Comments on: $100,000 gift? Now what? http://www.penny-saved.com/2007/02/21/100000-gift-now-what/ Personal Finance and Wealth by the Penny Fri, 08 Aug 2008 18:58:02 +0000 http://wordpress.org/?v=2.6 By: Tim http://www.penny-saved.com/2007/02/21/100000-gift-now-what/#comment-414 Tim Thu, 22 Feb 2007 16:07:39 +0000 http://www.penny-saved.com/2007/02/21/100000-gift-now-what/#comment-414 I'm amending my comment above. If Jade cannot maintain high deposit min in order to avoid monthly maint fees, the premium banking services wouldn't be viable. My suggestion was based off the fact that many have financial planning services at that deposit level. At any rate, the underlying suggestion of depositing the money into an interest bearing account or short term CD and seeking advice from a certified financial planner who can assess Jade's entire financial picture is really the only thing she should be thinking about doing. I’m amending my comment above. If Jade cannot maintain high deposit min in order to avoid monthly maint fees, the premium banking services wouldn’t be viable. My suggestion was based off the fact that many have financial planning services at that deposit level.

At any rate, the underlying suggestion of depositing the money into an interest bearing account or short term CD and seeking advice from a certified financial planner who can assess Jade’s entire financial picture is really the only thing she should be thinking about doing.

]]> By: Tim http://www.penny-saved.com/2007/02/21/100000-gift-now-what/#comment-415 Tim Thu, 22 Feb 2007 15:54:46 +0000 http://www.penny-saved.com/2007/02/21/100000-gift-now-what/#comment-415 Like any large windfall of cash, Jade shouldn't do anything with it until she gets some kind of financial guidance. She should put it in a high yield savings account or her regular bank account until she has a game plan. at $100k, just about every bank has private/premium/wealth management banking which provides financial management if she does not have or cannot get advice from other sources. In this case, having a consolidated portfolio for the $100k with one bank is probably the best solution until she can get a better financial plan going. Until then, put the money into her account or a high yield savings account. To reiterate what you stated, you cannot give any advice beyond that unless you have an idea of where her finances currently stand. If she doesn't have earned income, she cannot do ROTH. Paying off all her debt, if she has any, and depending on how new her credit history, may not be the best thing to do either. if she doesn't have kids or isn't planning to have kids or she isn't planning or doesn't need to go to school further, the 529 or ESA isn't a choice either. I understand she wrote you and you provided some good suggestions under the caveat she didn't provide financial info other than $100k, but really nothing should be done at all until she gets someone to look at her whole financial and tax picture. Like any large windfall of cash, Jade shouldn’t do anything with it until she gets some kind of financial guidance. She should put it in a high yield savings account or her regular bank account until she has a game plan.

at $100k, just about every bank has private/premium/wealth management banking which provides financial management if she does not have or cannot get advice from other sources. In this case, having a consolidated portfolio for the $100k with one bank is probably the best solution until she can get a better financial plan going. Until then, put the money into her account or a high yield savings account.

To reiterate what you stated, you cannot give any advice beyond that unless you have an idea of where her finances currently stand. If she doesn’t have earned income, she cannot do ROTH. Paying off all her debt, if she has any, and depending on how new her credit history, may not be the best thing to do either. if she doesn’t have kids or isn’t planning to have kids or she isn’t planning or doesn’t need to go to school further, the 529 or ESA isn’t a choice either.

I understand she wrote you and you provided some good suggestions under the caveat she didn’t provide financial info other than $100k, but really nothing should be done at all until she gets someone to look at her whole financial and tax picture.

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