No. of Recommendations: 4

My grandparents passed away this last december and left us (grandchildren) a substantial amount of money. We are each getting just under half of what your friend has already received. I have also just finished law school (2nd career kinda thing).

To answer your question, Not really. Well if she donated all to charity, maybe. Or an irrevocable trust that is set up to pay her income only. But, she should not worry about her kids college as far as loans and grants go. Personally she sounds a bit overwhelmed.

1st - While your friend is having a tough time with the loss of her father, that is no excuse for not looking at reality. It is her life and she is responsible for her families future period.

2nd - Tell her not to do anything with the money right now. She can wait a couple of months. A good investment today should also be a good investment in a couple of months. Hell she can even wait till december during the school break.

3rd - as long as her kids are not convicts they should probably have no problem borrowing money for school. Remind her that no one is going to lend her money for her retirement, but they will lend her kids $ for education, particularly if she co-signs.

4th - If she is unwilling to take on the financial management responsibilities herself, then she needs to find a solid financial planner. I know she is busy, however, remind her she is responsible for her future and her kids to a large degree and sticking your head in the sand is not a wise way to watch lifes road as it comes at you. She can try just about any type of financial institution. She must understand what is going on so she can monitor who ever she hires. She can also see an attorney, I would see one that deals with elder law and estate planning. At least an attorney is supposed to have fiduciary relationship with her. Meaning he is supposed to look out for her best interests. yes it will cost some money, but it is a necessary expense. She can always require her express permission before any money is moved or invested.

5th - Set aside a small amount of money to spend. Something she has always wanted to do. maybe a trip or something or a cruise. Given her amount of $ around 3k - 5k would be appropriate. her father left her that money, I am sure it was not to be a total miser.

6th - She is in a position to set an example for her kids. I would strongly introduce the notion that how she handles this situation will affect how her children view money in the future.

7th - some ideas
- does she own a home? if so I am sure there are some capital improvements that could be made - new roof, new a/c. Things that add value. This is an investment so she is not just pissing it away.
- if she does not own a home, well she has enough for a substantial down payment on a modest home in a good neighborhood.
- is she strapped for cash every month? Maybe pay off the car.
- after these she should invest at least 85% or more after she does these things.

Generally what I have listed is what we are doing with my money. Put some into the house, paid off one car, Invested 1/3rd with a manager at BOA, will invest the rest myself in stocks and real estate. No we did not pay off any of my school debt. I just consolidated my school loan, over $100k, at 2.77%. Why on God's green earth would I want to pay that off early? That is almost free money.

Good luck
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