What should young Ellis do with a $500,000 inheritance?
A young engineer-in-training, who has no credit card debt or student-loan debt, questions what to do with a recent $500,000 dollar inheritance. A sound philosophy for the money is to use the rule of thirds. One-third to investing for the future, one third towards paying back the past by purchasing property and the final third to do something fun. He can still budget the income he currently makes while dividing up his inheritance in a practical as well as an enjoyable way.
- Invest a third in a non-registered investment account for future retirement savings, or as an emergency fund.
- Use the second third as a down payment on a home with a mortgage for the remainder.
- Follow your dreams with the remaining amount by doing a bucket list activity, making a charitable donation, upgrading your education or something else that’s amazing.
“Invest for the future, pay back the past, and live for the now.”