Case study, what next penison and inheritance

[duckfeetin]

I am not very financialy savy and hoped i could get some imput on what to do next. I am receiving a small inheritance and i have been sitting on a pension since i left my job last december and i want to make sure i am putting my money in the right direction

1.  Unmarried couple, one working spouse and one child (1 year). I file her as my dependant each year. We will conintue to be a single working household until our daughter enters first grade.

2. 60k roughly yearly salary and 1k monthly from rental.

3.  401k has 52k, 401k has 25k, 14k pension.  My pension is from the job i left last december and there is no pension offered at my current job. I dot yet qualify for a match as i havent been at my new company long enough. 

Savings 10k in index funds. Checking accounts floats at 5 to 6k.

No car payment. 88k left on 150k  mortgage (4%interest and 30 year.). 3k left on student loans.

We pay about 1k monthly for our mortgage. Phone, electric, insurance, sewer, groceries about 2 to 3k monthly. We are working on cutting these bills now, changing phone service, cutting cable ect.

My grandmother passed and will leave me about 20k in cash. My daughter has a small savings for family to deposit money in with just a few hundred.

[Mother Fussbudget]

It's hard to give specific feedback with so little to work on.  You should consider posting using the 'Case Study' format (see the sticky message at the top of the forum).  It takes a little work to prepare, but the results are useful beyond getting feedback from internet strangers.

In general, people invest windfalls the same way they would invest over-time:  in low-cost ETF's such as a Total Stock Index Fund (VTSAX or equiv), and Total Bond Index Fund.  You might search 'windfall' on the forums, and read some of the resulting message threads.
[I would post links, but search isn't working for me right now, and I didn't want this message to fall off without at least 1 response]

The investment order I recommend to people is:
1) Max out your 401K contribution to get the dual benefit of saving pre-tax dollars, and reducing taxable income.
2) Max out your HSA account (must have a HDHP to have an HSA account).  http://www.madfientist.com/ultimate-retirement-account/
3) Max out a T-IRA or ROTH IRA contribution.  Since your income is currently DOWN, consider starting a Roth IRA.
4) Invest in a taxable account.  You can always invest in a taxable account. 

Also... set your investments up to DRIP - Dividend Re-Investment Program.  Each stock trading company lets you re-invest dividends into the stock that generates dividends.  In most cases, you'll have to manually specify you want dividend reinvestment for each holding in your account.  Keep up the good work, and all the best!