I’m receiving an inheritance from a deceased extended family member of approx. $54,000 after taxes. Here’s my situation:
Debt - 200k mortgage at 3.625%. No other debts
Retirement - 401ks, Roth’s, HSA all fully funded. Adding around $2,000/month to taxable as well.
Emergency fund - 6 months expenses
I’m unsure what to do beyond simply adding to taxable according to my current allocation. Paying down the mortgage doesn’t yield a huge benefit given the low rate and fact the inheritance is insufficient to retire the debt completely
Thanks for any thoughts
Help with modest inheritance
Help with modest inheritance
"Discipline equals Freedom" - Jocko Willink
-
- Posts: 1380
- Joined: Mon Nov 14, 2016 3:01 pm
Re: Help with modest inheritance
Kids - 529 ?
Near Term Needs ? (Car, Roof, Remodel, Repair)
Maybe add a little to your EF, set a little aside for Vacation and then rest to taxable.
Sounds boring, but boring is OK.
Near Term Needs ? (Car, Roof, Remodel, Repair)
Maybe add a little to your EF, set a little aside for Vacation and then rest to taxable.
Sounds boring, but boring is OK.
Don't let your outflow exceed your income or your upkeep will be your downfall.
Re: Help with modest inheritance
Thanks. I should have added I have a 529 for my son on track to slightly underfund college (which is my goal so I don’t over save and get penalized).soccerrules wrote: ↑Wed Apr 25, 2018 2:31 pm Kids - 529 ?
Near Term Needs ? (Car, Roof, Remodel, Repair)
Maybe add a little to your EF, set a little aside for Vacation and then rest to taxable.
Sounds boring, but boring is OK.
There’s a few “upgrade” items I could do to the house but don’t want to “blow” the funds on material items. I like your boring suggestion and simply achieving FI a little sooner
"Discipline equals Freedom" - Jocko Willink
Re: Help with modest inheritance
You could consider doing a mortgage “recast.”
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Help with modest inheritance
This thread is now in the Investing - Help with Personal Investments forum (portfolio help).
- Darth Xanadu
- Posts: 1108
- Joined: Sat Jan 27, 2018 12:47 am
- Location: MA
Re: Help with modest inheritance
Good advice!soccerrules wrote: ↑Wed Apr 25, 2018 2:31 pm Kids - 529 ?
Near Term Needs ? (Car, Roof, Remodel, Repair)
Maybe add a little to your EF, set a little aside for Vacation and then rest to taxable.
Sounds boring, but boring is OK.
Re: Help with modest inheritance
Paying down the mortgage that much even without a recast would make a huge difference in how fast your house is payed off with the exact same payments you are making now. Maybe seeing how far ahead on payoff it gets you will be better than boring
lafder
lafder
- Darth Xanadu
- Posts: 1108
- Joined: Sat Jan 27, 2018 12:47 am
- Location: MA
Re: Help with modest inheritance
I can't disagree, but at the same time, putting into say taxable still affords this option whereas putting towards mortgage doesn't really see any payoff until the new payoff date. And if OP can beat mortgage rate in taxable (50/50 shot? not sure...) then OP is in better position generally.
Again, I don't think paying down mortgage is a mistake, just chiming in with a different angle.