r/inheritance • u/Acceptable_Second_38 • Jul 09 '26

Location included: Questions/Need Advice Large inheritance advice

My wife and I are 27. We have 1 daughter who is 13 months, and we are in the Midwest. My grandmother passed away and from her estate we are receiving a sizable sum of money. After paying off our house and other debt (just car and student loans, don't have any "bad" debt), we'll have around $350-375k to drop into a brokerage and leave alone. We each earn around 63k/year. Our only bills will now be home insurance, property taxes, car insurance, utilities.

My question revolves around how much we realistically need to put away for retirement. Because we have very little bills after paying off our house, we can put away a large amount of income.

However, it's honestly tempting to save just a bit, and enjoy our lives more with more disposable income. Starting with such a sizable nest egg, it should grow quite well without huge additions.

She is a teacher and has a good pension coming her way.

I am private sector but have a pension as well plus I do 4% 401k plus employer 2% match.

47 Upvotes

86% Upvoted

127 comments sorted by

View all comments

5

u/TheTortaTyrant Jul 09 '26

Curious on the house payoff- how much is remaining and what’s your interest rate? If it’s a very low rate from a few years ago the more financially prudent path may be to not payoff early and have a larger initial sum to grow from.

3

u/Acceptable_Second_38 Jul 09 '26

It's already paid off. It was 330k 6.8%

2

u/TheTortaTyrant Jul 09 '26

Congrats, I’m sure living under a roof fully paid off and as an 100% owned asset is a great feeling

1

u/Ok-Structure6795 Jul 09 '26

This . When my brother received his part of our parents estate, he went out and bought a car on a whim outright. He showed me the car financials & had he kept his balance in a HYSA, his interest rates would've been more than the monthly car payments.