Hey Money Minder,
So, here’s the deal – I’m 35, married to a 35-year-old, and we’ve already paid off our Jeep and Honda Civic. Our condo is worth $250k, but we still have $150k in mortgage debt with a $250 HOA per month.
In terms of savings and investments, we’ve got $7k in Roth IRA for me, $14k for my wife, and another $7k in 401k.
Now, the tough part… we recently inherited $300k after taxes. It’s bittersweet, losing a parent, but it’s a reminder to live life to the fullest and cherish those around you.
We’ve decided to pay off all our debts first, like our vehicles and student loans, and then invest the rest of the $300k. Question is, should we take a Dollar Cost Averaging (DCA) approach with $1000 a week until it’s all gone? Or just go all in with 50% VOO, 25% SCHD, and 25% QQQ?
We’re not looking for quick money-making schemes, but we do want to retire by 50 or 55 at the latest, preferably in Southeast Asia where my wife’s family lives and could use some financial support.
Any advice, suggestions, or info you’ve got would be greatly appreciated.
Oh, and just so you know, we don’t have kids and don’t plan on having any in the future.
Cheers,
Financially Confused but Hopeful
Response from THE MONEY MINDER:
Hello There,
Congratulations on receiving the $300k inheritance, although I know it must be a bittersweet moment given the circumstances. It’s good to see that you and your wife have already taken the responsible step of paying off your debts before considering how to invest the inheritance.
Given your goal of retiring at 50 or 55 and living comfortably in Southeast Asia, it’s important to have a practical approach to investing the $300k. Since you are not looking for get-rich-quick schemes, a diversified investment strategy with a mix of VOO, SCHD, and QQQ seems like a solid plan. However, it’s important to note that investing all at once might expose you to market volatility. Dollar-cost averaging (DCA) could be a good alternative to mitigate this risk, allowing you to invest a set amount regularly over time.
Considering your income, savings, and future plans, investing in a mix of low-cost index funds and ETFs aligned with your risk tolerance and investment horizon can help you build a diversified portfolio. It’s also advisable to consult with a financial advisor to tailor an investment strategy that suits your specific financial goals and circumstances.
In conclusion, the key to achieving your retirement goal is maintaining a disciplined investment approach while staying focused on long-term financial security. All the best from THE MONEY MINDER as you navigate this new chapter in your financial journey.
