help with lump sum payment

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trapped in tulsa 18 years ago

My finance is getting a a back-pay SSI settlement of nearly 70$ within the next few months. We have been discussing what exactly to do with it to help it grow into more. Our high priorities are getting a house, getting a new vehicle, then investing the rest in various places.

I've heard some of my other friends talk about a "holding trust" to place assets in. These will probably range from a interest bearing savings account, an IRA, day trading stock fundings, part ownership in a computer consulting company, and part ownership of a nightclub venue.

I'm not sure if it's possible, but I would like to be able to put everything under one separate entity, so we can have her as the executor or such, and her two kids (15 and 14) as the beneficiaries. We may work in some type of for-college investments, and trying to turn over part of it into profit within three years.

Her biggest fear is getting caught up in taxes, or having too many assets in her name and SSI freaking out.

Any suggestions or ideas? We live in Oklahoma, both age 34, if that helps. We plan to talk to an accountant once the first lump some hits our account, what should we have prepared hand to get the ball rolling?

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PeterL 18 years ago

Are we talking about $70,000? there seems to be a lot of stuff you are talking about with this amount of money. I think talking to an accountant is a definite first step. Don't wait till the amount hits your account.

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Don 18 years ago

If I were in your position (or your fiance's position), getting the house would be my first priority and other investment would be my second. I would make every effort to get by with the old car instead of getting a new one. As for the investment portion, that "holding trust" you mentioned raises all sorts of red flags and alarm bells, although I know nothing about such a product. I would investigate things like no-load mutual funds with low management fees, index funds, and dividend reinvestment plans (DRIPs). I would make no final financial decisions until the marriage ceremony has actually taken place. And all this assumes that your credit card and any other debt is fully paid off and that you have contributed the maximum to matching company pensions and tax advantaged savings plans.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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FranksPlace2 18 years ago

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Since you are not married, they money belongs to her. She can name her children as beneficeries for whatever account she she puts it in. She will have to pay taxes. Buying a house can provide a deductions. Investing in index funds can be tax efficient.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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help with lump sum payment

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