What to do with inheritance?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
|
I am receiving an inheritance and am trying to figure out what to do with the money.
Does it make sense to pay off current mortgage? There is a possibility that I might move in 3-5 years, so if I save/invest, I’d need to have access to it quickly. What would you do? |
Anonymous
| What’s your mortgage interest rate? How much is the inheritance? |
Anonymous
| Interest rate is 3%. It’s about 150k. |
Anonymous
| It might make more sense to put it into a high interest savings account for now. |
Anonymous
Klang? Which one? Never had one |
Anonymous
Buy a t-bill. They pay much more than 3% and are state tax free. Your interest rate is so low that most safe investments are paying more. |
Anonymous
| Max out in the ibonds (10k for each family member), then put the rest in high interest savings account. Amex us what we use, but we are looking for higher rates, so there might be others. |
Anonymous
Disagree with iBonds. Their moment is about to pass. Better to have the flexibility of a high yield money market. |
Anonymous
| You can find a 12 month CD rate of 5%. |
Anonymous
Where? I have not found this to be true. |
Anonymous
Google "12 month CD rates" and a bunch of 5+ options appear. It is true. |
Anonymous
https://www.depositaccounts.com/cd/1-year-cd-rates.html Also, Marcus (Goldman Sachs) has a 10 month CD at 5.05% OP, it's hard to answer your question without knowing the specifics, but I wouldn't be paying off a 3% mortgage right now when you can easily get a higher rate |
Anonymous
|
Also here for CD rates. https://www.bankrate.com/banking/cds/cd-rates/
I have a fidelity account so bought some CDs there last week. 5% or more. |
Anonymous
| How much is the inheritance? That $150k mortgage is so low if he inclined to just pay it off and put the rest in fdic insurers accounts at 5% |
Anonymous
+1000 Do not pay off a 3% mortgage. Save the money at 4-5% CD or savings acct and keep it liquid. |