Relative Left Large Inheritance...What Should I Do Now?

Jeremy was left $110,000 in a Cayman Islands account. Dave runs him through the baby steps an shows him the best way to use it.

QUESTION: Jeremy’s uncle recently passed away and left Jeremy $110,000 in a Cayman Islands account.  What should he do with this money?  Should he leave it in the bank in the Cayman Islands?

ANSWER: You should transfer the inheritance to an account in the US.  You should always do three things with money: give, spend, and invest.  Here are the five steps I want you to take with this inheritance.  

1.    Pay off any debts you have.
2.    Get 3-6 month’s of expenses in a money market savings account.
3.    Take $10,000 and blow it on whatever you want.
4.    Give a 10% to your church or charitable giving.
5.    Invest the rest in good growth stock mutual funds.  

You’re 23 years old so if you invest $70,000 in growth stock mutual funds today, you’ll be a millionaire by the time you’re 45.  You should only invest after you understand mutual funds.  Put the money in a money market until you go to one of our Investing ELPs and learn everything you need to know about mutual funds and investing.

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