what to do with $50,000 cash

[MikeJones2001]

My girlfriend just inherited $50,000.

What would you guys recommend she do with it?  She has no debt at all, no car payment and no mortgage.

I told her to take some of the money and max out her Roth IRA and take the rest and put it in a Vanguard Brokerage Account in VTSAX.

What say yall ?

[dandarc]

Without more detailed info that sounds like a pretty good plan. Is she already maxing any workplace retirement accounts available to her?

[MikeJones2001]

Without more detailed info that sounds like a pretty good plan. Is she already maxing any workplace retirement accounts available to her?

She starts a new job tomorrow that offers 401k with matching.
She has next to no retirement money other than about $3000 in her roth ira.
She has around $10000 in a savings account
This new money makes up almost all her net worth.

[theolympians]

Have her open a traditional IRA as well and max that.

[dandarc]

So if she can't max the 401K ($19.5K for 2021) right out the gate, then she could take a portion of this money and live off it thus allowing her to max the 401K in the short term. Maybe that is not a concern and the job pays plenty for doing the 401K to the full extent and also to live off of.

She might consider creating an account here and posting a case study with much more detail - there are many folks willing to help in-depth on this forum, and she would certainly get a much more comprehensive look at the whole picture that way.

Roth + taxable account (VTSAX in both) is certainly reasonable general advise, but everyone's situation is unique.

[MikeJones2001]

So if she can't max the 401K ($19.5K for 2021) right out the gate, then she could take a portion of this money and live off it thus allowing her to max the 401K in the short term. Maybe that is not a concern and the job pays plenty for doing the 401K to the full extent and also to live off of.

She might consider creating an account here and posting a case study with much more detail - there are many folks willing to help in-depth on this forum, and she would certainly get a much more comprehensive look at the whole picture that way.

Roth + taxable account (VTSAX in both) is certainly reasonable general advise, but everyone's situation is unique.

Thanks for the response. I just posted again in the case study section. Lets see what we get!

[Telecaster]

The investment order post at the top of this page is quite handy:

https://forum.mrmoneymustache.com/investor-alley/investment-order/