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A 10k inheritance

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  • Bartl007
    replied
    I would stash the money in a Roth IRA (which doubles as an emergency fund as your contributions are allowed to be removed at any time penalty free per IRS rules)

    Your investment choices inside the Roth may need to be adjusted depending on your potential to need the money.

    Leave a comment:


  • q-school
    replied
    the biggest thing you can do to secure the future you want is to ace step 1.

    it sounds like you are feeling a lot of stress, which is quite common during the dog days of early medical school.

    try to relax a little, no one can live in a pressure cooker all the time.

    i would encourage you to buy one of those helper materials for step 1.  that's going to help open doors.

     

    like you plan, i worked a couple jobs during medical school.  if i could go back in time, i would punch myself in the nuts.  of course at that time, i was supporting my parents in addition to myself.  don't get caught up in the details of trying to optimize your financial status.  you guys are working hard and spending little.  you have a great future ahead of you.   these tiny maneuvers additional maneuvers now that you are contemplating are not going to even be the difference between retiring one year earlier or whether you can have the house of your dreams.

    best of luck

     

    Leave a comment:


  • adventure
    replied


    I also plan on picking up a part time job after I take part 1 boards during my D2 year.
    Click to expand...


    Invest in yourself first - Put school first. If you have extra cycles to make a few bucks, great. Otherwise, take the loans. Don't spread yourself too thin. You're job is to get through school, so you can be there in a family, and have a life after school. #4 below is meant to help deal with bumps.

     


    Or is there another option that I am not even thinking about?
    Click to expand...


    1. Buy your wife dinner.

    2. Pay off her loans. She'll feel happy. You'll feel happy. You'll both have better monthly cash flow for the rest of training.

    3. Can you guys fund her Roth for $10/$50 month?

    4. Keep for an emergency fund. (high interest savings, etc).

    Leave a comment:


  • Murgency
    replied
    I would pay off her loans, for simplicity, then keep the rest as an emergency fund.

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  • Craigy
    replied
    Deposit into your checking account.  Then see where life takes you.

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  • mobilehomegurl
    replied
    As others have suggested, you may want to add it to your emergency fund. Having extra money just in case anything happens helps since your budget seems to be tight.

    Leave a comment:


  • MattymcMattMatt
    replied
    So that is just tuition... My wife is able to cover all living expenses I am allowed to withdraw 100k a year, they give us 20k for living expenses, but that is way too much.  Even 80k is too much but I have applied for some scholarships so fingers crossed there.  I also plan on picking up a part time job after I take part 1 boards during my D2 year.

     

    Thanks for all the feed back I appreciate it! Helps me feel like i'm doing the right thing with the money I am receiving.

    Leave a comment:


  • Dr. Mom
    replied
    Thought this might help you decide...

    http://www.zenwealth.com/businessfinanceonline/TVM/TVMCalculator.html

    It is a time value of money calculator.  Put in your grandfather's inheritance as (-10000) under PV (Present Value).  Put in (0) under PMT (Payment).  Then make some assumptions of Rate and Periods for yourself to see the FV (Future Value) of his gift.

    Leave a comment:


  • Dr. Mom
    replied
    I'm sorry for your loss.  When my grandmother died I received a similar amount.  I spent a few months deciding what to do with it that would be in line with what she and my grandfather would have wanted me to do.  They were similarly frugal like your grandfather.  They both immigrated here and never had any type of formal education.  The fact that they left an inheritance to as many of us as they did is astounding to me.  My grandfather told me stories of having to search for coal in a train yard during the Great Depression just so his mother could cook for him and his brother. My grandmother came to the U.S. by boat with nothing more than a small suitcase no larger than a carry on today.  I still have that suitcase.  In the end I decided to split the money between paying down the mortgage and my retirement account.  When I think about owning our home and having the option to retire when we want, I remember their contribution and am grateful.  Good luck in deciding what your grandfather would have told you to do with the money.

    Leave a comment:


  • Dreamgiver
    replied
    80k/yr for dental school? Wow, that is insane. Is that just tuition or also living expenses? Try to get a scholarship or such if possible. 10k is a drop in the bucket, just keep it as an emergency fund.

    Leave a comment:


  • Faithful Steward
    replied
    First off, my condolences for the loss of your grandfather.

    In regard to the money, I think your instincts are right on. Pay off your wife's $3,000 of student loans and place the balance in your emergency fund.

    Leave a comment:


  • Peds
    replied
    yup. just hold onto it. are the 3k in forbearance? if not then sure pay them off.

    Leave a comment:


  • HandFellow
    replied
    6.4 is pretty much the standard these days and has been since 2006, i think.  The sheer amount of loans is the crazy part.  Do your best to minimize your loans, especially with a working spouse.  It will pay off in the long run to not borrow for living expenses.

    Leave a comment:


  • jhwkr542
    replied
    If money is as tight as you make it out to be, I'd just keep it liquid in savings. It depends on how much you have as an ef but a relatively small amount like this won't make a dent on your upcoming debt mountain.

    Leave a comment:


  • MattymcMattMatt
    replied
    Yes Sir I am looking at 80k a year.  I do feel like I am being robbed. The interest rate on the loans is an uncomfortable 6.4%, I would consider it to be on the higher end or maybe it's not i'm not too sure never had loans or debt of any kind before.

     

    Leave a comment:

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