Hi all,
I have been feeling like I can be doing better for myself and am hopeful to find some insight as to how to better make my money work for me. I'm 27, single and stable at my current job. I currently rifle all my spending through a rewards credit card which is paid off monthly to accumulate points for my normal spending. Renting a modest apartment with a roommate with no immediate plans to buy (at least not within the next year). I recently inherited about 50K in the form of a retirement account with a high probability of more inheritance coming my way after probate (real estate, stock/bonds, etc).
Income/assets
Salary - $47,500 (~$2,400 monthly take home after contributing 5% to company 401k which gets me a 4% match)
Savings - $16,000 (earning 1.2% in an ally savings account)
Inherited retirement account - $50,000 (what do I do with this?)
Debts/Budget
Rent - $475
Utilities - ~$150
Car loan - $223 ($2,400 left @ 2.9%)
Car insurance - $150
Gym membership - $60
Pet insurance - $30
Ideas
Do I throw this 50k into a vanguard target date mutual fund?
Do I move the 50k into my ally online savings account?
IRA of some sort?
I believe I am required to take annual MRDs until the inherited account is either brought down to $0, or ensure the account is empty within 5 years.
Do I pay off my car loan since currently the money in my savings is not earning, while the loan is costing 2.9%?
Do I start looking for a "starter home" with the money that I have inherited? Something modest, maybe 1,000 sq ft to spend a few years in to build equity, rather than renting?
Let me know if any additional info is needed. Any insight is hugely appreciated. Thank you for your time.
Submitted September 13, 2017 at 08:39AM by internetfacade http://ift.tt/2x0VeKl
