Ask Terry Questions What to do with the money

What to do with the money

By Terry Savage on April 06, 2024 | Financial Planning / Retirement

Hi, Terry – my husband and I came into a large sum of money, and would like some guidance on what we should do with it. We own our home, have a second home, children are grown, we both have pensions for future retirement, as well as a healthy savings plan for me through work, and less than $15,000 in credit card debt. Prior to receiving this money, we made plans to add on to our primary residence this summer.

My husband wants to pay down some of the mortgage on our home, and since we don’t know exactly what to do with the money, I suggested putting it into a CD and let the money grow while we decide what to do. Or, put it toward our retirement by opening a Roth IRA.

We really need your help.

Terry Says

The first step is to keep it safe! So I suggest purchasing 6-month U.S.Treasury bills — the safest investment in the world. REad this:

The next step is to make an overall financial plan. And put everything in perspective.
If your mortgage rate is under 5%, there is no reason at this time to pay it down.

If you’re still working, you could each open either a Roth (subject to the income limitations) or Traditional IRA account. The amount you can put in depends on your age. This year, if you’re over 50, you can put in $8000.

It would clearly be smart to pay off the credit card balances — why pay double-digit interest on those balances.

And then, this would be a great time to sit down with a FEE-ONLY, FIDUCIARY financial planner you can trust. Read this to find one:

At this stage, you can start to plan for retirement income, revise your estate plan, and your need for life insurance, and any changes you might want to make in providing for children and grandchildren. A good planner who is not trying to sell you stuff can help you dealwith this wide variety of issues.

Recent Financial Planning / Retirement Questions



a personal
finance question