Thank you all for your responses. We are 37 and 40. About $1.2m saved for retirement, we add about $80k per year including company matches. Various other investments including a rental home. Two children under 7, the older is in private school, and we want the flexibility to send both through high school if we so choose (looking 50/50 right now). Already in our forever home. So we don’t really need this money for anything in particular. I will check out the Bogleheads forum. Fortunately it is not related to an inheritance/loss of family member.

Anonymous wrote:

Anonymous wrote:Agree depends on your debts/needs/other financial goals. Me, I’d use it as a downpayment for a house first, 529s second. But I have a friend who would pay off her student loans with a huge sigh of relief.

Yes, it really is impossible for us to give you advice with so little information. Bogleheads has a nice blog post on what to do with a windfall.

Here is the article the PP mentioned: https://www.bogleheads.org/wiki/Managing_a_windfall

I’d stick it in 3 HYSA while you debate.

3 because of the FDIC coverage, high interest rates, ease of moving it into other vehicles when you’re ready.

Buy land that can be subdivided.

We’re in a similar situation. Got three inheritance windfalls totaling $700k windfall a couple years ago. We wish we bought a second or new primary house a while ago, but we keep hesitating. Two kids, 10 and 14… i keep thinking the money can cover both of them at private colleges. But also that we could get a super sweet house with a pool in a nice neighborhood… right now it’s split 4:3 in stocks and high interest savings.

We only have like $60k each in 529s. Over $1m in retirement, combined. 46 snd 52. We work in nonprofits so dont make a ton.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses

Put in enough money into 529s that would pay for instate tuition and room&board and other qualified expenses. Put the money that would allow them to go to private university in a regular saving vehicle. That way you can use it for other things if they end up at a state school or with a decent amount of merit aid.

Extra 529 plan $ can now be converted to Roth IRAs which is amazing. No worries about extra funds and great savings vehicle.

ROTH’s for the child, but if the parents would like access to money they saved but did not spend for college, not as great.

Anonymous wrote:Agree depends on your debts/needs/other financial goals. Me, I’d use it as a downpayment for a house first, 529s second. But I have a friend who would pay off her student loans with a huge sigh of relief.

Yes, it really is impossible for us to give you advice with so little information. Bogleheads has a nice blog post on what to do with a windfall.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses

Put in enough money into 529s that would pay for instate tuition and room&board and other qualified expenses. Put the money that would allow them to go to private university in a regular saving vehicle. That way you can use it for other things if they end up at a state school or with a decent amount of merit aid.

Extra 529 plan $ can now be converted to Roth IRAs which is amazing. No worries about extra funds and great savings vehicle.

Only to a Roth for the kid, right? Not saying that’s not a good thing, but just to clarify.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses

Put in enough money into 529s that would pay for instate tuition and room&board and other qualified expenses. Put the money that would allow them to go to private university in a regular saving vehicle. That way you can use it for other things if they end up at a state school or with a decent amount of merit aid.

Extra 529 plan $ can now be converted to Roth IRAs which is amazing. No worries about extra funds and great savings vehicle.

Not all of it though. Only something like $35k can be converted to a Roth.

Anonymous wrote:

Anonymous wrote:Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses

Put in enough money into 529s that would pay for instate tuition and room&board and other qualified expenses. Put the money that would allow them to go to private university in a regular saving vehicle. That way you can use it for other things if they end up at a state school or with a decent amount of merit aid.

Extra 529 plan $ can now be converted to Roth IRAs which is amazing. No worries about extra funds and great savings vehicle.

Anonymous wrote:Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses

Put in enough money into 529s that would pay for instate tuition and room&board and other qualified expenses. Put the money that would allow them to go to private university in a regular saving vehicle. That way you can use it for other things if they end up at a state school or with a decent amount of merit aid.

Agree depends on your debts/needs/other financial goals. Me, I’d use it as a downpayment for a house first, 529s second. But I have a friend who would pay off her student loans with a huge sigh of relief.

We need more information. How old are you? How old are kids? Married or single? What do your retirement accounts look like? Emergency fund? Income?

What are your goals with this money? We should start there.

How're your retirement accounts? How far from retirement are you? Any debts?

I agree with 1 & 2 but not 3. If you know you want private school put more in 529s (you can take out $10k/year for private). The rest to index funds.

Congrats and/or I'm sorry for your loss.

Should I do these things in this order:

1. Max out IBonds
2. Get 529s to the point where they will generate enough for 4-year private university assuming 5% annual return
3. Put the rest in CDs earmarked for private school and/or other expenses