I just received about $50,000 from an inheritance and I'm not sure where that money is most useful. My mentality since graduating about a year and a half ago has been to max out my student loan repayments each month. I would like to have this loan completely payed off in 7-10 years.
My loans started at about $464,000 at 6.4% on average. I started with paying off the highest interest loans which were up in the 8% range.
I am currently at about $390,000 at ~5.1%. There's still a huge chunk of the loan left, but the difference in interest is a big change.
Recently, a family member had offered to fully pay off my loans for me for 3% interest in return. I definitely appreciate how much this is going to help in the long run, but in the end, I still owe $390,000.
Between my wife and I, we are making combined $180,000 per year which will be steadily increasing. We have completely neglected any retirement funds or any form of saving. We have an emergency savings of ~$20,000, and live the same way the we did when in college. Im still driving my 2005 toyota 4 runner, and our home payments are extremely low for living inside of the city.
We will plan on moving into Washington, DC in about 2.5 years and I expect our housing expenses to significantly increase.
Tl;dr: I have $390,000 in loans at 3% interest, income is $180,000/yr, and we are completely neglecting retirement at the moment. Should I be putting this $50,000 inheritance into a low risk stock portfolio in preparation of our increased housing expenses, should I place this inheritance towards my student loans, or should I place this inheritance into some form of retirement savings?
Submitted November 13, 2017 at 09:19AM by Alottaloans http://ift.tt/2hoJrNf
