Hypothetical Problem: You've just inherited 80,000$. What do you do with it?
My response was:
1) Pay off debt starting with highest interest rate debt. Don't pay
off student loans or mortgage because there is a tax benefit to those
and my fixed rates are lower than inflation or investment returns.
2) Repairs and Maintenance on paid off car or new 3 year used car.
3) 6 months living expenses in ING.
4) Max out my Ameritrade ROTH IRA (5000$)
5) Max out an IRA for a Significant Other (5000$)
6) Stock up on clothes and necessities
7) Buy a few toys and gifts
8) Throw a party
9) Invest the rest through Ameritrade in an Index Fund.
What would you do?
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