Author Topic: Case Study - Help with small chunk of inheritance!  (Read 2397 times)

Restless Consumer

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  • Posts: 12
  • Location: TX
Case Study - Help with small chunk of inheritance!
« on: February 11, 2017, 12:33:55 PM »
My wife's grandmother recently passed away and we received some cash from her trust. Now we need help figuring out what to do with it. It might be as simple as putting it in a vanguard fund or do I start an IRA? I would love to get some additional thoughts.


Age: 30
Salary: $60k
Net Worth: $305k
  • 401k: $79k ($692/mo: Contributing to limit which is 29.9% of my income + 6% company match)
    HSA: $17k  (Contributing $198 a paycheck to hit yearly max- Employer contributes $1,500/yr)
    Company Stock: $37k  (10% of paycheck goes into stock purchase program)
    Mutual Funds: $21k
    IRA: None
    Cash: $70,867


Debt
Mortgage: $85k (Home value $160K)


Instead of listing expenses, I'll just say that my 2016 savings rate was 50%. Let me know if any other details are required for a recommendation.

MDM

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Re: Case Study - Help with small chunk of inheritance!
« Reply #1 on: February 11, 2017, 04:30:45 PM »
Perhaps "putting it in a vanguard fund [in] an IRA."

CU Tiger

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Re: Case Study - Help with small chunk of inheritance!
« Reply #2 on: February 14, 2017, 01:54:12 PM »
Yeah, I'd use a small inheritance to start an IRA at Vanguard. I think if you do it now, you could fund last year and 2017. If you have anything left over, take yourself out for a nice dinner and toast the memory of your departed relative, and bank the rest.

Hotstreak

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Re: Case Study - Help with small chunk of inheritance!
« Reply #3 on: February 14, 2017, 07:23:46 PM »

Condolences on the death of your family member.  I think CU Tiger has given great advice.  Max both your IRA's for 2016/17 ($24k total?)  Take the remaining $47k, minus whatever your want your emergency fund to be, and put it in to your Vanguard account.


As an alternative, you nearly have enough money to pay off your mortgage.  If that is a priority for you (and depending on your rate) consider that as well.

Yeah, I'd use a small inheritance to start an IRA at Vanguard. I think if you do it now, you could fund last year and 2017. If you have anything left over, take yourself out for a nice dinner and toast the memory of your departed relative, and bank the rest.