I recently received an inheritance of several hundred thousand dollars. We have got a small mortgage ($150K) and outstanding debt of 90K (car, credit cards etc). Both my husband and I are mid 40’s and work and bring in about $110k per year together. Should we use the money to pay off debt and mortgage or should we invest it? Are there any better options?
Tracey in Gosford, NSW
Top answer provided by:
Thank you for your query and reaching out to the advice community.
Below are a few items a good financial advisor would consider in discussing appropriate options available to you that are tailored to your needs:
- What your future goals are
- Are there any major expenses coming up or would you need access to the funds in the short term
- Do you have any other investments
- What your expected returns are and how much risk you are you willing to take
- What your investment time frame is
- Do you have an offset account
- Are there any penalties in paying of your debts sooner
Depending on the amount of funds available, you could consider parking majority of your funds in an offset account (which can act as a buffer) and paying off car loans credit cards etc. The rest of the funds could be used for long term investment purposes with the guidance of a qualified financial adviser.
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.