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omg...

December 17th, 2007 at 09:21 pm

I visited my friend last Saturday. She was taking a test to be a certified QuickBooks person because they need more income, she said. The story she told me was scary.

Her husband had a grandfather who lived in San Jose, Cal. Having a paid-off house in San Jose automatically makes people a millionaire. Her husband counted on inheritance when his grandfather passed away. Unfortunately, it didn't happen and the money went to his father. Oh, let me rephrase it. Her husband did not get as much as he expected. He got a decent chunk of money, if I remember right, almost 100K.

The thing is, both my friend and her husband cannot manage money.

They originally had 2000 sq. ft house. They have 3 kids, and the house was "too small." So, they bought a bigger one. But, they didn't like the location. (Well, they picked the lot!) And, they bought another huge house, counting on money coming in from inheritance. Actually, they got some money because they put a beautiful pool in their backyard that had to cost more than 40 or 50k. But, that was not enough for them.

Her husband tried to talk to his father who inherited the rest and ask for the money, but his father is not giving him a dime. I don't blame him. Where does it end? They need to learn to be responsible, and I would do the same if he was my child.

She told me their mortgage plan in one of those interest only type, and after five years, the payment will go up. They have only 2 years left. If they switch to 30 year fix, their monthly payment would be $5,000!!! By the way, she does not work.

I could not find any word to tell her. What can I say other than, oh my god.....




9 Responses to “omg...”

  1. monkeymama Says:
    1197927158

    Wow!!!!!!!!!

    I cringe whenever I See anyone in the forums talking about expected inheritances.

    Dh and I stand to inherit $1mil - $2mil easy because our parents have real estate in San Jose (bought and paid decades ago). So do most our relatives (own real estate there).

    How much of that is in my financial planning? A big whopping 0.

    Yikes. & that is why! Well, that and I would rather my parents live as long as I do than ever see that money anyway. At the very least, we hope to be fat, dumb, happy and retired first. I figure my kids will have it good...

    I could not imagine inheriting $100k, and then ask for more... Like $100k free money is not enough?

    But $5k/month???????? To live around here?

    I wouldn't be surprised if I have some same stories to share soon enough. I am eyeing the people I know who are much the same way, wondering when they are going to admit they are in financial hot water.

    Well, no words is right.

  2. Ima saver Says:
    1197928822

    OMG is right!

  3. Shubha Says:
    1197928839

    Wow these people are stupid. How can a 2k SF house be small? My sisters and I shared a room as kids and it made us closer. Now each kid expects privacy and a big room and silly parents are giving in.
    Upgrading houses every few years is never a good idea because it has so many costs including agents fees etc.

  4. Amber Says:
    1197932168

    It's funnny people who can not manage money are always the ones who gets the money. I had a friend to get about $42,000 and blew it in a year; that maybe the reason they only got $100k
    I agree with Moneymomma, I do not think that people should plan their lives based in the "what if" or "I stand to get" As you all know I work a part-time job with some really wealthy people (really rich) and one woman took her neice out of her will and the neice has no idea Now she is looking at losing close to $20-$30 million dollars and I am sure she has planned her life around that money, by the way she left every single dime to St. Jude's

  5. Broken Arrow Says:
    1197944557

    That's just plain insane.

    I have no idea what I'll be inheriting, if at all, and frankly, I don't care. It's like Monkey Mama said. It doesn't cross my mind at all.

  6. monkeymama Says:
    1197947309

    Well obviously it crossed my mind a bit. But not sure how it can't when it comes to big dollars. But I am also full aware anything can happen between here and there.

    That's why I figure if so, our kids will have it good. But I just had to add I have no intention of telling them or giving them any inkling if we do inherit a large sum. They can guessticulate on our finances; much as I know my parents' (they are very open with me). But if we end up with $1 million and don't spend it, I don't plan to tell the kids. I figure it would be nicer if they weren't expecting it. & they won't be disappointed if we needed it. Just my philosophy. (Either that or we'd pass some along while still living. So they could enjoy some without the grief).

  7. mbkonef Says:
    1197985939

    I feel that is somehow wrong to count on money from an inheritance to "save" you from financial mistakes you make. Most people who get themselves into situations like that will just solve a current problem and then go on to create a new one. If they really cannot manage money, getting an inheritance will not magically teach them to handle money. My mom and my uncle both have wills set up to leave my siblings and I money when they pass away. At least $300,000. I do not count on that money in any way when living my life. I would much rather have my mom and my uncle in my life than any amount of money. My view on it is that I want them to live long enough that it is my kids who get the benefit of the money when they are adults, not now. My mom is 75 and my uncle in his late 60's but with some health problems. I would consider myself really blessed if I got to have them in my life for at least another 20 years or more, rather than money.

  8. koppur Says:
    1197999699

    eeek! that's sacry that some people have literally, $100K and cannot manage their money. I think I'm actualy happier having less money and knowing (or learning) how to manage it. Now, if I could just manage it AND have 100K... Smile

  9. baselle Says:
    1198040088

    Having inherited money, and poised to inherit more money, let me tell you that its not all that its cracked up to be. Money's a magnifier and free money's a more of a magnifier...it magnifies any management technique or lack thereof. Save, and you'll save a ton, spend and you'll spend a ton. I'm glad that I never expected to inherit anything. It meant that I had to mind my dollars before I could mind my thousands of dollars.

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