If you inherited $1 Million at age 35
Out of context: Reply #37
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- ETM0
First thing I would do is stick it in a term deposit for 6 months. Earn a little interest and lock it away while I really figure things out. 6 months gives you time to really absorb the windfall and not make a bunch of impulse decisions.
Then there is a good chance I would simply save it. Reason being that with a high interest account, you could get anywhere from 30-40k+ in interest per year. Although it's not a full years salary in most regions, it would let me work casually while supplementing my income. The extra cash would go to accelerated mortgage payments and other debts.
See the problem is, if you use it all at once to pay off your debts great, but then it's gone. If you use the interest to pay things off over a couple years, you'l still be debt free, yet also still have that million in the bank.
Once your debts are gone, reinvest the unneeded interest income and you will grow it into a nice sum.
- bingomonospaced
- but 30K interest a year is laughablemonospaced
- oh, yeah, that is possible...and it compoundsmonospaced
- dont forget tax.JSK
- Yeah, it would be better if it was winnings, because we don;t get taxed on winnings in Canada like in the US.ETM