$750,000

iVillage Member
Registered: 07-08-2005
$750,000
16
Thu, 07-14-2005 - 9:06pm
what would you do if inhertied $750,000- had no house but no debt and two chldren. Oh- also, neither of the two parents had a job. this is the scenario of a friend of mine and i have been wondering what i would do. Any ideas?

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iVillage Member
Registered: 11-13-2004
In reply to: grippy2005
Fri, 07-15-2005 - 12:51am
Wow, I can't imagine having that much money; let alone what I would do with it! I love Suze Orman-she says if you come into alot of money you shouldn't do anything with it for 6 months to 1 year. This gets you used to the idea of having it and you don't go crazy right away and blow through it. After that, she says to invest in the knowns versus the unknowns. That means pay off all your debt; credit cards, mortgage, car, student loans, etc. before investing anything. Keep 8 months of expenses liquid for emergencies. Have all your important protections in place. Term life insurance, health insurance, a living will, a living revokable trust, power of attorney for healthcare and finances, a will designating a guardian for any minor children; all the necessary documents. Then invest for growth. Retirement first, then college for the kids. They can borrow for school if necessary; but you cannot borrow for retirement. And charity of course! I like her philosphies alot and she makes good sense. Lots of luck!!
iVillage Member
Registered: 05-30-2003
In reply to: grippy2005
Fri, 07-15-2005 - 1:04am

If I inherited $750,000 right now? Like today? You bet we have a plan!

$75,000 to charities of our choice. Ooh-that check would be fun to write!

~$132,000 to pay off everything I can think of that we'd possibly owe (including existing student loans + my last 2 years of school)

~$20,000 for a fully funded energency fund (6 months worth)

$8000 to start a Roth for each of us

$50,000 for Amanda's college fund (she's informed us that she plans on getting scholarships because "it's so cool that they want to pay ME to go to their school"-we have no doubt that she'll get her scholarships, lol)

$200,000 to bulldoze our current home and build a new one

$265,000 would be placed in a good mutual fund to grow grow grow!

Yep, I think I could do it just fine!

Lisa :)

iVillage Member
Registered: 08-19-2003
In reply to: grippy2005
Fri, 07-15-2005 - 7:21am

yeah same here but with only $750,000 and no other income, I had to be very frugal. :)

Where are you located?

Shannon

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 02-19-2004
In reply to: grippy2005
Fri, 07-15-2005 - 7:27am

I'm in PA. I had a house I bought in 2000 for $128,000. It was a 3 bedroom, hardwood floors, two of the bedrooms were huge but most of the house was modest-small, back yard was a great size. We divorced and sold it in 2003 for $171,500 and I thought we did great. Now you can't get anything decent (barely a decent condo) for that price. I'm going to try to buy a townhome the end of this year in the $250,000 range, but I have to go really far out to find that price. I would love to live near my work but the townhomes in that area are $350k-$450k. It's outrageous.




Edited 7/15/2005 7:31 am ET ET by firstamendment

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iVillage Member
Registered: 08-19-2003
In reply to: grippy2005
Fri, 07-15-2005 - 7:31am

What part of PA? I am 15 minutes from the Mason Dixon Line. Below York County. It seems that once Maryland real estate skyrocketed, people started moving to PA in droves. So I know what you mean about high prices.

Would it have been better for you to keep your house after the divorce?

Shannon

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 02-19-2004
In reply to: grippy2005
Fri, 07-15-2005 - 9:58am
I'm in the Philly suburbs. Neither of us could afford to keep the house at the time we separated. Of course that mortgage payment would be a lot less than what I'll end up with when I buy now, but at the time there was no way to manage it. I couldn't buy anything smaller when we separated because my ex had damaged my credit and had been 30-90 days late all during 2002. I didn't find out until November 2002 when I checked my credit. I had applied for a job at a client and I knew they'd be checking it, so I wanted to make sure all was in order. I was more than shocked to learn we were behind, and I immediately took a loan from my 401k to catch us up but the damage was done. Now my credit is looking great and those late payments are far enough behind me, but prices are through the roof.

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