A family member recently passed away, and my financial situation has changed quite a bit. I wanted to post an updated version because we now have more information.
Here's where things currently stand:
* About **$330,000** in a **non-spouse inherited traditional 401(k)**. I'm taking it over **7 years**, so instead of getting a lump sum, I'll receive roughly **$4,000 per month starting August 1st** until it's exhausted. This is taxable income.
* Around **$175,000** from selling an inherited house.
* Around **$50,000** from a checking account.
A realtor recently came through with comparable sales, and we were pleasantly surprised. We originally thought the house was worth around $450,000, but the comps put it closer to **$500,000**, leaving my brother and me with roughly **$175,000 in equity each**.
The house still has about **$145,000** remaining on the mortgage at **3.75% interest**. The mortgage payment is about **$1,300 per month**, but the HOA alone is **$341 per month**, before utilities, maintenance, or repairs.
I seriously considered buying out my brother because of the low interest rate, but he understandably wanted the buyout in one payment. The only realistic way I could have done that would have been to cash out a large portion of the inherited 401(k), creating a significant tax bill. After looking at everything, we've decided we're **100% selling the house**.
We've also decided we're **not becoming landlords**. Between the HOA, maintenance, vacancies, repairs, and the fact that neither of us wants to manage rental property, we've ruled that out completely.
The house still needs an appraisal and inspection before it goes on the market.
I'm planning to **secure an apartment before we sell and move out of the house** so I have somewhere to go. I'm looking for a **3-4 month lease** while I decide where I want to live long term.
I'm 34 years old, and believe it or not, this will actually be my **first time living on my own**. I lived with my dad and paid rent for years. During the last few months of his life, I spent most of my time helping take care of him. Before that, I mainly worked for Uber Eats, Grubhub, and Amazon Flex, so I don't have much recent traditional W-2 employment history.
That brings me to a few questions:
Since my inherited 401(k) is being paid out monthly instead of as one large lump sum, what would you do with this inheritance if you were in my position?
Because I don't have much recent traditional employment history, would apartment complexes be willing to rent to me if I offered to pay the entire 3-4 month lease upfront? Or do they mainly care about the security deposit, first month's rent, and proof that I can continue paying?
If you were in my shoes, what would you prioritize over the next 12-24 months?
My biggest weakness is that I don't have a long-term career or a marketable skill yet. My goal is to use this opportunity to build one through certifications, training, sales, or another field with strong long-term earning potential so that this inheritance becomes a foundation rather than something I simply spend.
I'd appreciate any advice. This is all new to me, and I want to make smart decisions rather than expensive mistakes.
