Should I pay off all my debt at once with the inheritance money I am receiving?

I am 65 years old and retired. I have about $50,000 in debt from loans and credit cards. I am about to receive around $170,000 from my father’s estate. Should I pay off all my debt at once?

Debt, Retirement, Estate Planning
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3 weeks ago

My condolences on the loss of your father.  You're being blessed with this inheritance, and I would suggest you pay off all of the debt at once.  If you were still working and earning a wage we could have debated the merits of investing the inheritance versus paying off the debt, but that's not your current situation.  It will give you financial freedom and alleviate a potential source of stress.  In the event you invested your inheritance and we experienced a bear market it would be much more negative emotionally if you still had the debt hanging over you.

Take care and good luck to you,

Matt Ahrens, CIMA®

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