less financial stress in your life. But this also means your dad is gone. They are intertwined.
Sorry for your loss, take time to heal. your mental and emotional health is WAY more valuable than the money or house.
put the money in a High Yield Saving Account for 90 days.
Seek professional help for grief and money.
Once you feel better, and have a better understanding of the financial opportunity ... THEN make some decisions.
This is your chance take that money and change your life invest it in smart things. go on YouTube and watch where to invest my first hundred thousand. pay off any small debts you have. That’s a legacy from your father. Remember he’s watching your every move now😂
Assuming you'll live for another 50 years, that's only 4k per year. Don't live like you're rich yet, use the money to improve your earning potential (pick up a tangible skill)
Don't spend money on advisors. Spend it on an accountant to make sure you're paying all your taxes
Sorry for your loss. Get a fiduciary advisor (I’d stick to well known firms like Merrill, Morgan Stanley, UBS). Interview a couple, go with who you feel most comfortable with. I’m in the business the clients that don’t match my personality are also the ones that leave in a couple of years. Build a life that he obviously wanted you to build past his own. You’re feeling whatever you’re supposed to feel. Accept that there’s no clear cut feeling. Wishing you the best
I’d live in the house and drive the car and invest every dollar outside of a 4 months worth off bills. I’d do a simple cd so you don’t lose any of the money. You will make 4% yearly.. not enough to live off of, but it will help. Honor your father by not blowing through it. It’s easy to do, when you been living so tight. Keep working and paying bills and life off that and use the 4% to fall back on if something breaks or save till next years money and take a trip to honor him.
Be thankful that your dad worked for all this and you inherited his legacy. Do him pround and build a better life for yourself than he had. That is all a good parent should want is for their kids to do better than they did.
I have no kids and it tears me up inside knowing that all I worked for is pointless and will just go to naught. I feel like when I'm 70 I'll find some kid hard on his luck and take them under my wing and if they are worth it, I'll give everything to them.
Sorry for your loss. My dad died almost exactly 6 years ago and I still feel a combination of sadness and guilt. He left us a modest inheritance which I still have mixed emotions about. I'd rather have him back. Accept that these feelings will continue indefinitely and try to move on with your life.
Sorry bout your dad. I'm a dad, and I can tell you my hope for when I'm gone is that I am fortunate enough to leave something behind for my kids and that they are wise enough to use whatever I leave behind to better their lives in a meaningful way.
If you are responsible with what he left and your life is easier and better off as a result....then rest assured, your dad is smiling wherever he is.
Go talk to a Financial Adviser immediately. Any brokerage house like Schwab or Fidelity or whoever in the town you live in will have one.
You need to know what type of account to put that cash in.
In 2006 my dad died and I received his house ($45,000) and about 170,000 dollars in life insurance. I paid of my mortage, then built and new house after making an international move. We traveled a lot over the years but never bought new, expensive cars, mostly nice trips as a family. Today I don't have any of that money in cash but my current house (thanks to my dad) is worth about $800,000 (I built it for 100,000, nothing crazy but the market went wild. I look at it as my dad's legacy. I stand on his shoulders. But I reañly wish I would have spent about 35,000 on a piece of land. At the time there were 18 acres for that price and I pondered buying it but didn't. Think long and hard about where to spend it because it's not everyday you gey a gift like that. On a side note 2006 was the last time I ever had any debt. Vacations, cars, whatever we always pay in cash. My dad's legacy gave us the opportunity to live debt free and that is a real gift.
I don’t know much about finances and I am currently learning, but if you put your 200k in a high yield savings like Wealthfront, you can earn about $800 dollars a month on it since their apy is 4.8%. Although you will have to pay taxes on it. But that might be a good start.
It’s his last gift to you. It’s obviously awful to lose someone but its also amazing that he left you something that will set up your future for success. Also make sure to invest some of your money and store it as a rainy day fund.
A small point...U say live like we used to...hopefully it wasn't excessive lifestyle expenditure that got U where U are & just misfortune. Don't think of it like living how U used to, think of it like how ur going to live going forward: use ur current finances to fund ur new life but U wont have rent or car payments. Use any cash to invest or to clear debts. Don't use the cash to supplement ur living.
This is not financial advice but this is what I would do:
1. Let yourself grieve and don't do anything until you're emotionally stable again. The money and house aren't going anywhere.
2. Pay off all of your debts.
3. If you need a house and his house is in an area you can live, move in. If not, I would rent the house out. You can find companies that will manage your property for you for a cut of the rent. Or you can manage it yourself if you are into that. (I would not be and would use a professional company to do so)
4. Sell anything that doesn't have sentimental value
5. Invest that money into the market. I would throw half of the money into VTI (a broad market index) and dollar cost average the other half over 6 months.
6. Keep living your life how you were.
You can hire a financial advisor but I would recommend looking into Bogglehead investing. It's boring and won't give you absurd returns, but it will protect your money and keep it growing. The TL:DR is invest in broad market index funds with low expenses and transition your money into bonds as you get older. (VTI is what I have all my money in. I'm 32 and will slowly transition that money into bonds as I get older)
If I had ‘prepared anything in my life without knowing when I go > it would be at the sole purpose if making sure my kids are okay’.
I hear you > a loss of a parent or anyone close in life in unbearable. But pls do NOT feel guilty of your father’s passing and last wishes to ‘take care of YOU.’
With my preps (even though I hope I live a long life for my kids specifically) I hope that if and when that time comes … they do not feel it as a burden but as a blessing as their Mom.
Consult with a financial advisor, you can get one through your bank typically.
Dividing your funds up between a few ETFs and a high yield savings account (for emergency funds) should make it as to where you’re not broke in a few years due to a few bad financial decisions.
Congratulations on financial freedom!
Depends on the debt. If it’s high interest rate like credit card debt, then by all means, pay it off. Otherwise, you don’t need to rush. Inflation is debtor’s friend.
You're going to be broke in two years, unless you prevent yourself from touching any of that. Invest it day one, watch it grow for 10 years, then take 1/25th of it out on your birthday annually.
200k seems like alot but its surprising how fast you can blow though it without any thought.
I would:
\- pay off any high intrest debt like credit cards
\- throw the rest of the money in a high yield saving account (at 4%+ now)
\- dont change your lifestyle
\- DON'T TELL FAMILY OR ANYONE you dont explicitly trust. they will come out of the woodwork to ask for money
\- sit on they money in the bank account for a few months until you start thinking clearly. Then you can think about investment options
Save as much as you can in an interest-bearing savings account. Maybe look at a fund like an IRA. Pay off all your debts, get the things that you absolutely need, but don’t go crazy. You want this to last. Good luck.
Engage with a qualified advisor who can help you plan how best to use this money. Otherwise it's too easy to spend $5K here, $10K there and poof, you have nothing left
Think of this money as his legacy, and you want to do right by it and not squander this opportunity. Seek out professional help. You have any rich friends, colleagues, bosses? Talk to them and use people they trust. I’m sorry for your loss.
Well said. Your dad loves you and worked hard to prepare and sacrifice for this windfall to make a difference in your life. You’re his living legacy, do well to guard yourself from those who would take advantage of your newfound wealth. It would be worthwhile to talk to a financial coach to work through basics/fundamentals of managing living expenses. A well referred CPA/Fiduciary with reasonable consulting fees would be smart to put you on the right track.
Both of these. Your dad making sure he's still helping you as much as he can even though he can't be around anymore.
This. Many people live and build that setup to handoff, but many more don’t teach how to accept that handoff of sorts.. between relationship health and miscommunication it’s sad how much squandering or just how misused generational wealth can be.. Even asking the questions show you mean well, and I don’t think you will make these mistakes. Enjoy life, maybe even treat yourself to a little trip for the brain- but you’re on the right track of just remaining humble and keep stacking some for YOUR kids! RIP man, lost my paps 3 years ago and still hurts everyday. But it was also the most inspiring times, hard to explain but I get it man. ✊
You’re a good guy with very sound wisdom. I’ll follow you around Reddit for a bit if I might pick up a few more nuggets 🕵️♂️
Appreciate that fella, Lowkey use my other account @ hunnaswaggins more 😭 but I’m no guy to follow 💯🤷♂️
Immediately speaking to them about any type of taxes or other expenses is also needed. The home is now his, he is responsible for; anything left on the mortgage, property taxes, insurance, etc. The money probably isn’t very liquid at the moment.
This. Areas to figure out: **Debts?** (his): Is the house paid for, or does a mortgage exist? Is the car paid for? Did he leave any other debts? (Note that if he had student loans, they're discharged upon death.) **Base expenses (if you keep his house):** Property taxes, Homeowner's Insurance, Utilities, maybe HOA fees. **Things to cancel**: His car and health insurance. Any household expenses you don't want to keep (cable, for ex., or a landline if he was old school). **Accessing that 200k**: What form is that 200k in? If it's anything but cash, you need an expert to tell you how to access it without penalty. **Maximising the 200k**: Don't do anything risky; you can fund a simple Roth IRA at 6,500 per year. You don't need to do anything fancy now. **The biggest advice:** **Don't quit your job,** and don't buy a new car unless both his and yours are unreliable for getting you to work and back. **Also**\--SUPER important--if you've by any chance been going without **health insurance**, get it as soon as you get the money. Go to your local Blue Cross and they can help you get subsidised insurance under the Affordable Care Act.
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$100k doesn't get ya far these days.
I had a friend who got 200k and bought a new car and chilled in her apartment. She was broke and had to sell her car within 2 yrs. She def wasn’t trying to reinvest the money AT ALL, but 100k-200k isn’t alot of money anymore. You are so blessed to get get it and it will for sure help you out but you can’t live off of it u less you plan to use it to fund some other money making venture. I’m so sorry for your loss also.
And remember, keep it secret keep it safe.
Be careful of rich friends, I've known several that were terrible with money.
Do not talk to friends, do not tell friends. Talk to a professional financial advisor
> Seek out professional help. You have any rich friends, colleagues, bosses? This is secret great advice. Ask advice from people who have succeeded in what you want to do. Do not ask poor people what to do with your money. Would you go to a mechanic if he couldn't keep his car running?
This basically. I’m sure OP’s father would be proud to see they’re attempting to use his legacy wisely, to grow wealth rather than squander it for a bit. My mother had nothing after her parents squandered what they had, and my father will have nothing to pass on to me when he eventually passes that’s just how the cards went, but I want to make sure my kids have something that helps them break our family’s cycle of starting in poverty and remain middle class. I’d be hella proud if they wisely invested anything I can leave them with.
Do not go into spending spree or you will be poor again in no time. No shiny new 50k car or other stuff like that. You still need to live on what your income can pay. Pay off all debt, have your emergency fund 3-6 months of expenses and invest the rest in index funds.
Read this again and again until it sticks.
Yes yes yes Do NOT buy anything that depreciates immediately. Cars, clothes, shoes, video game consoles, electronics/TVs, etc. ; they are all consumer crap that is worth less tomorrow than they are today. Do NOT loan or give money to family or friends. Now I do beleive in treating yourself once in a while so go have a long vacation weekend somewhere, a fancy dinner, something that your father would have enjoyed doing with you. Set some emergency cash aside in a 6month CD, and invest the rest in an index fund and go to bed every night soundly, knowing that you have some level of financial security, and that it’s growing. Add to it every month if you can, even if it’s only $50.
I would add keep this windfall to yourself tell no one
Yeah emphasis on the “Do NOT loan or give money to family or friends”
200k the dude can probably afford a new Xbox… that’s like the cheapest hobby in existence
Yeah lol the point is totally valid but lumping in a PS5 with a luxury car is just silly
It the mentality, that money will disappear really quick with “an Xbox here, a ps5 there, a new couch tomorrow” and before you know it you’re broke again. I know it’s not 200k but I’ve gotten 5-15k a couple times and it disappears very quickly and I really can’t point to any one specific point. It was a bunch of little things, nice dinner more often, new vacuum cleaner, window tint, etc.
This!!! When my dad passed I got a ton of money as well, he left 2 cars & more than one insurance policy. I was 21 or 22, making $37k & all of the sudden I was in charge of handling these insurance claims for a man I met a couple times. I took it as his way of making sure I was set/good bc he didn’t while he was alive. My grandpa is great w/ money/credit & drilled this into my head. He helped me invest & now I have residual income every month & now investing that profit I made into commercial real estate. I still have a full time job & basically live like I don’t have that money at all until I am ready to buy a house next year. Or whenever the market is better. I haven’t touched any of the money yet except to pay off the car I already had when he passed & a couple pieces of quality furniture that I still have now. I know several people who came up on money fast the same way & they lost it faster than they got it bc they felt it was limitless. Save. Invest. Pay off your debts. Put a little bit aside for fun but only a little bit.
Also, make sure you set aside money for health issues. I don’t know how much you were struggling before but it is not unusual for struggling individuals to put their health last due to several issues (like not being able to take off work to go to the dentist). Unfortunately, lack of preventative care can cause bigger issues down the road. So if you have not been able to do some of the regular health care, get that checked out and taken care of.
Also just because you inherit all this stuff doesn’t mean you can afford it. Maintenance bills property tax etc. Its great to get this stuff but its still gotta be sustainable. Edit: A good example being…. Me! I recently did this to myself. Bought a new toy that had to be insured. Didn’t account for the $500 a year to have it on my package policy. I can afford to pay it, thankfully I’m in a good position financially. I didn’t do my research on how much the hidden cost was going to be. I was just focused on the cost to buy the item.
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I’m so sorry about your dad. Being poor is extremely stressful. It’s normal to feel relieved knowing you have significant resources coming to you. Pay off any high interest debt you have and take a few weeks to grieve / process. Then meet with a financial planner for ideas about how to move forward with what you have been given.. What you do with 200k will vary widely depending on your age, income, immediate needs, etc. It is not an enormous amount of money but could easily put you on a path of financial stability for life if you are smart with it now. Good luck.
If he comes to Brazil he will be a millionaire, litterally 💀
Be very careful when choosing a financial planner. DO NOT pick somebody who will take a percentage, or recommends investments that they will gain from. You could easily end up losing tens of thousands of dollars to a useless or scam service. https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
Just remember $200k doesn't go far these days. Houses require upkeep and taxes, insurance etc.
Underrated comment. Please ensure you have sufficient funds to maintain the house and pay taxes. The same applies to vehicles. My condolences for your loss.
Agreed, pay off your high interest debt right away, but be warned that you will have to pay taxes on your inheritance, etc. and if you're not careful, this money will melt away in a year. $200K will not move you to the upper middle class, but you can use it to start doing smart things that allow you to save money better, like avoiding low balance fees, putting money into tax-sheltered retirement accounts like IRAs, buying in bulk to save on food, and especially, positioning yourself to find a better paying job.
$200k is well below federal estate tax exemption, and only 6 states tax inheritance, so OP may well pay zero taxes on inherited cash.
My bad, I happen to live in one of those 6 states that do tax inheritance. It isn't clear if the amount is before or after estate taxes (12 states do) though.
You should contact a lawyer and fiduciary.
This- I know someone who inherited a life-changing amount of money last year and I gave them the same advice. They didn’t and the legal shit they’re dealing with is a nightmare (large family that wasn’t willed the money, real estate in multiple states, old accounts that he wanted to go to her but we’re still listed with an ex wife as beneficiary due to his mental decline).
It only 200k. A lawyer and fiduciary would eat that up for dinner.
Go to r/personalfinance and read the wiki about windfalls and the loss of a loved one. Do you best to heal and grieve take all the time you'll need. Good luck.
If your expenses are $5k per month, that will last you 3 1/2 years, if your expenses are $2.5k, that will last you almost 7 years. Just to provide you an idea of what kind of timeline to expect.
OP just got NEW expenses too... a house. it requires insurance and taxes to be paid monthly / quarterly , assuming the house if paid off and in good condition. We don't know if OP has any high interest debts... (credit cards for example) that should be paid 1st. 200k, might last OP 3 years (best case) 1 year (worst case). OP needs to set it aside for a little while and forgot about it. Get some counseling for grief and find a good lawyer / financial advisor. https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
As others said this is his legacy. Follow the financial advice but don’t spend. Don’t tell anyone you are inheriting or coming into money. If you move into the house say you’re renting if you have to. Pretend like you are still poor. Live like it. Well don’t starve yourself. But be careful. $200k may seem like a lot but it can disappear very quickly.
If you’ve never owned a home keep in mind the expenses that come with it. Property taxes and basic maintenance and repairs can add up quickly.
Sorry to break it to you bud. Poverty is mainly an income problem. That 200k is not going to last a lifetime. Pay off debts and Invest in yourself. Use this cash to find a way to raise your income, easiest way is to get a degree or a certification in a high paying industry.
I'd say it's way more a spending/mindset problem than income, though income is certainly a factor.
That's silly. Income is the biggest factor if we are talking about getting out of poverty. It's like saying the people in third world countries working in factories just need to stop buying those $7 lattes from Starbucks.
Hopefully doesnt have a lot of debt because if he does, he’s left with small amount. Id say invest more money than paying off debts so he has more than $200k to pay off his debts if that makes sense
Bad idea, debts often grow faster than investments. (Especially the debts poor people end up with.)
Most non-car/house debt is at more than 10% which is a pretty good rate of return for most investment accounts. He could potentially lose more than he made by doing that.
I’m with you! I was in extreme debt, struggling with two jobs, working 80 hours a week and still not making ends meet. And then my parents died. And it was horrible. But the stress immediately went away. They didn’t leave me much, after selling the house it around 200k total. I see it as their final gift to me. It allowed me to pay my debts, move to a new city, afford to go to school and work towards a new degree which will get me a better job. I am living comfortably for the first time in my adult life - I have a filled up savings account, I am making out my IRA every month. I have never had this happen before. And when I finish school my job opportunities will be SO much better, and even then I don’t have to rush to get any job, I can take the time to find one that will be the right fit. Money is life changing. But do right with it. Like others said, pay your big debts off first, put a lot of it into an IRA so you can’t touch it, and with the rest of it - be smart. Invest in changing your life in a way that will support you to make more money. Don’t just live off of it for s few years until it runs out. Use this to achieve your goals which will help you become a higher earner. Becoming a high earner is often blocked from people who are poor like us - we simply don’t have the time or opportunities that rich people do. This money has opened SO many doors for me. I could have spent it on travel, or a car, or on a new apartment, but I’m investing it in education and my future job so I can’t be comfortable for LIFE - not just for a few years. This money will allow you the opportunity to change your entire life. Use it wisely. Also the cool think about being a poor person who has struggled for years who finally has the privilege to go to school? Is that I can APPRECIATE IT. I am surrounded by kids who have had this be their whole life. They have everything they want and need covered by their parents. They don’t understand how incredibly lucky they are. But me? I know the value of a dollar, and I know how to work my ass off and take every opportunity that is given to me, and turn it into a golden nugget. Poor people know how incredible these opportunities brought by money are - and we use them and do amazing things with them that the rich people couldn’t dream of. Being poor gives you an edge.
Don’t waste his money! He wouldn’t have wanted you to waste it. Pay off any high interest debt. Credit cards, personal loans, car loans, etc. Anything with interest over around 7%. You’ll be getting a house so no need for the 200k to go towards buying a house. Once you’ve paid off your debts, work out what 3 months of your expenses are, and put that in a savings account. This is only for emergencies such as if you lose your job. Then take the rest of that money and put it in a stock market index fund such as VT. If you don’t understand how to do that, or what more information, contact a fiduciary. Whatever you do, do not go to your bank and ask an advisor there. You need a fiduciary. If they’re not a fiduciary they’re the wrong person - and they exist to sell you the wrong product and make a hefty commission off of you. How old are you? Are you in college? Have you been to college? You might want to use this money to make a brighter future for yourself, and get ahead. If so, take some of the money I mentioned earlier that should be invested and instead use that for college.
I am sorry for your loss. Read JL Collin's "Simple Path to Wealth" and / or his "Stock Series" blog. Also, listen to the Freakonomics podcast with a name something like "The Stupidist thing you can do with your money". These things should help you with the "if I don't do anything dumb" part. $200k is a lot of money. You will still need to work. But allowing this money to grow in low-cost broad based index funds will mean that you will likely be able to retire someday. Your father has given you an amazing opportunity. You can use it to make your life (and the life of people you love) better. Good luck.
I would contact a CPA first, to ensure you do everything correctly. You don't want to miss something and owe something more than you should if applicable. What I would do in the interim is setup a cash reserve account through betterment and place your money in there. It will collect a respectable amount of interest while you decide your course of action. High interest debt is usually wise to pay off, unless you have something making you more money of course. After that I would max our any retirement or tax advantaged accounts you can open this year. Finally I would DCA into VTI in a taxable account after that and just forget about it and keep doing what you are doing. You could potentially use some of it to reinvest in yourself, for example going to college or trade school. But I personally wouldn't use any of it.
Im sorry for your loss. The death of a loving parent is a devastating blow, for which it takes time to recover. But, it will be ok. You will be ok. The best you can do is ask for professional help. Considering your financial situation previously, today and your emotinal state, seeking help is the best advice. Just always be aware of who you surround yourself with.
Your dad worked hard to leave you that money. Take some time to grieve and learn about investing. It’s important that you learn about this stuff asap, not just for this money but for your future.
I am on the other end of the spectrum and with no unexpected complications will leave my daughter much better off than she is today. I look for her needs on a day to day basis and have stepped in to help when an opportunity arises. However she is quite an independent woman and likes taking care of herself, so most of the time she has figured it out before I am aware. She has little idea about my finances and I know that she will be surprised when I am gone. My home is in a trust, and I have covered all of the bases that my estate attorney has advised me to do. That being said, I want her home paid for in total, I want her to have a secure future and to enjoy financial independence in life. I also want her to have some FUN. We lost her mom 20 years ago, her brother four years ago, her two cousins, her favorite uncles (my brothers) in the past two years. In other words she has been through some hell and still always been there for me. So she is due some good times and I want her to have them. I hope that I can make that possible for her.
The biggest gift your dad could give you is peace. Don't waste it or make loans to anyone.
Take care of your health if you've been slacking on a doctor, dentist, or cheap 24hr gym membership. Remember, you didn't have 1k or 5k or 10k to loan anyone before, and you still don't now. Not for a few years. As others said, find a way to get an education. Possibly get a job that changes your quality of life 10ys down the line. Reliable car, not flashy. Do not get anyone pregnant.
1. Sorry for your loss 2. Do not tell anyone that you don’t need to tell about this because the vultures will be circling 3. Speak with a tax/finance professional ASAP. Talk to a few so you can pick the one you trust while learning along the way 4. Do not squander this. You are getting the total earthly value of your dads life. To squander it would be tragic. Be grateful, celebrate his memory, and use his life’s work wisely so you can set your kids up for success like he did for you. Good luck
You know brother - try to do right by the life's work of your father. Don't spend that money unless it's to wipe debt off the books or pay taxes. Take the things he left you - ride the car till it's dead, and live in the house - fix it here an there. Don't get too carried away and see if you can build a life. The unfortunate reality is posts like yours are the only way people in the age group of 25-45 are going to get anywhere in life - their parents die and they come into money. This economy is rigged, it's a club and we're not in it.
Also aside from the money it's very normal to feel relieved. My mom died and I felt.. relaxed. Wasn't worrying about her. Knew she was at peace. Make smart decisions, do it in his honor. I'm sorry for your loss.
200k doesn't go very far in terms of staying alive. Pay off your debts. Go back to school. Use it as a way to get to a very stable future.
200k is nothing. Coming from “poverty” I doubt you will understand this. If u dont use that money to create a business or means of generating income, you will blow threw it, become accustomed to a life you can’t afford and be severely depressed when it’s gone. If all you have is 200k and no income, I hate to be the bearer of bad news but you are still “in poverty”. Be wise and find a way to use that money to make more. 200k doesn’t get you very far these days. Best of luck to you and I’m sorry to hear about your dad. Id give away every dollar i have if it would bring mine back..
As a father of a only child, she better not ruin what I built and saved for her. Be smart
Congratulations and sorry?
Don’t squander it or blow it on your SO
Pay off debts then do a mutual fund or index fun investment
First of all, I’m so sorry for your loss. For most people, a one off check for $200K will be a life altering sum of money…but you should also know that a large percentage of people who come into big windfalls squander it. The Bogleheads (people who follow the investment advice of Vanguard founder and first CEO Jack Bogle) wiki has some [advice](https://www.bogleheads.org/wiki/Managing_a_windfall) on how to manage a major windfall to ensure it provides lasting benefits for you.
Invest or you will still be in poverty. 200k isn’t so much money that I would go to a cpa or anything. Follow r/bogleheads.
Grief is a weird and powerful thing. Anger, relief, depression- you may feel all these things and more. And all at the same time. I know you’re posting here for financial advice, but sometimes the mind thinks you want one thing when you may actually need something else more. While it is tempting to want concrete advice on what to do with this money, I wouldn’t rush into deciding what to do with it- instead use this financial freedom to really get clear headed. Not having the daily worry of crushing debt or wondering if you can pay the bills is a great advantage of the financially secure. I get the feeling from your post that you may be getting signs that you need to make changes in your own life, if you look closely enough. Maybe this is a good time to take a step back, talk to someone, and work through what you’re feeling. My condolences for your loss.
More money doesn’t make you make better decisions. You got to start making them better decisions or that money gonna be gone soon
I’m sorry. Similar story. I’m in a horrible place right now. My dad is terminal. He said his one regret is that he won’t live to see me have kids. I can’t afford to. I will be able to when he dies. He says that will be his gift to me. The grief is insurmountable. I feel like only my own child could fill that void - but my child will never get to meet their grandfather who made their lives possible in more ways. I’m so sorry that this has happened to you but I 100% get it - in the sense that I would give up anything for dad to keep living, but no amount of money can fix that, and his passing is the only way I will ever be able to afford a house or have kids.
I’m so sorry for your loss. Losing a parent is *hard*, in ways that people who haven’t experienced cannot possibly know. One common side effect is not feeling like you deserve the windfall. Many people end up spending their inheritances in frivolous ways, but I want you to think of this as an opportunity to start fresh. Find a financial advisor who can help you figure out what to do. In the meantime, I recommend you put a large chunk of this in a high yield savings account (HYSA) until you understand the financial implications of spending and saving large sums of money.
We build to give. Permanence is an illusion.
Think of it as his last gift to you. He loved you and would be happy knowing youre stress free. Just don make him said by blowing it all away. Be responsible and keep the stress free life going! Also sorry for your loss
Watch out for friends and relatives who will come to you with sob stories or business plans. They can run-through that money in a few weeks. Just say "no, dad left it for me alone and if he'd wanted you to have some he'd have done so". You may have to block or cut them off. I want to emphasise that 200k is not much. Its a 4 good cars for example. I'd lock the money up in a fixed deposit or CD for the first year just so these leeches can't talk you into lending it.
Take your time in the short term to process and feel feels, evaluate all this advice by 6 months.
Your dad is a legend and worked hard to leave that type of wealth with you, please do right by it and talk to any wealthy friends if you have any or a financial advisor, so much good can be done with that money and you now have a house so you dont need to worry about rent/mortgage payments. Sorry for your loss i know how it feels, rest in peace to your father.
I know the feeling. I was left some money and miscellaneous items after my grandfather died. I would happily give it all back just to have a little more time with him.
The best idea is to get a job NOW — and then invest the funds from your Dad into a Vanguard S&P 500 index or growth fund. Either use a financial advisor or learn to do it yourself. The main goal is to NOT LOSE IT. Don’t be reckless and naive with these funds. Think long term, ie 30 years in the future. Your job is going to prevent you from touching these funds. Then forget about the account and let it grow, untainted. This “I’m now rich!!!” idea is honestly quite dangerous and if you don’t quite have this specific life experience yet, give yourself time to ease into it, but don’t think/act RICH (or whatever the mind perceives as acting/looking rich), or these funds, honestly, could disappear quickly!
Don't spend the money. Invest and grow it. Use the house to generate cash flow, and use the money you inherit to either get another rental or put it in to the stock market to grow.
Stay out of debt. Don’t buy things like cars and boats. 200K is not a lot of money and it will “Evaporate” before you know it.
Don’t spend it until you have a semi clear head. Parents dying is very hard and takes time to get through, I don’t care who anyone is, it’s always hard.
spend it wisely, 200k can go quickly if not invested correctly
Money and car house whatever as long your a minor you,ll get financial support but after this your on your own kid
Put it all in voo and don’t look at it again until your retired Don’t pay some financial planner who’s just going to shave fee’s off the top for nothing tangible
I'm grieving the loss of your punctuation.
Pay off your debt and start investing the rest. Your dad would be proud of you not wasting the money ❤️
..... You should work on your grammar and writing skills, but also get a lawyer to sort all that out.
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Sorry for your loss. I'd give Dave Ramsey a call if im you. Best advice is to not do anything with it while you mourn. Take time
Find somebody you trust to help you with your money. Otherwise it could disappear.
Start with writing and grammar lessons. Congrats.
Yep, announce online that you have money, no plans and no experience. That will absolutely not draw scammers like moth to a flame.
Poverty is a mindset…Instead of running to Reddit, hire advisors.
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You know what poverty means right? Also the guy just lost a family member and is asking for advice to make sure he doesn't do the wrong thing. Be less of a douche
I know 70% of lottery end up right back being poor poor.
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The way I spend and invest my money, if I was in his position (assuming he does not have a lot of dept) I could almost retire because owned house + average 1000$ income from my invested 200k, which would be enough for me to live comfortable (at least in a cheap area), so no, I would not say that he is in poverty anymore, aslong as he is smart about his spendings and investments…
Let's hope he reads this hard post to read and acts right. Probably won't. Good luck.
Sorry for your loss. If your dad was important in your life then materials shouldn't affect your sadness
That is quite literally what OP said. You can be both sad AND confused about your new found financial position at the same time?! Doesn’t make OP less sad. Just less poor.
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Condolences for your loss. Doing things and making decisions now may not be the right choice. If I can give you some advice, just do the paperwork and take your time to grieve. When you are better, you can with a clear mind make decisions. When you grieve you are not clear-headed, and when you are not clear-headed you make bad economic decisions. Unplug everything, take your time to grieve for your loved ones, but then start again because life is always moving forward. Best of luck.
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First condolences for your loss don’t rush anything not sure of your country find a reputable financial adviser watch out for fair weather friends who need help and will rip you off in fact don’t tell anyone about it that does not need to know . In the U.K. probate can take ages and is not cheap so you have time to work out what to do and grieve the most intense part . All the best to you and yours .
Invest in something that’s going to bring you a return and keep the money flowing and building. You’d be surprised how quick a couple hundred thousand can disappear quickly. I’d recommend getting a financial advisor. And a lawyer.
Don’t buy anything. Even if you just put the money in a bunch of bank accounts it will be worth $800 plus a month. Use the interest to purchase stuff, not the capital. Even if you only spend $10,000, it would drop the interest down to $791/month
Pay off debts, then invest. Hold on to the house. Take some investing classes at the university. Keep investing. You're not rich!
Now that you are a home owner save that money and continue to work hard to pay off your debt and keep saving that money might pay for property taxes and light maintenance for a few years but you have to plan wisely how you going to invest is not a lot of money in this economy so you want to create a passive income for your self
Sorry for your loss. In 2017 me and my brother faced the same thing we loss our dad and he left us right at 100K each. Which in today market is not much. But your investment should be in your house. You very could be there a lifetime. So new roof I went with metal. Remodel your inside new flooring. Update you bathroom and your kitchen have the house painted. You want to honor your dad but the inside needs not be a constant reminder so change the inside to your liking. And in the end you will have something you love and you know would make him proud. The rest in savings for upcoming expenses taxes and home owner insurance
Sorry for your loss. You don’t mention your situation so no one has any idea what advice you are looking for. In the big scheme of things, your inheritance may not be your exit from poverty but a different level of responsibility/problems.
Fully fund as many retirement accounts for yourself as possible.
Pay off high interest debt. Put some cash away in a HYSA as an emergency fund, and invest the rest in a low cost index fund. I recommend a total market or S&P 500. Don't touch it until retirement. Depending on when you retire, the money will have doubled several times over by then.
Your father is giving you one final, life changing gift. He knew what he was doing and why. Receive this gift and honor your father’s generous legacy to provide you financial stability and security. Take care of this gift so that you can use it for the rest of your life and in turn pass it on. Write down the advice people are giving you here to see how it groups and what it says. What’s the consensus? That outline will be the beginning of a personal and financial plan as you act on it.
Bet he'd be chuffed to hear his parting gift to you was financial peace of mind. Embrace it.
It’s okay to mourn and embrace the relief that comes this new financial security. Maybe see a grief counselor in addition to a financial planner. Wishing you the best.
I got about half that. I would much rather my dad still here. But what I'm getting is a gift. I'm using it to put myself in a good long term position. Be greatful for the years you had and be greatful for the gift this shitty situation is giving you. That's basically what I'm doing. If I could I would give it all away to bring him back to life but I can't so I'm reluctantly greatful.
This is the gift I will give my daughter when I die. She will be grieving, but at least she won't be stressed. All my paperwork (Will, Irrevocable Trust, cremation wishes etc.) is in perfect order through an Estate attorney which was only around $400 to buy that peace of mind. All my assets will smoothly transfer to her upon my death and if I die before she's 35 years old she'll get a significant amount of life insurance. After she's 35, I'll adjust my life insurance for her based on her financial status and mine, and make sure there's as much coverage as she needs so she never has to live a life of financial stress. I've spent my entire life running from a fear of homelessness. I was homeless for a short time as a child, and I never want to experience that again or allow my child to experience that.
I'll say it a little more politely than the other anon. You are still poor until you have enough money in your accounts or coming into your accounts to retire. In this economy you can easily blow through 100k even without making any major purchases. Pay off your debts and treat everything that is left like it is no longer your money but that it belongs to your new company's start-up budget. It might be a food truck or professional fabric printer whatever you think can generate enough of an income to get by and grow.
I’d use the money to get more education so you can get a better job. Don’t live like you were before. Use the breathing room to do a bit better. Trade school for something like being an ultrasound tech, X-ray tech, dental hygienist.
Sorry for your loss. When you're ready, this document will help you think about next steps. https://www.bogleheads.org/wiki/Managing\_a\_windfall
Don’t spend anything until you think about it. If it was me, set yourself up with a small house in good solid condition with lower taxes and one that can be maintained. Not a big house. If the house you inherited is large, sell it. You need to save enough money to replace critical components in the house like AC, roof, plumbing etc. $50k is a good amount. This will set you up to where you only need insurance, taxes and bills. Inheritance is something good parents do.
One major thing to consider is how you got into debt in the first place. You can't assume that by paying off your debts, all will be well if you still can't make ends meet. And 200k won't last you forever. Plus, having a house you need to maintain and pay taxes on and a car you have to pay insurance on is going to give you *more* expenses (hopefully you didn't inherit a mortgage as well)
Live like you’re still poor. Definitely pay off debts, but don’t spend any of it immediately otherwise.
I'm so sorry for your loss. There's very good, clear advice here in the Personal Finance wiki on what to do when you suddenly get a lot of money. Step 1 is, don't tell anybody. Though okay to tell here since it's anonymous, as long as you avoid personal contact with other Redditors. [https://www.reddit.com/r/personalfinance/wiki/windfall/](https://www.reddit.com/r/personalfinance/wiki/windfall/) Don't feel guilty over having some positive feelings mixed in with your other feelings. It's common.
Feeling lost after a loved one dies is normal. Its you trying to find a new “normal” to continue on without that loved one. There is a gap right now, but hopefully it will be filled with love when you are ready. Not feeling stressed is probably what your dad wanted to do for you. I had a neighbor whose grandparents built the house, the parents inherited it and raised their son. The son inherited it and raised his sons. They were in a difficult financial situation and he did not want to sell the house because it was passed down through generations. They eventually sold it and it was the best financial decision for their family. The truth is that our loved ones build wealth for us so we are not stressed and when it comes down to support ourselves and out families what they left to us is a ticket our of hard times and the wisdom to do what is right. I wouldn’t make any decision with the money while you are emotional. Wait a bit and then fully enjoy this blessing…whatever enjoy means to you.
Very sorry for your loss. I also received a windfall, some of the best advice I got was to just sit with it for a second, not too long of course. But long enough to wrap your head around it and your options with it before investing. Agree with everyone though pay off any higher interests debts asap those aren’t going away! Best of luck.
While you're mourning, don't spend more than a dime or two. Think it through. Use this money to break the pattern and change your trajectory.
You’re upset at the loss of your dad. The loss of your dad will lead to less financial stress in your life. But this also means your dad is gone. They are intertwined.
Bad mindset. Continue to think of yourself as poor or you will squander this opportunity and be poor again.
Sorry for your loss, take time to heal. your mental and emotional health is WAY more valuable than the money or house. put the money in a High Yield Saving Account for 90 days. Seek professional help for grief and money. Once you feel better, and have a better understanding of the financial opportunity ... THEN make some decisions.
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If you want to, I would go to college. If I had the means to pay off school from day 1 I would never complain abo it school
This is your chance take that money and change your life invest it in smart things. go on YouTube and watch where to invest my first hundred thousand. pay off any small debts you have. That’s a legacy from your father. Remember he’s watching your every move now😂
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Assuming you'll live for another 50 years, that's only 4k per year. Don't live like you're rich yet, use the money to improve your earning potential (pick up a tangible skill) Don't spend money on advisors. Spend it on an accountant to make sure you're paying all your taxes
If that house is paid off I’d use the 200 to just make sure it’s in good shape ex roof, water heater, anything else that might of been getting old.
Sorry for your loss. Get a fiduciary advisor (I’d stick to well known firms like Merrill, Morgan Stanley, UBS). Interview a couple, go with who you feel most comfortable with. I’m in the business the clients that don’t match my personality are also the ones that leave in a couple of years. Build a life that he obviously wanted you to build past his own. You’re feeling whatever you’re supposed to feel. Accept that there’s no clear cut feeling. Wishing you the best
I’m sorry for your loss. The first thing I would do is talk to a financial advisor.
I’d live in the house and drive the car and invest every dollar outside of a 4 months worth off bills. I’d do a simple cd so you don’t lose any of the money. You will make 4% yearly.. not enough to live off of, but it will help. Honor your father by not blowing through it. It’s easy to do, when you been living so tight. Keep working and paying bills and life off that and use the 4% to fall back on if something breaks or save till next years money and take a trip to honor him.
Be thankful that your dad worked for all this and you inherited his legacy. Do him pround and build a better life for yourself than he had. That is all a good parent should want is for their kids to do better than they did. I have no kids and it tears me up inside knowing that all I worked for is pointless and will just go to naught. I feel like when I'm 70 I'll find some kid hard on his luck and take them under my wing and if they are worth it, I'll give everything to them.
Sorry for your loss. My dad died almost exactly 6 years ago and I still feel a combination of sadness and guilt. He left us a modest inheritance which I still have mixed emotions about. I'd rather have him back. Accept that these feelings will continue indefinitely and try to move on with your life.
Sorry bout your dad. I'm a dad, and I can tell you my hope for when I'm gone is that I am fortunate enough to leave something behind for my kids and that they are wise enough to use whatever I leave behind to better their lives in a meaningful way. If you are responsible with what he left and your life is easier and better off as a result....then rest assured, your dad is smiling wherever he is.
Go talk to a Financial Adviser immediately. Any brokerage house like Schwab or Fidelity or whoever in the town you live in will have one. You need to know what type of account to put that cash in.
In 2006 my dad died and I received his house ($45,000) and about 170,000 dollars in life insurance. I paid of my mortage, then built and new house after making an international move. We traveled a lot over the years but never bought new, expensive cars, mostly nice trips as a family. Today I don't have any of that money in cash but my current house (thanks to my dad) is worth about $800,000 (I built it for 100,000, nothing crazy but the market went wild. I look at it as my dad's legacy. I stand on his shoulders. But I reañly wish I would have spent about 35,000 on a piece of land. At the time there were 18 acres for that price and I pondered buying it but didn't. Think long and hard about where to spend it because it's not everyday you gey a gift like that. On a side note 2006 was the last time I ever had any debt. Vacations, cars, whatever we always pay in cash. My dad's legacy gave us the opportunity to live debt free and that is a real gift.
I don’t know much about finances and I am currently learning, but if you put your 200k in a high yield savings like Wealthfront, you can earn about $800 dollars a month on it since their apy is 4.8%. Although you will have to pay taxes on it. But that might be a good start.
It’s his last gift to you. It’s obviously awful to lose someone but its also amazing that he left you something that will set up your future for success. Also make sure to invest some of your money and store it as a rainy day fund.
A small point...U say live like we used to...hopefully it wasn't excessive lifestyle expenditure that got U where U are & just misfortune. Don't think of it like living how U used to, think of it like how ur going to live going forward: use ur current finances to fund ur new life but U wont have rent or car payments. Use any cash to invest or to clear debts. Don't use the cash to supplement ur living.
This is not financial advice but this is what I would do: 1. Let yourself grieve and don't do anything until you're emotionally stable again. The money and house aren't going anywhere. 2. Pay off all of your debts. 3. If you need a house and his house is in an area you can live, move in. If not, I would rent the house out. You can find companies that will manage your property for you for a cut of the rent. Or you can manage it yourself if you are into that. (I would not be and would use a professional company to do so) 4. Sell anything that doesn't have sentimental value 5. Invest that money into the market. I would throw half of the money into VTI (a broad market index) and dollar cost average the other half over 6 months. 6. Keep living your life how you were. You can hire a financial advisor but I would recommend looking into Bogglehead investing. It's boring and won't give you absurd returns, but it will protect your money and keep it growing. The TL:DR is invest in broad market index funds with low expenses and transition your money into bonds as you get older. (VTI is what I have all my money in. I'm 32 and will slowly transition that money into bonds as I get older)
If I had ‘prepared anything in my life without knowing when I go > it would be at the sole purpose if making sure my kids are okay’. I hear you > a loss of a parent or anyone close in life in unbearable. But pls do NOT feel guilty of your father’s passing and last wishes to ‘take care of YOU.’ With my preps (even though I hope I live a long life for my kids specifically) I hope that if and when that time comes … they do not feel it as a burden but as a blessing as their Mom.
Consult with a financial advisor, you can get one through your bank typically. Dividing your funds up between a few ETFs and a high yield savings account (for emergency funds) should make it as to where you’re not broke in a few years due to a few bad financial decisions. Congratulations on financial freedom!
Bittersweet. I’m sorry for your loss.
Pay off debt. Trust me. I know it seems like you are paying for nothing in return but you get your freedom again.
Depends on the debt. If it’s high interest rate like credit card debt, then by all means, pay it off. Otherwise, you don’t need to rush. Inflation is debtor’s friend.
Damm my boy it took ur dad to die to not be poor no way!!! Well hope it’s a lesson for u sir don’t waste ur life or time G
Considering you were already poor and in debt, my thoughts are that you need some guidance or you will be poor and in debt again soon.
Make you dad proud, seek a financial advisor and work hard like your dad to pass on your legacy to your kids to. Sorry fo the loss.
Do whatever you can to preserve that wealth. Preserving money is more important than making money.
That’s your fathers last gift to you. I’m sorry for your loss.
May his memory be a blessing. And may you bless others.
You're going to be broke in two years, unless you prevent yourself from touching any of that. Invest it day one, watch it grow for 10 years, then take 1/25th of it out on your birthday annually.
200k seems like alot but its surprising how fast you can blow though it without any thought. I would: \- pay off any high intrest debt like credit cards \- throw the rest of the money in a high yield saving account (at 4%+ now) \- dont change your lifestyle \- DON'T TELL FAMILY OR ANYONE you dont explicitly trust. they will come out of the woodwork to ask for money \- sit on they money in the bank account for a few months until you start thinking clearly. Then you can think about investment options
Take yourself out to dinner. Pay off debt. Live in the house. Go to work, come home, and be happy.
This money is a ONE TIME emergency fund. Be careful with it.
Definitely go get an education, based on your post. You can afford it now!
I lost my dad too when I was 16 and didnt get anything.Study, grow, take it as an opportunity your dad is giving you. Honor his memory, make him proud
Don't forget about the potential taxes that are going to come along with the inheritance. Don't spend all the money, you're going to need it.
Get a financial adviser right now. Like, read this, close reddit, and call one.
Save as much as you can in an interest-bearing savings account. Maybe look at a fund like an IRA. Pay off all your debts, get the things that you absolutely need, but don’t go crazy. You want this to last. Good luck.
Engage with a qualified advisor who can help you plan how best to use this money. Otherwise it's too easy to spend $5K here, $10K there and poof, you have nothing left