Ask HN: 23yrs old. About to inherit. What would you do?

6 points·23dev··9 comments

I'm a developer living in a major city in the US. The sum of inheritance is really small in the scheme of things (35k) - but I've never seen that kind of money in a lump sum before. I work at a startup making 75k. What would you do?

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It's a good opportunity to pay off debt, if you have any.

Yes, of course. Debt before savings.

You don't need a financial advisor. Pay off any credit card or other high interest debt (and don't run up more).

Put the rest in a Vanguard Total Stock Market index fund, and setup automatic payment of $100 from your savings account to add to the lump.

3.5mil? Do something interesting.

350k? Splash out on one or two fun or lavish things and put the rest into savings/etc.

35k? Put it into savings.

It might make a nice down payment for a house if that is something that interests you. Paying off debt is a great suggestion assuming you have some.

Definitely talk to a financial advisor, but most likely he/she will tell you to start by paying off any high-interest debt, put some in savings, and invest the rest. It doesn't make sense to put that money in an investment earning 1-5% while you have a credit card at 13% and a car loan at 7%.

EDIT: What's with the downvotes without comment? Is it unreasonable to suggest that someone should pay off debt before investing?

Savings, a.k.a walk away money

Thankfully no debt to speak of. Saving it is I guess.

Talk to a financial advisor?

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