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.
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.