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.....
omg...
December 17th, 2007 at 09:21 pm
December 17th, 2007 at 09:32 pm 1197927158
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.
December 17th, 2007 at 10:00 pm 1197928822
December 17th, 2007 at 10:00 pm 1197928839
Upgrading houses every few years is never a good idea because it has so many costs including agents fees etc.
December 17th, 2007 at 10:56 pm 1197932168
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
December 18th, 2007 at 02:22 am 1197944557
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.
December 18th, 2007 at 03:08 am 1197947309
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).
December 18th, 2007 at 01:52 pm 1197985939
December 18th, 2007 at 05:41 pm 1197999699
December 19th, 2007 at 04:54 am 1198040088