Reply to If you inherited a million dollars, WWYD?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We did, but I find that I am strangely frozen  and can't decide. It does not seem like so much around here...[/quote]

Short run:  If you want to spend it now - I agree, no, it's not a lot.

Long run:  if your'e patient it can provide some immediate returns, and also some to your children and grandchildren.

If you invest it, even if it's conservatively you're looking at 3-4% annual return - or $30-40K per year.  That could be "private school tuition" for your child(ten) or in a better year (this year S&P returned 6+ percent) you could do some home improvement or pay off debt.  It could also allow you to leave wealth to your kids too - if you used some of the annual return for to fund a life insurance policy for you/husband.   In the long run though - you preserve the $1 million corpus so you can pay for your own elder care and/or retirement.  If you do the life insurance, then you can also leave your children money for their retirement and grandchildren.

Nice choices - congratulations.  [/quote]

This is good advice, and a financial planner could help you determine whether you are likely to see returns on investment that are better than what you're paying in interest on a mortgage.  In our case, I think we're right about equal and I would lean toward paying off the mortgage and having more freedom to invest and save with our income in the next 10-15 years rather than having the investments and slogging away at the mortgage.  Although, of course, if you can pay off the mortgage over time and retain the 1 million principle, that's the best option.[/quote]

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