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Grandpa is in bad shape and has serious ongoing health issues, including dementia.

first time i ever got money i didn't earn.

25, have a solid career, and i am anxious to buy a condo. got 25k in student loans and 4k or so on a car loan.

should i stop renting and buy? seems like a good time to do so.

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Buy this tax lien, foreclose on the property and own it F&C.



So it's "insurability insurance". But I agree.

BingBlangBlaow (Dec. 22, 2012 @ 10:01p) |

Precisely, my point. And if true, suggests he will be receiving either more of these gifts in the near future (January?)... (more)

lp244 (Dec. 22, 2012 @ 11:17p) |

Here's what I would do. Sounds like your grandfather was fiscally responsible. As such, I'd use the money in a way tha... (more)

Usorry (Dec. 23, 2012 @ 7:39a) |

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tony6730 said:   Grandpa is in bad shape and has serious ongoing health issues, including dementia.

first time i ever got money i didn't earn.

25, have a solid career, and i am anxious to buy a condo. got 25k in student loans and 4k or so on a car loan.

should i stop renting and buy? seems like a good time to do so.

Rent, dont buy (yet).

13k is not a lot of money in the bigger scheme of things. Certainly not compared to the cost of a condo.

Besides, you buy your place of residence when you are ready to settle down and financially comfortable. Not because you inherited money that could be put towards a down payment on a condo.

No it's not.

If you couldn't afford a condo with your normal income , this windfall won't make owning any easier as it will all be spent just to close on the loan .

Without listing your income , assets , condo price , Hoa fee, your current rent and your available monthly housing budget there's no way we can provide an analysis . In fact the simple fact you didn't list these Crucial items suggests you haven't considered whether its truly affordable

I think we need some more details.

What are the interest rates on the student loans and the car loan?

How much are condos in your area?

What is your salary?

one word: Vegas.

29k debt. 13k windfall.
Unless that's cheap debt (low to zero interest), pay off debt.

johnfw said:   I think we need some more details.

What are the interest rates on the student loans and the car loan?

How much are condos in your area?

What is your salary?


between 5% and 6.8%

I would be looking around 125k on a condo. i make $41,500 at the moment, but that is set to raised as a promotion is in the cards.

5% and 6.8%. Pay off debt

Keep renting for now.

If you want to live the FW way and be richer in the long run take out the 6.8% debt then the rest at 5%. That is the best way to use that legacy windfall. Don't consider buying a large long term expense just because you got a small monetary boost.

If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.

Savings: If you don't have a savings or rainy day fund, put half of that money into a Roth IRA and/or money market account. I say Roth because you can take out up to the amount you put in without tax or penalty.

Pay debt: Put at least half toward the debt UNLESS all of your student loans are federal and qualify for this: http://www.fatwallet.com/forums/finance/1244177/ or another similar program.

Invest: If you've already saved plenty and have only federal loans, not private, that can be discharged (with low payments in the meantime), consider investing in an ETF or Mutual fund within a retirement account.

lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home

tony6730 said:   lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home



First, it is not that "guy". He is your grandfather you POS. Second, you should get over there and spend some time with him before he dies. Not matter what state he is in.

Yours is an example of the one of the really bad posts that FWF gets from time to time. Your priorities are all f'd up. I don't know you. But I base this completely on your attitude that comes through in your post.

Make sure to calculate the tax bite before doing anything with it.

Dang man... 13K? Give your notice at work tomorrow and retire!

germanpope said:   tony6730 said:   lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home



First, it is not that "guy". He is your grandfather you POS. Second, you should get over there and spend some time with him before he dies. Not matter what state he is in.

Yours is an example of the one of the really bad posts that FWF gets from time to time. Your priorities are all f'd up. I don't know you. But I base this completely on your attitude that comes through in your post.

whoa whoa whoa

the hostility is out of line. i live 8 miles away and help out plenty.

You brought up grandpa. I am not sure what he has to do with deciding what to do with $13k. But you bringing up grandpa in this context, who is still alive, rubbed me the wrong way. Just my opinion.

What the hell is wrong with you people. Guy comes here for advise and you're giving him the third degree. This is why the internet sucks. What a bunch of muppets!!!

41k can't buy you a lot of house. You might want to put it away in long term investment. You can purchase a primary home with no money down, but you need cash to purchase investment properties. It's hard to come up with 13k.

tony6730 said:   lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home


What lp244 was trying to convey is that if your grandfather is still alive and conveyed the money, you received a gift, not an inheritance. Strictly speaking, an inheritance is the practice of passing on property upon the death of an individual. lp244 also raises a good point--if your grandfather is still alive, but is suffering from dementia as you say, who gave you the money, under what circumstances, and with what authority?

drew2money said:   What the hell is wrong with you people. Guy comes here for advise and you're giving him the third degree. This is why the internet sucks. What a bunch of muppets!!!

41k can't buy you a lot of house. You might want to put it away in long term investment. You can purchase a primary home with no money down, but you need cash to purchase investment properties. It's hard to come up with 13k.


It is worth repeating the old adage: you get what you pay for.

OP - like others said pay off the higher interest debts you have. Hopefully you normally (like always) pay off your credit card bill in full each month if not pay off all the CC debt first as they are usually higher than 6%, then do the 6% one.
Living debt free really makes your purchasing power and borrowing power higher which will come in handy later in life.

2stepsbehind said:   tony6730 said:   lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home


What lp244 was trying to convey is that if your grandfather is still alive and conveyed the money, you received a gift, not an inheritance. Strictly speaking, an inheritance is the practice of passing on property upon the death of an individual. lp244 also raises a good point--if your grandfather is still alive, but is suffering from dementia as you say, who gave you the money, under what circumstances, and with what authority?


my parents/aunts/uncles. my grandpas kids. He was a regular guy who bought a house for $9000 in the 1950s and never moved. He has a house and a good amount of savings to his name

tony6730 said:    i am anxious to buy a condo.

Why?

13k is not a life-changing amount of money unless you live in a trailer. Just save it and forget about it.

Deposit $13k in account, pay off car, save rest as emergency fund. Not enough money to consider purchasing a property IMO. If you did not have enough funds to do so before you got the $13k, you honestly don't have enough money now either.

Save it. Forget about it. Put it into your 401k so you can't spend it. Something.

Hell, take 2-3k and enjoy a nice long-weekend vacation and then put the rest in your 401k so you can't touch it (or a Roth, whatever). Sorry to hear about your grandfather.

drew2money said:   What the hell is wrong with you people. Guy comes here for advise and you're giving him the third degree.

i believe your comment applies only to one poster. he does not represent the internets. regardless of his views of his own opinions...

tony6730 said:   2stepsbehind said:   tony6730 said:   lp244 said:   If you inherited the $13,000 from Grampa he is indeed in bad shape. If actually gifted you the money, you may want to delay major financial decisions because you may be getting more soon.

Or, if you stole the $13,000 from the demented man then you may want to save the funds for legal assistance.





That accusation pisses me off. I have nothing to do with the finances. The guy is 87 and not coherent a lot of the time. 24/7 hha and he is still in his home


What lp244 was trying to convey is that if your grandfather is still alive and conveyed the money, you received a gift, not an inheritance. Strictly speaking, an inheritance is the practice of passing on property upon the death of an individual. lp244 also raises a good point--if your grandfather is still alive, but is suffering from dementia as you say, who gave you the money, under what circumstances, and with what authority?


my parents/aunts/uncles. my grandpas kids. He was a regular guy who bought a house for $9000 in the 1950s and never moved. He has a house and a good amount of savings to his name


And your parents/aunts/uncles are 100% sure that your grandfather will not need the money for his continued care/upkeep if he manages to live quite a bit longer? I do hope one of the grandpa's kids has financial power of attorney or has been given conservatorship over his affairs.

I never heard of inheriting money before someone dies. Is this possible?

Maybe this thread needs some clarification and I am interpreting things wrong here. But is sounds like a family is dividing up the spoils of an estate before the person even died. This makes no sense. Again, I will wait for the clarification before I ask -- what the hell is wrong with you people?

another thing, if you are going to put red on a post BenH that is asking a question --- then you should get your lazy butt out from behind your screen and join the discussion

what the hell is the matter with you people that come by a discussion and press red and green and don't even join in?

if you got one opinion --- then serve it up

StevenColorado said:   Make sure to calculate the tax bite before doing anything with it.Sounds like the OP received a $13K "gift" from his Grandfather, where $13K is the current annual exclusion to the Gift Tax (per donee).

From the hyperlink above:
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, and $13,000 on or after January 1, 2009, the annual exclusion applies to each gift.


OP,
As your granfather is still alive, you did not "inherit" $13K. You appear to have received a "gift" from him, likely to reduce the value of his net worth now so that upon his death, the taxable portion of his estate will be reduced/eliminated.

TheDiggler said:    ... As your granfather is still alive, you did not "inherit" $13K. You appear to have received a "gift" from him, likely to reduce the value of his net worth now so that upon his death, the taxable portion of his estate will be reduced/eliminated.

It is unclear whether the grandfather made the gift of a conservator made the gift on the grandfather's behalf. I am guessing that OP's family has a competent attorney involved that is has set this up properly. If that is the case, this turns out to be no more than a "what do I do with $13k" thread.

We as humans lived and run our life's on emotions and interests. The money will be better put to create more income to help you pay the debt faster. Check your expenses and try to reduce as much as possible. Do not buy only if is worth-it financially. Reduce the rent and use the money to pay the debt first!

imbatman said:   5% and 6.8%. Pay off debt

Keep renting for now.
If the car loan is in that percent range, I would refinance that to a lower rate; check Penfed and your local credit unions. Believe Penfed has a 60 mo. 1.49% loan. We just redid ours with Pacific Marine CU in San Diego at 1.5% for 48 months.

Then if possible consolidate and lower the interest rate on your federal student loans as someone suggested.

Put some away for a rainy day fund (Roth is ok), and pay down any high interest debt remaining.

tell grandpa thank you and you love him for petes sake

As everyone has said , since he is still alive you receive. A gift

Not an inheritance

The family is probably on a mad dash to get assets out of grandparents name. And most of them are looking to blow it as soon as they get it

That's the American way

No question....should go into H & B !!!!

Pay down the loans, starting with highest interest

Skipping 49 Messages...
Here's what I would do. Sounds like your grandfather was fiscally responsible. As such, I'd use the money in a way tha honors him.

Assuming car loan is 4.x% or higher, I'd pay it off. Next I make a contribution to my Roth IRA for 2012. Put the rest of the money into an IRA contribution for 2013.

Save about $500 and do something nice for yourself and enjoy what your grandfather had.
---

Wife had a similar thing at one point when we were first married. She bought our dining room set to do we can have a lifetime of memories at the table and put the rest in her IRA. But we didn't have any debt except the mortgage.



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