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Home > What to do with $10K?

What to do with $10K?

February 21st, 2007 at 11:32 pm

Alright, since you all are more savvy than I am about where to put money I have a question for you. My father passed away a couple of months ago and he had a $10K life insurance policy that I am the beneficiary of. So now I'm stuck with trying to figure out what to do with the money and several options come to mind:

1. Put it toward our only debt (car loans of $11,750 @ 5.99% and $8,790 @3.59%)

2. Save it for school. I'll be starting pharmacy school soon and it can run anywhere from $12K to $250+K a year (4 years).

3. Start a retirement fund. Right now we have a decent amount of savings, but nothing in stocks and no "retirement account." We've been thinking about starting to invest in something other than savings accounts, but we haven't quite pulled the trigger yet.

4. Spend it all! (Hey, that IS an option, but probably not the one I'll choose.)

My MIL said that I should use it for school since that will ultimately help me with retirement. We've also thought about dividing it up among the three options.

What do you guys think is best? Is there something that I haven't thought of??

Posted in Uncategorized | 4 Comments »

4 Responses to “What to do with $10K?”

  1. JanH Says:
    February 21st, 2007 at 11:54 pm 1172102094
    1172102094

    You will probably get more knowledgable advice, but I would save it for school. You have low rates for your autos. I have two in college and the costs have skyrocketed. It would cut down on the loans and things you might need for getting through pharmacy school. Good luck! We have a neighbor who finished pharmacy school in the last couple of years.

  2. Ima saver Says:
    February 22nd, 2007 at 01:52 pm 1172152351
    1172152351

    I would open a roth IRA. I would put it in a good mutual fund, like Vanguard Index 500. You can have a $4000 roth IRA for each of you.

  3. fern Says:
    February 22nd, 2007 at 05:01 pm 1172163713
    1172163713

    Why not do a combinatoin of #2 and 3? I would include some mone toward retirement since it makes a big difference if you can start early, then let it sit there and compound year after year, and you're unlikely to get such a big chunk of change like this again.

    I would put $5k into a no load, low annual fee index mutual fund like wiht T. Rowe Price or Vanguard, and save the other $5K for school.

  4. zetta Says:
    February 24th, 2007 at 12:58 am 1172278687
    1172278687

    I also vote for the ROTH IRA. Investing in it now will pay off hugely down the road.

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