[USER]

My grandmother recently passed away and I will be inheriting about 200k from her estate. I’m married, in my 30s, not planning on having kids.

Trying to figure out what to do with this amount of money as we were not expecting this.

Husband and I make >300k. We have 6-8 months of an emergency fund. We are maxing out our retirement accts (401k $ 457b).

We recently purchased a home. 6.4% rate with approx 700k left on mortgage. We do have student loans (250k), but we’re stuck in the SAVE forbearance/purgatory at the moment.

Have 100k in a brokerage fund as well. So, long story short, we don’t readily need these funds. Invest?

Put toward principal? Have some extra $ in HYSA in case my student loan payments skyrocket if/when the SAVE plan goes away? We haven’t figured out our FIRE goals/plans yet.

TIA!

[Mindy]

Just put it in your bank and let it grow interest

[Steph]

Do you know a good planner who can get to know you and your goals and find the best fits for you?

[Guy]

Perfect time to invest in the market. In one year you will be extremely happy you did. For get the noise.

Leave it alone and it will grow over time.

Look into backdoor Roth.

[Cynthia]

Ohh, id likely pump it into the market. That’s what all the rich people do. Take out high.

Reinvest when low.

[Allison]

It’s your inheritance. Keep it in your name. Save it to pay your student loans when they come due.

What a wonderful windfall.

[Angie]

What interest rate do you have on your student loans? Unless it’s over 8%, you’re better off putting it into your regular brokerage account and investing it in a low- cost index fund.

Because you are young, I would recommend QQQM because it follows the NASDAQ 100, which grows more than the S&P 500.

It’s more volitile, but the big swings don’t matter for now because you won’t need it for a long while.

Keep investing and you might be able to retire in your 50s!!

[Shaun]

Great time to invest. In your name only. You and your husband take care of the debt with your salaries.

Hopefully interest rates will go down and you can refinance.

[Robert]

First off, I’m sorry for your loss. Second, while I am sure you will receive some varying opinions from the folks on here.

this is what I would do- take that 200K, dump it all into a fund that mimics the S&P 500, and forget about for the next 30-35-40 years. (Well, maybe take 5-10 or so and splurge on something).

As a female, your life expectancy is 88 years of age, with a good chance you will live into your 90’s.

Your husband’s life expectancy is 77 years of age, with a good chance he will live into his 80’s.

Assuming you retire in your mid 60’s or so, that’s several decades of retirement income you will need; and I’m not sure any other vehicle besides the S&P 500 would give you the growth you need.

AT THE SAME TIME…..I would do the Dave Ramsey “beans and rice thing”, and kill that student loan debt as soon as possible.

On a combined income of 300K-plus, I would hope you can kill that debt in 4-5-6 years or so.

I understand the reasoning of a lot of the folks here who are advising you to kill a part of your student loans with some of this inheritance, but I think they are overlooking the power of compounded interest over a 30-35-40 year timeframe.

[Jacob]

I would speak with a estate lawyer, financial advisor that’s fee based, and a tax advisor. Do it the right way and don’t cut corners – this is alot of money we are talking about here.

However, I would reduce spending, save a little more, and knock out those student loans with the 200k.

Looks like you’re gonna need the extra cash since your mortgage payment is probably crazy high.

[Ludmila]

Dont put into principal. House is maritial property. Have money on a separate account and spend on your own things like your own student loan

[Anna]

Get rid of your student loans. Invest a decent amount, 1/4-1/2 of that and let it ride the market until retirement.

[Daniel]

Pay off those student loans with the money plus some of the brokerage. Get that monkey off your back.

[Author]

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