'I’m about to net about $80k from selling my house and I am just starting to look into becoming financially stable long-term': Need advice on how to make the most of this windfall?

Hey Money Minder, I could really use your help! I came from a rough background, but now I’m getting out of poverty and trying to figure out this whole money thing.

So, I’m selling my house and going to pocket around $80,000. I’m aiming to set myself up financially in the long run, whether it’s LeanFIRE or just a comfy retirement. But honestly, I’m pretty clueless about all this.

I’ve got meetings lined up with my retirement accountant rep and a financial advisor through them, but I wanted to reach out here too for some extra advice.

36f, single mom
Salary $90k with 3% bumps yearly
Current yearly expenses: $46k (including rent)
Employer covers 100% of Health Savings, contributing about $2k/year, invested
457b: only putting in 2% of salary with no match. Planning to bump this up next month, also invested
Pension: contributing 1.35% monthly, estimated payout at retirement around $37k/year (likely more with my future pay increases)
Student loan debt: $60k – all federal, interest around 4%, in deferment but thinking of tackling it
Car loan: $23k @ 6.5%
Planning to save 6 months’ expenses in HYSA#1, rest in HYSA #2

Got a few questions for you:

Should I pay off my car?
Should I max out my 457B and top up with HYSA #2?
What’s the best move with my student loans?
What’s the smartest way to use the $62k leftover after saving for emergencies?
Any other money tips or suggestions?

Thanks a bunch for your help, Money Minder!

Response from THE MONEY MINDER:

Hello There,

Congratulations on your journey of pulling yourself out of poverty and navigating financial stability. It’s commendable that you’re proactively seeking advice and guidance as you navigate this new territory. It’s great that you have upcoming meetings with a retirement accountant and financial advisor to help you make informed decisions.

Considering your current financial situation, here are some practical suggestions to address your questions:

In regards to your car loan, it’s advisable to prioritize paying off debts with higher interest rates first. Given the 6.5% interest rate on your car loan, it might make sense to pay it off with some of the proceeds from selling your house.
Regarding your 457b contributions, maximizing your contributions can be a smart move for long-term financial stability. Since there is no employer match, contributing more to your 457b and supplementing your income with savings in HYSA #2 is a strategic way to boost your retirement savings.
For your student loans, starting to pay them down, especially if they are in deferment, can be beneficial in the long run. Since they are federal loans with a relatively low interest rate, it’s crucial to weigh the benefits of paying them off versus investing the money elsewhere based on your financial goals.
With $62k left after stashing your emergency savings, consider allocating it towards paying off high-interest debt, investing for long-term growth, or bolstering your retirement accounts. Prioritize based on your financial goals, risk tolerance, and timeline for financial stability.

Overall, it’s essential to work towards a balanced financial strategy that addresses debt repayment, saving for retirement, and building an emergency fund. It’s great that you’re seeking advice and exploring your options. Remember to stay informed, track your progress, and adjust your financial plan as needed to stay on the path towards financial stability.

Best of luck on your financial journey!

Farewell from THE MONEY MINDER.