Inheritance Advice

[Shwa Girl]

congrats on the inheritance OP

In most cases, I would suggest paying off debt as the first step.

Be aggressive, ask the maximum that you can pay off, and the maximum amount by which you can raise your payments as well. There are the rules, yes, but there is sometimes some flexibility, especially if rates have gone up since you locked in (and it wouldn't hurt to point that fact out).

We once talked to our guy at the bank, and he offered us the ability to pay it off entirely without penalty. Mind you, this was a Credit Union, but this was after rates had fallen even. He explained to us that he has rules that he has to follow for his entire set of mortgages. As long as he follows that, head office is happy. Never hurts to ask.

good suggestion brunt

my 5 cents worth of 'advice':

10% charitable giving/tithing
10% family, distributed equally
10% emergency fund
10% mortgage down payment account, that can be applied over a period of time
10% house maintenance/renovation fund
10% new car fund or car maintenance fund
10% emergency fund
10% TFSA
10% RRSP, if this helps you; if not apply to a good mutual fund portfolio, in an RRSP or in a TFSA
10% entertainment fund, to use over time

[jasperandchar]

In most cases, I would suggest paying off debt as the first step.

Be aggressive, ask the maximum that you can pay off, and the maximum amount by which you can raise your payments as well. There are the rules, yes, but there is sometimes some flexibility, especially if rates have gone up since you locked in (and it wouldn't hurt to point that fact out).

We once talked to our guy at the bank, and he offered us the ability to pay it off entirely without penalty. Mind you, this was a Credit Union, but this was after rates had fallen even. He explained to us that he has rules that he has to follow for his entire set of mortgages. As long as he follows that, head office is happy. Never hurts to ask.

I know Scotiabank said that we could raise our mortgage payments at any time so that is very good advice @brunt and this was only 1.5 months ago they said just to call and the arrangements could be made, paperwork would need to be signed but it was not an issue

[macw1960]

Congratulations! So much good advice has been given, but if I can add my two cents? I have been through this a few times over as I was the only child of a Mom & Dad who had me "late". It is such a blessing but also a sadness recieving money because someone died. In my process of dealing, I learned three things:
1) like others have said take your time. Even when it comes to the 15% payment. You have time.
2) Be careful mixing assests. DH has a job that can potentially put him at risk for suit. Because we are married, mine is his and his is mine. But an inheritance is a gift just to you. Be aware that if you apply it to joint assests, it becomes a joint asset.
3) Make sure that the money is legally defined/ designated for your your family. If you don't have a will- time to get one. If you have one-you may need to get it amended.

Good luck in your decision. And my sympathies to your loss.

Thanks for the advice. I would like to pay off our mortgage but I may just sit on that one too. DH just wants me to put the money away but I would like to get a few things like central air and a new mattress for our bed. I have been thinking since yesterday.

This relative died over a year ago, I have not seen them in around 15 years but did keep in touch so that is why it was totally unexpected...do miss talking to them though.

[macw1960]

I know Scotiabank said that we could raise our mortgage payments at any time so that is very good advice @brunt and this was only 1.5 months ago they said just to call and the arrangements could be made, paperwork would need to be signed but it was not an issue

Good to know.

[macw1960]

congrats on the inheritance OP


good suggestion brunt

my 5 cents worth of 'advice':

10% charitable giving/tithing
10% family, distributed equally
10% emergency fund
10% mortgage down payment account, that can be applied over a period of time
10% house maintenance/renovation fund
10% new car fund or car maintenance fund
10% emergency fund
10% TFSA
10% RRSP, if this helps you; if not apply to a good mutual fund portfolio, in an RRSP or in a TFSA
10% entertainment fund, to use over time

Well planned thinking...thanks.

[macw1960]

As my grandma would say once a saver always a saver, get the most bang for your buck, using your cc for points etc definitely makes total sense to me.

So true because I told DH I wasn't going to stop using coupons, collecting points and looking for bargains.

[macw1960]

I have decided so far and have done some of it to pay off more of our mortgage, topped up my TFSA, bought a new mattress for our bed on sale of course, put in central air and we are getting our driveway paved in September. I also ordered new curtains for 3 of our rooms.

Other than that the only other thing at this point that I am considering is laser eye surgery but I need to check into it more.

[jasperandchar]

I have decided so far and have done some of it to pay off more of our mortgage, topped up my TFSA, bought a new mattress for our bed on sale of course, put in central air and we are getting our driveway paved in September. I also ordered new curtains for 3 of our rooms.

Other than that the only other thing at this point that I am considering is laser eye surgery but I need to check into it more.

Sounds like you put a lot of thought into your spending and some very wise choices, thanks for sharing

PS I bet you are loving your central air giving the heat this summer

[macw1960]

I love the central air...it makes the heat much more bearable being able to come into a cooler house.

[Ciel]

Hope you have a reliable firm to access for any A/C parts when they are needed. I had a chat with someone who used to deal in hardware and parts-he said the average person cannot buy A/C parts on their own anymore (as everyone and their uncle used to install A/Cs on the side for relatives) but have to go through their installer. And if your supplier of heat happens to have a furnace and A/C coverage plan, read the fine print for terms. Just so you don't get any $$$ surprises or exclusive supplier restrictive terms.

[Natalka]

I love the central air...it makes the heat much more bearable being able to come into a cooler house.

That was a very smart move on your part!

[frugal50]

how much is a lot? are we talking 6 figures?

everyone has a different perception in what a good inheritance is

[SnowFlakey]

When hubby`s mother passed away, we used his half of the inheritance to completely pay off our mortgage. we were with the Royal Bank at the time and there was no penalty for early payments. We already had central air so no need for that, but we did buy ourselves a big screen tv. The rest hubby invested.

[macw1960]

Hope you have a reliable firm to access for any A/C parts when they are needed. I had a chat with someone who used to deal in hardware and parts-he said the average person cannot buy A/C parts on their own anymore (as everyone and their uncle used to install A/Cs on the side for relatives) but have to go through their installer. And if your supplier of heat happens to have a furnace and A/C coverage plan, read the fine print for terms. Just so you don't get any $$$ surprises or exclusive supplier restrictive terms.

That was a very smart move on your part!

Thanks.

[macw1960]

how much is a lot? are we talking 6 figures?

everyone has a different perception in what a good inheritance is

I think that question is a little too personal for me but it is enough to keep me busy for a long time thinking of ways to put it to its best use.