SVTP Financial gurus

[ON D BIT]

Owning your home free and clear is always best despite what people say about tax deduction on mortgage interest.

Finances is not a math game. Financing anything is an emotional game people overthink. And many will get burned.

 

[Buckwheat 1]

Owning your home free and clear is always best despite what people say about tax deduction on mortgage interest.

Finances is not a math game. Financing anything is an emotional game people overthink. And many will get burned.

If you are a plumber or plan on being self employed in the construction field. The single most important thing you can do is pay off your house. Recessions and downturns in the economy will happen. As long as you have a roof that's paid for. You can survive anytime the world throws at you. Except slick car salesmen. They are too sharp to avoid.

 

[nxhappy]

take a nice 2 week vacation. Can't die without traveling and seeing different culture.

IRA, stock, mutual fund

buy a house, and a plot of land (you can rent it)

 

[Ohio Snake]

^^^^Ya I dont know all the in and outs of different IRAs since I have a 401k at work. Opened a ROTH on the side. When I was in the private sector the shop I worked for offered a SIMPLE IRA but that was 20yrs ago and that's about all I remember about it.

I agree on paying off the mortgage. Were typically only paying 4% but it is on a large sum so the interest can pile up. I've been taking a balanced approach and making extra payments against the principal up front; residential mortgages are a scam. Plus I don't benefit tax wise as I'm only paying @3500 a year in tax so I end up better off taking the standard.

Thanks goodness for rental properties!

Everyone has a different situation that may or may not work for them. Im self employed as a Financial Planner and Investment Advisor for over 20 years. Ive seen it all!
Every decision you make about your financial asset has an impact on what you do today and in the future. There's a "good and bad" to everything.

Your balanced approach seems to be fine and a good choice for you situation.
The mortgage interest on my home is $14k a year and property taxes are another $10k. I can pay the mortgage off, but why erase my tax deduction and deplete cash on hand. Again, everyone is different!

Since this is the SVTP Financial Gurus:

I like planning for the future and like posing questions that make you think............Does anyone know the important impact a Roth has in relation to Social Security income?


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[rotor_powerd]

Everyone has a different situation that may or may not work for them. Im self employed as a Financial Planner and Investment Advisor for over 20 years. Ive seen it all!
Every decision you make about your financial asset has an impact on what you do today and in the future. There's a "good and bad" to everything.

Your balanced approach seems to be fine and a good choice for you situation.
The mortgage interest on my home is $14k a year and property taxes are another $10k. I can pay the mortgage off, but why erase my tax deduction and deplete cash on hand. Again, everyone is different!

Since this is the SVTP Financial Gurus:

I like planning for the future and like posing questions that make you think............Does anyone know the important impact a Roth has in relation to Social Security income?


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You'd rather pay the bank $14,000 a year to save yourself from paying the IRS $2,800-4,500 a year? You may want to rethink that logic.

 

[IronSnake]

I believe it's up to the person in their particular state to determine whether its financially worthwhile to pay your home off. My suggestion is to understand the benefits, and also the negatives. Fortunately yours is paid off.

My suggestion is to use some of that money towards a good cause that he cared about. Make a donation in his name or start a small scholarship fund for kids like he was. I know if my life ever came to the moment where I was left a large sum by my father, I would be in the mindset of using it to teach kids the way he taught me mechanics. It's a way of passing his memory along.

I know you asked for how to maintain and keep the money, but I believe it's important you use some of it to fulfill a purpose he felt he had too.

 

[13COBRA]

Here you go.

 

[sutyak]

While you are deciding what to do with it, at least stick it in a savings account that pays something. This is one I use, and it pays 1.2%, which is not great, but still better than 0%. https://www.gsbank.com
If you want these funds to be available much later in life, then I'd put it in a retirement fund. I agree with consulting a financial adviser for this. Just remember there is typically a 10% early withdrawal fee for pulling money out early from a retirement account. So plan on leaving it there until you're 60 and mean it.
Another option is trading stocks, but there is significant risk involved if not managed carefully. I enjoy trading, but it takes quite a while to get decent at it.

 

[Dr. Gonzo]

IRAs are nice but the yearly contribution amount is very limiting when it comes to deciding what to do with a large lump sum.

Given your current life style and financial situation, I'd put it into a LIRP.

 

[Four Door SVT]

Your grandfather couldn't take it with him but if he could he probably would have or else you would have gotten it sooner. Treat your self and family like your going to be next to your grandfather today.
I'm a plumbing contractor in Indiana, It's a very real situation that older people come home from the the doctor with terrible life changing news and need to make their home accessible for their future demise.
Live, love and don't put money ahead of your family.

 

[RRMBrembo]

Agreed with others stating that you should speak with a CFP. Even if your goal is not investing they can draw up trusts to protect the assets and have stipulations in place of how the money can be disbursed (children and other heirs). They can also help you navigate the tax code for the windfall and possible subsequent investments (if you do decide that route). Interview a lot of CFP's and see how they charge.

 

[oldstv]

This is a very interesting conversation and one that we can all benefit from.
Just asking here but what about a whole life policy, what about buying a long term care policy, or a mix of stocks, or a index fund in the s&p 500, there are lots of options. One thing I will add to the conversation is DO NOT let money be a burden, it is a blessing, treat it as such!!

I would like to know what impact a Roth will have on SS, tell us more?

 

[Blk04L]

Oh trust me, I'd love to order a new white raptor and get another 04. But I honestly would feel wrong doing so. I'm so conflicted and stressed out over something that shouldn't make me feel this way. I was incredibly close to my grandfather and I know he wouldn't approve of me using that money for toys, yes he's gone but I can't over look that, I know i'll see him again.

Not a good way to live your life. Being in fear assuming your recently deceased grandfather would be upset how you spent money.

You aren't a dead beat, you work in a good paying field, don't have excess debt etc...

While I'm not advocating blowing money on 70k trucks, don't burden yourself of thoughts that someone you were close to may "look down" on how you live your life.

Definitely go talk to a professional(s). There are tons of good ways to invest the money, with different levels of risk. Take your time, and see which person you feel most comfortable in with your money.
Remember, there's always a risk, but to reap the potential reward you have to take some chances.

 

[Sinister04L]

It's a burden as far as having it be a secret to my friends, people around me. And just how little I truly knew blood relatives. Like they've been waiting around wasting their life waiting for this, and all they've ever cared about.

It's not going to change my life or who I am. He was my best friend and we were the closest of anyone in the family. I've known about what he was leaving me for a long time and I thought about what I would do, but it's simply not the same without him.

But seeing others, specifically one who was taken care of her entire life by him, never had a real job, but started 3 businesses that he financed but failed quickly, never gave a shit about him but greatly benefits from his death, eats at me.

He built the company for himself to retire, and enjoy the things he loved to do like flying, farming, gambling. I expected another at least 15 years with him, he wasn't in poor health so his death was unexpected.


Me and my cousin were pretty close, but my aunt/uncle always felt they were better then the rest of the family, and nobody has heard from any of them since.

I'm simply venting, and looking for advice, which i'll follow up with the guys who posted offering to help, and go from there.

Sorry to hear about your grandfather. I wouldn't sweat the money. You said yourself he amassed the money to do what he enjoyed to do. Since you were so close it seems reasonable he'd want the same for you right? Get an advisor you trust to protect the money, have it make money for you so maybe you can pass it on one day, and have some fun along the way. Seems he'd want it that way.

As for family, it's a tough lesson learned. I lost both of my parents recently and while the inheritance was hardly anything, it still managed to show some true colors. Such is life. The world is filled with assholes, it's inevitable you'll be related to some of them.

You'd rather pay the bank $14,000 a year to save yourself from paying the IRS $2,800-4,500 a year? You may want to rethink that logic.

Depends on the interest rate. If you have the cash to pay it off but can get a better percentage return through investments, or a combination of investments and tax breaks, why pay it off? Plus it's a long term account for credit purposes.

 

[rotor_powerd]

Depends on the interest rate. If you have the cash to pay it off but can get a better percentage return through investments, or a combination of investments and tax breaks, why pay it off? Plus it's a long term account for credit purposes.

I used to think like that because that's what I had read on the internet and it made sense. In reality, that never happens. Nobody with half a brain has some massive amount of cash laying around and is still making mortgage payments. Chances are the people on the internet telling you to do what you just said are like most Americans - living paycheck to paycheck, making car payments, making rent payments, making credit card payments, and dispensing "financial advice" on the internet. In other words - broke mother****ers who actually have no idea what they're talking about.

I used to buy into that thinking, but not anymore. The day I pay my house off will be one of the best days of my life. No amount of "Oh you could have invested that money and made an extra $40,000 by continuing to pay your mortgage blah blah blah" will be better than the feeling of pulling up my driveway, walking into my house, and knowing that it's all mine.

 

[KilledbyKenne]

Rental property/properties.

Or an island.

 

[RRMBrembo]

I used to think like that because that's what I had read on the internet and it made sense. In reality, that never happens. Nobody with half a brain has some massive amount of cash laying around and is still making mortgage payments. Chances are the people on the internet telling you to do what you just said are like most Americans - living paycheck to paycheck, making car payments, making rent payments, making credit card payments, and dispensing "financial advice" on the internet. In other words - broke mother****ers who actually have no idea what they're talking about.

I used to buy into that thinking, but not anymore. The day I pay my house off will be one of the best days of my life. No amount of "Oh you could have invested that money and made an extra $40,000 by continuing to pay your mortgage blah blah blah" will be better than the feeling of pulling up my driveway, walking into my house, and knowing that it's all mine.

Some people don't know how to put a value on piece of mind.

 

[Sinister04L]

I used to think like that because that's what I had read on the internet and it made sense. In reality, that never happens. Nobody with half a brain has some massive amount of cash laying around and is still making mortgage payments. Chances are the people on the internet telling you to do what you just said are like most Americans - living paycheck to paycheck, making car payments, making rent payments, making credit card payments, and dispensing "financial advice" on the internet. In other words - broke mother****ers who actually have no idea what they're talking about.

I used to buy into that thinking, but not anymore. The day I pay my house off will be one of the best days of my life. No amount of "Oh you could have invested that money and made an extra $40,000 by continuing to pay your mortgage blah blah blah" will be better than the feeling of pulling up my driveway, walking into my house, and knowing that it's all mine.

Except that's the exact scenario being discussed, being able to pay your mortgage off but keeping that money invested instead. If you think every person with access to money pays cash for everything, well ok, I'm not going to sweat trying to change your mind on it.

If you'd rather pay it off, do whatever works for you.

 

[Adower]

If I were in your position I would pay off all debt first. Invest the rest. Act like you never even came into the money in the first place. 20 years down the road you'll thank yourself.

 

[rotor_powerd]

Except that's the exact scenario being discussed, being able to pay your mortgage off but keeping that money invested instead. If you think every person with access to money pays cash for everything, well ok, I'm not going to sweat trying to change your mind on it.

If you'd rather pay it off, do whatever works for you.

I personally know a lot of people that I would consider wealthy. Not one of them has a mortgage or debt of any sort, and they will all tell you that is the first step to building wealth. I used to say that sort of thinking is outdated and that Dave Ramsey is a goof, but the older I get the more I see that is absolutely the best way to achieve wealth for normal working people. Looking back at how I used to look at money, even just a few years ago, makes me laugh. Debt, for normal people in normal circumstances, is the biggest scam going and will keep them trapped for a lifetime.