Inheritance

My Dad got a huge inheritance....

All gone now save for his house that he bought in my name to save tax(??).....Which he tried to sneakily sell....which I had to stop.

Can be a curse as much as it is a blessing.

I wish your friend well and hope the inheritance provides her family with more happiness than it provided mine.

Peace.

 

Me neither but you have to be aware of the potential to sabotage and just not do it.

I tell my wife if we ever win lotto (which will never happen as I would rather keep the money to buy tickets in a offset) we would tell no one and carry on business as usual just with a lot more options up our sleeve

This sums up what I wrote about: Why do 70 percent of lottery winners end up bankrupt?

 

I think anyone who would do this more than likely has other psychological issues that you'd see playing out in their lives. You're average hard working, responsible joe who wins the lottery I'd have thought would be unlikely to change lifelong behaviours and squander the lot due to subconcious urges. Who knows though? I'll read the article..

 

Its the people surrounding Joe that will likely cause the issues as per the article stating most give to much away to relatives and friends. While this sounds altruistic its not really because Joe sub consciously wants to purge himself of the excess funds as his self worth is out of his comfort zone.

Besides the relatives and friends will likely suffer the same fate and blow the lot as well.

Moral of the story is you are worth it but you need to believe so or the loot will go.

 

Chat with hubby about this a couple weeks ago - I actually afraid of winning too much money (in context, lotto 20M) - I'm worried that I will no longer be able to relate to our friends.

The converstation is, about how much money we can mentally handle each.
1M - easy peasy
2M - no problem, quite nice and comfortable
3M - great, start planning for live outside office
4-6M start to become incomprehensible.

so our internal thermostat say $3M now, who want to give me $3M?

 

I really wouldnt want to inherit millions. I have always taken pride in being financially self sufficient from my teens and achieving what I have through hard work and focus... just being handed a bucket full of cash wouldnt do anything for me as I wouldnt feel like I have earned any of the rewards that come from it.

 

Thats not a bad setting you have there but I think its possible not to have one at all once you are aware of the concept, which is all it is really.

I wouldn't say no and just set a course of multiplication and create a family dynasty. This is what Trump and the Packers did I believe, multiplied an inheritance that is.

 

I understand this. A possible solution is to set all of that money aside and spend none of it on yourself. Then put some work into investing it. For example, you could spend time researching, inspecting and purchasing commercial investment properties in strategic locations. This would take some effort and time (work). So, when the rent came in from the CIPs you purchased, you might feel like you earned that? I don't know if it would work but it would be worth a shot

 

I agree - wealth is not the motivator, for me it's being 'good' enough to earn it. Being given it takes all the fun out of it.
If you were given it, you'd need to use it as a spring board to doing even more amazing, impacting things. Now THAT would be fun

 

@Iamnumber5
Not so, I am small fry, I am not in her league. I would not have the courage to take on the debt etc

She is currently building 19 apartments in Perth, trying to sell 50% OTP has JV money partner from Sydney

 

I received about $60k when my mum died. It was very emotional recieving it as it represented everything my mum had missed out on. If I could wind back time and tell her to spend it, i would in a heart beat. She wasnt a rich person and worked very hard for what she had.

Ive invested it in a property which i will use to give my son a start on the property ladder. Its not money I would have felt comfortable spending on material items for myself.

 

Do you think that she will make a loss on this project?
I hope she has contingency plans for development that size.

 

This Facebook post (one of my favourite groups "Humans of New York")

https://m.facebook.com/humansofnewy...3196735.4429.102099916530784/1375817439159019

This Facebook post was just so foreign to me.
I was brought up in a family and an environment where everybody was expected to succeed in school and further education though. (Perhaps I did too much uni but that's another story!) To have people dragging you back in education or in financial wellbeing... yes, it can be real but it's really quite sad.

Btw I think the thermostat of how much money individuals are comfortable with is a real thing. I think being aware of it though can help people to break out of it. To me 3 mil was a crazy amount but when I bought the previous house and my numbers showed it should hit a mil just a few short years down the track I initially thought that 1 mil was a unfathomable number. But then I got used to it.

A friend had his 18 year old sister win the lotto. Just a few years later, all the money she had won was gone.

 

ZOMG!!! What's his strategy????

 

Or maybe all the winner needs is $50k - and there is no need to keep the extra!

Being financially 'free' is not the same as being happy and satisfied, or, even, actually free.

I'd take this 'research' with a grain of salt. Lots of possible holes in the method.

To mention a few: How many people were interviewed?; how much was won by each person? - if the amounts were tens of thousands - even $100,000 - this is pretty easy to spend ; were apples compared with apples - I.e. grouping by amount won. How well off were the winners to begin with?; exactly how many winners were surveyed?; how ( by a professional researcher, online or self selected)?

Did the researchers rely on news articles about disasters or did they interview several hundred people who had won over 1 million to get a good base for analysis? - not just the ones who made the news, or bankruptcy lists?

 

With Perth market in free fall and an oversupply of apartments it will be difficult to know what the end values will be on completion, my guess is less than today.

 

I used to have a 'poverty mentality' but when you work for every cent and get caught out in a recession, you can change a few silly old beliefs. Time and experience help a lot - you grow out of it.
When I first saw equity in my property, I was amazed but able to accept it. Second time, I was blown away. Still able to accept it.
Am now 50 and not working and able to support myself. Let's call it a mini-retirement. Even though I wanted time off, I didn't know if I could do it. It wasn't my choice - but look at me! (Actually, I'm working 1 morning/week but haven't been paid yet.)
My feelings about the small amount of inherited money are similar to @Nemo30 's. But if I won a million or more I'd definitely be travelling, getting in a persoanl chef, living it up in the city, etc.
Poverty mentality had me starting out thinking that I could never/ should never be rich. But it presents in other ways too eg. working until you drop.
Ironic thing is, even with some of the things that've gone not the way I would've liked, I've been rich the whole time! It's not just about extraordinary degrees of cashflow.
0.1% drop in unemployment last quarter I think I heard, mostly due to not actively looking for a job. That's 240 000 pax doing what I'm doing atm - ok less because you only count those of working age. Thank you low interest rates and slow growth.

 

Have to say, she doesn't sound like she's got her head screwed on. Surprised that your common sense in property hasn't rubbed off on her.