Small inheritance - now what?

[Anonymous]

Anonymous wrote:Typical order of operations for a windfall

1) pay off high interest debt e.g. credit cards consumer toys that depreciate like jets skis boats etc
2) Round out emergency reserve (3-6 mo worth of expenses)
3) fund one off goals - 529s are a good one since it doesn't have to come from payroll. Can you fund a Roth IRA or a backdoor Roth this year? Any one-off house renos that will increase the value of your home? Any one off trips that will dramatically enhance the quality of your life (visit relatives in foreign country etc)
4) pay off "good debt" like 30 yr fixed low rate mortgages. The reason to do this is just peace of mind and risk management, not wealth maximization

Thank you for pointing out that this is about peace of mind and not wealth maximization. A lot of people choose to pay off mortgages that have a very low interest rate, because it feels good to own their home, and this is a rational decision. But many others would not give up a 2% mortgage, because they can earn more than that investing that cash.

[Anonymous]

Anonymous wrote:Op, whatever you do, please put the money in an account under your name only. This can be a safety net for you in the future and you can use it to pay for college if necessary down the road. But the minute you commingle the funds, your husband has a right to the funds. Even if you have been together forever, I would still put in a separate account.

Would you give the same advice if OP were a man?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op, whatever you do, please put the money in an account under your name only. This can be a safety net for you in the future and you can use it to pay for college if necessary down the road. But the minute you commingle the funds, your husband has a right to the funds. Even if you have been together forever, I would still put in a separate account.

Would you give the same advice if OP were a man?

Not PP but I would.
- Someone who received a similarly sized inheritance fifteen years ago and waited a LONG time before commingling any of it. The significantly larger one I’m getting I will not commingle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op, whatever you do, please put the money in an account under your name only. This can be a safety net for you in the future and you can use it to pay for college if necessary down the road. But the minute you commingle the funds, your husband has a right to the funds. Even if you have been together forever, I would still put in a separate account.

Would you give the same advice if OP were a man?

NP, a woman, and yes.

My husband inherited money when his parents died and it went in his account. I'll be putting mine in my account when that day comes.

I understand people put everything in the "ours" account if they're struggling to stay afloat, but once you're economically stable, it makes sense for each of you to have some of your own money. Not hidden from the spouse -- that's suspect -- but just not their money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op, whatever you do, please put the money in an account under your name only. This can be a safety net for you in the future and you can use it to pay for college if necessary down the road. But the minute you commingle the funds, your husband has a right to the funds. Even if you have been together forever, I would still put in a separate account.

Would you give the same advice if OP were a man?

Of course. Why would the advice be any different?