What would you if you inherited $100k?

[Anonymous]

I'd pay off my car and renovate my kitchen. Anything left over to 529s.

[Anonymous]

I would take an awesome vacation to Bora Bora or Europe. Nah, the sensible me would dump it into a mutual fund and let it grow.

[Anonymous]

Half to home renovations, the other half split between 529s for the two kids and emergency savings. Probably some sort of travel too.

[Anonymous]

We inherited 115k. We blew 10k of it on fun stuff, and put the remaining 105k in our kids 529k invest. That 105k has now doubled and between that and our already prepaid account our kids have a very healthy college fund.

When our kids go off to college we will be late 40s early 50s. It will be great to be without mortgage and without college expenses. We are truly going to be enjoying being empty nesters with complete financial freedom.

[Anonymous]

It depends who the $100k is from. Ours was from grandparents, so we don’t worry about over saving in our 529s. If there is money leftover and neither kid wants to go to grad school, we will give it to a niece or nephew with the same grandparents. In that way it’s not really “our” money, but more like family money that we are taking care of.
Yes this means my SIL might have spent hers on vacations and a new kitchen (she didn’t, she doesn’t have kids yet and used it for a DP on a modest house), and her kids would benefit from our savings. Some people on DCUM would be really bent out of shape about that, but my husband and I feel it’s what his parents would want.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

NP. It's a balancing act. I agree with PP that you don't want to over invest in a 529 unless you are 100% certain you will never need that money.

I don't bbn put money I dont have to spend into a 529.

[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.

Your advisor is missing the tax benefit of untaxed gains. The last few years of my 529 invest has doubled my initial investment, all will be withdrawn without any taxes.

If my kid gets a scholarship (statistically unlikely my kids will get full rides for both undergrad and graduate school) I can help my nephew.

[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.

+10000


I made the mistake of giving DH access to inherited assets I brought into the marriage and regret it daily.

[Anonymous]

I think it would be wise to just pay off your car note(s), then take a trip somewhere you have NEVER been to, but have always wanted to go.

You cannot put a price tag on a great life experience plus the memories that follow.

[Anonymous]

Anonymous wrote:

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.

+10000


I made the mistake of giving DH access to inherited assets I brought into the marriage and regret it daily.

This is not true. If you put it on a joint account and only added more money to this account and didn’t have withdrawals from it, it could be traced ilout daily and would still be your separate property. Putting it In A joint account doesn’t show it was a gift.

[Anonymous]

Dumb question but why doesn’t anyone recommend putting it mostly towards the mortgage?

[Anonymous]

Anonymous wrote:Dumb question but why doesn’t anyone recommend putting it mostly towards the mortgage?

My mortgage is like 2.7% interest after the tax deduction. Over the long-term, equities vastly outperform 2.7%

[Anonymous]

I would invest it in something risky but I'm not risk averse actually. May be I would gamble all days and nights long just to check if I am lucky or not.
Because right now I don`t have such an opportunity because of lack of money. It could sound stupid but lots of people like watching others winning big money
on Youtube https://www.youtube.com/watch?v=Zrlht1mIMUM&t=6s and I`m not exception. It`s inspiring and interesting I should say

[Anonymous]

Vacation to Bora Bora and pay off the house with the rest.