Decoding the Legal Jargon: How AI Legalese Decoder Can Clarify Options for Managing 80k at Age 22
- May 17, 2024
- Posted by: legaleseblogger
- Category: Related News
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# My Unexpected Inheritance: A New Opportunity
## The Situation
A few months ago, my godmother passed away and left me with a generous inheritance of 80k. To say that I was shocked would be an understatement. The stipulation attached to this windfall is that it is only to be used for significant expenses like a future house down payment. While I am grateful for this gift, it has also left me feeling a bit overwhelmed and unsure of how to proceed.
## My Challenges
I have been contemplating moving out of my mom’s house for a while now, but my medical condition makes it difficult for me to work the necessary hours to sustain myself. Despite my best efforts, college was not a viable option for me due to a learning disability. This has left me feeling directionless and unsure of where to turn next.
## The Solution: AI Legalese Decoder
Enter the AI Legalese Decoder, a powerful tool designed to simplify legal jargon and help individuals better understand their rights and responsibilities. With its user-friendly interface and advanced algorithms, the AI Legalese Decoder can assist me in navigating the terms of my inheritance and exploring my options for utilizing the 80k in a way that aligns with my goals and aspirations.
## Moving Forward
As an artist, I have a unique perspective and skill set that can be leveraged to create a fulfilling and sustainable career path. With the guidance of the AI Legalese Decoder, I can explore creative ways to invest the inheritance, improve my quality of life, and pursue opportunities that align with my passion for art. This unexpected windfall has opened up a world of possibilities, and I am excited to see where this new chapter will take me.
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AI Legalese Decoder: Simplifying Legal Jargon for Everyone
Legal documents are notorious for their complicated language and confusing terms. Many people struggle to understand the legal jargon used in contracts, agreements, and other legal documents. This lack of understanding can lead to misunderstandings, disputes, and even legal problems. However, there is a solution to this common issue – the AI Legalese Decoder.
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The AI Legalese Decoder is especially beneficial for individuals who may not have a legal background or expertise. By using this tool, users can save time and avoid the confusion that often comes with trying to decipher legal documents on their own. Furthermore, the AI Legalese Decoder can help prevent misunderstandings and disputes by ensuring that all parties involved have a clear understanding of the terms and conditions laid out in a legal document.
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****** just grabbed a
HYSA @ 5.0%. Make $300+/mo passively until you form a plan.
You’re probably not going to like the correct answer. Stick the money in a diversified account and forget about it until retirement. You won’t be able to use the money BUT you won’t have to stress AS hard over retirement throughout your younger years. Use the money you would’ve had to otherwise save for retirement and spend it on things you enjoy doing or furthering career growth.
Sorry for your loss and congrats on the money.
You sound like you have a lot of problems stacked up against you.
HYSA would be a smart way to go until you figure things out. My suggestion would be to not spend the money to solve short term issues. Im not saying there arent occasions where it would make sense, but tbh if you do it you will likely do it again and again until the money is gone.
A lot of people are going to advise putting it towards retirement. If you can swing it that is usually the right answer.
Another reasonable route would be to split it into essentially 2 piles. Pile one is your emergency savings which I suspect you dont have much if any right now. Id put that money into a hysa, money market account, or sgov if you are keeping it at a brokerage. The other pile is your long term savings pile. There are a lot of ways to invest it and a lot of them will seem like get rich quick schemes. Dont fall for those. Instead stick to basic etfs that are a broad basket of big stocks.
So pile 1 should be several months worth of your expenses at a minimum. This should be enough to cover fixing a major car repair if you have a car for example. Its not fun money its a safety blanket for when things go wrong.
Pile 2 would ideally be stuff like spy, voo, schd, moat, and maybe some qqq. Do not play with meme stocks. Do not buy options. Do not buy penny stocks. Do not invest in small companies. Your goal is to make money without much risk. Avoid risky stocks because if you buy those and lose there isnt more money coming to make up that loss. Read this paragraph again and stick to it. 90% of getting ahead in life is avoiding the bad choices.
I know this might not sound exciting but the most proven way to make money in investing is reasonably sound investments held for a long long time. At 22 if you save lets say 60k of that money for 40 years with an average 10% return compounding annually you would be looking at 2.7 million dollars. By then 2.7 million wont be nearly worth as much as it is today but it will be significant. So the longer you can sit on your hands and hold on before tapping the money the more you will likely get with that money.
The strong emotions involved in these situations tend to lead people to do irrational things, so it’s best to just wait and think for a while. There is no pressure to make any decisions–speaking as someone who was in your shoes many years ago. The only thing you’ll want to do eventually is put it in a higher yield savings account (4%+, rates are very high right now).
And as a side note,
> i’m not smart enough for college or a high-paying job. i’m an artist.
There are many intelligent people who did not go to college. There are so many ways to be successful in life without college!
I’m sorry for your loss. Take some time to process things.
The artist in you will waste the money
Trust the boring part to plan your future
Plop it into an S&P 500 Index fund and forget you have it.
If you put that into an investment account, don’t deposit another penny, and gain 7% annually (roughly the S&P 500 historical return), you’ll have $854,127 at age 57. That number hits $1,046,342 at age 60. You could safely withdraw $52k annually from age 60 forward for the rest of your life.
My opinion? Invest it prudently, live within your means, and set yourself up for the future and you can pass on some nest eggs to others.
If I had 80k rn, I’d be putting 10k extra into my emergency fund (this would bring it to 20k total), investing another 60k into diversified ETFs, and buying two camry’s with the leftover 10k (both me and my partner’s cars are on their way out).
You had no idea you were getting the money, so put it away for retirement and forget about it. You will be glad you did when you are older.
Minimal put it in a HYSA. 4.25% gets you an extra $3.5k to play with while you save the $80m for a big purchase.
Put it in a fund. S&P 500 don’t look at it for 20 years.
Put it away in savings for at least 1 year without touching it.
Don’t rush, put it in an investment account while you decide. Maybe talk to an advisor and have it locked in for one year. If you don’t need it now, the less you spend the better. Work out your career, buy a house? Just an idea, give it time.
I would put into a brokerage account and dollar cost average into VOO over the next 12 to 36 months by investing equal dollar amounts each month. The funds that are not yet invested in VOO should be in a money market fund — Fidelity’s SPAXX is the default cash equivalent which currently yields 4.95%. Set the account to reinvest dividends automatically. The only thing I’m not sure of is what amount you should allocate to a retirement account, and which type of retirement account (i.e. Roth IRA) using the same strategy. If the market returns 9% per year this would be roughly $5M in 50 years.
As others have said, there are many forms of intelligence and college is not for everyone. Follow your passion, I wish you good health and success!
Instead of an HYSE, where inflation will eat your money, put it in an S/P500 index fund, and then add to it, 10% of every paycheck monthly.
Thank me in 10/20/50 years
my opinion, i would invest 40-50k in stockmarket like S&P 500…., if i dont know what to do, and i use 20k for self-development
I’d suggest meeting with a financial advisor when you have the chance. Second, do not tell anyone about it. You don’t need everyone and their mother hitting you up for some cash or a “loan” you’d never see a dime of again.
If I were you, I’d suggest (assuming the 80k was after taxes) investing around 40k, keep 20k in a separate savings account that doesn’t have a debit card so you can minimize the risk of a fraudster of spending it all before you know what’s going on, and the remaining 20k for things like paying for higher education to get the qualifications for work (which you’d wanna do as a last resort gotta hit up grants and scholarships as much as possible) or vehicle repairs or paying for a medical thing you’ve been needing to have for some time.
Compound interest when it comes to investments is a great start especially with a lump sum like 40k. The rest of it should be used as a means to give you breathing room as a “just in case” fund. I’d definitely hold off on buying a house right now. People before the housing market crash bought houses at prices like these only to be stuck with a insanely overpriced mortgage in a bad economy. Paying off high interest loans like credit cards is a good thing to do too. Having no debt feels amazing when you don’t need to worry about it anymore.
Invest it or save up BUT not for to much time at the time at 50 Your will earn about 1m Dollar
My uncle passed and left me a small amount of money. Everyone was surprised he had money, but he had saved and invested. So… i did the right thing my by uncle and immediately bought some index tracking ETFs with his inheritance. Thanks Uncle!
I just want to mention that 80k is a lot of money but if you try to improve your quality of life with it and without a long term plan, that money could be gone in a couple years.
A HYSA is the safe bet but you shoule use it to advance yourself somehow. Just remember to do you research.
does your area have affordable housing? or working? bc in my area an affordable unit was 160k, the city and state would pay 10% each of that, and match a portion of what you put in, so if there was something like that, it would make sense.
otherwise, as others say, a savings account of some kind.
I wouldn’t advise spending it on anything other than an appreciating asset, affordable housing doesn’t appreciate as much as the rest of the market does, but, you could live in it.
Some reading for ideas
There’s a how-to when-to wiki at r/PersonalFinance and it’s helpful reading.
r/TheMoneyGuy has a financial order of operations
r/MrMoneyMustache has a savings rate chart and other good information
progression of r/CoastFiRe r/LeanFiRe r/FiRe
r/Bogleheads
I’d open business -> probably online shop or something where no physical work involved. Use some for advertising. Then I would definetely invest portion somewhere.
And it depends on your curent situation, but I’d take 5-10k for myself, maybe you need a car or something ?
6 months of savings in HYSA, the rest in a mix of FBTC, SOXX, QQQ, VGT & VOO
Pay off any debt you might have and invest the rest in a broad market etf. Set you up nicely for retirement.
Put it in a HYSA for now and earn 4.5% percent.
Then you need to start learning about finances and educating yourself about investing with index funds, Roth IRA etc.
If you don’t have the income or hours to support yourself right now then buying a house will not be a smart decision. Don’t use it anytime soon till retirement and it will be worth ~$1.8M (7% rate of return)
I’m sorry for your loss as well
Don’t rush into spending or buying anything right now
Invest 90% of it in a global index fund/ETF, like S&P 500 and forget about it. In 20/30 years it might be worth a million.
HYSA really is never my recommendation. Sure use that for your regular savings. But I would put the 80k in safe investments/mutual funds. Try to make enough to at least pay rent and build credit. Otherwise utilize living with your parents to get that above 80k and keep working. You can use that to start up a small business if you can figure it out shouldn’t set you back more than 10 grand though, idk I’m still figuring out the last part myself.
Quick calculation if you put this into an index fund and don’t look at it till you are 65.
– At an average annual return of 7%, the future value would be approximately $1,467,548.
– At an average annual return of 10%, the future value would be approximately $4,819,206.
Invest. Buy a vti general fund is a good place to start. That 80k will be 600 by the time your 40
Put $80k in HISA and try to double it in the next 5 years. You’ll have enough to buy in rural Kentucky.
I think you have one big question that you have to answer – Is this money going toward your retirement or your future home purchase? Or both?
If you don’t know – absolutely put it in a HYSA immediately. They are paying well and it’ll remain liquid while you debate your options.
If it’s going toward your retirement, put the first $7K in a Roth and open a brokerage account and put it in one or two broad market ETFs. Don’t look at the money again until you’re 65. Time in the market is the best thing you can have, so at age 22, that $80K is worth a lot. It’ll be worth nearly $6,000,000 when you retire (if you retire at age 65) and you should be set for your entire retirement (based on what you’re saying I’m assuming your expenses are relatively low).
That will take a lot of discipline though.
Alternatively keep it in a HYSA until you buy the house. If you go this route – at least open a Roth now and put $7K back toward retirement. Do your best to keep contributing to that account throughout your life – $10/month, $100/mo – whatever you can reasonably afford.
Invest the entire thing in a ETF like VOO.
Don’t look at it until you are really fed up with work life.
>i want to move out of my mom’s house, but i really struggle to work the necessary amount of hours in order to live because of a medical condition.
You’re getting a lot of answers. I just want to throw out that moving out and just slow burning this is the worst idea.
Investing for the long term is a wise move. You could allocate a chunk, let’s say $30k, into a diversified investment portfolio. Look into index funds, ETFs, or individual stocks across different sectors to spread out your risk. Since you’re young, you have time on your side to ride out market fluctuations and benefit from compounding returns.
With $30k invested, you still have $50k left. You might want to keep this money more liquid for shorter-term goals or opportunities that arise. Perhaps set aside some for travel, further education, or starting a business if you have any aspirations in those area
Definitely invest $60,000 in an SP500 ETF. Keep the $20,000 in a high yield savings account for emergencies.
RIP to your Godmother.
80k USD?
Put half into a cheap apartment with a long mortgage.
The rest in a good savings account where you let it grow.
Work as much as you can and in 5-7 years you can use the cash accrued in your account to pay off the rest of your mortgage. After that you can live veeeeery cheap and don’t have to earn much.
.good luck!
Get at least half of it and put it under your mattress. Not sure what the new world with gov’t controlling our resources will look like in the future. Just a thought.
I’m just a nobody average Joe 8 to 5 worker… But that being said, in the past five years, I’ve slowly gotten into investing and tried to do my best to learn what I could… I highly recommend investing a minimum of 70% of that money… do it in some thing easy at covers a wide range of stocks, S&P 500 is a perfect example.
If you really are worried about what to do with the money, perhaps jump on Google and do a quick search of financial advisors in your area. That way, at least you can have someone helping you out.
Chances are probably won’t see this post but I saw it and figured I’d drop my two cents, if you see it in some sort 🤔🤷👌🫡
Invest in dividend focused ETF and collect a monthly dividend check. You could be collecting up to about $400 a month with that. That’s just an estimate though.
I’ll take it off your hands. Sounds like such a burden.
You can start with a HYSA like others have said.
Then, do some research and invest it in broad market, well diversified index ETFs and a smaller proportion of bond ETFs. You’re only 22. This amount of money is nothing to sneeze at your age but should be used wisely to ensure your long term financial security. If those funds are well managed it will eventually generate passive income for you.
If you have difficulty bringing in regular income moving out may not be the best choice, financially speaking, even though it might feel like a good choice emotionally. If your living situation is hostile or unsafe then the later becomes a very important factor aside from the financial aspect.
If I were you I would just buy 80k worth of VOO (s&p 500) and just forget about it for at least 20 years.
If I were you I would just buy 80k worth of VOO (s&p 500) and just forget about it for at least 20 years.
Send it to me, then. I have some nice ideas on how to invest it
I bet that dodge hellcat is looking pretty attractive… go on… treat yourself…