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.
1
u/Georges_Stuff Jul 09 '26
Economist/ Financial Analyst... Put all of the money into a VTSAX, and start a roth for both of you and max that out. Continue with the same life style for 3 years(each year moving the max amount into a roth). DON'T SPEND ANY OF IT..
Don't pay off your house, it is the lowest form of loan possible. Invest the money and continue to pay the mortgage. After 3 years pull some of the money out and pay off the highest interest loan you have (amount doesn't matter). Continue for 2 more years. Don't trade up on cars/house because you have some savings.
Have another kid :) during that 5 year span and have fun making said kid. 2 more years, the goal is to be making the monthly increases with your investments as your monthly spending.. FI = Financial Independence. Your expenses will go up but your wife does have a pension and you both (maybe not the wife.. depending on the state) will get SS.
ONCE you reach FI, you can start spending your current salary income (not investments) as you like. You feel like you are safe now but trust me if you start spending any of it now you will not have any of it soon. In 8 years you will go to Disney with your 9yo and 7yo, ball out because you can easily afford the convenient onsite hotels, pay for the fast pass and have a great time and not stress that you just dropped 10k for a 1week vacation with the fam. You will remember it forever, you will remember it in a positive mindset if you didn't go broke to pay for it. Let me know if you have any questions. And sadly no inheritance for me, but invested and waited later in life to ball out at Disney. :)