How should I prioritize inherited money?
I am 71 years old and recently received $300,000. Should I pay off my house, credit cards, or hide money in a CD for my kids? I'm not sure which comes first.
That is really a planning question based on how you want to take care of what makes you feel comfortable. First, if the money you received is taxable, make sure you reserve enough to cover the tax bill. Second, I would suggest the credit cards be paid if they are all revolving debt. That means accrued interest on a daily basis on the outstanding balance. Third, on the home, that requires a little more thought since it really involves cash flow and your current situation. Usually I don't currently recommend that immediately if there is a need for other areas. On your CD idea, you are probably used to seeing that as a savings vehicle. Unfortunately, the traditional CD right now is a substandard vehicle for keeping up with basic inflation and it may lock your money up for a time that you may need it. Without knowing your personal situation, I would recommend talking to a CERTIFIED FINANCIAL PLANNER(TM) to help you make your decision.