MONEYTALK with Al Suffrin

I just inhereted $98Gs - how should I spend it?

By Heather R. Breaux

March 14, 2007 at 2:34 pm  | Mobile Reader | Pring this storyPrint 

Dear Mr. Suffrin: I am 16 and just inhereted $98,000 from my grandmother.

My parents I already have a college fund set up for me, so I don't need the money for my education.

I plan on buying a 2007 Mitsubishi Eclipse fully loaded and my parents say that I need to be responsible with the rest of the cash.

What should a kid my age do with all that money? - Loaded in Boutte

Dear Loaded: First, you should make sure there is enough money in the college fund for the tuition costs, room and board, number of years in college, and you need to decide whether or not you will pursue a master’s degree.

Once you have enough money for college, you should invest the rest in a diversified portfolio consisting of mutual funds for retirement.

Assuming the vehicle costs $30,000, college costs are covered, and you invest the remaining $68,000 and leave it alone and it earns approximately 9 percent per year. Then at age 65 it will be worth $4,638,818.




View other articles written By Heather R. Breaux

featured merchant

New York Life
New York Life New York Life gives you the path to financial security of life time protection and value of life insurance, annuities, retirement plans and other financial planning. Let us help you achieve the financial goal of lifetime income!

Mom arrested for using fake ID to register school children
Mom arrested for using fake ID to register school children
- 2697 views
By Jacob Bielanski

A St. Rose mother and her boyfriend were arrested after authorities say they used a fake ID when registering two girls for St. Rose Elementary School.