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Investing a Windfall

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  • Investing a Windfall

    Long time follower, first time poster. Currently a 3rd year Medical Student. I will be inheriting ~350,000 after the recent passing of my grandparents. My wife and I have ~200,000 in student loan debt  combined. After paying that off and saving some in an emergency fund, I am trying to figure out the best way to invest the remaining money . Do I invest a lump sum into a taxable account? Or do I wait until I start residency in a year and a half, and max out both my and my wife's Roth IRA's as well as my wife's Roth 401k that she has through her work?

    Ideally we would just use our income from our jobs to max out these accounts, but after budgeting for all of our other expenses (including a good disability and life insurance policy that I plan to buy into at the start of residency), we won't have the funds to do so.

     

     

  • #2
    I would start here

    https://www.bogleheads.org/wiki/Managing_a_windfall

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    • #3
      Yes pay off Your debts and make a good efund. You'll need it for interviews. Sure open a taxable account.

      You can wait on DI until end of residency if you want.

      You can also wait on LI unless you have kids or your wife would not be able to support herself.

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      • #4
        Sorry for your loss.  Pay off the debt.  Efund.  Pay next years tuition.  Anything left open a taxable account at Vanguard and put it in VTSAX.

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        • #5




          Sorry for your loss.  Pay off the debt.  Efund.  Pay next years tuition.  Anything left open a taxable account at Vanguard and put it in VTSAX.
          Click to expand...


          I agree with this. I would also add, make sure the taxable account is in your name only. God forbid you and your wife depart ways (yes, I know, it is not going to happen to you....) I am sure your grandparents did not want to leave a chunk of money to a stranger.

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          • #6
            First and most important decision to make is whether you plan to co-mingle inherited and marital assets. Think about this one long and hard. Talk to a few of your divorced classmates before making a final decision.

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            • #7







              Sorry for your loss.  Pay off the debt.  Efund.  Pay next years tuition.  Anything left open a taxable account at Vanguard and put it in VTSAX.
              Click to expand…


              I agree with this. I would also add, make sure the taxable account is in your name only. God forbid you and your wife depart ways (yes, I know, it is not going to happen to you….) I am sure your grandparents did not want to leave a chunk of money to a stranger.
              Click to expand...


              You can do that?   It would seem to be ‘income’ that was ‘earned’ while married.  Quick google search says many states yes

              Interesting    Gifts are also in same category as long as never co mingled    May need to think about this some

               

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              • #8







                Sorry for your loss.  Pay off the debt.  Efund.  Pay next years tuition.  Anything left open a taxable account at Vanguard and put it in VTSAX.
                Click to expand…


                I agree with this. I would also add, make sure the taxable account is in your name only. God forbid you and your wife depart ways (yes, I know, it is not going to happen to you….) I am sure your grandparents did not want to leave a chunk of money to a stranger.
                Click to expand...


                This is a kind of rationality that I have never been able to wrap my mind around.  Not judging those who can, but I can't.

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                • #9
                  I received a large insurance pay out and paid off my debt first. Then used the money for some other things that were important to me. Here is the post if interested. I would pay debt and your tuition, max out tax advantaged accounts, and place a portion in savings for next year. The rest can be invested as hatton1 mentioned above. VTSAX.

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