Author Topic: Need Help Allocating Inheritance  (Read 1219 times)


  • 5 O'Clock Shadow
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Need Help Allocating Inheritance
« on: August 07, 2018, 03:43:44 PM »
Life Situation: Tax status - Married in Bay Area CA

Gross Salary/Wages: 60K

Individual amounts of each Pre-tax deductions - 10% employee stock purchase plan

Other Ordinary Income: I am sole income provider, my wife recently quit her job and would like to go back to school

Rental Income, Actual Expenses, and Depreciation: I rent a room for $700/month, and bring in almost 4k/month

Adjusted Gross Income: Usually can save about 1k/month

Liabilities: 100% debt free, I own two cars that are worth about 5k/each and in good condition

Assets: Amount & description - Recently inherited about 60k. I would really like to buy a house in the next 1-2 years as my wife wants to start having children in the next 5 years. Planning to start IRAs for my wife and I since I don't have 401k matching at my work. Also have about 12k in my company's stock. Combined assets are 72k-11k( to start IRAS)=61.  This total does not include 6 month emergency savings of 25k

Question(s): What is the best way to allocate my money so that I can see some returns and not get screwed by inflation? I'd like to keep around 40k  as liquid as possible because we aren't sure exactly when we want to buy. I currently can't afford any neighborhoods I'd like to raise a family in the bay area. We eventually want to move out of state once I gain enough work experience to somewhere more affordable.


  • Magnum Stache
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  • Location: Bay Area, CA
Re: Need Help Allocating Inheritance
« Reply #1 on: August 07, 2018, 08:03:01 PM »
You seem to be all over the place and haven’t posted a full case study, so it is really hard to give you detailed advice. I recommend the Bogleheads wiki entry on a Windfall (just google it). I also recommend the Investment Order sticky thread in the Investment section of this forum. Start there and come back with more specific questions when you have an idea of what your goals and timelines are.


  • Stubble
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Re: Need Help Allocating Inheritance
« Reply #2 on: August 12, 2018, 06:31:42 PM »
Sorry for your loss.

If it were me I would toss 11k into a Roth this year and do the same on Jan 1 2019.  You can always withdraw your Roth contributions so if you ever needed the money for a down payment its still there for you.

Id probably stick the rest in a vanguard index fund.  I also would not buy a house if your wife is wanting to go back to school and start having kids. 

Another Reader

  • Magnum Stache
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Re: Need Help Allocating Inheritance
« Reply #3 on: August 12, 2018, 08:25:36 PM »
Your income is $60k, you live in the Bay Area and you want to buy a house?  How do you plan to do that on $60k?