Personal Investments • What to do with $200,000 inheritance?

Hello,

I am 24 and about to begin law school. I will not be working while in school and have planned on taking out CoL loans while I'm here. I'm anticipating at least $150k in student loan debt by the time I graduate in May 2027 and am hoping for a starting salary of $120k+.

Currently, I have a few accounts with Fidelity:

All accounts $9,904.22

INVESTMENT
Individual - TOD $2,276.78

RETIREMENT $7,627.44

Traditional IRA $3,892.69

ROTH IRA $3,734.75

As well as a TSP account from my time in the Fed containing $3,489.24, and a Robinhood account with around $4,000. This brings my total investments to roughly $17,500.

I will be inheriting just over $200,000 from my father's estate in a few weeks and I would like to hear some of your experiences. I do not know if the best decision is. I see three scenarios:

• 1. follow the Boglehead tradition and put $200k in diversified ETFs, max out my tax advantaged accounts, and pay off loans in the traditional monthly installments throughout my life while also contributing to the $200k+ savings.
  
  2. prioritize paying off my loans ASAP and leave the $200k in a CD or HYSA and just use it in three years to pay off my loans and start saving from scratch
  
  3. use the cash to fund my schooling, graduate with no loans and start saving from scratch.

My mind is telling me to put the money in ETFs and forget about it, take out the loans, and figure this out when I'm making six figures, but my gut is telling me "Don't take out $150k in student loans". Has anyone been in a similar scenario? Please share your experiences. I am young and want to set myself up for the best possible future and do not want to squander this life-changing amount of money. Thank you.

Statistics: Posted by investingguy — Sat Jul 20, 2024 8:11 pm — Replies 4 — Views 809

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