Re: So, I just inherited some money and I've no clue what to do with it.
An old timer perspective
Date: June 21, 2022 05:22PM
It is interesting how the same amount of money can have different meanings to different people. When my father died the six figure inheritance I received disappeared into savings where it throws off $1,000 per month in income, not enough to affect my standard of living. For others it could be the down payment on their house, an early retirement or one hell of a spending spree.
OP, do not pay off your student loans. Student loans are relatively low cost debt. Instead bank the money you would otherwise pay on your student loans and continue to pay off your student loans from current income. Take the maximum amount you can and contribute it to a ROTH IRA. You won't get a current deduction, but earnings and appreciation are tax free, and the withdrawal options are more favorable than regular IRAs. If you want to buy yourself something special, do so quickly. Otherwise chances are you will fritter away whatever you have left.