Inheritance

Q & A

Inheritance

I am getting part of my inheritance ($100,000) before my father passes away. Our small business has some outstanding debts and a mortgage (68,000) and we also have a vehicle loan ($35,000).

My husband wants to pay off the outstanding debts and mortgage but since it is his business I am reluctant to. I would like to put some money against an RRSP, pay off the vehicle and put some money towards an RV trailer and have some savings.

What do you suggest?

Name withheld

So you want me to wade into a “discussion” between a husband and wife about the best way to blow $100,000? Hmmm.

Here’s my two cents:

If you don’t own any part of the business, do not put a cent in unless you are given an IOU or ownership of some sort in the biz. If it isn’t a business with shares that you can prove ownership in, stay out of the business. This is your husband’s and he won’t want you telling him what to do (which you’ll think you have the right to do when you give him “your” money.) Nor will he want you asking him questions, (which you’ll think you have the right to do when you give him “your” money.)
If you haven’t been making RRSP contributions, and have income against which to claim the deductions, that’s a good idea. If you aren’t working (you don’t say) and have no income, then don’t bother with the RRSP if you’re over 45. Instead, set up a non-registered investment portfolio.
If you have any debt, that should be your first priority. And, sure, you should have some fun too, but don’t go nuts. Designate about 20% for play, and put the rest of the money to work.