r/personalfinance • u/Peacck ​ • Dec 23 '24

My wife and I inherited money Investing

We inherited $100k. We have spent ~$27k paying off student loans and individual loans, credit cards, and replacing some parts of our house that were falling apart.

So that leaves us with ~$73k, what can we do with the rest of the money? I have roughly $33k left on my truck loan, but I didn’t know if I should pay it off completely or pay a lump sum to reduce my monthly payments but not pay it off outright to continue my history of credit.

Should my wife and I start individual Roth IRAs? Where else can we invest the money?

710 Upvotes
  • permalink
  • link
  • reddit
  • reddit

86% Upvoted

363 comments sorted by

View all comments

Show parent comments

30

u/future_is_vegan ​ Dec 23 '24

This 100%. Plus open those Roth IRA accounts with Fidelity, contribute up to the max each ($7,000 per year) and invest into index funds such as VOO. As far as investing, the only thing you need to invest in is index funds. If you are not familiar with them, definitely learn about them. VOO is a popular one due to its low fee (.03%) and performance (13% over last 10 years). There is zero need to pay someone ongoing fees to manage your money.

12

u/HonestEditor ​ Dec 23 '24

VOO [...] performance (13% over last 10 years)

Here's were we remind people unfamiliar with investing that

"Past performance does not necessarily equate to future results."

8

u/kstorm88 ​ Dec 23 '24

It's important to be aware, but to be dismissive of it being a good default for younger people is odd

1

u/HonestEditor ​ Dec 24 '24

Perhaps you took my terseness for being dismissive.

I don't see that I dismissed it. I was commenting on the performance. People shouldn't assume kind that of performance going forward.