Inheritance Money

I did not read the other responses but someone once told me "The best parts about owning a boat are the day you buy it, and the day you sell it".

I received some inheritance money from my dad a few years ago, and we debated about what to do with it. We ended up saving all of it in various accounts, and I'm so glad that we did. With the economy as awful as it is it's nice to have that cushion. We haven't had to use any of the money, but now at least I'm not constantly worrying about the air conditioner dying, or needing new appliances in the kitchen. If we need them, we'll be able to afford them. I hope we won't need to dip into the inheritance, but I like the peace of mind that having the money brings. It's much nicer than a boat.

First find out if you are going to be taxed for it and for how much. No matter if you save it or spend it, you'll be taxed to some degree.

Does your husband know what BOAT stands for?

Break Out Another Thousand.

I vote for adding to your emergency fund.

I do know what I would NOT do. Buy a boat. I would not do that.

A boat is a hole in the water you keep dumping money into.

In Wisconsin any inherited property is not martial property. I would ask an attorney if that holds true for your state also. If so the $5000 is your money and only your money. I would either talk to an investment counselor or put it in a savings account in your name only, until you decide what YOU want to do with it.

Hell no. If anything, take a little something out for yourself to remind you of your grandmother (maybe buy a piece of jewelry or a painting) and put the rest away.

You are obviously the smart one when it comes to money - keep it that way. :)

No boat. He wants a boat, then he can save for one...

Invest, invest, invest!

It sounds like you have a pretty stable head on your shoulders! Good for you.

NO BOAT

I'd opt for putting all of it into your daughter's college funds.
I understand an ER fund and everyone needs one but this $$ was given to YOU.
If you choose not to go for a college fund for your daughter's, at least put it in some type of interest bearing account for YOUR retirement later on.

Make sure you get info on any potential taxes owed.

Have you ever heard the saying...."The best day of boat ownership is when you sell the boat".

I think the best thing for you would be to put $4000 into YOUR OWN Roth IRA. If your husband has a problem with spending money, you probably shouldn't put it into a joint account. This is inherited money, and he is not entitled to it. You can still access the money if you need it in an emergency. You just can't withdraw any earnings without paying a penalty.

For the remaining $1000, put $500 into your family emergency fund, and then spend the remaining $500 on fun stuff that the whole family can enjoy. No boat!

You should open up 529 college savings plans for each of your daughters with their $500. Good luck! Sorry about your grandma. I'm sure she wanted you to put this money to good use. (No boat.....)

Seems to me that a boat that cost $1000 now will cost much more in repairs and upkeep. What kind of boat cost only $1,000?

If you have any debt, how about paying that off. If the money is gone, your husband won't be tempted.

You ALWAYS save for retirement BEFORE college for your kids. You set up yourself for when you are elderly FIRST. Once you have enough money in retirement THEN you help your kids with college.

Set up an IRA in your name only. CD's are junk

A boat is stupid, especially if it's $1,000, it's junk

I would put the money in your emergency fund. Definitely, no to the boat idea.

Don't buy a boat. It's not an investment, it's an anchor around your neck. Plus when it comes to inheritance I do NOT believe that if money is given to one spouse that it belongs to both. It belongs to the spouse the money was given to and that spouse alone. Legally it will ALWAYS be your money unless you put it into a joint account.

He gets no say at all in how it's spent. It's not free money. His desire to buy a boat is proof that he has no clue what to do with money. If he receives an unexpected inheritance then he can misuse it however he chooses.

I would probably put it all into a retirement fund. Talk to your tax guy about whether or not you can put it into an IRA.

Also, make sure the girls' money is put into an accounts with only their names so that he can't take money out even in an emergency. Trust me on this. Their money should never ever be touched except by them when they're adults for reasons of their choosing. I would put their money into revocable trusts naming yourself conservator.

A boat is a money pit...and that 5K will be gone in a snap in boat related expenses.

Put it in an emergency account in your name only (if hubby has money troubles) and save it for an emergency.

Grandma never wanted to give your H a boat! She wanted to give you security. No security in a boat!
Check up on these things:
How's your retirement?
Your cars?
Your roof?
Refrigerator?
Washer/dryer
House safety, like rails or porch?
Air conditioner/heating?
A new computer?
Where are your kids in their life? Are they needing braces or a clarinet?
Will you ever need money on your own? Like put back from your H's mitts?
CDs have terrible rates.
You have to understand that appliances don't have eternal life. Accidents happen. People get divorced.

$5000 saved now for a needed expense is not sexy but it's how you get rich. You save for stuff now so you don't have payments later on. A new furnace or roof will eat that money up in a hurry. You can put it in a cd and not touch it till you need it or fund an IRA for YOU.

Not a boat, NEVER a boat.

-Emergency fund
-Fund retirement accounts
-Fund college savings plans

No way on the boat.

Part one: I'd immediately use it to pay off any interest bearing debt hanging out there. If you have any balance on a credit card or other loan, pay it off. Get rid of a payment if you can. If you have anything left over, put it into your emergency fund.

Making money in a CD is nice, but if you have a debt accruing interest out there, it's pointless. You're using one interest to pay another and earning nothing.

Part two: I'd say no to the boat. They're simply not cost effective. It might cost $1000, but running and keeping it is expensive (they EAT gas unless they have a fancy expensive engine). Unless you have the money in your monthly budget for gas, tags, and upkeep for a boat, I'd say no. Plus...with boat comes the cost of more fishing stuff....

If he really wants a boat, you have no other debts to pay off, and you have the money in your monthly budget to finance gas and upkeep for it...AND the entire family is going to enjoy it together...I'd sit down and talk it over with him. But you guys have to be realistic. Don't get something that is going to screw up your budget and sit in your driveway 95% of the year.

If you only have $2000 in reserve, for god sakes, save the $5000 - save and earn interest on the CD. I don't mean to be harsh, but a job is lost, $2000 is nothing for a rainy day. You can even teach your children about saving, earning interest.

The boat is just silly at this point.

Personally, I would never buy a boat. They are so much work, and so many things go wrong very easily. It is much, much cheaper to rent a boat for a couple of hours or a day. If this is something he really wants to do, why not put aside an agreed to amount of money to let him rent a boat 3 or 4 times this summer? That would be a huge savings.

Sorry, but this is not enough money for that kind of splurge. Explain to him the maintenance of a boat, especially one that does not sound top-notch. Maybe you can give your husband up to $500 and let him do what he wants with that and no more.

Does he know how you feel about how he handles money? If so, then he shouldn't be to surprised when you tell him no.

No controversy on this post. Not one mama said to buy the boat. Listen.

A $1000 boat? What is it, a canoe? Tell him it's YOUR money from Grandma and that, while you'd like his input, you will be making the final decision on where the money goes!

My dad owned a boat and he said you might as well stand on the side and throw your money in the lake! ha ha!

If you buy a boat make sure you decide on it together.
Good luck!

Not just no, but hell no.
Put it all in a separate account where Hubby can't get his hands on it.
A boat is a hole in the water into which one pours money.
If he wants a boat, he'd better save up for it without touching the emergency funds or getting a boat loan.
There is cost involved in owning a boat.
The trailer, storage, fuel, oil, maintenance of the motor, ramp fees, taxes, boat toys/accessories, boating safety course, required by law things like life preservers, fire extinguisher(s), flotation devices, etc.
Does he even have a vehicle that will tow it?
If not he needs to get one, and if the vehicle he has will work, he'll need to get a hitch for it.
He'd better save up at least an additional $500 or more.
I take that back.
He'll need $2000 to $3000 - at least.
And if $2000 is all you have as an emergency fund, it doesn't look like he's going to be saving up anywhere near what he will need.
Just so you know, it's recommended you have enough money saved up to live on for 6 months in case he loses his job or suddenly drops dead.
Put the money somewhere where he can't get it and where he'll forget about it.

The definition of a boat is a pit into which you throw money. A $1000 boat sounds like it needs a lot of money. Is a boat something you all will enjoy?

I would put $2k into your emergency fund, put $2500 into a CD (your bank can help you with that), and keep the remaining $500 in your underwear drawer for fun money or something last minute:)

AFTER READING SOME OTHER POSTS:

Unless your Grandma specifically in her will, said, "this is what I want you to do with the money", then no one else knows and it is up to you and your immediate family to make the decisions. Of course if your children are minors, it is up to you and dad to guide them.

You don't have a profile so we don't know anything about you and your husband's relationship or the ages of your children. Do you and your husband both work? In my opinion, if you have a solid marriage, this should not be a matter of "should I let" my spouse do this or that. This should be a decision that is made together.

Money is tight for many of us at this time. As for the gift your family received from Grandma, my suggestion is to let the girls have $100.00 each, to do what ever they want (except for tattoos and piercings) and you and your husband each get $500.00 to do what ever you want. If he wants a boat, he can buy a smaller or used boat or save up until he can afford (for cash) the kind of boat he wants. As for you take your $500.00 and pamper yourself. The rest of the money can be put away in safe interest bearing accounts.

Put all the money in a 529 college savings plan for your girls. $2500 for each of them. That leaves you $1000 and I would add that to the emergency fund. $2000 won't get you far if god forbid you or your husband is hurt or disabled.

N.O. on the boat.

I would put the girls money (all of it) in either their own savings account or CD (and as it matures, just keep rolling into another one).

Was the money left to you or you AND your husband? I would put at least half into a CD (and again let it keep rolling over as if you never had it but letting it earn for you). The other half should go into your savings account...use it if you need to or really want to buy something with it. If it was left to both of you...let hubby have his half of the half that would otherwise go into the savings account if he truly wants the boat (but I would discourage that).

I would save it in the emergency fund. You may want to look at money market vs CD. Rates may be better and you can withdraw fro MM with no penalty if you need. If it is an emergency fund and you have it in a 3 yr or ?? yr CD and need it and have to withdraw, you will have a penalty. May also want to talk to a financial advisor. I'd put the money for the kids in a 529?? account for college.

You could put some in retirement, but if you need it for an emergency, there would be taxes on it also.

I would recommend talking to a financial person or someone at your bank if you have one. They may be able to help you. If you owe on a credit card or something and can pa it off and still put $ in for an emergency that would be good.

They say you should have 3 or 6 months of what your finances would be in an emergecy fund. It is good to have a cushion.

Good luck and I would tell hubby to save for his boat. If he is working and can put back a little each week or however he is paid he will have the $$ in no time. However, I would look at liability and insc, upkeep, etc on a boat.

A.

J.:

I am sorry about your loss.

For the money for the girls? I would put it each in a CD and allow it to grow for their college fund.

With the $5K - was that before or after taxes? I would make sure no taxes were due on it and then invest it.

I realize you are married. However your grandmother left the money to YOU. NOT your husband. If your husband has trouble with money - I would tell him we need to plan and prepare for emergencies....

A boat for $1K? sounds like a canoe/pontoon....but then again - everyone has a different "idea" or "picture" when someone says BOAT, car, etc. If my husband wanted something like that - I would ask him to put out a plan for saving for it...insurance...registration....trailer...etc. if he wants it that bad - he will find a way to make it happen.

Good luck!!

The answer is simple... What would grandma want you to do with the money? Think of her looking down on you from heaven, what would make her smile?

If seeing you and hubby being financially stable with a rainy day fund, or putting away some money for the kids college would be important to her that's what you should do.

If seeing the family spending afternoons on a boat would put a smile on her face, then purchase the boat. Just make sure you have enough other funds availabe to support the cost of boat ownership (storage, repairs, gas, insurance).

We received an inheritance from my MIL. We used it to take a trip/vacation out of the country to attend a special family function being held in my FIL's honor.

With windfall money... What we did when we were married;

- saved half
- split the other half in 1/3s.
1/3 Moi
1/3 Him
1/3 House (fixer upper)

I'd put it all into an emergency fund like a CD so you can earn more.

Ask someone what is the best investment fund

Saving it is best in this unknown, unpredictable economy.

I would not buy a boat. It's frivolous spending. Also, it costs more than just the price of the boat to own one. You need to pay for insurance, a place to keep it if you can't keep it in your garage, lake entrance fees or passes, gas to fill it up, food & drinks every time you take the boat out etc.

Plus it's not always good weather to take a boat out in so you end up only using it a few months a year. Not a great investment.

I would invest it or get a CD and keep it in my own name. Inheritance money is not marital property until you mingle it with your joint funds. Then you can control it.

Put the money in a CD. All of it. You already have an emergency fund and it is still possible to cash out a CD early in a real emergency.

Put the money in a longer term CD to give it time to accumulate interest, and to remove the temptation to blow it on something like a boat.

The fact that Grandma was thoughtful enough to have a little money in her coffers for her family should be an example to you. I'd stick it in a retirement account of some sort, ask your banker for some advice, and thank Grandma later when YOU are a grandma and that money has tripled itself ;)
The boat would be a thing that would continue to cost you money, gas, registration, insurance, etc.
Renting a boat on the occasional vacation is cheaper...
just my thoughts.

DO NOT BUY A BOAT. Take it from someone who has grown up around boating (my grandparents and my parents have owned boats my entire life and still do) whatever the boat itself costs you might as well triple that in the upkeep and repairs per year.

Do you have any credit card debt?
If so, pay that off, smallest to largest.
Any leftover goes to the car loans, since you already have a baby emergency fund - actually more -- of $1000.
If your cars are paid off, put it toward a 3-6 months of expenses emergency fund OR an IRA.

And no boat is my vote.

Don't get the boat. It will cost WAY more than $1k - upkeep, insurance, repairs, maintenance, storage. They are money pits. Save it.

If it is your money, then put it aside for something you want, or put it in savings. If it is joint money, give him his share and let him buy the boat if it doesn't affect your finances down the road. A $1K boat still needs insurance and maintenance, right? I'd lay out all the other fees to see what a boat really costs.

I'd out the money in college funds and retirement, or I'd out it towards the mortgage.

CDs don't earn much right now, but there might be another investment options for you.

Boats have lots of added expenses. Sounds like you don't want to spend an inheritance (which is a legacy, really) on a luxury item. Makes sense to me.

I wouldn't buy a CD, the rates are lousy right now and you are stuck for certain time period or face penalties (bad for emergencies). But their are a number of short term bond funds you can invest in through online brokerage houses that will have better interest rates and more liquidity (the ability to sell with little or no penalty)

Boats are money sinks. The storage fees, marina fees, maintenance and repairs fees alone can cost more than the boat, and that's before you even get it into the water. But I would set aside a small amount for "family fun" money, maybe rent a boat next summer.

I think you've got a good head on your shoulders. I do not want a boat and it would be a pain (and another added expense for the trailer?) to drag it to whatever water you have around you. Put it away. Somewhere he cannot get at it. My mother had to do that with the money she inherited when my grandma passed away. My dad is a spendthrift and my mom is a saver. My mom put all of her money in a CD. I would shop around and put it in a CD as well.

No way to the boat! The girls' money should go in a CD so that it earns something. Once you've gotten that to say $1,000, start a college fund for them.

As for your $5,000, I would say bank it. You only have $2k in savings; that can get eaten up very quickly with just one emergency.

No way in hell would I let him buy a boat. What kind of boat can you get for $1000 anyway? One that needs repaired.
Besides, do what you want to do with the money, make your family more secure. Sounds like that is what your plans are anyway.

Do what you want with YOUR money. Your grandma left it to you. Hubby can have all the ideas he wants but it is not his. If you want to put it in long term CD then do it. Don't let him badger you to spent it. Remember once it is gone, it is gone never to be reclaimed.

My aunt said once if you do get money put it into something that is tangible (not boat) so that you can see where it went.I have a grandfather's clock (German, Black Forest) with an inheritance from a different aunt.

The other S.

PS If you wish, you could give him $500 and he can find the other to match for the boat.