What would you if you inherited $100k?

[Anonymous]

$50K to remodel our kitchen, $50K into mutual funds for savings

[Anonymous]

We are the same as you, but no car note. We upped our 529 contributions to $1k per kid per month and parked the rest in our Vanguard account.

[Anonymous]

Anonymous wrote:We are the same as you, but no car note. We upped our 529 contributions to $1k per kid per month and parked the rest in our Vanguard account.

When we got $100k. My husband’s parents give us $30k a year, but one year we got 100 for no reason. We live within our means without the gifts so we just park it at Vanguard and every 6mo day “we should do something with this money” and proceed to do nothing.

[Anonymous]

Anonymous wrote:40k to the 529; 40k to non-retirement savings/investment; $20k to spend, maybe on a big vacation.

This is exactly what I would do.

[Anonymous]

Personally, I would pay off my student loans ($50k ish) and put the rest in my 2 kids 529 accounts ($25k each).

[Anonymous]

10k to charity;
25k home stuff (ranging from furniture to flooring to window treatments)
10k landscaping
10k vacation
45k park in a fund for kids for future (could be grad school help as undergrad is already funded, could be weddings, could be future down payment on a home)

[Anonymous]

A 10k/year vacation fund to last the next 10 years.

[Anonymous]

Anonymous wrote:I recently inherited $100k in cash from the sale of a family property. DH and I both work HHI approx $200k. We don’t have any debt outside of a monthly car payment which is no interest and our mortgage (school loans, cc all paid off). We contribute the max to 401k and contribute $8k per year to our DS 529. We are not super wealthy but feel like we can afford what we need / want within reason. We have some additional investments besides retirement and enough $ in an emergency fund. So...the question is what would you do with extra money? Invest? Pay off car? Pay down mortgage?

We just inherited 120k. Similar situation. Mortgage is our only debt. We bought a hot tub for 10k and dumped the rest of it into our kids 529. That eliminated the 1k/mo we were putting into 529. Our kids now have VA prepaid done and 200k to split in the invest. Hopefully that will grow some.

[Anonymous]

Anonymous wrote:Keep it in a separate account so it remains your asset due to inheritance rather than a marital asset. If you put it into a joint asset whether a car etc or a bank account it is no longer your asset, it is a marital asset.

Do you have marital problems?

[Anonymous]

Please don’t pay off the car! I know you know that because you mentioned the 0% interest, but seriously... voluntarily paying down a 0% loan is crazy. If you really need to pay something out, you would pay your not-0% mortgage

I’d go with mutual funds as well. Pick 2-4 that seem relatively low risk but are 100% stocks because of your age and just leave them alone unless one loses money.

[Anonymous]

pay off car, do some remodels in the house, put remainder in emergency savings account.

[Anonymous]

i dumped in all in VTSAX

[Anonymous]

Regarding your kids college savings. Don't dump $40K or some big amount into the 529. Your state tax benefit from 529 investments has a cap/carryover restrictions. So once you've put enough in to max out the state tax benefit (which it sounds like you are already doing even without this $) there is no reason to put more into that investment vehicle. Plus you can't pull the $ out without penalty should you decide you need it for some unplanned or large unforeseen expense - or your child gets a college scholarship etc. You want to maximize your tax benefit, but keep some flexibility with how the fund could be accessed if need be. What our advisor told us is to open VA 529 accounts for your kids and max out the tax benefit, but then set up separate mutual fund account(s) for additional college savings. You can probably get better returns on the $ in mutual funds (given the higher number of brokerages/funds to choose from) than the 529 offers anyway. So yeah, get the state tax credit, but everything over the top goes into mutual funds.

[Anonymous]

Anonymous wrote:Regarding your kids college savings. Don't dump $40K or some big amount into the 529. Your state tax benefit from 529 investments has a cap/carryover restrictions. So once you've put enough in to max out the state tax benefit (which it sounds like you are already doing even without this $) there is no reason to put more into that investment vehicle. Plus you can't pull the $ out without penalty should you decide you need it for some unplanned or large unforeseen expense - or your child gets a college scholarship etc. You want to maximize your tax benefit, but keep some flexibility with how the fund could be accessed if need be. What our advisor told us is to open VA 529 accounts for your kids and max out the tax benefit, but then set up separate mutual fund account(s) for additional college savings. You can probably get better returns on the $ in mutual funds (given the higher number of brokerages/funds to choose from) than the 529 offers anyway. So yeah, get the state tax credit, but everything over the top goes into mutual funds.

Yea, but the 529 invest grows tax free. I got 22% returns off mine in 2017.

[Anonymous]

Anonymous wrote:Regarding your kids college savings. Don't dump $40K or some big amount into the 529. Your state tax benefit from 529 investments has a cap/carryover restrictions. So once you've put enough in to max out the state tax benefit (which it sounds like you are already doing even without this $) there is no reason to put more into that investment vehicle. Plus you can't pull the $ out without penalty should you decide you need it for some unplanned or large unforeseen expense - or your child gets a college scholarship etc. You want to maximize your tax benefit, but keep some flexibility with how the fund could be accessed if need be. What our advisor told us is to open VA 529 accounts for your kids and max out the tax benefit, but then set up separate mutual fund account(s) for additional college savings. You can probably get better returns on the $ in mutual funds (given the higher number of brokerages/funds to choose from) than the 529 offers anyway. So yeah, get the state tax credit, but everything over the top goes into mutual funds.

^I'm assuming your referring to the INvest 529 program and not the prepaid BTW.