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Inheritance

Discussion in 'Living Room' started by MTR, 23rd Sep, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

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    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:)
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Now she's got another dilemma....
     
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  3. MTR

    MTR Well-Known Member Premium Member

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    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
     
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  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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

    MTR Well-Known Member Premium Member

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

    Xenia Adelaide Property Manager Business Member

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    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.
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You can spend it just as quickly on shoes:)
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    Nice:) more o/seas holidays
     
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  9. geoffw

    geoffw Moderator Staff Member

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    My wife has a big piece of land in a city in Mexico, which she inherited from her grandmother.

    It could be developed to return around 10%. That would mean though spending six months there- while not a problem in itself, it would negate a lot of the benefit to be gained.

    Ongoing property management is a problem. Even in England, we found the standard was a lot lower than in Australia.
     
  10. Lizzie

    Lizzie Well-Known Member

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    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 :D
     
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  11. MTR

    MTR Well-Known Member Premium Member

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    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.
     
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  12. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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

    geoffw Moderator Staff Member

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    Mining towns used to be the flavour of the month, especially for people looking for high yields. It's a bit much for some to say that her investing will be a disaster when even well known gurus were promoting these places.

    Even if she had foreseen risk, it's easy to downplay when you can see a big inheritance coming your way.
     
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  14. kierank

    kierank Well-Known Member

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    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.
     
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  15. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    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.
     
    Last edited: 23rd Sep, 2016
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  16. Iamnumber5

    Iamnumber5 Well-Known Member

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    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.
     
  17. ellejay

    ellejay Well-Known Member

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    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?
     
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  18. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    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.
     
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  19. Cimbom

    Cimbom Well-Known Member

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    I hope your girlfriend and her family are ok
     
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  20. ellejay

    ellejay Well-Known Member

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