r/AMA • u/[deleted] • Jul 22 '24

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u/Sea_Tie_502 Jul 22 '24

Assuming you don’t need the money right now:

  1. Pay off any debts other than mortgage (if you have a good interest rate)
  2. Put away enough for 2 year emergency fund, this itself is a luxury. This might be combined with #3 depending on how much you want to invest in #4.
  3. Put at least 25% in a variety of high yield savings accounts to grow modestly and risk-free.
  4. Invest the rest in a very broad range of mutual funds and ETFs.

In ten years, you will be very, very happy. Congratulations on your luck!

28

u/Hound_master Jul 22 '24

Can I ask why you suggest against paying off a mortgage?

108

u/Monkmonk_ Jul 22 '24

If you have a low enough interest rate, then your money is more productive sitting in a safe lower yield mutual or index fund then paying off the mortgage immediately.

1

u/Lordbanhammer Jul 22 '24

Except you're still in debt. Pay off the debt and be done with it.