Detroit fwent Bankrupt.

The big issue I encountered here was something I should have prepared better for but luckily did not bankrupt me.

If you ask some people who were in that position back in 2007-2009, what happens is that you go bankrupt.

Patience and strict application of your investment criteria are two things (among others) that seperate successful investors from bankrupt investors.  

Everyone trying to get into REI wants everything for free ('cause they're already broke, unemployed, bankrupt, maxed out, etc., very often).

If you lose your buffer on your one $1 million home, you are probably bankrupt, whereas you (*should, if you bought right*) have enough slack to go vacant on maybe half of your homes in illustration 2 and still be OK. 

Use moderate debt or even no debt so that if the market goes against your friend for a few years, you arent putting the whole inheritance at risk.  5)diversify into other assets, ie buy some stocks, some real estate and some bonds.  6) do a personal budget, everyone can overspend, the world is littered with pro athletes, entertainers and the like going bankrupt because they couldnt live within their means, especially with new found wealth.  

I think insurance should be used for major issues and while $6,200 is a lot it's not going to bankrupt you.

What is going to happen is when your $30,000 depleted and work is not even half done, you'll be forced to put more money in, or get bankrupt.

There are better places to put your money than a bank but none are as secure as a bank, not even under your mattress.Investors go bankrupt every day for many different reasons so the only thing worse than not forcing your money to work for you is putting it out to work and having it wave good by.I am more comfortable borrowing money from a bank as opposed to loaning money to a bank.