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Thread: WWBD? come into alot of money....

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    Default WWBD? come into alot of money....

    So, a very good friend of mine is coming into a 7 figure inheritance. He has never had money in his life. Everything he has, was bought by dad or from his dad's pension after he passed.

    We've had alot of convos about what he is going to do with the money, ill keep my thoughts to myself on what I think.

    But, he is thinking he will pay off his house. Now he just refinanced for another 5 years just a couple of months ago. For you guys that seem to be good with their money, just wondering if this is something you would do in this situation and, if so/not, why?

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    I would tell him to put it in a trust and live life/make payments based on that since he likely doesn’t know how to take care of money.

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    He single? He want a spouse? I'm available, or I coukd be.

    No but seriously, he should do everything he can to keep it out of his hands day to day. He should make a promise to himself to not invest in anything for 12 months. Paying off current debts is a reasonable and conservative option. If the bulk of the money sits for a year, it's not hurting him.
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    GME and yolo.

    It's hard to say but there are a lot of variables like his earning power, age, retirement horizon and risk tolerance.

    And 7 digits means $1M or $7.2M? All that may have difference strats.

    If he is conservative, clear all debt from highest to lowest interest, dump as much to fill out RRSP/TFSA room to get into shelter 1st.

    On the other end, debt is cheap, get into crypto or stonks.

    He has never had money in his life
    Given 70% lottery winners lost it all, he is primed to be part of that stat. He better start learning how to manage wealth.

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    I'm better off than a lot of people, and between paying off my mortgage, then TFSA, RRSP, RESP etc, I could use up the majority of a million bucks without even buying myself anything.
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    I'd convince myself I'm terrible money manager and find someone trustworthy to manage it for me. I'd make a trust fund for myself so I can't spend it on land in strathmore etc

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    Quote Originally Posted by Twin_Cam_Turbo View Post
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    I would tell him to put it in a trust and live life/make payments based on that since he likely doesn’t know how to take care of money.
    This man knows what's up.

    Done properly, in a low risk investment trust that pays him a montly allowance for the rest of his life. Perfect thing to do.

    I would advise to NOT pay off the mortgage though, as that extra money in the investment portfolio would likely earn more than the interest amounts from the mortgage.
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    Leave Calgary
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    Quote Originally Posted by killramos View Post
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    Leave Calgary
    ... And leave your wife behind.

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    Quote Originally Posted by Buster View Post
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    ... And leave your wife behind.
    Now that sounds expensive
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    I'd pay off my mortgage, and then who gives a shit if I lose the rest because I won't owe anybody anything.

    I daydream now about things I can't afford. If I had money, and invested it and made more money, I'd just be daydreaming about more expensive things I can't afford. I wouldn't be any further ahead.

    Alternatively, a fun answer: I'd spend whatever it took to fuck Lexi Belle. Then the mortgage, then waste the rest.
    Last edited by SKR; 05-06-2021 at 07:50 PM.
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    Coke and hookers
    Quote Originally Posted by killramos View Post
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    The AHS system is quite good.

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    Theres the rigger legend of the dude who won the lottery, spent it all on cocaine and used it all without paying off truck loan or mortgage.

    So paying off your debts is not the worst idea.
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    I love how you guys give advice based on little to no info lol.

    How old is he, what does he do for a living (if he works), wife/kids, businesses, etc.

    His life stage should dictate his investment decisions.
    Originally posted by beyond_ban
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    Quote Originally Posted by Power_Of_Rotary View Post
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    I love how you guys give advice based on little to no info lol.

    How old is he, what does he do for a living (if he works), wife/kids, businesses, etc.

    His life stage should dictate his investment decisions.
    I think we are responding appropriately to the posted question.
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    Alright, most of the answers are not answers at all lol so let me ask again with more info. He is married with 1 kid, and they both work.

    With the low interest rate and an already locked in mortgage of 2.1% for 5 years, would you really pay your mortgage off, or invest for the term of that mortgage and see where interest rates are in 5 years and decide then?

    In this market, I wouldn't think paying off the mortgage right now is the best financial decision, is it?

    Fir reference, let's say it's 1.5mm and the mortgage is 350k.

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    You asked WWBD. Beyond told you what they would do.

    The correct answer is invest in a well diversified portfolio commensurate with his risk tolerance. If his risk tolerance is extremely low, then throwing some money against the house isn’t a terrible investment. Very few people have the discipline to actually do any of this, for someone financially illiterate I think there is an argument to be made that just paying off the house is the smartest thing he can do and potentially a good decision in “portfolio diversification”

    What’s actually going to happen? Something closer to a new Denali and a super air nautique or maybe a pavati is my guess.
    Originally posted by Thales of Miletus

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    You know what I would do if I had a million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...

    Or two chicks at the same time, man.

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    Quote Originally Posted by D'z Nutz View Post
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    You know what I would do if I had a million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...

    Or two chicks at the same time, man.
    Lol well played!

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