Investing Inheritance

hi Lee

Sorry to hear about your parents.

I think your next move should be to consider legal and taxation advice regarding the estate. There could be significant tax issues there.

Then you need to consider asset protection.

After that consider investment strategies.

What state are you in?

Have you been advised on a post death testamentary trust if there was not one in the will?

What about gifting the money to a discretionary trust and borrowing it back?

Terry – send him a PM.

For what it is worth – I would park the dollars in a term deposit for 3/6 months max and spend the time learning, learning, learning. You have a great opportunity to set yourself up and getting your head around some of the options available to you would be to your long term advantage.

By your own admission 'you are fresh to the investing front' so taking a slow journey at this stage wont go astray.

Kouts,

It really all depends on your area of expertise.

From what is set out here it sounds like you've had an unfortunate passing and found yourself lumped with an inheritance and literally no experience with how to deal with it. Thats not a good portend for the future.

To sum it up .. what if this was the family business .. a coffee shop or a manufacturing business? You'd take hold .. bring yourself up to date as quickly as possible as to what can be done, educate yourself on the ongoing possibilities for the business's future and try to steer either a path for success or a quick realisation of business assets .. depending on your actual capabilities.

Directions i could give you for further investment would be meaningless without knowing how much of an education you've been given on how to run and manage property. If you've never had such an insight .. dont jump in bareassed. Thats how you burn yourself. It costs both money and time to fix mistakes. The realistic route is just not to make them.

Three specific areas of education for you.

 Bank your money on term deposit for six months (dont worry about the appreciation loss .. six month appreciation loss is technically minimal anyway on the money concerned).

(1) Learn to count.

If that sounds wierd .. its the one reason why some lottery winners become paupers. They have no idea of how to deal with figures larger than their usual set. A large inheritance is the same. Its more money than you are used to and as such you will need to get your head around what it actually buys. Thats why you need the time to do that. Its an education.

(2) Educate yourself into an area expert with your property subgroup.

If you want to be KING OF THE ORANGES .. you'd need to know who your best buyer is, where the best deals are to be sourced and what your determined market for sales will be. Its no different in property. You will need to become knowledgable in where your property lies in the market .. what will promote or detract from its future growth .. and your most likely clientelle who will be utilising the property asset. Know your tax allowances and taxable deductions. Then .. and only AFTER all this .. start looking for a property to match.

(3) Learn how to negotiate.

In real property investment … you'll be dealing with property managers .. tradesmen … tenants … and government institutions. You will need to learn how to keep any or all parties happy and working for you to produce your best result. You will find that grabbing a couple of good books and learning how to create better win-win situations will be of great benefit to you in being able to work out how to find the right solution for ongoing property bliss. If this bit sounds un-necessary its because the first time you'll realise how beneficial it is .. is the one time you never thought it would happen. Its better than Insurance for saving your ass.

xdrew, I’ve sent you a PM.

Whoa that's some fast typing. Five posts in less than 10 minutes must be a record!

Cheers

Jamie