Current Events > You get $150,000 from an inheritance, how long can you make that last?

(+) Yeah! (+)

I cant imagine I can stretch that very long with 2 kids to feed, a mortgage, and a lot of bills to pay

5 years

xAzNPimP4LiFex posted...

I cant imagine I can stretch that very long with 2 kids to feed, a mortgage, and a lot of bills to pay

Yeah but just imagine how many topics you could make whining about it!

Probably combine it with current savings to buy a house with cash.

Probably about 4-5 years given my current means of living and assuming no emergencies happen

i would not consider that spendable money

Dungeater posted...

i would not consider that spendable money

this tbqh

I would probably use it to knock out a huge chunk of mortgage

i could pay off the rest of my mortgage with that. invest? idk. would be hard not to pay off the house.

If I just spend it, as-is, without touching any other money I may have, 5 years.

If you invest it though you could stretch it a long long way.

I would invest.

That would just be extra cash for me. I would invest it and get passive income off of it.

Prestoff posted...

I would invest.

This. That money would grow for me for years. I'd probably pay a couple bills off, though.

I would just invest it and pretty much reap the benefit of that the rest of my life. But in the true spirit of what I think you meant as far as spending it I comfortably live on about $1,400 a month. Thats everything and I mean everything.

That is cable/internet/phone, utilities (gas/electric) thats city water/garbage bill, thats house insurance, property taxes, food, and gas for my truck. That is ALL my monthly expenses. $1,400 a month.

So without investing and just spending that money to live I could make it last 107 months or 8.9 years. And I would be able to save and invest 100% of my paychecks in that time period.

I'd need about $70k to be debt free other than the house.

Probably put $30k in a HYSA as an emergency fund

Then the other $50k would be tossed into some S&P 500 tracking ETF

So it'd be "gone" in about a week depending on how long it takes for everything to be processed

I'd just use it on bills I can take $1k each month from that money only and I should be fine for 150 months?

Throw it all on black.

[LFAQs-redacted-quote]


Exactly this.

Between what my parents left me, along with the money I got from selling their house, I "inherited" a lot more than $150K in 2020, and other than the money I used to pay myself back after covering the funeral costs, and paying for a trip to Puerto Rico to spread my father's ashes, I haven't touched the money.

Assuming rent increases 5% a year and I still have a roomate and I am not working...

At least 4 years. 6-8 is possible.

However it takes to deposit the money from my bank into my mortgage to pay my house off fully.

And whats left Ill just add into my saving net and investments.

As long as it takes to write a check.

I could just about kill my remaining mortgage with that.

It would be gone in less than a day to go to our two cars and mortgage.

About 3 years if I keep everything the way it is now.

MC_BatCommander posted...

I would probably use it to knock out a huge chunk of mortgage

This

I'm actually in this exact predicament. Currently using it to buy myself a house.

My spending's been a lil crazy though so I'm trying to keep that under control.

Back when I was unemployed, I made a hell of a lot less than that last for like 6 years, with the occasional odd job or part-time. But the cost of living was generally a lot lower back then, I did some couch surfing, had room mates, etc.

Now that I am gainfully employed and have a mortgage and shit, it'd be more a question what I do with the money than how long it'd "last." I could definitely make $150 last like at least a decade if I decided I wanted to quit my job and just Enjoy Life for a while. But re-entering the work force after would be rough after it runs out, in my 40s with a horrible employment gap would look terrible on a resume.

$150k would definitely be enough to just pay down the rest of my mortgage, like that other guy said. That'd be cool, I would still need to keep working but then I could proceed forward, take more risks, etc knowing that I would always have a place to live. I would only need to pay property tax and such, easily covered by a part-time job.

But there's also a bunch of different ways you can spin $150,000 in liquid cash into getting rich. Buy some property, invest, etc. It would be a serious decision I would probably spend weeks or months considering.

The rest of my adult life if I shove it into a TFSA and forget that it exists.

it would go into my retirement account and hopefully save me a couple of years of working

Dakimakura posted...

Probably combine it with current savings to buy a house with cash.

Me too.

Would keep 10k for myself, the rest towards the house

4 years, 3 months and 19 days

15 years. I live extremely frugal. Could potentially make it last longer, but not in this economy.

^I cant imagine that happening unless you live in a REALLY cheap cost of living area or abroad

4 years

I could spent that in 3 days

Might last a year unfortunately unless I get a job

Id use a lot of it to pay off my student loans and relocate to a job in my field in an area that my wife and I want to live in. Probably Massachusetts or Maine.

That'd probably be my best chance of actually being able to buy a house on my own as opposed to renting. Aside from that, it would last me long enough, as I have no intention of ever having children.

I'm extremely frugal, so a long while.

Would be gone in a minute. I'd use it to pay off my mortgage, use what's left over to do some renovations, then sell my house.

It would just go into savings in reality. Well, I wouldnt get it at all in reality. Im never going to inherit anything. But you know what I mean. It really wouldnt change anything for me at this point.

As a hypothetical though, it could last a very long time, especially if I moved to a more remote area.

Definitely not my mortgage, I got my house at 2.8% why would I pay that off early when the stock market will outperform it? Hell, my savings account is over 4% I could just leave it in there if I wanted and I'd come out ahead of paying my mortgage.

I'm renting, walking around with 6k debt to my name.

So... forever. I'd put 100k in a high yield savings, 25k in investment/max out a roth, and the other 25k for month to month bills while I adjusted my strategy to improving life.

I would use it to buy a house so however long it takes to find the "right" house that's still within my planned budget and go on to have a mortgage of like $500 a month. Basically it would set me up to be able to retire some day with all the money I'd be setting aside for savings.

If I'm living off the inheritance alone, probably 4-5 years. Maybe a bit more if I really put in effort to stretch it.

If I can still get income from other sources too, I probably won't even need to touch it any time soon and it'll just be earning interest.

I inherited $250,000. Just tossed it into an investment account. I plan on dying before I ever let it materially affect my life.