[USER]

I feel the first things I would focus on are:
1. Pay off mortgage
2. Upgrade to an SUV type of vehicle (so I can drive it during winter to work, etc & get more use out of it; & of course, wait until prices drop. I’ll drive my car however long it lasts)

I’m not sure what I’d do with the rest.

[Armen]

1. Pay off debts.
2. 6 month emergency fund in a HYSA.
3. Max out Roth Ira and 401k.
4. Avoid getting into debt again (car payment).

[Dave]

I have 8 different mortgages (totaling $5m+) fixed for 25-28 years at 3.5% or less.

No way would I even dream of paying even a dime of any of them off no matter how big a windfall I got.

Why pay off a loan with negative real interest rate?

Makes zero sense.

Don’t miss: Any ideas on options to learn manage and invest in your own 403b!

[Christopher]

The way I’m feeling right now I’m gonna go with cocain and strippers.

[Haejin]

I paid off my mortgage and that’s the best thing I did. I had 15 year 2.9% and of course no other debt.

[Rosalynn]

There is a lot of satisfaction in paying off a mortgage even if you have a low rate…you don’t stress on the market ups/downs with the money you invested instead of paying off your mortgage. You will always need a place yo live…a paid off mortgage you stress less about life

Other than buying car…put the money in a high interest savings account till the dust settles.

They also recommend don’t make any big life decisions with a large sum of $$$ for a while once you get it. Most people will blow thru the money…most people who win the lottery are broke again later on…because they didn’t think long term how to keep that money working for them.

Explore these too: Looking to invest more over the next 20 years

[Jessica]

Put it straight in to index funds and continue living your life without letting yourself succumb to lifestyle creep. People saying to pay off debts without knowing the interest rate are emotional, not intellectual.

[Heather]

1.) pay off any consumer debt with interest over 5%

2.) max out Roth IRA for this year. Put next years Roth in a hysa. max out your 401k for the year.

3.) several months emergency fund in a HYSA

4.) unless the car I had was literally not functional in winter and I was ubering around, I wouldn’t change my car. Millions of people live in snowy climates without suvs.

5.) if you have <$50k on your mortgage and it would give you extreme peace of mind then I wouldn’t pay it off unless the interest is over 4%.

6.) stick the rest in VIT. If you’re opposed to lump sum investing then put it in a HYSA yielding 5%+ (like wealthfront) then dollar cost average it into your brokerage account.

Also, check out: Thinking about changing investment strategies and need someone to talk me off the ledge (or not)

[Ed Perez]

What you just mentioned is not the ideal thing to do, in my opinion. If my mortgage rate is low in the 2s or 3% rate, I would just keep on paying it.

I would do the following:
1. Build up my EF (12 months worth);
2. Pay all outstanding CC bills;
3. Contribute to my employment retirement plan;
4. Sign up for employer HSA, if offered;
5. Open up an IRA/Roth IRA acct (if employed or married)
6. Start a brokerage acct and contribute systematically;
7. Start 529 plan (if I have kids);
8. Do anything with the left over like buying your SUV.

200k is not a lot of money and can be depleted easily.

[Author]

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