Bob Nelson – What to Do When You Receive a Lump Sum of Cash

Right now we’re going to talk about what to do when you receive a lump sum of cash.

Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker

Marcia Edwards: I wanted to speak to the possibility of coming into some cash. It does happen if the parents pass away and they have something left in their will. If there’s a settlement in insurance or there’s a vehicle that you’re selling that’s free and clear, you’ve got a little bundle of cash and it is fun to have that cash. You think wow, okay, I could pay down some of my debt. I could have a little vacation we’ve been looking forward to. Well, let’s broaden the scope of what you could do with that.

Bob Nelson: Well, if you can utilize that amount to your benefit, and by benefit, I’m talking future advantage. If you can use that amount as a down payment or a contribution toward an asset that will grow in value, and again, I’m thinking in terms of real estate, not necessarily stocks or bonds. Certainly those are investments. Some people are prone in that direction. Others that are concerned with longterm financial stability think in terms of real estate. So as I can use that in a productive manner, and have at the end of 10 or 20 years a large equity amount that I would be able to utilize to support my income in a passive manner, that’s hugely advantage.

Marcia Edwards: Now it is delayed gratification. That’s the thing. You can’t adjust your lifestyle to your new incoming of wealth because-

Bob Nelson: The tendency is to do that though, and to think that way.

Marcia Edwards: -And think we can finally have a boat. We can finally have the vacation we’ve earned, but I really want to say maybe you could go out for a weekend or go out to dinner instead. Scale it and use the money in a long-term benefit, and see that it could have such a greater impact on your life over a longer period of time with that delayed gratification.

Bob Nelson: Exactly. And the more you can think that way, the more prone you are to having a larger net worth at the time that you quote/unquote retire. And by retire that means to stand back voluntarily from needing to have a job that pays you on a daily basis for your contribution of time and effort. So this passive investment income will be there whether you show up to the J-O-B or not. Why? Because it does that. It generates income passively, and the objective is to build enough passive investment income to literally support your lifestyle.

Marcia Edwards: Consider the long-term benefit. And if you want to talk about how to consider using it in real estate, give us a call.

Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.