Be Conservative with Inheritance
Evelyn in Ontario is 21 and still in school. She has no debt but has inherited $250,000 from her grandfather and doesn’t know what to do with it.
QUESTION: Evelyn in Ontario is 21 and still in school. She has no debt but has inherited $250,000 from her grandfather and doesn’t know what to do with it. Dave advises Evelyn to be conservative and teaches her how to allocate the money.
ANSWER: I’d say your grandfather is a real good model for you. It worked out okay for him, didn’t it? There are two things accomplished there. One is, I try to find people who are winning and do what they’re doing. Your grandfather was a winner. Let’s mimic him. The second beautiful part about that is you will honor his memory.
Let’s be conservative. Let’s not be impulsive. Let’s not be spending.
I certainly think that the best investment you can ever make is in yourself. That’s called education. We could invest $20,000 of this money into finishing school. I think you should continue to work some through school so that you don’t put any more than that in. I would limit it and cover your spending money and other things.
Here’s your overall idea: You’ve got a really good head on your shoulders. Your biggest danger is that you might accidentally become influenced by a loser—some turkey out there who has an opinion about your money and your grandfather’s heritage. Both you and your grandfather put together are smart enough to run the entire country. You don’t need anyone else’s input. Use your best instincts.
Be very, very conservative and pay for college. If you keep that value system in place, seek counsel, and never put money in something you don’t understand, you will be just fine.