My mother recently passed away and I will inherit approximately 200k in cash and 100k in an inherited IRA.
I am currently debt free, other than 112k mortgage (2.75, 8 years remaining). I have an IRA worth about 110 and 30k in a money market. I am considering using the forced draw in the inherited IRA to double up on my mortgage payments and then investing the rest. Does this strategy make sense? I know I could do better reinvesting the forced distribution but the thought of no mortgage is very appealing
FWIW, I am 63 and plan on working for at least another 7 years
Inheriting Money. How to properly invest and save
byu/One-Ad1001 inpersonalfinance
Posted by One-Ad1001
2 Comments
I would just invest all of it. That mortgage is cheap , almost gone, and almost all principal anyway. No reason to pay it off because there’s no interest savings.
I’m very sorry for your loss. At that interest rate, I would not pay off the mortgage. Invest all the money. When you are ready to retire in 7 years, reward yourself by paying off the mortgage ~1 year early. 🙂