I just received about $150k from an inheritance that is currently at Charles Schwab in a money market fund.
Have $165k in loans from undergrad and grad school, averaging 6% interest on SAVE. Also have about $20k in credit card debt with no interest yet (promo deal).
Total income for the household is $150k. $8,000 in savings and what little extra each month is being used to pay off the credit card.
I'm trying to determine if it best to use the entire $150k to pay off the majority of the loan, or it's better to be earning interest in the mmf and using that to pay down the loan.
How best to use inheritance
byu/RaptureRIddleyWalker inStudentLoans
Posted by RaptureRIddleyWalker
4 Comments
If your interest in loans is greater then the money market interest pay the loan off and pay yourself back with the money you would have paid to the loans. IMO
You are probably going to want an emergency fund, especially since it sounds like you don’t have much money left over each month. Do you live in hcol area?
Pay off the credit cards
Def pay off the credit cards, get a bigger emergency fund. Then the rest depends. Are you apart of PSFL or a similar program for you knows or are they private? Do you own a house?