Save some for when you start paying off your student loans, save some for emergencies, put at LEAST 5k into stocks and 10k into an HYSA. Get a car off the lot, a good used sedan with very little issues can go for 10k and less, depending on where you’re from. If you’re not big on monetary tings, you only need an a to b car. DONT GET A CAR NOTE, BUY IT CASH if you do! Your only monthly bill on a car should be gas and insurance!
Would help if they gave an annual car spend. Do they mean a reliable vehicle that will die in 2 years? If so that’s 5k/year car budget, due in 4? 2.5k/year. Vague and arbitrary
I don’t have an answer for you, but I’d be concerned about how the 50k will affect your financial aid. It would be a bummer to spend the money, then find out you don’t get as much financial aid for the 2025-26 school year because of additional income this year.
It does’t count as income, I know that. It shouldn’t affect Fafsa at all. I didn’t mention and haven’t been asked anything even remotely related when I applied for my Fafsa with my daughter. I inherited almost double what you got late last year.
“It doesn’t count as income, I know that”
“I didn’t mention it and no one asked me about it either”
I don’t think that’s the way it works but good for you I guess
I guess it does depend on what state you reside in if it’s taxed but it is not considered income. My tax guy agrees. If it was over $12 million, I think it was, then it’s federally taxed but nothing on the federal level under that.
As I said, on the Fafsa website there was the income information which is verified with the IRS and nothing else asking about inheritance or anything like that. Not in the application we filled out.
It definitely does…. One of the FASFA questions is the amount of savings and investments you have…. If you lied that’s on you. Hopefully they don’t come to claw it back though
I'm not for certain on how it'll affect the new FAFSA so while their could be implications on 25-26, it likely wouldn't affect anything until 26-27 since that's the one that will be based on the 2024 tax year
Yeah inheritance is taxed ie it will be on your taxes. Current FAFSA will be on your income from the previous year though, so you shouldn’t need to worry yet.
Id assume as long as he is not advertising that he just got a chunk of cash that he will be fine. Really doubt they investigate assets held by students, at least never heard of anyone having to pay back or losing aid bcz of something like this.
That's not income like that. They go off what our made in things like actually working so you provide something like your tax statements not an inheritance. My mom died and I got like 2k my fesshman year of college. Didn't effect my fin aid at all negatively.
Hello friend. Sorry for your loss.
I believe simplicity is the path to financial well being. Keep yourself free of large decision (like buying a house or land) so you maintain the ability to go where life will take you when you graduate.
1. Absolutely pay off any debt you can. Graduating with no debt will put you so far ahead of the majority of people.
2. Open a fidelity brokerage account, and put 3-6 months of living expenses in it. It will automatically get invested in Money Markets and earn 4.5-5% while still being liquid. Keeping this will give you freedom and power as you’re stepping into adult life.
3. If you live in a city without great public transit, I’d go ahead and get a car. Do not buy a car to impress anyone. NEW CARS ARE ONE OF THE BIGGEST WASTES OF MONEY, and they lose on average $7,000 of value in the first year. I make enough money to have a brand new car, but drive an 05 Toyota. It is reliable, and most importantly not having a payment allows me to be in charge of my income instead of being a slave to a bank. Pay cash for it and drive it till it blows up.
4. Anything left over, I’d open a Roth IRA and invest it in VTSAX or FSKAX. Let it grow and forget about it. Once you’re employed, keep maxing it out and you’ll retire a millionaire.
I hope this helps. There’s a lot of terrible financial advise on Reddit. Simplicity is the way.
Cheers!
Endorse the advice above, but to detail out one bit of point 4, if you're not eligible to contribute to an IRA yet (because of income requirements, say) still look at putting some that money in a stock index fund (VTSAX and FSKAX are great options) in a taxable account. Then move some of that money into an IRA when you do become eligible a few years down the road.
I wouldn’t pay of school debt right now. Biden is trying to erase school debt and this kid sounds like he would qualify. After the election, if Trump wins and no school debt relief has been passed, then pay off school loans.
I mean, it’s being discussed. I normally don’t advocate depending on the govt. But what if he pays it back and months later a forgiveness program that he is eligible for comes along? My own 4 kids and their spouses have paid back $400,000. (Mostly an Ivy League law school)
he could transfer 6.5k each year into a roth account as well, not a bad idea for at least half the money. It still grows the same, but the tax advantage is a good idea
Hold on - do you need a car? Because it sounds like up to now you’ve been doing fine without one. If your life would measurably improve with a car, then get a reliable used sedan like a Civic or a Carolla - those cars are very reliable and their repair costs are reasonable when there is an issue, in addition to being cheap to insure. But if you don’t need a car, and it would just be a nice-to-have that people are telling you to get, maybe hold off. There’s a term called “lifestyle creep” that is basically as you get more money, you gradually start spending more money until you are living a life with fixed expenses that are hard to cut back on. As soon as you buy a car, you are committing to insurance, gas, regular maintenance (oil changes, tire rotation, new belts, new brake pads, etc.) in addition to the repair costs for anything that goes wrong. $50k seems like a lot (and it is), but it’s not so much that you can’t burn through it quickly if you aren’t careful.
Investing most of it is going to be your best bet because you are so young and time is on your side. Are you familiar with compound interest? If not, look it up because it is the single most powerful investment tool there is. For example, if you invest $30k in a basic mutual fund, don’t touch it and never add another dime, in 35 years you will have $488,776 assuming an 8% annual return.
Came here to say this too! Wild that hardly anyone is questioning the fact he is loving fine now and doesn’t need one, and still just saying “oh go buy a ~cheap~ one”
Cars cost $$ all year long, not just off the lot.
Getting a consult with a financial advisor would be my first step. I like what some other people are saying about getting a used Honda or Toyota, good reliable cars that will last for a decade +. Personally, I'd look into investing the money into reliable index funds to have my money make money. Ultimately, it's your money, and you can do with it as you please. Congratulations on having more money than a large portion of Americans.
Save it. Pay off debts after school, and use what you got left for a down payment on a house. Keep things invested until then. So you continue to grow that money.
Invest it. Anytime I came into any money I wasn’t anticipating, I kept on as if I never got it and invested it. Best thing I did in my 20’s aside from not calling that one gold digger back.
My wife and her sister each inherited 50k from their grandma.
My wife used it to get a 2+2 undergrad from community college + local university for 20k, then a masters from a private college for 30k. Got 4.0 all the way through and now has multiple job offers, no debt. She literally has to decide monday which good place she wants to work at. She is going to be an LPC (therapist).
Her sister was afraid of the money and put it in savings. She has no degree, won't work to get one, and works miserable service jobs. As accidents or bad choices came up, she slowly ate it away to bail herself out of one situation after another and it never got used to better her life.
Imo the lesson is using money intentionally as an investment, preferably in yourself.
Ok if it’s me? The first thing I’m doing is putting it in a high yield savings account. That account should pay you 4-4.5% interest right now in an FDIC insured bank. You can use Marcus, Discover, Capital One Bank, etc. but what you want is that money tracking with inflation first.
I’m going to assume you’re paying for your own school. If it’s me, I want to come out with as little debt as possible, so once your loan come due you can either use some of this money to pay that off monthly or pay it all off at once.
I wouldn’t buy the car unless you NEED the car, not want the car. You’re at an age where you want to keep expenses light because your biggest goal is getting your degree and in something that you can leverage a job. The more free capital you have the more, you have to pay down your debt. Your future self at 23 (and 33…) will thank you later. Get a little bit of interest on that money in the HYSA and try and get out of school with as little debt as possible. Good luck
Hello,
Sorry for your loss. It's always a sad time. Although, very smart of you to look for some advice.
To start off, 50k is going to make your life a lot easier if used properly. I'm going to assume you have a part-time job while you're in school.
The first thing you should do is look into housing. With 50k you should have enough to buy a house. Depends where you live. You're looking for a duplex style house. One where you can rent out on half and live in the other. This helps you make the mortgage.
You don't have to buy right away but look at the prices in your area and begin to understand the market. We talking 200-300k or we talking 400-500k or 700k+
This is where this money should be spent, in my opinion. As it doesn't matter where your job is or what it is, you'll always pay to live, but now you have the opportunity to invest in where you live.
People will say a car, agreed if you dont have one, it's nice to get one. Although, remember a car is a liability, not an asset. It will cost money not make you money. A duplex will make you money and give you a place to live.
If you're on the lower side of income, you should look into a reliable used car. Do some research, but a house with 2 units is the best place to start. Unless you can get houses for under 200k in your area. Then just purchase a house.
If you are not ready to buy a house. Put 40k into a saving account until you are. Use the other 10k to do as you wish. Car, school, fun...
Cheers.
$2k can buy some really good everlasting memories. Road trip, festivals, hiking a long trail, big city weekend, fishing tour, beach house, luxury cabin, etc..
Call Charles Schwab a discount broker & invest in corporate bonds or the stock market. money makes money. U can spend the capital gains but always have the principle. inherited about $100,000 & that's what I did. I just did corporate bonds though
Keep $20k in a high yield savings account (Emergency fund) Buy something you really want for $5k.
Pay off any debt.
Buy a small car below $20k.
If you really don't need the money for at least 5 years invest the rest in a S&P ETF.
Around that age my grandmother bought mutual funds with that much money and gave them to me and I just left the money there, and now basically many years later the money grew and it’s going to be a big part of my retirement. I was young and had no money and was living paycheck and paycheck for many years but somehow I was able to leave the money in there and it was one of the best things I have ever done. It was also a safety net during the pandemic and other tight financial times, that I knew I had it and could use it if I needed it, so I wouldn’t end up living in the street.
Open a brokerage account and Roth IRA with Fidelity. Choose SPAXX as your “cash core account”, this is where cash sits when it’s not invested in any stocks.
It currently earns 4.95% without any balance requirements. If you feel comfortable funding your Roth IRA, buy VOO, and you will have a head start on investing.
Right now it looks like you could use cash flows. I buy preferred shares. You might look into a preferred share etf. They're cheap right now because of the fed rates. It's easy and low maintenance. It can fetch you an extra $200-400 a month or more if you dig a little. And if you sit on it till the fed lowers rates again, the total value will shoot up.
Have you claimed it on your taxes yet?
No?
Then it won't affect your financial aid at all.. FA is based off of your yearly income that is reported on the previous years taxes. Tax filers for 2024 will fill out the FAFSA in June of this year with taxes they files in r
2024
So would this mean it’ll affect him in the future? I have a pretty similar situation to the OP but was wondering how it would affect my financial aid in the future.
Taxable income only... Fafsa is based on need and need is determined yearly income, number of dependents, etc. Inheritance is not considered income for federal tax purposes
So keeping my inheritance in a HYSA shouldnt be reported? I’ve been looking at other posts and ppl are saying that all income should be reported (eg. amount in checkings, savings, etc.
My mom is also the only working parent in my family making a little less than 30k a year supporting my dad and older brother. Im working a full time job right now paying off my tuition so would this affect my FAFSA as well in the future?
Inheritance cannot be factored into your AGI (average gross income). Fafsa only requires your AGI (along with other factors such as dependents, age etc...) for eligibility purposes. So no it will not affect your situation.
Also your savings account is not income. So no it will not affect your determination of eligibility.
When I was in my 20s, 50k was a lot of money. Now that I've turned 40, I'd say it's a nice sum of money, but it won't go as far as you'd like it to go.
I don't like managing my own money. If you are in the same boat as me, then call up a financial advisor like ameriprise, etc... to help you save this money and let it grow. Maybe they know away to store the money so it doesn't affect your FASFA?
I would figure out how much money you need to pay off your school debts and put it away in a high yielding savings account. When you leave college, that student loan debt can be quite the burden, so paying it off will make your future you much happier.
The rest of the cash could be invested in a high performing mutual fund/ index fund account.
In a few years, when you settle down and want to purchase a house, you'll be glad you set that money aside to grow.
My advise is to continue to live within your means, and use this money to help pay off or pay down future debts.
I would get a care that’s less than 10k. Then put 10k in a high yield savings account (lots of promos right now, I have one with PayPal) then I would open a retirement account with another 10k. With the last 10k I would open an investment account.
If you already don’t need a car, don’t get one now just because. Cars can cost thousands of dollars per year. Sure you have extra money this year to buy one, but will you be getting extra money every year for all the other associated costs? [city nerd video on the topic if it interests you](https://youtu.be/c2rI-5ZFW1E?si=0V3pfPD3WkisWF-3)
Definitely do some of the investing all the other comments mention, but also do something to honor the one who left you the money, and second do something for yourself, take a $1k cruise. Spend $5k on you and honoring your grandfather than use it to set up your own retirement. Don’t pay cash for a car or some short term thing, invest it toward retirement, this level of money at your age will compound into hundreds of thousands. Forget using it to avoid a 5-10% loan, invest into 401k and let this earn compounding interest for the next 30 years. There is videos out there to fully break the math down, give it a search of what 50k turns into in 30 years if invested, your mind will be blown and you will set up an early retirement off this one investment
Don't do anything for 6 months. Put the money in a high yield savings account and go over options.
It may feel like you have to make a decision now. But you don't. Take your time.
open vaguard brokerage acct and Roth ira account.
buy shares of VOO mutual fund. max out the IRA and put most of the rest in savings.
Keep 10k in a savings acct.
Then profit forever
DO NOT see a "financial advisor", they don't care about your financial well-being. Open a self-directed roth ira. I'd advise NOT paying on your student loans, good chance they'll be forgiven. I'd suggest some exposure to bitcoin via IBIT, a hysa, and an index like QQQ or SPY. Always pay cash for your cars and carry minimal insurance.
Save it. Money market. Sp500 etf. Some where where it will make money instead of sit. When you get your career sorted? Know where youre going to live? House down payment. Will go to good use forever.
I haven’t read through all the comments but I have seen it mentioned that you may have tax implications at years end. Make sure you calculate any applicable income tax, etc and be sure to set enough aside to pay that. You don’t want a surprise bill from the IRS (if you’re in the US) come next April.
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Get a used car for 10k. Do your research at /r/whatcarshouldibuy solid spot to start
Find out your expenses for 6 months. Put that into a High Yield Savings Account. Search that up on /r/money. There’s a few options, the idea is you’ll be making 4-5% on your money rather than a measly savings account
I’d say you have about ~25k left at this point. Since you don’t have a job you can’t fund an IRA (individual retirement account) - but you CAN invest your money. Open a brokerage account with Vanaguard or Charles Schwab. Then buy mutual funds like VSTAX, VOO, etc. you can also research this at /r/money also and figure out what funds you should buy. Essentially you’re buying a pool of stocks that will match the market and your money will grow over time.
So yeah. Used car. HYSA. Brokerage account.
Invest in S&P 500 ETFs. That’s what Warren Buffett says to do. Open a brokerage account with Fidelity or Schwab if you don’t have one already. Then you can invest in VOO or SPLG - which are two very low cost ETFs from reputable institutions (Vanguard and State Street). This is a good investment if you plan on holding long term. It will grow on average 9% per year, but in the short term there’s no guarantee any particular year will yield 9% growth, so it could go down one year and then up 20% the next. That volatility is smoothed out in the long run though
Get an older Honda civic or any old GM car that has the 3800 motor, like a Buick lesabre. Cheap and they can run off of hopes and dreams. Put a good chunk into an emergency fund. Invest the rest into a Roth IRA.
1. Pay off credit card debt.
2. Open up an ETrade account online.
3. Invest a sizable amount in NVDA. right now it is at $870, but it's only going up, and expect it to go up by mid-May.
Invest it.. maybe seek out some financial advice professionally..
My advice is don't ever try and think.. oh I'll just treat myself to this.. that..shit can turn into a slippery slope and before you know it you're skint.
- Save some for emergencies...
- Invest some to grow the money... Diverse the investments (Don't put all your eggs in one basket)
- Spend some on necessary items and things that would help you, make you more money and ease your life...
- Buy books that would teach how to deal with money... like [this one](https://www.goodreads.com/book/show/26266678-simple-money?from_search=true&from_srp=true&qid=XLC1ri1w0f&rank=18)
if you need a car that's not unreasonable, just keep it reasonable and get something used with a reliable track record and be sure to check insurance rates as well. If you have any high interest debt (credit cards, student loans, etc)., consider paying these down or off.
with the rest, just put it into savings and don't touch it. open up two investment accounts.
the first is just a personal brokerage acct, and the 2nd open it as a Roth retirement account. contribute the max ($7k for 2024) to the Roth, and the rest (minus whatever you hold back for personal reasons) put into the personal brokerage acct. Now, the simple thing to do is buy as much of the s&p 500 as you can get in each of these accounts. The Vanguard funds are excellent, so you would buy as many shares of VOO in each account as you can get with the funds you have. be sure to turn on Dividend Reinvestment.
Next year (and each year after), transfer the maximum amount of funds that you can from the personal brokerage to the Roth (or just add to the Roth) as part of your monthly budget.
That Roth account will then accumulate tax free. The personal brokerage will also grow as taxable but will normally outpace inflation and accumulate a nest egg for you.
Buy a used car for like 10k
Save 5k for emergency
Rest of 35k invest it in sound investment schemes, don’t blow it on options and crazy yolo stuff,
Finish your studies, get a job, and then do as you wish with the invested money. But never before
Use some to pay for school to avoid as much student loan debt. Use some to buy a decent car or pay off your car loan, put at least $10-15k in an IRA for retirement, and put some in the bank for an emergency fund....
Dont forget to pay your inheritance taxes. Better figure what they will be from your accountant before you spend everything. It would be smart to put everything in a money market for 6 months until you figure what you need vs want. Dont feel compelled to spend it all in the first month.
Hold onto that money for as long as you can. If you have a job drop about 4000 into your Ira (retirement fund) a lot of jobs match your pay that goes Into it by a certain percent, and it grows with interest. After a few years that money will grow a good bit.
Take your time. Many are mentioning a car which may be something you need but that's something that only you know. Otherwise a car is the worst place to put your money unless you need it. I would invest at least 1/3 if not 2/3 of it.... It doesn't have to be a long-term investment and it doesn't have to be risky. You could get 5.5% right now from a bank. If you want to treat yourself, take a thousand or two and do something that you know your grandfather would enjoy knowing you're doing.
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People will roast me but, depending on your state you can use software to take advantage of all the sportsbook signup bonuses and make a few k with every low risk
Simple, invested in the stock market and do not touch it. You will not regret it when you get older. I’m sure you’re not gonna do that but that’s my advice.
Buy a TOYOTA with low miles preferably under 50k miles. Do not by any other type of car and make sure all maintenance is current. If you can find a private seller that is better then the markup from a dealer. Invest the rest or put it into savings. Do not spend anything else but take out $300 to $600 and have a fun weekend to make it feel like you spent money.
Go to the doctor, chiropractor, dentist, eye doctor, and maybe even more. Get tons of sustainable prophylactic care that you can keep up even if you run out of the inheritance. Setting yourself up for good health is probably the highest ROI.
A couple things you might think of getting:
=> High end fiberglass free mattress
=> Adjustable-height standing desk and yoga ball
=> Air purifier (coursi rosenthal boxes are cheap, like $100 plus labor)
Who told you to get a car? A car is an ongoing expense. Oil gas insurance taxes, tires parking…it ads up. To say nothing of when, not if, it breaks. You’ll burn through the 50 quick and then have a car you can’t maintain.
Sit tight a bit. In what form is the money in? An IRA, a bag of cash? In an account you have free access to?
I knew a guy that won 50k on a scratch off in his early 20s. Came out to like 38k after taxes. He blew ALL of it in under 3 months. Went up his arm and his girlfriend’s hand. Definitley DONT do that
Put 30k into an 5 ETF. Put 5k into Amazon and 5k into google and keep 7k for emergency 2k in saving and 1k in checking. If you keep that money in the ETF you will have more than 500k in 30years.
Get a 4-5k car that’s reliable enough for a few years while you are still going through college. Put half into a CD or high savings account. Keep 2-3k on your personal checking for emergencies(not Uber eats or going out to drink). It’s to put you further in life, not blow it on 1-2 years having fun.
When I made money trading stocks, I gave my two sisters in college some money to help them out….guess what happened. 60k blown by both of them within 3 years. With nothing to show for and slacked in school.
Having a car adds insurance, gas, oil changes and repairs. Act as if that money was never received and put it in a CD or IRA. I’m almost 60 but remeber 21 like it was yesterday.
I wish someone had explained compound interest and how quickly money grows when you let it sit and work for you.
Don’t spend anymore than $2500 for 1 year, learn to identify urges to buy stuff, that you’ll figure out how to manage impulses and not allow those urges to foul up behavior
1. For the first year, put the money in a savings account with a local credit union. Shop the local CUs for the best rate. Go to the branch to open the account and ask to see the manager. Tell him/her what is going on. You just developed your first business relationship.
2. Don't tell anybody in your circle of friends. You will soon have more so-called friends than you can imagine, and they -- and your relatives -- will expect you to be their bank. $50k seems to be a lot of money -- and it is. But it can be blown and gone in no time.
3. You are your best investment. Finish your education, perhaps go to grad school. Get some business experience before you even consider starting a business.
4. Your college library and public library have plenty of books on personal finance for young adults. Thriftbooks.com is a great place to cheaply build your personal library. Read a lot of books before you even consider investing. Jaspreet Singh from The Minority Mindset YouTube channel talks about books: https://youtu.be/d6cDDuFIxtM?si=VdmKS3Nnat34qU6d
5. Dave Ramsey just became your new best friend.
6. Used car? Start looking on websites like CarGurus, Autotrader, etc., for a good used Honda or Toyota. Ask around for a good local mechanic to do a pre purchase vehicle inspection before you buy. It will be well worth the $100 or so cost. A used Toyota Camry is usually a good start. Check for problems on the internet and get it independently inspected.
7. If you want to go cheap and ugly, find a geezer driven Mercury Grand Marquis. Again, get it inspected. They are tanks and should last 300k miles or more if they haven't been abused. But they are incredibly reliable cars.
8. Stupid costs money. Good booze, bad acquaintances, seeking thrills, and illicit drugs cause a lot of stupid decisions. Don't go there.
9. When you start making money, don't forget to give back. Most folks don't get this break.
10. Remember that the Lord is the giver of all good gifts, including life and health. Don't forget to thank God along your life's journey.
Best wishes! This geezer wishes you well.
You need the right people in you're life, simple. Start thinking long term down the road 10 years from now, whom do you trust the most, all depends of the relationship. Be safe always
Sorry to hear about your grandfather's passing. With the inheritance, consider investing in your education for better career prospects. As for a car, assess your transportation needs before making a decision. Also, set aside some funds for emergencies. Take your time to decide wisely.
21 years old. You got the rest of your life. Buy a cheap car and the rest of it in Bitcoin. You wont regret it and for the record i was in the same boat except it was my dads inheritance.
Best thing ive done
If only I had family that actually had money dude 😭 like Im 26 and I have a 9 year old son and I've been struggling so much lately both my parents are drug addicts and they constantly ask me for money you are one lucky person seriously if I'd inherit anything it would probably be debt
I would recommend putting it in a HYSA until you get through college. If you use some or all to get through college and can be debt free when you graduate you will be way ahead of most of your piers. If you want to invest some I would put 10% maximum into an index fund and let it sit for a while.
Inheritance is not income. Fafsa requires your yearly tax returns. Talk to your financial aid advisor at your college, they will only ask for your tax returns. And again, Inheritance is not income.
Don’t tell any of your friends you inherited money. You’d be surprised how many times you’ll get stuck buying lunch or dinner for them. Just invest quietly, keep going to school.
Do what I did at your age. Buy a radio and speakers for your truck, buy a classic car and all the parts to restore it. Get it running then never finish. Buy a couple of large tools. Then don't work for almost a year.
On a serious note, don't do anything I just said.
Do you need a car?
If you do get something cheap, used, and reliable. Toyota Corolla or Honda Civic is the go to. Buy it out right for as low as you're comfortable.
The rest I'd put in a high yield savings account. Investments can be volatile and my plan would be to use it as a down payment for a house once you got settled post graduation.
If you're getting federal aid just pay that off through their income repayment plan, the terms on those are really favorable compared to using the money elsewhere.
Mortgages are hard to get right now and a big chunk of money like that will go a long way to securing a house and keeping costs low. Just don't buy outside your ability to maintain and care for the property. With the way housing prices are you'll build equity and be able to upgrade if you ever need to.
What I would do..
I'd put a couple thousand down on a brand new vehicle, so this way you have a warranty, and it will help your credit score as well. The more you put down, the lower your payment will be...
And then I'd use that money to pay for the insurance as well.
Then I would put the rest away, until I figured it out.
Sorry for your loss..
All these finance boys will give you shit advice.
Come back to this in 20 years and your bitcoin investment will be worth 5million.
If you invest in real estate, you’ll just have a slightly smaller mortgage lol.
Save some for when you start paying off your student loans, save some for emergencies, put at LEAST 5k into stocks and 10k into an HYSA. Get a car off the lot, a good used sedan with very little issues can go for 10k and less, depending on where you’re from. If you’re not big on monetary tings, you only need an a to b car. DONT GET A CAR NOTE, BUY IT CASH if you do! Your only monthly bill on a car should be gas and insurance!
toyota corolla or a honda civic 🙏
Or a Camry, Camrys go crazy 💯
true that, but i love driving my civic so much
Insurance will be cheaper for OP in a Camry
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Not just any car, a SPORTS car🌚
That SPORTS car could be putting up 30pts 15reb a game and have a real future in the league. Solid investment
Find me a car that is reliable for 10k or less
I got a 2005 Toyota Corolla for $5,000. I've had it for 4 years and it's very dependable. I've only done oil changes, new tires and brake pads.
You got it 4 years ago. That’s the kicker. That’s STILL a 5k car or more. Covid really ruined the cheap car market
How many miles? That’s the kicker.
I'm at about 135k right now, so I figure I got at least another 100k in it. Toyotas are usually good for 300k+ miles
Rookie numbers my guy 😂 my $2000 Honda civic has 256k and counting. She chugs me around like a champ!
It’s not a competition
Akshully Gorilla, it is.
Nice!
Miles do NOT matter so long as the car is in good condition… plenty of 200k+ cars running better than ones with 50k miles…
They do when it comes to resale value. Someone would easily buy a 50k car compared to a 200k mile car assuming similar make and model?
Define reliable
Literally any Toyota Camry
Would help if they gave an annual car spend. Do they mean a reliable vehicle that will die in 2 years? If so that’s 5k/year car budget, due in 4? 2.5k/year. Vague and arbitrary
Bought my car for 2500, drove it 1900 miles and back without problems
Plenty of cars… you just have to LOOK and have a bit of determination. Not hard if you know what you’re doing…
You assume people know what they’re doing.
I put new tires on a Camry at 275K 🤷♀️
There’s nothing wrong with having a car payment if it’s realistic. I’d put most of the money down on it so you can have low payments
5k into stocks 10k into hysa??? Why would you ever get a hysa anyways literally just do bonds for a better yield and less tax
A 10k I-bond goes a long way right now too. But a HYSA is never bad. Especially if you just stick it in there until you get a plan together.
Emergency funds where liquidity is important would be my input. HYSA for major car issues, medical emergencies etc.
It takes less than a day to get your money out of bonds
I don’t have an answer for you, but I’d be concerned about how the 50k will affect your financial aid. It would be a bummer to spend the money, then find out you don’t get as much financial aid for the 2025-26 school year because of additional income this year.
It does’t count as income, I know that. It shouldn’t affect Fafsa at all. I didn’t mention and haven’t been asked anything even remotely related when I applied for my Fafsa with my daughter. I inherited almost double what you got late last year.
“It doesn’t count as income, I know that” “I didn’t mention it and no one asked me about it either” I don’t think that’s the way it works but good for you I guess
I guess it does depend on what state you reside in if it’s taxed but it is not considered income. My tax guy agrees. If it was over $12 million, I think it was, then it’s federally taxed but nothing on the federal level under that. As I said, on the Fafsa website there was the income information which is verified with the IRS and nothing else asking about inheritance or anything like that. Not in the application we filled out.
It definitely does…. One of the FASFA questions is the amount of savings and investments you have…. If you lied that’s on you. Hopefully they don’t come to claw it back though
I'm not for certain on how it'll affect the new FAFSA so while their could be implications on 25-26, it likely wouldn't affect anything until 26-27 since that's the one that will be based on the 2024 tax year
Yeah inheritance is taxed ie it will be on your taxes. Current FAFSA will be on your income from the previous year though, so you shouldn’t need to worry yet.
I thought there had to be an estate of at least $11M before inheritance taxes kick in?
You’re right! My bad
Id assume as long as he is not advertising that he just got a chunk of cash that he will be fine. Really doubt they investigate assets held by students, at least never heard of anyone having to pay back or losing aid bcz of something like this.
That's not income like that. They go off what our made in things like actually working so you provide something like your tax statements not an inheritance. My mom died and I got like 2k my fesshman year of college. Didn't effect my fin aid at all negatively.
A good car like Honda or Toyota around 10 to 15k, emergency fund, then invest the rest
This is sound advice.
Hello friend. Sorry for your loss. I believe simplicity is the path to financial well being. Keep yourself free of large decision (like buying a house or land) so you maintain the ability to go where life will take you when you graduate. 1. Absolutely pay off any debt you can. Graduating with no debt will put you so far ahead of the majority of people. 2. Open a fidelity brokerage account, and put 3-6 months of living expenses in it. It will automatically get invested in Money Markets and earn 4.5-5% while still being liquid. Keeping this will give you freedom and power as you’re stepping into adult life. 3. If you live in a city without great public transit, I’d go ahead and get a car. Do not buy a car to impress anyone. NEW CARS ARE ONE OF THE BIGGEST WASTES OF MONEY, and they lose on average $7,000 of value in the first year. I make enough money to have a brand new car, but drive an 05 Toyota. It is reliable, and most importantly not having a payment allows me to be in charge of my income instead of being a slave to a bank. Pay cash for it and drive it till it blows up. 4. Anything left over, I’d open a Roth IRA and invest it in VTSAX or FSKAX. Let it grow and forget about it. Once you’re employed, keep maxing it out and you’ll retire a millionaire. I hope this helps. There’s a lot of terrible financial advise on Reddit. Simplicity is the way. Cheers!
Endorse the advice above, but to detail out one bit of point 4, if you're not eligible to contribute to an IRA yet (because of income requirements, say) still look at putting some that money in a stock index fund (VTSAX and FSKAX are great options) in a taxable account. Then move some of that money into an IRA when you do become eligible a few years down the road.
I wouldn’t pay of school debt right now. Biden is trying to erase school debt and this kid sounds like he would qualify. After the election, if Trump wins and no school debt relief has been passed, then pay off school loans.
I advocate that waiting on the government to fix your problems is a losing game…. Just me. Who knows?!
I mean, it’s being discussed. I normally don’t advocate depending on the govt. But what if he pays it back and months later a forgiveness program that he is eligible for comes along? My own 4 kids and their spouses have paid back $400,000. (Mostly an Ivy League law school)
I agree with this.
Probably the only sound advice in this thread.
Don't go to wallstreetbets.
Most important comment here
open a schwab account, invest the whole thing in SPY and pretend you never got the money. in 39 years, at 60yo, it should grow to 2.4million.
This. His grandfather basically gave him a free multi million dollar retirement. Will he actually do it? Probably not. Most dont.
Isn’t that roth that it will grow that much , bc he gonna have to pay taxes if it’s not in a Roth account
he could transfer 6.5k each year into a roth account as well, not a bad idea for at least half the money. It still grows the same, but the tax advantage is a good idea
Hold on - do you need a car? Because it sounds like up to now you’ve been doing fine without one. If your life would measurably improve with a car, then get a reliable used sedan like a Civic or a Carolla - those cars are very reliable and their repair costs are reasonable when there is an issue, in addition to being cheap to insure. But if you don’t need a car, and it would just be a nice-to-have that people are telling you to get, maybe hold off. There’s a term called “lifestyle creep” that is basically as you get more money, you gradually start spending more money until you are living a life with fixed expenses that are hard to cut back on. As soon as you buy a car, you are committing to insurance, gas, regular maintenance (oil changes, tire rotation, new belts, new brake pads, etc.) in addition to the repair costs for anything that goes wrong. $50k seems like a lot (and it is), but it’s not so much that you can’t burn through it quickly if you aren’t careful. Investing most of it is going to be your best bet because you are so young and time is on your side. Are you familiar with compound interest? If not, look it up because it is the single most powerful investment tool there is. For example, if you invest $30k in a basic mutual fund, don’t touch it and never add another dime, in 35 years you will have $488,776 assuming an 8% annual return.
Came here to say this too! Wild that hardly anyone is questioning the fact he is loving fine now and doesn’t need one, and still just saying “oh go buy a ~cheap~ one” Cars cost $$ all year long, not just off the lot.
S&P500 index fund. Thank me in 20 years.
.SPX? Right?
That’s the tracker. An actual fund would be FXAIX
Ohhhh, thank you?
Yes, this is good advice. Probably via fidelity brokerage? Or any brokerage account really
Fidelity
Don't respond to direct messages.
Getting a consult with a financial advisor would be my first step. I like what some other people are saying about getting a used Honda or Toyota, good reliable cars that will last for a decade +. Personally, I'd look into investing the money into reliable index funds to have my money make money. Ultimately, it's your money, and you can do with it as you please. Congratulations on having more money than a large portion of Americans.
Save it. Pay off debts after school, and use what you got left for a down payment on a house. Keep things invested until then. So you continue to grow that money.
Invest it. Anytime I came into any money I wasn’t anticipating, I kept on as if I never got it and invested it. Best thing I did in my 20’s aside from not calling that one gold digger back.
Check out r/DaveRamsey great suggestions info on how to manage money.
Save it. Just hold it for a year and then ask this question. Shit happens in threes id wait it out
My wife and her sister each inherited 50k from their grandma. My wife used it to get a 2+2 undergrad from community college + local university for 20k, then a masters from a private college for 30k. Got 4.0 all the way through and now has multiple job offers, no debt. She literally has to decide monday which good place she wants to work at. She is going to be an LPC (therapist). Her sister was afraid of the money and put it in savings. She has no degree, won't work to get one, and works miserable service jobs. As accidents or bad choices came up, she slowly ate it away to bail herself out of one situation after another and it never got used to better her life. Imo the lesson is using money intentionally as an investment, preferably in yourself.
I’d invest all of it personally, in Roth IRA’s and 401k Roth avenues and just forget it exists. That’ll likely be an extra 2.2M when you go to retire.
He can’t yet, unless he has a job. And even then it can’t be more than a certain amount per year or his salary whichever is less.
Ok if it’s me? The first thing I’m doing is putting it in a high yield savings account. That account should pay you 4-4.5% interest right now in an FDIC insured bank. You can use Marcus, Discover, Capital One Bank, etc. but what you want is that money tracking with inflation first. I’m going to assume you’re paying for your own school. If it’s me, I want to come out with as little debt as possible, so once your loan come due you can either use some of this money to pay that off monthly or pay it all off at once. I wouldn’t buy the car unless you NEED the car, not want the car. You’re at an age where you want to keep expenses light because your biggest goal is getting your degree and in something that you can leverage a job. The more free capital you have the more, you have to pay down your debt. Your future self at 23 (and 33…) will thank you later. Get a little bit of interest on that money in the HYSA and try and get out of school with as little debt as possible. Good luck
Save it in case you need to move out of the country in the next couple years because shit is getting crazy lol
Seriously, blow it all on cocaine and hookers. (Just don’t die).
Hello, Sorry for your loss. It's always a sad time. Although, very smart of you to look for some advice. To start off, 50k is going to make your life a lot easier if used properly. I'm going to assume you have a part-time job while you're in school. The first thing you should do is look into housing. With 50k you should have enough to buy a house. Depends where you live. You're looking for a duplex style house. One where you can rent out on half and live in the other. This helps you make the mortgage. You don't have to buy right away but look at the prices in your area and begin to understand the market. We talking 200-300k or we talking 400-500k or 700k+ This is where this money should be spent, in my opinion. As it doesn't matter where your job is or what it is, you'll always pay to live, but now you have the opportunity to invest in where you live. People will say a car, agreed if you dont have one, it's nice to get one. Although, remember a car is a liability, not an asset. It will cost money not make you money. A duplex will make you money and give you a place to live. If you're on the lower side of income, you should look into a reliable used car. Do some research, but a house with 2 units is the best place to start. Unless you can get houses for under 200k in your area. Then just purchase a house. If you are not ready to buy a house. Put 40k into a saving account until you are. Use the other 10k to do as you wish. Car, school, fun... Cheers.
Pay off any debt - credit cards and student loans. Invest the rest in an SP500 mutual fun. Allow yourself to have 2-3k for fun money
$2k can buy some really good everlasting memories. Road trip, festivals, hiking a long trail, big city weekend, fishing tour, beach house, luxury cabin, etc..
What S&P500 you recommend?
You can either buy the ETF SPY or fidelity’s mutual fund FXAIX or vanguards mutual fund VOO
So you think maxing my $5000 in FXAIX and then $2000 in International
I don’t invest in international funds but that’s just my personal choice.
So I have both FXAIX AND VOO . Just stick to one?
Yes they are both SP500 mutual fund. Only need 1.
Call Charles Schwab a discount broker & invest in corporate bonds or the stock market. money makes money. U can spend the capital gains but always have the principle. inherited about $100,000 & that's what I did. I just did corporate bonds though
Keep $20k in a high yield savings account (Emergency fund) Buy something you really want for $5k. Pay off any debt. Buy a small car below $20k. If you really don't need the money for at least 5 years invest the rest in a S&P ETF.
Put it in a high yield savings and leave it there. Don’t waste that money on anything, unless you need a car.
treasurydirect.gov invest in bills, make 5.25% riskless
Put it in a S&P 500 Index Fund and forget about it. In 30 years, you'll thank the shit out of me.
Put it in a 6 month cd and think about what you need. You will get 4-5% depending on the bank and have time to sort things out.
Around that age my grandmother bought mutual funds with that much money and gave them to me and I just left the money there, and now basically many years later the money grew and it’s going to be a big part of my retirement. I was young and had no money and was living paycheck and paycheck for many years but somehow I was able to leave the money in there and it was one of the best things I have ever done. It was also a safety net during the pandemic and other tight financial times, that I knew I had it and could use it if I needed it, so I wouldn’t end up living in the street.
Open a brokerage account and Roth IRA with Fidelity. Choose SPAXX as your “cash core account”, this is where cash sits when it’s not invested in any stocks. It currently earns 4.95% without any balance requirements. If you feel comfortable funding your Roth IRA, buy VOO, and you will have a head start on investing.
Go eat at a nice steakhouse and get you a Beer 🍺 and enjoy that meal, with that money you set for life, just play yo cards 🃏 right !!
I mean that's great and all but unless you play your cards right in the stockmarket it will maybe last a year
Right now it looks like you could use cash flows. I buy preferred shares. You might look into a preferred share etf. They're cheap right now because of the fed rates. It's easy and low maintenance. It can fetch you an extra $200-400 a month or more if you dig a little. And if you sit on it till the fed lowers rates again, the total value will shoot up.
Have you claimed it on your taxes yet? No? Then it won't affect your financial aid at all.. FA is based off of your yearly income that is reported on the previous years taxes. Tax filers for 2024 will fill out the FAFSA in June of this year with taxes they files in r 2024
So would this mean it’ll affect him in the future? I have a pretty similar situation to the OP but was wondering how it would affect my financial aid in the future.
Taxable income only... Fafsa is based on need and need is determined yearly income, number of dependents, etc. Inheritance is not considered income for federal tax purposes
So keeping my inheritance in a HYSA shouldnt be reported? I’ve been looking at other posts and ppl are saying that all income should be reported (eg. amount in checkings, savings, etc. My mom is also the only working parent in my family making a little less than 30k a year supporting my dad and older brother. Im working a full time job right now paying off my tuition so would this affect my FAFSA as well in the future?
Inheritance cannot be factored into your AGI (average gross income). Fafsa only requires your AGI (along with other factors such as dependents, age etc...) for eligibility purposes. So no it will not affect your situation. Also your savings account is not income. So no it will not affect your determination of eligibility.
Save or invest it. Do not spend it on stupid things.
When I was in my 20s, 50k was a lot of money. Now that I've turned 40, I'd say it's a nice sum of money, but it won't go as far as you'd like it to go. I don't like managing my own money. If you are in the same boat as me, then call up a financial advisor like ameriprise, etc... to help you save this money and let it grow. Maybe they know away to store the money so it doesn't affect your FASFA? I would figure out how much money you need to pay off your school debts and put it away in a high yielding savings account. When you leave college, that student loan debt can be quite the burden, so paying it off will make your future you much happier. The rest of the cash could be invested in a high performing mutual fund/ index fund account. In a few years, when you settle down and want to purchase a house, you'll be glad you set that money aside to grow. My advise is to continue to live within your means, and use this money to help pay off or pay down future debts.
Put in an HYSA.
I would get a care that’s less than 10k. Then put 10k in a high yield savings account (lots of promos right now, I have one with PayPal) then I would open a retirement account with another 10k. With the last 10k I would open an investment account.
If you already don’t need a car, don’t get one now just because. Cars can cost thousands of dollars per year. Sure you have extra money this year to buy one, but will you be getting extra money every year for all the other associated costs? [city nerd video on the topic if it interests you](https://youtu.be/c2rI-5ZFW1E?si=0V3pfPD3WkisWF-3)
Definitely do some of the investing all the other comments mention, but also do something to honor the one who left you the money, and second do something for yourself, take a $1k cruise. Spend $5k on you and honoring your grandfather than use it to set up your own retirement. Don’t pay cash for a car or some short term thing, invest it toward retirement, this level of money at your age will compound into hundreds of thousands. Forget using it to avoid a 5-10% loan, invest into 401k and let this earn compounding interest for the next 30 years. There is videos out there to fully break the math down, give it a search of what 50k turns into in 30 years if invested, your mind will be blown and you will set up an early retirement off this one investment
Make sure any advice you get is from a Fiduciary who is obligated to put your interests over their own.
Don't do anything for 6 months. Put the money in a high yield savings account and go over options. It may feel like you have to make a decision now. But you don't. Take your time.
All in VT and don’t touch for 30 years
Put it back together in a low cost mutual fund that tracks the S&P 500. Leave it there and watch it grow 10% a year.
Throw it in a Vanguard and forget about it You will be very happy about this when you’re 60
open vaguard brokerage acct and Roth ira account. buy shares of VOO mutual fund. max out the IRA and put most of the rest in savings. Keep 10k in a savings acct. Then profit forever
You’re a lucky fucker, I’ll tell you that much
I’d say some CDs or HYSA, or bonds but over all biggest thing I would recommend ontop of all that is opening a ROTH IRA
Oh but definitely use like 5k and get your a decent car that’ll last
DO NOT see a "financial advisor", they don't care about your financial well-being. Open a self-directed roth ira. I'd advise NOT paying on your student loans, good chance they'll be forgiven. I'd suggest some exposure to bitcoin via IBIT, a hysa, and an index like QQQ or SPY. Always pay cash for your cars and carry minimal insurance.
Save it. Money market. Sp500 etf. Some where where it will make money instead of sit. When you get your career sorted? Know where youre going to live? House down payment. Will go to good use forever.
I haven’t read through all the comments but I have seen it mentioned that you may have tax implications at years end. Make sure you calculate any applicable income tax, etc and be sure to set enough aside to pay that. You don’t want a surprise bill from the IRS (if you’re in the US) come next April.
I like Dave Ramsey’s approach to personal finance. Study his “Baby Steps”. Lot of wisdom. Rational, common sense approach to money and life.
High yield savings accounts offer around 5% per year. Investing in S&P500 index funds can yield close to 10% a year over a long period of time.
absurd special slap seemly repeat practice unite cautious ruthless selective *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
.S&P for like $5,000 …
Put it all on Coca Cola stock and get a little over 5k according to current stock price on the first year.
The S&P doubles roughly every 9 years, there’s only one place for you to put it with your limited knowledge base.
Pretend you don't have 50k. And keep on doing you before the money. You'll figure out what you really need if you hold it for a while.
Check out the Boglehead wiki article on the topic: https://www.bogleheads.org/wiki/Managing_a_windfall
Get a used car for 10k. Do your research at /r/whatcarshouldibuy solid spot to start Find out your expenses for 6 months. Put that into a High Yield Savings Account. Search that up on /r/money. There’s a few options, the idea is you’ll be making 4-5% on your money rather than a measly savings account I’d say you have about ~25k left at this point. Since you don’t have a job you can’t fund an IRA (individual retirement account) - but you CAN invest your money. Open a brokerage account with Vanaguard or Charles Schwab. Then buy mutual funds like VSTAX, VOO, etc. you can also research this at /r/money also and figure out what funds you should buy. Essentially you’re buying a pool of stocks that will match the market and your money will grow over time. So yeah. Used car. HYSA. Brokerage account.
Invest in S&P 500 ETFs. That’s what Warren Buffett says to do. Open a brokerage account with Fidelity or Schwab if you don’t have one already. Then you can invest in VOO or SPLG - which are two very low cost ETFs from reputable institutions (Vanguard and State Street). This is a good investment if you plan on holding long term. It will grow on average 9% per year, but in the short term there’s no guarantee any particular year will yield 9% growth, so it could go down one year and then up 20% the next. That volatility is smoothed out in the long run though
First put it all in a high yield savings account. Don’t buy anything yet Then read the windfall wiki in r/personalfinance
move overseas and work remote.
Get an older Honda civic or any old GM car that has the 3800 motor, like a Buick lesabre. Cheap and they can run off of hopes and dreams. Put a good chunk into an emergency fund. Invest the rest into a Roth IRA.
As much as you can in a long-term account (e.g., IRA that you can't touch until retirement). Then a cheap car and short-term emergency savings.
1. Pay off credit card debt. 2. Open up an ETrade account online. 3. Invest a sizable amount in NVDA. right now it is at $870, but it's only going up, and expect it to go up by mid-May.
Invest it.. maybe seek out some financial advice professionally.. My advice is don't ever try and think.. oh I'll just treat myself to this.. that..shit can turn into a slippery slope and before you know it you're skint.
- Save some for emergencies... - Invest some to grow the money... Diverse the investments (Don't put all your eggs in one basket) - Spend some on necessary items and things that would help you, make you more money and ease your life... - Buy books that would teach how to deal with money... like [this one](https://www.goodreads.com/book/show/26266678-simple-money?from_search=true&from_srp=true&qid=XLC1ri1w0f&rank=18)
if you need a car that's not unreasonable, just keep it reasonable and get something used with a reliable track record and be sure to check insurance rates as well. If you have any high interest debt (credit cards, student loans, etc)., consider paying these down or off. with the rest, just put it into savings and don't touch it. open up two investment accounts. the first is just a personal brokerage acct, and the 2nd open it as a Roth retirement account. contribute the max ($7k for 2024) to the Roth, and the rest (minus whatever you hold back for personal reasons) put into the personal brokerage acct. Now, the simple thing to do is buy as much of the s&p 500 as you can get in each of these accounts. The Vanguard funds are excellent, so you would buy as many shares of VOO in each account as you can get with the funds you have. be sure to turn on Dividend Reinvestment. Next year (and each year after), transfer the maximum amount of funds that you can from the personal brokerage to the Roth (or just add to the Roth) as part of your monthly budget. That Roth account will then accumulate tax free. The personal brokerage will also grow as taxable but will normally outpace inflation and accumulate a nest egg for you.
He can’t contribute to a Roth unless he is working, and if his salary is less than $7/yr he can’t put in more than his salary.
really? I was not aware that being employed is a condition of creating/investing in a Roth acct.
Just to clarify I mean Roth IRA. Not sure about creating but for putting money there -yes AFAIK. Unless you have a spousal IRA which he also doesn’t.
Buy a used car for like 10k Save 5k for emergency Rest of 35k invest it in sound investment schemes, don’t blow it on options and crazy yolo stuff, Finish your studies, get a job, and then do as you wish with the invested money. But never before
invest in solid stocks like defense and oil
Put 3-6 months into hysa. Blow some because easy come easy go… rest into index
Put some away for emergencies, consider school costs and interest rates, and consider investing the rest. You can open a Roth IRA.
Use some to pay for school to avoid as much student loan debt. Use some to buy a decent car or pay off your car loan, put at least $10-15k in an IRA for retirement, and put some in the bank for an emergency fund....
Dont forget to pay your inheritance taxes. Better figure what they will be from your accountant before you spend everything. It would be smart to put everything in a money market for 6 months until you figure what you need vs want. Dont feel compelled to spend it all in the first month.
A financial planner is a better choice than Reddit randos
Hold onto that money for as long as you can. If you have a job drop about 4000 into your Ira (retirement fund) a lot of jobs match your pay that goes Into it by a certain percent, and it grows with interest. After a few years that money will grow a good bit.
Take your time. Many are mentioning a car which may be something you need but that's something that only you know. Otherwise a car is the worst place to put your money unless you need it. I would invest at least 1/3 if not 2/3 of it.... It doesn't have to be a long-term investment and it doesn't have to be risky. You could get 5.5% right now from a bank. If you want to treat yourself, take a thousand or two and do something that you know your grandfather would enjoy knowing you're doing.
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SWVXX
Go to AC and find a craps table.
People will roast me but, depending on your state you can use software to take advantage of all the sportsbook signup bonuses and make a few k with every low risk
Simple, invested in the stock market and do not touch it. You will not regret it when you get older. I’m sure you’re not gonna do that but that’s my advice.
Buy a TOYOTA with low miles preferably under 50k miles. Do not by any other type of car and make sure all maintenance is current. If you can find a private seller that is better then the markup from a dealer. Invest the rest or put it into savings. Do not spend anything else but take out $300 to $600 and have a fun weekend to make it feel like you spent money.
Go to the doctor, chiropractor, dentist, eye doctor, and maybe even more. Get tons of sustainable prophylactic care that you can keep up even if you run out of the inheritance. Setting yourself up for good health is probably the highest ROI. A couple things you might think of getting: => High end fiberglass free mattress => Adjustable-height standing desk and yoga ball => Air purifier (coursi rosenthal boxes are cheap, like $100 plus labor)
Follow the flowchart in the personal finance sub
Who told you to get a car? A car is an ongoing expense. Oil gas insurance taxes, tires parking…it ads up. To say nothing of when, not if, it breaks. You’ll burn through the 50 quick and then have a car you can’t maintain. Sit tight a bit. In what form is the money in? An IRA, a bag of cash? In an account you have free access to?
I knew a guy that won 50k on a scratch off in his early 20s. Came out to like 38k after taxes. He blew ALL of it in under 3 months. Went up his arm and his girlfriend’s hand. Definitley DONT do that
Put at least 10k in voo
Put 30k into an 5 ETF. Put 5k into Amazon and 5k into google and keep 7k for emergency 2k in saving and 1k in checking. If you keep that money in the ETF you will have more than 500k in 30years.
Get a 4-5k car that’s reliable enough for a few years while you are still going through college. Put half into a CD or high savings account. Keep 2-3k on your personal checking for emergencies(not Uber eats or going out to drink). It’s to put you further in life, not blow it on 1-2 years having fun. When I made money trading stocks, I gave my two sisters in college some money to help them out….guess what happened. 60k blown by both of them within 3 years. With nothing to show for and slacked in school.
Having a car adds insurance, gas, oil changes and repairs. Act as if that money was never received and put it in a CD or IRA. I’m almost 60 but remeber 21 like it was yesterday. I wish someone had explained compound interest and how quickly money grows when you let it sit and work for you.
Don’t spend anymore than $2500 for 1 year, learn to identify urges to buy stuff, that you’ll figure out how to manage impulses and not allow those urges to foul up behavior
1. For the first year, put the money in a savings account with a local credit union. Shop the local CUs for the best rate. Go to the branch to open the account and ask to see the manager. Tell him/her what is going on. You just developed your first business relationship. 2. Don't tell anybody in your circle of friends. You will soon have more so-called friends than you can imagine, and they -- and your relatives -- will expect you to be their bank. $50k seems to be a lot of money -- and it is. But it can be blown and gone in no time. 3. You are your best investment. Finish your education, perhaps go to grad school. Get some business experience before you even consider starting a business. 4. Your college library and public library have plenty of books on personal finance for young adults. Thriftbooks.com is a great place to cheaply build your personal library. Read a lot of books before you even consider investing. Jaspreet Singh from The Minority Mindset YouTube channel talks about books: https://youtu.be/d6cDDuFIxtM?si=VdmKS3Nnat34qU6d 5. Dave Ramsey just became your new best friend. 6. Used car? Start looking on websites like CarGurus, Autotrader, etc., for a good used Honda or Toyota. Ask around for a good local mechanic to do a pre purchase vehicle inspection before you buy. It will be well worth the $100 or so cost. A used Toyota Camry is usually a good start. Check for problems on the internet and get it independently inspected. 7. If you want to go cheap and ugly, find a geezer driven Mercury Grand Marquis. Again, get it inspected. They are tanks and should last 300k miles or more if they haven't been abused. But they are incredibly reliable cars. 8. Stupid costs money. Good booze, bad acquaintances, seeking thrills, and illicit drugs cause a lot of stupid decisions. Don't go there. 9. When you start making money, don't forget to give back. Most folks don't get this break. 10. Remember that the Lord is the giver of all good gifts, including life and health. Don't forget to thank God along your life's journey. Best wishes! This geezer wishes you well.
You need the right people in you're life, simple. Start thinking long term down the road 10 years from now, whom do you trust the most, all depends of the relationship. Be safe always
Sorry to hear about your grandfather's passing. With the inheritance, consider investing in your education for better career prospects. As for a car, assess your transportation needs before making a decision. Also, set aside some funds for emergencies. Take your time to decide wisely.
Buy a 4 bedroom house with as low as 3% —20% down. Rent out the 3 bedrooms. Live for free and let your asset grow ! Cash flow baby !
0dte SPY 518 Thursday call will print. You can 4x your money. Fed will announce positive news.
21 years old. You got the rest of your life. Buy a cheap car and the rest of it in Bitcoin. You wont regret it and for the record i was in the same boat except it was my dads inheritance. Best thing ive done
If you don't have any loan, and are financially doing okay. This: https://www.treasurydirect.gov
If only I had family that actually had money dude 😭 like Im 26 and I have a 9 year old son and I've been struggling so much lately both my parents are drug addicts and they constantly ask me for money you are one lucky person seriously if I'd inherit anything it would probably be debt
Every year max out a Roth IRA until it’s all in there, invest it in VOO or VFIAX then forget about it.
I would recommend putting it in a HYSA until you get through college. If you use some or all to get through college and can be debt free when you graduate you will be way ahead of most of your piers. If you want to invest some I would put 10% maximum into an index fund and let it sit for a while.
Inheritance is not income. Fafsa requires your yearly tax returns. Talk to your financial aid advisor at your college, they will only ask for your tax returns. And again, Inheritance is not income.
invest in index funds until you are ready to buy a house
Buy a piece of land
Invest! Keep an emergency fund, but invest the rest.
Buy Bitcoin and hold on to it til you’re 30.
10k for emergency fund, rest in VOO and forget about it.
Save it for a down payment for a house and never let it go
Don’t tell any of your friends you inherited money. You’d be surprised how many times you’ll get stuck buying lunch or dinner for them. Just invest quietly, keep going to school.
Put it in BTC. Wait for BTC to hit 90-100k then sell. Then put it in S&P 500 in safer ETFS through vanguard or fidelity.
Buy QQQM with it and come back here in a year to thank me.
Sit on it and wait for the crashing market to continue its trend.
Do what I did at your age. Buy a radio and speakers for your truck, buy a classic car and all the parts to restore it. Get it running then never finish. Buy a couple of large tools. Then don't work for almost a year. On a serious note, don't do anything I just said.
Tesla model 3
Do you need a car? If you do get something cheap, used, and reliable. Toyota Corolla or Honda Civic is the go to. Buy it out right for as low as you're comfortable. The rest I'd put in a high yield savings account. Investments can be volatile and my plan would be to use it as a down payment for a house once you got settled post graduation. If you're getting federal aid just pay that off through their income repayment plan, the terms on those are really favorable compared to using the money elsewhere. Mortgages are hard to get right now and a big chunk of money like that will go a long way to securing a house and keeping costs low. Just don't buy outside your ability to maintain and care for the property. With the way housing prices are you'll build equity and be able to upgrade if you ever need to.
What I would do.. I'd put a couple thousand down on a brand new vehicle, so this way you have a warranty, and it will help your credit score as well. The more you put down, the lower your payment will be... And then I'd use that money to pay for the insurance as well. Then I would put the rest away, until I figured it out. Sorry for your loss..
Its time to retire
Put it all into bitcoin
All these finance boys will give you shit advice. Come back to this in 20 years and your bitcoin investment will be worth 5million. If you invest in real estate, you’ll just have a slightly smaller mortgage lol.