Half of it to inheritance tax....

If I inherited a big sum of money tomorrow, here are the smart and practical things I would do:

- down payment on a house that is bigger than the apartment where I currently live
- pay off my debt (about $15k total)
- pay off my siblings' student loan debt (about $10k total)
- $10k gift to my daughter

And then there are the emotional and less practical things that I would also do:

- $500 in $20 bills, given out to the people I see every day on the street begging
- $100 in the tip jar of the coffee place I go every morning
- go on an actual, real, extravagant vacation with my daughter
- replace all my underwear and socks

Anonymous wrote:1.6 million dollar house and save the rest.

Dumb idea, why would you tank most of your networth into the house you will occupy yourself, it's a lot of cash sitting dead and doing nothing for you. Buy a more modest home for half this or for 1 mil and buy a rental property to collect income with the rest. Thank yourself later and move to a more opulent home when you have more cash.

Anonymous wrote:We are in our 50s with 2 in HS. So college fund. Retirement, are big in our minds. So much of the money will just go into retirement funding.

I am so happy for you, really. In your 50s means that you have earned the windfall in a way, and this will allow you to buy and furnish a second home where you intend to retire.

I would also set aside a good amount to FULLY fund each of my children's college and graduate school, and perhaps the down payment on their first house.

Anonymous wrote:We are set to inherit $2M in the next few weeks. DH and I just look at each other. Overwhelmed.

Read "Squandering Aimlessly" by David Brancaccio, which is a really interesting read. He travels around the US and talks to people about 10 different scenarios for dealing with a windfall--but he's a really good storyteller, lots of food for thought for all of us in that book.

From the review: "He finds that generosity is common, as are guilt, insecurity, confusion and regret. However, there is very little of either greed or indifference. Perhaps the most important message of the book is that no one seems to have a good answer to the question of what to do with money. Neither professional money managers, professional thinkers nor gamblers have the secret. The people Brancaccio meets who are happy and secure do not worry much about money, but seem to have enough (everyone else has a problem, either financial or emotional or both)--but the cause and effect of this relation is not clear."

Anonymous wrote:

Anonymous wrote:Listen to the Barenaked Ladies song, and do everything they say twice.

Whaddaya have against green dresses?

First thing I thought when I saw this thread was *I'd buy TWO green dresses!*. Nice to know I'm not the only nerd on here.

Seriously, If I inherited a large sum, I'd renovate the bathrooms and paint like I've wanted to do for ages, upgrade to a larger but still good on fuel milage car, set up a college fund for my kids and then invest the rest.

Anonymous wrote:

Anonymous wrote:We are in our 50s with 2 in HS. So college fund. Retirement, are big in our minds. So much of the money will just go into retirement funding.

I just realized ill be 48 and 52 when my kids hit college. Fuuuuck.

Which of your personalities will be 48 and which will be 52? Will the one who can't spell be 48? Will the one who needs to use fuck in every post be 52?

Anonymous wrote:We are in our 50s with 2 in HS. So college fund. Retirement, are big in our minds. So much of the money will just go into retirement funding.

I just realized ill be 48 and 52 when my kids hit college. Fuuuuck.

We are in our 50s with 2 in HS. So college fund. Retirement, are big in our minds. So much of the money will just go into retirement funding.

Anonymous wrote:

Anonymous wrote:How old are you? If you're 35 and renting with a 2 yo I'd do different things then if you are 52 with a home and two kids in middle school.

52 in middle school thats old as fuck

Thank you for your contribution.

Anonymous wrote:How old are you? If you're 35 and renting with a 2 yo I'd do different things then if you are 52 with a home and two kids in middle school.

52 in middle school thats old as fuck

How old are you? If you're 35 and renting with a 2 yo I'd do different things then if you are 52 with a home and two kids in middle school.

First thing, learn and repeat:

No

That is te a set to anyone and everyone that
Comes out of the woodwork to beg for
Money


First get a trusted estate attorney. A will and
Family trust documents should cost about
2k. Then talk to a fee only financial planner if
You don't already have one.

Third. You and your family come first.
You find your retirement. You find college
Accounts. You can pay off debit. Then the
Mortgage.

Then you put the rest away for emergency
Stuff. If it allows one or both of you to reduce
Your work hours great.

And tell no one. It's no ones business.

I'd settle in with know in you have financial stability
Before getting a new house if you don't need it.

Well, if it was me, I'd finish fully funding my daughter's college fund, buy a new place with a minimal mortgage while keeping our current one as a rental (it will more than pay for itself) - that'll take about $1 million. Then, I'd invest the rest and recalibrate my target retirement date.

OP, so much depends on your financial situation, family obligations, etc. - the do nothing for 6 months, educate yourself, and then see a fee-only financial planner is the only good advice.

Anonymous wrote:Listen to the Barenaked Ladies song, and do everything they say twice.

Whaddaya have against green dresses?