Inheritance

Sometimes you can get lucky......Inheritance has saved the bacon.

My g/friend has recently inherited $3M from her father's $9M estate, 3 siblings.

Property investing has been a disaster for her as she holds many properties in mining towns where market has crashed as much as 40%.

Looking closely at her investing to date she has not made many good choices and takes on too much risk.

MTR

 

Now she's got another dilemma....

 

hope she makes some good choices.

I have noticed that its almost like programming, many investors who lose money will continue to lose money, because they don't change their mindset/programming, don't learn from their mistakes, so they repeat.

Those who make money keep making money.

Anyone seen similar scenario

MTR

 

It'll be interesting to see how long the $3m lasts? I hope she makes wise choices this time.

 

She is from Perth, not sure whether she would buy in this current market.

 

I've just inherited some overseas properties. My parents are still alive but have transferred everything to myself and brother due to the situation in Europe.
No idea what yet but we now have some holiday houses if we need to go overseas.

 

You can spend it just as quickly on shoes

 

Nice more o/seas holidays

 

Wow - what I could do with $3mil ... invested wisely, of course, and then live off the income.

Could easily turn it into $150,000 year income with absolutely minimal risk ... up the risk factor slightly, but still secure, and could be $300,000/yr

Sadly, I am not up for any inheritance - but we've done brilliantly, so no worries

 

Lizzie her father made $9M through shares, property and business ventures, pretty damn good. The children also inherited the beach front property in Dunsborough one of Perth upmarket holiday destinations, they wont be selling as they will continue to use this for holidays and keep it in the family. We have been fortunate enough to enjoy some great times here.

 

I see $3mil becoming $3 in short order.

 

IMHO, if you make a mistake once (... and you learn from it), then it is not a mistake BUT, if you continually make the same mistake, then you are an idiot.

 

I went to a seminar back in 2000 and the presenter Paul Counsel explained it like this;

"We all have an internal thermostat thats set at a certain level of income. Some its 50k, others are 100k and so on. This thermostat is tied to our self worth and whatever the setting is then this is the intrinsic value we have sub consciously set for ourselves. When we go outside this comfort zone of x dollars per annum we will want to go back to the comfort zone and this usually involves financial sabotage. We can reset our internal thermometer by tinkering with the psychology of money and this comes via realization and replacing myths passed on by parents, with new information that is then applied"

Most lotto winners blow their win-fall and that ^^^^^ is the reason why.

@MTR your friend needs to reset her thermostat and address self worth issues or maybe she just needs better advice. I am surprised she hasn't learned the money habits of here Father even just by osmosis.

*Edit - the above is not a blanket rule and sometime things just happen like divorce, adverse health and pure bad luck can cause financial catastrophe. If you have the fundamentals in place you can rebuild.

 

I would have thought that you are doing very well on property investment would rub on to your girlfriend. She may not be doing as well as you, but at least not making a loss.

 

I'm not sure about that theory. Is he suggesting that if you're content with where you are financially, but not rich, then you've got self worth issues and a faulty mindset?

 

Nope he is saying that if you are on 50k and happy but you come into a windfall of 3 mill for example and then blow it, its because your thermostat or comfort level has been violated and you will sabotage yourself sub consciously to get back to the comfort zone where you felt comfortable. Thats my understanding and has helped me a lot to understand money and how to accumulate and keep it.

 

I hope your girlfriend and her family are ok

 

Ah, okay. That's not me, I'd look after an easy 3mil