I'm 20 and just received a settlement of $450 000 what do I do with it?

First thing to do: NOTHING!

Go to your bank and open a Certificate of Deposit with a 6 month maturity. Then, for the next 6 months, consider all of your options and ideas.

DO NOT buy a car, clothes, trips, dinners, shoes, a dog, a horse, a house, a boat, a plane, a new anything or give any of it to anyone who needs it. WAIT the 6 months and consider a long-term plan.

Consult people who have money and have been able to hang onto it. Talk to no one under 50 about this matter.

First of all take it in a lump sum. The sooner you have it the sooner you can pay off loans and/or invest and start earning interest on your investments as well as stop losing money on interest from your loans. If I were you I would pay off all of my debt, get a new car (if you need one), put about 1/2 down on a house invest about 90% of the rest and keep 10% for myself. This way you come out debt free, you have a car that is paid off and will last you along time, you have a nice house with payments you can afford, you have some good investments earning you money for retirement, and by keeping 10% for yourself you not only get some fun out of it but you also help make sure you don't go overboard on your other purchases because you know that the wiser decisions you make about the car and the house the more money you will have to spend freely. Good Luck!

Contact an investment adviser that is paid either a flat fee (say $400-$700 a year) or as a percentage of your portfolio. You don't want one that is paid by # of trades he/she executes. Be careful about friends who suddenly pop up.

As for lump sum or annuity, this depends on how good you are with money now. If you're bad, pick the annuity, it gives you a chance to grow up. If you're fairly good with money, pick the lump sum. If you don't need the money that badly, pick the annuity (I'm guessing it's either a 50% lump sum or an annuity paid out over X years)

What would I do if I got a windfall of $450,000? Probably pay off my mortgage and split the rest between asset classes (commodities, cash, bonds, stocks.) Be sure to account for taxes.

Buying a house may not be a good idea at 20 -- do you want kids, do you have a fiance(e), etc., etc.? Life might change for you somewhat by age 30.

Whether to take an annuity or lump sum depends on what numbers they are using to get the lump sum. It's really up to you on what you want to do. If you get a car don't get out of control, it's a depreciating asset. Im not sure what the tax laws are in Canada but all interest expenses up to a certain limit are tax deductible. If that is the case it may be beneficial for you to take out a mortgage. If you take the lump sum you will have to pay taxes on it (assuming tax laws are similar to the U.S.).

If I was in your shoes I would be investing most of this money. You have plenty of time right now and IMO I think that it is a great time to get into the market if you have a 5+ year time horizon. If you want to buy and sell investments on a short term basis (1 year or less) than I wouldn't be investing.

It may be beneficial for you to consult a financial planner.

First off, take the lump sum because with inflation money is more valuable now than in the future. I would look at the interest rates for your loans...anything over 6 % I'd pay off immediately. Anything less and you could put your money to work elsewhere. With 450k, treat yourself to a car...I'd personally buy one where I can get good mileage because gas is going to go up significantly. I would buy a house as the market is getting more buyer friendly, but don't pay it off. I'm not sure how taxes work in Canada, but mortgage interest is deductible in the States and most times it is more advantageous to pay the interest and get a tax deduction. Investing wise, you can put your money to work in most places immediately. I believe the DOW and NAS are at or close to their bottoms and would invest most of it. Sectorwise commodities are the best bet...aluminum, copper, gold oil. These will be good for awhile due to international demand. It wouldn't be a bad idea to put some money in US Banks and Retail as they have come down the most.... Be Careful in choosing though...do your research but for a choppy market like this a high dividend yield is always a plus. Also, start a Roth IRA and put the max contribution in per year.

First off, clear all ur debts..

Secondly, plan ahead...With the rising cost of everything, this money is a godsend. Try and secure ur future. If u want to buy a house, its a very good idea.

Thirdly, u mentioned investing. U can either invest, or put it in various plans at the bank. If u can wait, then the bank is a good option.

Lastly, if u still have some extra money, and ur not selfish, think of all the needy people out there, consider how lucky u are, and donate it to a charity. As someone has already said, u wont regret it...

Owning a house is one of the best investments you can make. You can buy a small one for 150 - 200K and still have more than half of your settlement for other investments like stocks or bonds. I'd hire a professional to help you manage your money, at least until you know whats safe to invest in and whats not. There are alot of scams out there, the last thing you want to do is waste your settlement and get nothing in return.

Pay off any outstanding debt (credit cards, car loans, student loans, etc.) and purchase a house. I would then seek the help of a financial planner regarding how to invest the rest.

Find a local advisor/analyst/planner and talk with them about your plans and what you want to achieve.

As for the above answer that a house is an investment, bull hockey. A house is ONLY an investment IF it brings in residual income (rent house). Otherwise, it is a liability.

I'd pay off your loans and then look into buying things like houses after you have paid your loans.

woo Canada.