Trying to be smart with a big inheritance sum. I’m 28, married, with two small kiddos. The only debt I have is my mortgage. After topping off my emergency fund I want to know the smartest way to invest this so that it will grow. TIA
Just inherited $70k. How to be smart
byu/gettingreallypisedt inpersonalfinance
Posted by gettingreallypisedt
12 Comments
I used Fidelity Money market (SPAXX) with my inheritance, only spending the monthly interest until I bought myself my first house.
Top off your IRA
Set 3-5k aside for some fun
Buy s&p500 in Ira and brokerage (with remainder)
Index funds or if you might see a potential use of it in the near future HYSA.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
[https://www.reddit.com/r/personalfinance/wiki/windfall](https://www.reddit.com/r/personalfinance/wiki/windfall)
Emergency fund, top off Roth, 529 plans for kids? Then investments?
Consider some 5-10% amount for any home repairs or vacation if needed.
Honestly, you’re already ahead of the game by not wanting to rush into something flashy.
At 28 with a family, low debt, and an emergency fund, the “boring” approach is usually the smart one:
•Max out tax-advantaged accounts first (401k, Roth IRA, HSA if eligible)
•Consider putting the rest into broad low-cost index funds (VTI/VOO type approach)
•Don’t feel pressured to pay off a low-interest mortgage early if the rate is good
•Avoid big lifestyle inflation right after inheriting money
A lot of people also park inherited money in a HYSA for a few months before making decisions, just so they don’t invest emotionally.
$70k invested consistently at your age can compound into something very meaningful over time.
Just general information, not financial advice.
Keep it in your own name. Don’t pay off mortgage with it or you lose your exclusion on your inheritance in event of a separation
Keep it in your own name. Don’t pay off mortgage with it or you lose your exclusion on your inheritance in event of a separation
If you haven’t already, dropping that money (or a bug chunk) into 529s for the kids would be a good long term investment. We just put one through and the second starts this fall. So.. college financing is top of my mind. We started late on the 529s and played furious catch up. I’m also seeing a lot of parents and kids making hard decisions because the dream school would leave them in serious debt. In other cases, parents are posting online about “money not being an issue” and weighing non-monetary aspects of schools.
Best of luck. Glad you’re thinking it through.
Priority: max Roth IRA/401k/HSA if eligible; park what youre still deciding on in SPAXX; buy VTI/VOO in the IRA or brokerage; dont rush the mortgage if the rate is low, boring is good
Not enough info about you. Go to bogleheads forum and wiki and search the term windfall. Good luck.