General

Ask Experts & Get Answers to Your Questions - ASAP

Ask an Expert,
Get an Answer ASAP!

General

I recently inheritted some money, not a huge amount. I have ...

Customer Question
I recently inheritted some money...
I recently inheritted some money, not a huge amount. I have paid off all debts except my home loan which is on a 15 yr note and I have only 11 yrs left it was at a 5.25% interest rate. I also have a car loan, I owe 21,000 still and it is on a 6.5 % rate. Since paying all the other stuff off, I only have 12,000 left. Should I keep that on hand as an emergency fund, invest it or pay it towards my house or car? I do have a savings of 2500. which is seperate of this. Please help me decide what the best thing to do is. Thank you - Beth
Submitted: 10 years ago.Category: General
Show More
Show Less
Ask Your Own General Question
Answered in 9 minutes by:
8/12/2007
Expert: The Geezer, Successful careers replied 10 years ago
The Geezer
The Geezer, Successful careers
Category: General
Satisfied Customers: 1,387
Experience: Retired Civil Engineer, USC Professor & Realtor, financier
Verified
Your home loan is at an excellent rate. It would not be a good idea to pay it off, even partially. That would be exactly like investing the money at 5.25% in something you couldn't easily get the money out of if you needed it.

The same goes for your car loan, 6.5% is an excellent rate, and there are probably "Rule of 72" or some other punitive provisions in your car loan documents that would cost you money if you prepaid it.

It is prudent to maintain a liquid reserve of at least three months' worth of expenses, as an emergency "rainy day" fund. You were wise to pay off all your other debts, now you need to maintain a emergency reserve fund.

There is one investment you can make with a very small portion of your reserve fund, and that would be in what I like to call "mental capital".

The challenge to all who work hard and save their money is to find investment returns that exceed the rate of inflation. No matter what your initial investment and periodic additions to principal, the safest investments usually earn the lowest interest rates.

Practically speaking, if one judges inflation by real prices of real commodities and not by the "adjusted" official government numbers, if one doesn't earn more than about 6% on your money, one actually LOSES GROUND to inflation.

So what did I tell my own son, now 25 and off to law school? "Invest in MENTAL CAPITAL". That means learn all you can about another investment vehicle other than your regular job. Mental capital is immune to inflation, can't be taxed, and is always available to work on your behalf.

Easy enough to say. But what to learn about?

I have always been interested in vacant land. I surveyed it as a kid in my dad's business, went to engineering school partly as a result, and have just retired from a career based in part on that knowledge. I have learned a large fraction of all there is to know about buying and selling low-priced vacant land in my state. Tax sales, probate sales, writing to owners, options, creative financing, with and without real estate agents... there are not a lot of folks who have done that.

What are YOU interested in. Cars? Even within the field of cars there are subfields. Classic cars, exotic cars, restoring cars, buying and selling cars...

Jewelry? You can buy jewelry in pawnshops, at local "jewelry marts", some vendors will sell to you on consignment. You pay $10 for a piece and sell it for $30... $10 down, $10 next month, and $10 the last month... and do it over and over...

Whatever it is that you are truly interested in, your task is to become more knowledgeable about it than anyone else. Whatever "it" is - learn where to buy it, how to sell it, what gives it value, why people want it, unique ways to sell it to them, ... start small but start.

Anything that costs money and that people want is a candidate for investment of mental capital. This is not "get rich quick" advice - but it is sound advice. Mental capital is the only reliable way to improve your financial state of affairs.

Truly blessed are people who, even part-time, can do what they love and get paid for it. That is the best, XXXXX XXXXX safest way to grow money, and it provides the best satisfaction as well.
The Geezer
The Geezer, Successful careers
Category: General
Satisfied Customers: 1,387
Experience: Retired Civil Engineer, USC Professor & Realtor, financier
Verified
The Geezer and 87 other General Specialists are ready to help you
Ask your own question now
Ask The Geezer Your Own Question
The Geezer
The Geezer
The Geezer, Successful careers
Category: General
Satisfied Customers: 1,387
1,387 Satisfied Customers
Experience: Retired Civil Engineer, USC Professor & Realtor, financier

The Geezer is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.

EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.

RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.

DianeDallas, TX

< Previous | Next >

Meet the Experts:

Ellen

Ellen

Consultant

109 satisfied customers

attorney and legal researcher

P. Simmons

P. Simmons

Attorney

138 satisfied customers

45 years old, retired Marine Officer, current attorney

Kim D.

Kim D.

Consultant

34 satisfied customers

Researcher 25 yrs in small and large institutions

SuperiorConsultant

SuperiorConsultant

Internet Researcher

21 satisfied customers

BBA, serving as Marketing Executive and interested in tourism,sports, and anything and everything!

Cher

Cher

Educator-40+ yrs

1,666 satisfied customers

M.A., B.A., Author, Information & Research Specialist

Michael

Michael

Librarian

1,579 satisfied customers

20+ years as information professional

Martin

Martin

Engineer

874 satisfied customers

i'm 41 and i never stopped studying and experimenting

< Previous | Next >

Related General Questions
I found this rock at the Jordon River in Yardenit, Israel.
I found this rock at the Jordon River in Yardenit, Israel. I'd like to know something about it. Mostly I'm curious why it has two different colors. Thanks.… read more
Dr. Donna Kakonge
Dr. Donna Kakonge
Doctor of Education
189 satisfied customers
I'm wondering what's the quickest (yesterday) way I can get
Hi, I'm wondering what's the quickest (yesterday) way I can get onto a rental property, I'm currently packed and ready with 6 weeks upfront for a pet friendly rental… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
What are the biggest backpacks available on amazon that
what are the biggest backpacks available on amazon that would be okay to carry inside an airplane? i would like to know the best options on amazon that airlines would be okay with me bringing on the a… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
HAND WARMER SEARCH - I need to buy some hand warmers that
HAND WARMER SEARCH - I need to buy some hand warmers that are the type that use AMMONIUM NITRATE as the main ingredient in the package. Can someone good at shopping find this item for me?… read more
matt50025002
matt50025002
Owner of a waste management company
Master\u0027s Degree
119 satisfied customers
I'm looking for Barbra Fernandez,she is expert on treating
I'm looking for Barbra Fernandez,she is expert on treating autism but I don't know the contact details for her,plus I'm traveling to a place near her,so that's why I really am desperately looking for … read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
Is it ethical for an event connected to a charity, to raise
Is it ethical for an event connected to a charity, to raise prices as demand surges. The charity is essentially there to get a percentage on ticket sales. But, if the event organizer uses the good nam… read more
Olivia Kent
Olivia Kent
Managing Partner
Law (J.D.) and Medicine (M.D.)
1,441 satisfied customers
What options of heated pants are there on the market? I'd
What options of heated pants are there on the market? I'd like only stylish options. Thanks!… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
Any incites if its safe to travel to Moscow and
any incites if its safe to travel to Moscow and Israel/Jordan second half of December as an american citizen and a 5 year old kid?… read more
matt50025002
matt50025002
Owner of a waste management company
Master\u0027s Degree
119 satisfied customers
GRSUltra-Scam or not, Is GRSUltra a scam or not, I dont know
GRSUltra-Scam or not JA: The Fraud Examiner will know what to do. Please tell me everything you can so the Fraud Examiner can help you best. Customer: Is GRSUltra a scam or not JA: Oh, dear. I'm sure … read more
Zoey, JD
Zoey, JD
Doctoral Degree
175 satisfied customers
We are in the process of recording a book on tape version of
Hi. We are in the process of recording a book on tape version of a book. The book itself has 32 different meditations in it. We are planning to put the book on tape on iTunes and Audible. Should we pu… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
I am looking for sono noise cancelling solution. Even with
I am looking for sono noise cancelling solution. Even with triple glazing i hear buses and trucks particularly in wet weather. … read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
How do I get the neck out of a frozen turkey. I took it out
How do I get the neck out of a frozen turkey. I took it out of the wrapping and put it in the refrigerator. I loosened the legs from the clamp but I don't see the neck anywhere. It had been thawing fo… read more
Steve
Steve
I&C technician
Vocational, Technical or Trade Scho
6,978 satisfied customers
In the book titled "Pride And Prejudice" by Austen, what
In the book titled "Pride And Prejudice" by Jane Austen, what were the occupations of the characters named Mr. Bingley and Mr. Darcy, or were they just heirs? Thank you.… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
Whats are the best choices of male pants for winter,
Whats are the best choices of male pants for winter, regarding style, insulation(warmest) and price?… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
What kind of consultant can help us better understand and
second opinion] What kind of consultant can help us better understand and improve our ordering process to the factories that make our garments? We are ecommerce and hitting limits on scalability due t… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
Why is it that I am getting no response I typed my question
Why is it that I am getting no response I typed my question 7 hours ago and sent follow up emails yet to no avail need an answer are you able to help me out or not I have already typed in my credit ca… read more
Expert
Expert
I want to get a list of all screen printing companies
I want to get a list of all screen printing companies showing their addresses and phone numbers in Los Angeled CA area. Please advise… read more
Michael
Michael
Librarian
Bachelor's Degree
1,579 satisfied customers
It's said that Switzerland is a "neutral" country. But does
It's said that Switzerland is a "neutral" country. But does that mean that it's the country with the lowest rates of terror attacks, crime, natural disasters, discrimination, cost of living, traffic, … read more
Rarewares
Rarewares
545 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x