Emily Brown
A single mom left readers shocked when she revealed her plans to turn down an inheritance of nearly $2 million.
Short of winning the lottery, there aren't many quick and 'easy' ways to become a millionaire.
Admittedly, having to lose someone before receiving the money isn't easy, but if that person has chosen you as the beneficiary, it's not typically something you'd turn your nose up at.
That's probably why financial expert Scott Pape branded one mom, who identified herself as Grace, as a 'weirdo' when she announced her plans to turn down the inheritance that would firmly establish her as a millionaire.
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The mom reached out to Pape through his Herald Sun column, explaining that she's currently raising two children on the wage she earns as a nurse, and has just paid off her home in Tasmania, Australia.
In her letter, she continued: "[I] am now adding 10 percent to my super each pay. I don’t renovate or travel far. No dishwasher and a broken oven. It has come to my attention that I am to inherit $3m (AUD - $1.9m USD) from a relative.
"This is generous but wealth like that brings complexity. I have set myself up to retire on $42,000 ($27,737 USD) per year when I’m 65. I don’t need more and I prefer the simple life of living within my means.
"And I want my children to do well in their own right and own a home eventually. However, I don’t want to take the satisfaction of doing it themselves away."
So rather than keep it for herself, the mom explained that she's considering using the money to purchase 'a large parcel of land in Southern Tasmania to protect it from developers in the future', before asking: "What would you do?"
Seemingly not one to mince his words, Pape responded: "Hi Grace. You are obviously a weirdo."
That being said, the adviser admitted that this 'weirdness' came a place of 'contentment and wisdom', noting that Grace was lucky enough to have 'enough' in her life.
Admitting that wealth 'does bring complexity', Pape advised dividing the inheritance into three different accounts; a small savings account, an 'ethically invested index share fund', and a 'private ancillary fund (PAF), which is a type of charitable trust'.
The first account is for 'emergencies', the second would allow Grace's kids to save while also having their savings matched by the inheritance, and the final would allow Grace to donate money and receive a tax deduction.
Rounding off his advice, Pape said: "The key is to get your kids involved in deciding where to donate this money. Who knows, hopefully some of what you’ve got will rub off on them!"