Bitcoin Forum

Hi guys,

as the title says, I have unexpectedly inherited around £290,000 and don't know where to start. I'd love some informative input.

I am...

    25 years old

    recently graduated with a masters in physics

    currently working at a mall.

    I'd like to maximize some kind of regular income from this, maybe through renting out a property

    There's risk tolerance on maybe half, I'd like to keep the other half safe

    I have never invested before, except lucking out with a small bitcoin purchase in 2011

    No house, no car (though I'm looking to buy a cheap one shortly)

    I have a student loan debt of around £15,000

One plan I'm thinking of pursuing is to buy a small property to live in for 6 months (to clear capital gains tax), and then using that property against a buy to let mortgage to purchase another property to rent out. This should provide some regular income but I dont know whether to try to pay of the mortgage or to sell the house when the market picks up and take the profit.

I'm open to any suggestion, I'm in an extremely fortunate position and want to make the best out of it.

Wow, things like that really happens... First of all congratulations. You inherited more than I will ever earn in my whole life. If you want to invest in the best way is as you said Real Estate market. Buy some, rent some,  gain profit. Stock exchange is too random is you are not familiar with it.

Do you have any business ideas? It'd be a great way to use a portion of the inheritance.
Just don't forget your risk tolerance. If you want to keep a part of the money - do it. Don't spend it. It is very easy to waste money, and very difficult to earn it.

Did you inherit it from a wealthy Nigerian Prince?

Im still making choices right now, just want any ideas, or anyone who has been in a situation like this.

I have no business ideas at this moment.

That made me laugh. I always used to laugh at that one scam.

Actually, I also thought this thread would be a joke regarding a Nigerian scam before reading it :)

WOW WTG invest it in a business Idea but always do lots or research before you make a go and you dont have to make a huge investment also

Quickest way to lose it is to invest in a business.  Pay off your loans, put 80 % in a low fee stock index fund, 10% in bonds, 9% cash, 1% btc

Buy a place to live
Invest the rest conservatively
Get a proper job

Day-trade alt coins (and BTC), and you will be set for life.  :D
Seriously, that is a real plan only if you learn how to be good at trading.

Congrats on your good fortune.

Most billionaires needed to borrow some $10k's to start their business, or wharever made them rich, and now you have much more without paying interests. So think twice before hear the conservative-mongers.

Sad for your lose and congratulation for the inheritance, here are my suggestion for you :
1- buy/pay back the student loan you have to remove the interest rates and to have a possibility for another loan if needed in the future especially from a business perspective.

2- I believe you should place half of the money at least as long term saving plan that you don't won't touch unless real shit happens

3- The rest should be invested in different business (the amount of money you are willing and afford to lose ) of course you should invest this in different business with different degree of risk related to them, some business are way safer than other, so make your own proportions for this

4- Don't waste your money on luxury and stuff, wait in tel the business you've invested in starts returning money , if your money isn't making money you'll end it in no time

Buy Bitcoin  ;D
With the remaining money
Buy Property (Make sure to account for real estate taxes and land taxes though)
Then rent property
$$$
Or get Branny to do it for you at Rentalstarter 

Pay off loan as soon as possible and invest that money in land/property. I wouldn't invest in business unless you have some good ideas or experience which doesn't seem to be the case. Property in a good area will be the safest investment for the future.

Put 80-90% of the amount in safe investments, such as stocks, US treasury bonds and bullion (gold, platinum or silver). You can use the remaining 10-20% for various HYIPs, such as the Bitcoin.

just don't be like that one kid who received $700,000 from his dead parents.. half was supposed to be for him, other half for his sister. he blew 400k from buying BTC high and selling low. and then decided not to give his sister her fair share.. piece of scum.

He never should have had control over more than 50%.
Sad to say, that estate certainly was not set up properly.

i think he said his parents didn't trust her with the money since she was 19ish and he was in his mid 20's. that was their mistake. dumb parents.

if that were me, i'd take out 10k to blow on hookers and blow.. and then the rest, i don't know  :D

I look forward to the day when I get to manage even 20% of $700,000.
You have to be such a horrible trader to lose ~$400,000

Interesting story though, I missed that one before.

Was this story posted here? Can you give me the link?

i don't know. i wasn't around here at the time. it was on reddit during the bull run in late 2013. the /r/bitcoin subreddit is too huge for me to find the post.

edit: and here it is http://np.reddit.com/r/Bitcoin/comments/1r88vl/need_advice_on_inheritance_arbitrage_family_etc/

I was able to find it:
Need advice on inheritance, arbitrage, family, etc. Please, I am becoming desperate.
http://www.reddit.com/r/Bitcoin/comments/1r88vl/need_advice_on_inheritance_arbitrage_family_etc

Looks crazy so far...

Make sure to get rid of all debts first, that should help out a lot.

90% btc
10% security

Read Trilema and rptiela's SSS thread.

Pay off your debts first.

Use 10 - 20% on BTC and cryptocurrencies (including coins like PHS which pay you interest every few days).

You could put the rest into more traditional investments, or use some of this remaining amount to start a business (preferably online and low maintenance) if you are that way inclined.

I don't know enough about the UK property market to know if buying property is a good idea.

Good luck and just relax - don't rush into anything, especially if it involves a size able amount of your windfall ;)

Oh god.. stories like this make me feel nauseated. First of all, the assets were worth something around $1,500,000 and he sold them all for half that amount, as he was too impatient to get liquid cash on his hands. I read all his posts... in the end he was saying that he is going to keep all that remaining $280,000 to himself and he was even thinking about taking a mortgage on his house.

Update: He was able to keep his dog.
http://wallpoper.com/images/00/27/63/73/homeless-man_00276373.jpg

Never rob/cheat your family, or you will end up like this wretched person.

Shit, if I would be in his position, I would feel so bad and think "What would my parents say if they were to see what I did with everything they left for me and my sister". Not act like a douche and risk the rest of the 250k and only give 75k to his sister if he fails at daytrading again, which he will.

I'd be so pissed to be his sister and knowing I should've gotten over 300k from the start, which is more than enough to get anyone started in a comfortable life.

Haha, he should've written down his btc address too, you know, to give daytrading another try since he almost made it the last time.

I was cheated by a close relative when I was almost the exact same age.
Adjusted for inflation the amount would be close to ~25K or maybe $35,000; Not enough to cry about, but it's hard to completely forgive/forget.

you can invest in on some profitable business and as you said keep the half of the money in a bank

Deposed Nigerian Prince here.

In order to gain access to the £100,000,000,000,000,000 fortune that is rightfully mine, I need a low, low investment of £290,000.  What a coincidence!

I will then share my riches with you, my only friend.  Don't worry about not getting your money back, Nigerian Princes are the most trustworthy people on the planet.

Take a good long time to educate yourself on investing first. Don't invest in anything you don't completely understand.

I'm sure there's a scam in this somewhere.

I would build my website idea I've had in mind since 2 days ago. Use some money to advertise on major tv channels and other large places. Sit back and watch it explode. I would double my money in a years time.

LOL that's what I thought before I even clicked this.

Buy some investment properties in the US. Worldwide capital flight is beginning, and the US will be seen as the reasonable safe haven. Prices here will rise, but it will crash (HARD). Call the top and get out. I figure you've got 4 years before the top, but it could be 2 years.

Otherwise, buy bitcoins and hold.

yes buying real estate and renting the property would be a good option I think. Buy some bitcoins with them, who knows maybe that will pay off alot in the future, go to business consultant and ask for an advice.

Whatever you decide to do: Don't be in a big hurry, unless you need a job.
Living off the money would be a bad idea.

Has OP posted again after this post?

be like hilariousandco's uncles.. just go to thailand, live off the beach and spend your days with hookers.

i have a $100 trillion note from zimbabwe  ;D

You can get the same for $5 from Ebay.  ;D

http://upload.wikimedia.org/wikipedia/commons/thumb/3/3e/Zimbabwe_%24100_trillion_2009_Obverse.jpg/250px-Zimbabwe_%24100_trillion_2009_Obverse.jpg

No, it looks like post #5 was his last.
Probably off spending some of his stack of cash.  :)

@OP
Try a variety of investments; As long as you stay employed you should do pretty well.
Have fun too.

Well.....

You could always give me 10% so you don't have to deal with the preassure  ;D

you should buy a new car and a new home and spend 20,000$ on a month in vegas and strippers and cocaine and then go back to your normal day to day life but enjoy house and car

I'll offer the same deal for only 27%, you will have even less money to worry about.  :D
FYI: The OP left more than a day ago, DAYAGO.  

ok listen to me.  and then stop.

1) buy £280,000 worth of BTCitcoins.  whatever price

No. £28,000 might be a good amount. Or may be even £56,000. I definitely don't want anyone to invest all his inheritance in an extreme-high risk investment. Take the risk only if you can afford it.

Yes, all 100% would be unwise for a single huge BTC purchase:
He needs to save some money for when BTC goes down $10  :D

I was born poor, then got rich fast so I can relate. One advice is not to spend money on things that you will only hate yourself for.

If you want to eat nice, eat nice. If you want to have that particular shoes get them. But if you are not comfortable at that high end night club, don't go there, if you are bored don't go buy random gadgets.

As for investments I did pay off my student loan, bought an apartment, put most in index funds and got some bitcoins. Can't go too wrong by doing that.


There is this book you might like
http://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680011

Rich Dad Poor Dad is a book I've really wanted to read.  Good suggestion right there ^^

Assuming you live in the UK do you have the US equivalent of FDIC (Federal Deposit Insurance Corporation) which will only insure an individual bank account for $250,000?  If that is the case then you need to open multiple accounts to ensure that your money is protected while you are considering your options.  They can be at the same bank, but under different names John Doe, John A. Doe, etc., but I would probably go with a different bank so that all your money was not tied up in one financial institution. 

It would probably be wise to spend some time with a lawyer and a financial adviser to protect your new wealth.

Buying a duplex or something like that is a nice idea, you can live in one half and rent out the other. people do it all the time and if you can price it right, the renter basically pays the whole mortgage. You might want to think about starting retirement funds too, Roth IRA etc ,and invest in bitcoin too.

If you didn't blow though your money yet.. Buy a few btc and buy stock that pay dividends. Spend it all on that, yeah 290k is a lot, but you didn't have it before so it will be like you never had it, and you have the potential to make 20,000 a year in dividends for the rest of your life.

Ok, the easiest and best way right now is buy bitcoin with it at $450 and sell it when it reach 600$.. easy 30% gain..

Well.. if you have plenty of time, then you can try that. But there is also a small chance that you'll lose all your money. What you'll do if Bitcoin never recovers from the $400-450 levels?

Start with ~60% BTC and trade as it goes down.
Don't simply keep buying but take some small profits on any Rally and then buy those back even lower.
Bear markets can sometimes be even better than Rallies.  :)

i dont know how capital gains taxes go in europe, but they probably aren't less than america. if u were in america, that'd be 40% capital gains taxes if you sell that quick. it may not be the best idea.

OMG, the first thing to do is shut up. You are going to attract every scammer, thief, lost relative, and con artist there is. Time is on your side and having too much money is a problem you can solve on your own.
Put it in a vault and HIRE a good manager. You want to get that money working for you and that is a specialty of some managers. They will likely want you to invest some and diversify your assets out of cash. Bitcoin should NOT be more than a tiny fraction of your holdings. It is a VERY risky "investment". I would not put more than say £2000 into bitcoin.

I would warn you against managers. They often know even less about economics than you do, almost all of them under perform a monkey throwing darts and they most likely will try to scam you by selling the products with the most margin.

Just buy a low fee index funds and you will beat almost all managers.

@OP

so you came here and registered, just to ask strangers what they think you should do with your apparently inherited money? ..might as well ask random people on the street, maybe you can bump in to some investment advisers. I think it did crossed your mind to put everything in bitcoin, that's why you are here, right.

I won't advise putting everything in bitcoin .There is a thread on reddit where a user mentioned that he lost 400K of his money by investing in bitcoins .You can't blame bitcoins but bitcoin market is highly volatile  and don't lose what you can't afford.

That's like the worst advice you could ever give someone lol

Probably. It's rare that you can make a daily income off just trading coins.  Most people who 'day-trade' actually lose money in the long run. It's  not much different to gambling really.

That's good advice. I only mentioned a manager because posting here is a red flag about his current financial plan. And index funds are a great suggestion. Unlike a 401k. Which I consider a suckers bet.

Those who day trade usually try to execute pump and dumps to make a lot of money.

Damn, if you graduated with a master's in physics and you are currently working in a mall, then you are doing better than most science grads. Most of my scientist friends lost their jobs when the funds were diverted into global warming research because actually fixing pollution would be too easy.

Pay off your loan.
Use 5K and take a really nice vacation. Travel somewhere you've always wanted to go.
Avoid stocks like the plague unless you know something about them
Put 30% into a mix of gold, silver and bitcoins.
Put the rest into something that pays interest. Look at overseas banks, especially norway and hong kong.
Enjoy the rest of your life.

Buy a house straight up, this is the first thing you should do.  You should never be in debt again ever.  5% of your networth should be gold.

buying a house could be a really bad idea, especially if it'll cost him everything he has.

Better to take advantage of the low rates (assuming that is true in the UK as well). Get a 3-4% loan on a home then try to beat that in interest or earnings.

Don't do anything until you know what to do with it....

NO, no no no no no no no no no NO.

DO NOT DO NOT DO NOT DO NOT TAKE A LOAN OUT DO NOT DO NTO DO NOT.

Did you get that op? DO NOT TAKE A LOAN OUT, if you go into debt after getting this cash i will take a trip over there and bitch slap some sense into you.

Do not for the love of god take a loan out.  Look for a well priced house that doens't cost more than 60% of your networth, imo even less.

I disagree. I normally am anti-loan. But with rates at historic lows it may make more sense to take the loan and keep your cash. You should be able to make more than the loan interest on your money and come out ahead.
Once you spend your money on a house it's gone and turning the house back into cash is a hassle.

Seek a financial adviser or maybe even a trustee. The money might be taxable as well.

I would seek professional help in how to invest, use, and if necessary donate (tax breaks for donations).

Invest some in firearms. They never ever ever  Lose value.  :)

Thank you all for gettting back to me now Ill have to stop talking about, got me an advisor and he said not good that I mentioned it.  So Ill have to ask the Mod to delete this for me and ill join community and make some sensless chat.

a loan only makes sense if he has enough income to buy a house, and a backup plan if that income does not follow through.

Remember most people that inherit money or win the lottery are much worst off financially, after the fact.
So do your homework if anything first.

1. Hold 3-5% in Bitcoin
2. Read the four hour work week, think and grow rich , the wealthy barber. type books
3. Make a diversified plan.
4. Execute the plan
5. Buy experiences and enjoy life. ;D

LOL! I couldn't help but laughing.

We don't need senseless chat.
Have fun with your money, and go slow at first.  :)

Just going through posts here that we (rentalstarter) were mentioned on.

We are/will be offering 7% real estate backed loans if you're interested in a set return backed by real assets.

1st of all, congrats on your inheritance!

I`d take a month to just lay over the rush of having big money. Keep doing what you need to do go to work etc.

2nd pay off your loan, and other things that you need to take care of obviously. Set aside money to pay off all the bills for 1 year - this should be some comfort room of some serious thinking on what you want to do during this time.

Our financial advice to you should be always be considered by other professionals.

I personally would just buy a small place and rent it out, so you can continue a comfortable cushion for cheap. or buy mortgage back securities. Look into taxes and all that stuff.

Don't buy real estate as an investment, at least in Europe.  
Look at long-term demographics in Europe. It's not good, while houses are still being build. Which means they have to get much cheaper sooner or later.
It's obviously possible to profit immensely in short term, but it's hard to spot the point when to sell, and real estate is relatively illiquid, especially during falling prices. Renting is a pain in the ass.  

Well I hope that things go well for you regardless and it does make sense not to ask random people for financial advice in retrospect
I hope that you are able to do well and save your fortune till you retire Mate.

Migrate to my country. I'll provide armed security. ;)

P.S. Put your money in BTC, then you can cash it out here through one of many local exchanges, although I recommend you go through mine; better rates.

Well... that was the best option. An advisor will only cost you 1% or 2% of your net wealth. Much better option IMO, when compared to destroying 90% of your wealth by investing in ponzi schemes.

I had the same thought when I first scanned the thread, lol.

Good luck with all of that money, personally I would let it sit for a while and not let it burn a hole in your pockets or bank or whatever. It'll be there when you need it, your best bet it to come up with a plan on how to spend it and where. Don't be like me, I came into a similar situation when I was your age (albeit a lot less of an amount) and decided I could do whatever the eff I wanted with it. So I would literally just waste it on random crap that didn't get me anywhere and before I knew it it was gone. All of it. I think it took me 7 months to blow through a pretty good chunk of change.

Don't be me guy, but if you want to donate some BTC...... JUST KIDDING

you've probably put it all into BTC by now. if you haven't, put it all into BTC. :P

So many people are suggesting "PUT ALL INTO BTC HURR DURR"

I'd say , firstly repay your student loan.


Invest around 20% in Bitcoin , preferably using this system :- https://bitcointalk.org/index.php?topic=345065.0.
You will slowly gain wealth as Bitcoin rises , but will not lose too much if Bitcoin crashes.

Invest somewhere between 10 and 40% into extreme safe measures , which may not gain you money , but can be kept safe for any emergency. I mean gold or similar options.

The rest should be invested in whatever you think is good , it should be moderately safe , ie safer than BTC , maybe real estate .

Congratulations man!

I think you must first pay your student loan.
Never invest on something you aren't familiar with. Take your time to research and let that money sit in the bank for awhile.
Be sure to keep 50% of that into your savings account (you know, when shit happens). And lastly, don't be too greedy on acquiring more money.

Take your time to build a concrete plan on where to invest your money. I recommend you to invest on several businesses for you not to lose much money if ever one business screws up.

Enjoy dude! Don't pressure yourself! B)

Buy a gazillion dogecoins

Wanna help a brother that's about to be homeless?

Will be a future rockstar and can pay back whatever you may choose to help out with.

https://soundcloud.com/dankm

Just need a place to set up a small studio and make some tracks and learn more technique with guitar.  Have only been playing for less than two years.  Not asking for much but whatever you could do would severely be appreciated.

peace

may be you can invest exchange them with bitcoins when its exchange rates are low.. and then again exchange it when the rates go up

BOOM!

Spot on man. Seriously. If you don't need it now, put at least 1/3rd in to bitcoin. It's still cheap at $620.

Honestly man, coming here with a title of "I just got x amount of cash" probably wasn't the best thing  ::) no offense to you or anything but a lot of people are probably going to PM you asking you for a loan. I think the best thing you can do is think this thing through for yourself and try to come up with a reasonable solution for it.

Invest? Maybe?
^{give me some? maybe}
Spend it? Maybe.

It's your choice.

Invest in property only thing that always rises with inflation.

I'd kind of have to agree with this one, I wouldn't tell anyone if I'd suddenly had come into a large sum of money although it would be nice and I'd be excited the amount of grubby paws that would suddenly become your friends and want you to invest or x,y,z would be endless. Please be wise about this, don't tell too many IRL people. Look at people in the USA who have won the lottery and have literally lost everything, or died because of the winnings. Be careful OP.

that is crazy talk.. we don't know if bitcoin will collapse or rise to the sky. putting all of his money into 1 basket is really stupid. i hope he doesnt do that.

Yeah please don't put all your eggs in one basket and be wise about this. I don't know how old you are, and the enticement of money is really appealing but letting it burn a hole in your pocket is better than just blowing it all at once.

My family used to own a large plantation for avacados somewhere in California, my great-great grandfather set up a trust fund for that blood is NOT thicker than water when it comes to money. When I learned of this (this was in the early 2000's) I blew through my tiny portion of it (it was like 7000 bucks which at the time was a lot of money to me) in like 6 months.

Please be wise, please seek advice from people that are well versed in this type of thing.

Congrat, but anyway dont invest in property, invest in BTC instead :)

Op hasn't even been here haha, and he's getting all this advice on money he might have already blown. Who knows?

Anyways op spend the money on me.

JUST KIDDING

Donate some to the poor = me :)

What luck !

Congratulations, now, invest it at right way, don't go too far !

OP = Last Active: May 03, 2014, 01:43:39 PM
Looks like he/she has left to enjoy the summer without us.
Don't spend it all too fast.  :)

Whatever you do make sure to be patient and don't make hasty decisions. I don't know any statistics but I'm sure that when most people who get a ton of money are fastly parted with it. Everyone will want a piece once they know you have it. So make sure you keep it to yourself that you have that kind of money. Some people will know regardless, I'm sure the bank will call you about great investment strategies the second that money hits your account.