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 masterís 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.