What should I do with all these money?

[Shihao]

I’m currently in BS2 with 19k left to go, I have 72k sitting in a savings account with 3.75% APR, these money are from my parents to my kids, even though my mom said I can keep half to myself, I’m not planning on touching the money.

My kids are 3 and 2, and my plan is to give the money to them once they are grown, What should I do with all these money?

I do not want to put it in stock or anything that is volatile or risky.

Thanks in advance!

[Jeb]

Be true to what your mothers wishes were.

What I would do:
Put 25k into a college plan for each child.
Use the remaining for your final 19k
Then use the rest to start your future by putting it into a Roth.

[Amy]

I like the idea of putting $25k into a 529 plan for each of the kids and using the rest to pay off debt and start your FFEF. It’ll be such a gift for your kids if you’re debt free.

In 15 years at a 10% return (in good mutual funds), each $25k would be worth around $110,000. So that’s $220,000 between the 2 kids.

[Kelly]

We have a 529 for each child as well as a Custodial account for each being invested. If the plan is to leave the money until they are adults, there isn’t as much risk as it being investments. The 529 is obviously directed to college. The other account is there to help them buy their first house, have a good chunk to put towards retirement, etc.

[Author]

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