Windfall Advice?

[sandrark]

So, DH's Granny passed last summer. She left her house (free and clear) to be split between 3 heirs, including DH.

The house closed escrow on Friday, and the funds are in the bank.

The executor will eventually transfer DH's portion, which will be in the low 6 figures.

How would you allocate it?

- We're already maxing out Roth's, 403(b) and the SEP-IRA.
- We have 6 months of expenses in savings.
- DH has ~ $2k in a car loan, in regards to debt. It will be paid off.
- Our house was refinanced last year, into a 15 year, 4.25% mortgage. We're pre-paying 10% of the principle every month already. On schedule to pay it off in 11 years. For liquidity reasons (and because we're in a town that was hit with defaults), AND because we hope to move within a year or so, I don't want to prepay on the mortgage any more than we already are.

Suggestions?

Sandi

[creditcardfree]

Spend a little on something nice, add some to your emergency fund, invest the rest in a taxable mutual fund. I assume you don't need to save for college. That's what I would do.

Oh, I missed you might be moving, maybe put it towards the next house, so keep in something liquid if this is the case.