Huge amount of money in savings?

Talk about things that are not necessarily related to music or the guitar.
glassynails
Posts: 5590
Joined: Mon Jul 07, 2008 4:20 am
Location: Westbrook, Maine

Huge amount of money in savings?

Post by glassynails » Sat Nov 04, 2017 7:52 am

Hello.

I inherited a HUGE amount of money! Of course we all know that HUGE is relative, but it's close to six figures and to me that's a pretty large amount. Anyways, what's better than simply throwing it into a savings account? I'd rather not risk any of it at this moment. What's the next best besides a savings account? I mean as far a risk vs interest.
"GLASSYNAILS" on Youtoob for my "no edit" - "no fakery" audio recordings. Just me, my Alhambra 7p spruce, and an Olympus ls-10 portable recorder.

CGCristian92
Posts: 25
Joined: Sun Jul 03, 2016 3:27 am
Location: NYC

Re: Huge amount of money in savings?

Post by CGCristian92 » Sat Nov 04, 2017 1:10 pm

A bunch of new guitars??? jajajaja

User avatar
Stephen Kenyon
Teacher
Posts: 2119
Joined: Sun Aug 04, 2013 11:26 am
Location: Dorchester, Dorset, England

Re: Huge amount of money in savings?

Post by Stephen Kenyon » Sat Nov 04, 2017 1:56 pm

Mine was nowhere near huge, but I found it very beneficial to consult a proper financial adviser.
Simon Ambridge Series 40 (2005)
Trevor Semple Series 88 (1992)
Louis Panormo (1838)
Alexander Batov Baroque Guitar (2013)

User avatar
sxedio
Posts: 1174
Joined: Sun Aug 12, 2007 10:18 pm
Location: UK / Cyprus

Re: Huge amount of money in savings?

Post by sxedio » Sat Nov 04, 2017 2:01 pm

Use it as a deposit to buy a house, assuming you have income to keep paying the mortgage?
(Gr) (En) (very little Fr)

User avatar
Andrew Fryer
Posts: 2549
Joined: Mon Jan 30, 2012 9:13 pm
Location: London SE5

Re: Huge amount of money in savings?

Post by Andrew Fryer » Sat Nov 04, 2017 2:22 pm

Or if you already own property, upsize?
However, I know that American property can be a doubtful investment - some of it is cheap (but that means it wasn't a good investment for its previous owner), and that's because some of it is made of wood and there's a risk of toxic mould and termites.
It may be that the desirable property is already beyond your reach.
On the other hand, simply not paying rent can be as good as a wise investment.
Your choice will be affected by local conditions. Your beloved prez has not attempted anything fiscal yet. Err, say no more.
Your accountant or a financial advisor is the best person to ask.
Last edited by Andrew Fryer on Sat Nov 04, 2017 3:05 pm, edited 1 time in total.
1975 Calatayud y Gisbert, Yamaha CG131S.

User avatar
HNLim
Posts: 2282
Joined: Tue Jul 26, 2011 1:02 am
Location: Singapore - The City in a Garden

Re: Huge amount of money in savings?

Post by HNLim » Sat Nov 04, 2017 3:00 pm

If you are a Singaporean, then I will recommend you this:
https://www.cpf.gov.sg/members/schemes/ ... sum-scheme

User avatar
eno
Posts: 333
Joined: Fri Dec 09, 2016 4:56 pm
Location: Boston, USA

Re: Huge amount of money in savings?

Post by eno » Sat Nov 04, 2017 3:16 pm

I would buy a Hauser or Romanillos
Paulino Bernabe 'India' 2001
Masaru Kohno No.6 1967
Rokutaro Nakade 1967, 1962

User avatar
cefyn
Posts: 410
Joined: Sun Aug 04, 2013 1:14 pm
Location: Gwaenysgor, Wales, U.K.

Re: Huge amount of money in savings?

Post by cefyn » Sat Nov 04, 2017 3:22 pm

Main thing to remember when seeking financial advice - Don't use your bank's own financial advisor, as they're likely to be biased towards their own company's products. Best advice I ever received was to PAY for true independent financial advice.

Cef.
1983 Robert Cross Spruce & IRW

MessyTendon
Posts: 1357
Joined: Fri Jun 19, 2015 1:33 am

Re: Huge amount of money in savings?

Post by MessyTendon » Sat Nov 04, 2017 4:10 pm

Enjoy it...average life expectancy is only so many years...Is this money going to be used for grandkids? or your own children? The only financial consideration I would have if I had money like that is, if it could be used to sustain a quality of life for my family.

If you don't have any of that to worry about, spend it and enjoy it. Eat, drink, be merry, and buy me a Lacote for Xmas :)

Salvatore Lovinello
Student of the online lessons
Posts: 154
Joined: Tue Apr 07, 2015 1:31 pm
Location: Chesterton, Indiana

Re: Huge amount of money in savings?

Post by Salvatore Lovinello » Sat Nov 04, 2017 4:37 pm

I had a very similar experience after my father died in 2010. After spending about $2K on "things" I spent $14K on a month long trip to Italy to visit family. I found that I missed them so much after we left that I connived ways to get back as soon as possible. I used the remaining money to invest in stocks and taught myself how to buy and sell option. The options stuff really worked out well. So my advice would be to spend some now, invest some now, and save some for later(IRA). As for putting money in a bank, meh... Interest paid by banks is about 1%. Dividends paid out by some blue chip stocks(no I won't recommend any) can be close to 4% or 5%. If you choose to reinvest those dividends you should get 10% return over time. Please accept my condolences if your windfall came from loss.

User avatar
Rick Beauregard
Student of the online lessons
Posts: 970
Joined: Thu Nov 06, 2014 5:23 am
Location: Blaine, WA

Re: Huge amount of money in savings?

Post by Rick Beauregard » Sat Nov 04, 2017 4:42 pm

As the guy on the ad for financial advisors says to his client: what are your goals?
All this time I thought I was making music; it was making me.
2015 Steve Ganz "Solidarity"
1980 Dauphin D30
1962 Fender pre-CBS P-Bass
National Triolian Uke ca.1930
Almost as many fly rods as guitars
_/) _/)
_/)

franks59
Posts: 666
Joined: Thu Nov 02, 2006 12:50 pm
Location: Columbia, MD

Re: Huge amount of money in savings?

Post by franks59 » Sat Nov 04, 2017 4:53 pm

glassynails wrote:
Sat Nov 04, 2017 7:52 am
Hello.

I inherited a HUGE amount of money! Of course we all know that HUGE is relative, but it's close to six figures and to me that's a pretty large amount. Anyways, what's better than simply throwing it into a savings account? I'd rather not risk any of it at this moment. What's the next best besides a savings account? I mean as far a risk vs interest.
Research TIPS (Treasury Inflation Protected Securities). Rates paid are tied to the CPI.
Last 12 months, the CPI rose 2.2% (Fed's target is 3%). My bank pays me 0.2%
However, you money will be tied up for a minimum of 5 years unless you sell on the secondary market.

Of course, there are standard Treasuries too.

CDs pay somewhat more than a savings account, but not much, and your money is tied up for the duration.

Frank

a human
Posts: 480
Joined: Sun May 04, 2014 1:37 am
Location: Raleigh, North Carolina

Re: Huge amount of money in savings?

Post by a human » Sat Nov 04, 2017 9:12 pm

cefyn wrote:
Sat Nov 04, 2017 3:22 pm
Main thing to remember when seeking financial advice - Don't use your bank's own financial advisor, as they're likely to be biased towards their own company's products. Best advice I ever received was to PAY for true independent financial advice.

Cef.
This.
1965 Krempel Classical (660ish mm)
The rest come and go.

User avatar
Stephen Kenyon
Teacher
Posts: 2119
Joined: Sun Aug 04, 2013 11:26 am
Location: Dorchester, Dorset, England

Re: Huge amount of money in savings?

Post by Stephen Kenyon » Sat Nov 04, 2017 9:18 pm

a human wrote:
Sat Nov 04, 2017 9:12 pm
cefyn wrote:
Sat Nov 04, 2017 3:22 pm
Main thing to remember when seeking financial advice - Don't use your bank's own financial advisor, as they're likely to be biased towards their own company's products. Best advice I ever received was to PAY for true independent financial advice.

Cef.
This.
Exactly. Which can, in my experience, mean 'pay' as in it comes out of the resultant income rather than upfront.
Simon Ambridge Series 40 (2005)
Trevor Semple Series 88 (1992)
Louis Panormo (1838)
Alexander Batov Baroque Guitar (2013)

CathyCate
Posts: 608
Joined: Mon Jun 01, 2015 2:25 am
Location: Metro Detroit, Michigan

Re: Huge amount of money in savings?

Post by CathyCate » Sat Nov 04, 2017 9:28 pm

Jane Bryant Quinn wrote a good book, "How to Make Your Money Last" . It is aimed at retirees, but you'll be there in no time. It's in plain language and may provide some concepts and ideas that will help when you consult with the various financial professionals.

Please take your time whatever you do! There is really no good reason to rush a decision of this magnitude.Spend or invest in haste and you'll have the rest of your days for regret(s) and repenting.

My condolences and best wishes that everything turns out OK.

Return to “The Café”