Best use for 1.6 million inheritance

[Anonymous]

I haven’t read all the responses but here is how we’ve done it:

I inherited a lot of money. We were wealthy beforehand and now I am very wealthy. All my inherited money is separate but I use it for family things that I elect to use it for. Historically that has been: 100% of the kids’ activities, tutors, equipment, and other mainly kid- related things (summer pool, gifts for coaches and teachers, 100% of the kids’ spending money, car, car expenses, etc). We have multiple homes. 100% of the expenses for our primary residence (no mortgage) is paid for by me. I pay for all vacations. I also over pay my share of the taxes (related to my inherited property), and when the refunds come, we split it. So over the course of a year, I contribute quite a bit. But it’s all my choice and my separate money is just that: my separate money.

[Anonymous]

Donate to the victims of the recent school massacre

[Anonymous]

OP - What would DH say if you decided NOT to commingle and instead invest it? Are you afraid of DH’s reaction if you decide to use the money how you choose?

I inherited $2 million 10 years ago. Like you we had 2 kids at private and money in 529s, investments and retirement. We also had just bought a house. Met with financial advisor who told me not to commingle. Advisor said I could use the interest off the investments - if I wanted - to pay for updates to the house or invest more in 529 funds, but suggested the money should ultimately be invested in my name only. I invested 95% and used 5% for fun things for the family including a great vacation.

DH and I have a solid marriage. We both contribute to household payments and 529s. Although he makes significantly more than I do, it makes me feel confident to know I am financially secure on my own. If DH is pressuring you to pay down the house and you don’t feel you can tell him otherwise then there are some bigger issues there. Maybe use a small portion of that inheritance on marriage counseling.

[Anonymous]

Anonymous wrote:Whose inheritance?

Dead person’s.

[Anonymous]

How much is DH suggesting you use to pay down the mortgage? All of it?

[Anonymous]

Anonymous wrote:Late 40s with such low retirement? I would invest it for retirement, OP.

This assumes that you can carry college costs solely on your income, as you've suggested.

I wouldn't pay down the house, unless you cannot cover college tuition and private school with your income. Of course this all depends on your mortgage rate, compared to rate of return you might get by buying at a low in the stock market. Expectations are that the stock market will hit hit bottom 3 to 6 months into the war in Ukraine, but we're not there yet, and there's a stagflation/recession looming for next year, so, the usual rule of thumb applies: don't try to time the market exactly, start buying solid company stocks if they've tumbled significantly from their 52 week high.

Their two million amount is low?

[Anonymous]

529s? If you cant’t find scholarship money, try harder. DMV makes me shake my head and laugh.

[Anonymous]

Anonymous wrote:529s? If you cant’t find scholarship money, try harder. DMV makes me shake my head and laugh.

Are you saying merit scholarship money is there if you try harder to find it?

[Anonymous]

The best use of a $1.6 million inheritance is to brag about your $1.6 million inheritance.

[Anonymous]

Anonymous wrote:529s? If you cant’t find scholarship money, try harder. DMV makes me shake my head and laugh.

You are laughing at people saving for college? That's . . . odd.

[Anonymous]

Anyone who comes to a forum for financial advice, knowing they will be bashed by DCUMers or given such varying nonsense advice, is too stupid to inherit such a large sum. Your first “post” should have been an email to your financial advisor asking to set up a call.

[Anonymous]

Op, what did you decide?

[Anonymous]

No one mentioned it but here is why you don’t commingle inheritance.

Spouse 1 and 2 marry and have kids
Spouse 1 inherits
Spouse 1 dies
Spouse 2 remarries New Spouse with children
Spouse 2 dies
All the inherited money goes to New Spouse
New Spouse leaves all assets to their children, cutting Spouse 1&2 kids out completely

[Anonymous]

Anonymous wrote:No one mentioned it but here is why you don’t commingle inheritance.

Spouse 1 and 2 marry and have kids
Spouse 1 inherits
Spouse 1 dies
Spouse 2 remarries New Spouse with children
Spouse 2 dies
All the inherited money goes to New Spouse
New Spouse leaves all assets to their children, cutting Spouse 1&2 kids out completely

And this is why inheritance is not marital property: it’s by law designated to create financial security for the naturally born children