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A little while ago I was asked by Pete over at Bible Money Matters to answer some questions of his readers. This was one of the reader questions in regards to what to do with an inheritance.
Q: I was wondering if it is better to be completely debt free or to have some money in retirement. We have a mortgage where we owe about $170k and we also just got about $100k from inheritance. We also have about $30k in the bank. Should we just about pay off the mortgage or should we invest the money or should we do a combination of paying off and investing? My wife and I are 27 yrs old and the house is the only debt we have. Thanks, Josh.
A: Josh, thanks for your question. Coming into a windfall of money can bring on a whirlwind of emotions. First, I want to congratulate you and your wife for having level heads by focusing your efforts on paying off debt instead of going on a shopping spree. You are a role model for your generation. Let’s now look at your questions…..
Should you pay off the house or invest?
The phrase “debt free” definitely has a ring to it, doesn’t it? In your situation with your house being your only debt, I’m not sure that this is the best solution for your recent inheritance. Here’s a look into my logic. […]
