Hi Money Minder,
I’ve got a bit of a situation here. My dad passed away in 2007, then my grandpa had a stroke not long after. My step grandma pulled some shady stuff with his will, so now we’re left with nothing. Fast forward to now, my grandma passed away earlier this year and there’s some money left that should have gone to my dad but is now heading my way. It’s a decent chunk, around $75,000 to $250,000.
I’ve got a mortgage, a car loan, some credit card debt, and my retirement fund is at 10%. Plus, my house needs some repairs like a new roof and finishing the basement. So, what’s the smartest move for this money?
Farewell,
Secretly Rich
Response from THE MONEY MINDER:
Hello There,
I am sorry to hear about the difficult circumstances surrounding your family and inheritances. It sounds like you are facing a significant financial decision regarding the money left in your grandfather’s trust. Given your current financial obligations, it would be wise to prioritize paying off your credit card debt first. The interest rates on credit cards are generally much higher than what you would earn by investing the money, so clearing that debt will provide you with a more stable financial foundation.
Once your credit card debt is settled, you can then consider allocating some of the remaining funds towards essential home repairs like getting a new roof and finishing your basement. These improvements can increase the value of your home and provide long-term benefits. You could also consider using some of the money to pay off a portion of your mortgage to reduce the interest paid over time.
It is crucial to approach this windfall with a well-thought-out plan that ensures financial stability and addresses your immediate needs. Consult with a financial advisor to discuss your options and create a strategy that aligns with your long-term financial goals. Remember to think about not only the present but also your future financial well-being.
Farewell from THE MONEY MINDER.
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