ResNullius wrote:If the inheritance is truly mid-6 figures (around $500K), then I would certainly pay off the student loans, then max all tax-deferred options, then invest the rest in a taxable account of index funds (equity funds and some in bond funds). At your age, this is a once in a lifetime chance to really take advantage of long-term investment gain on a significant amount of money, which would make you multi-millionaires by your mid-50s. If you want to increase your spending, you can do it out of newly earned income during future years, but your portfolio would be off to a nuclear start. Good luck.
fcox85 wrote: However, as with anything, I guess I could always be mistaken, and I want to make the best decision. Given the amount of time it can take to settle an estate, it may be a while before we know anything for sure.
Watty wrote:One consideration is that in fairness this is your wife's money and if you end up getting divorced then either out of fairness or by law then she should likely get most if not all of it in a divorce settlement.
It would be a good idea if she talked to a lawyer to see what the lawyer would recommend to protect her interests.
Paying off the student loans makes sense but then one option for the rest would be to buy a modest house for cash with the money if you are ready to settle down. From a financial standpoint that could be "her house" if you ever get divorced but you would still get the benefit of not having a mortgage payment so that would be a huge plus for you too.
if you will likely have kids, then some people set aside some inherited money for the kids college, which would also help you if you do not need to plan for college expenses.
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