[USER]

Inheriting 300k what would you do?
-I already have a home I love and will plan to make extra payments towards principal.

-Located in CA and would like a rental in Big Bear

-Would like to put in stock market but not sure what I’d get.

-Already have a HYSA but does not have much.

However I’d love to know what YOU would do with it. And what you think I should do.

Thanks!

[Mel]

I don’t know all your specifics, but what I would do:
1) pay down debt to a number where my working salary offers more cashflow

2) top off emergency savings (inside HYSA)

3) set up bucket saving systems for medium to long term goals (inside HYSA)

4) figure out how much I want to invest – look for lost cost ETFs. Your risk tolerance and timeline can guide your decisions.

I have 20 years to retirement so I’d end up in index ETF tracking SP500 or something like that for growth.

5) play with the rest – live life. This is a gift it’s cherries on top and you should play.

[Sean]

Make a financial plan if you don’t have one.
Generally I’d do the following.
401k to match

Pay off any high interest debt
3-6 months of expenses in EF

Max hsa
Max ira
Max 401k
Taxable brokerage

Real estate/pay off low interest debt (both optional)
Skip any steps that are already completed or where you’re not eligible.

If married double any applicable steps such as 401ks or IRAs.

Put any new dollars you receive into your plan at the step you are working on.

[Author]

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