Yet another money question

[poopynugget]

A family member of mine passed away recently and as it turns out I am to be the recipient of a portion of that person's estate to the tune of $100k.

I currently have no credit card or student loan debt, owe about 24k on my car (2.9% interest rate), and have a Roth IRA, which until now has been sitting rather idle. In addition, I have a few thousand dollars in a rainy day fund. I've also been accepted to pharmacy school for the coming year!

I'm posting in the hopes of getting some advice as to what to do with the money in my situation, specifically:

1) Should I use the money to pay tuition/living expenses/etc., or keep it liquid and take out loans for the full amount of my expenses? School will run me around 150k, roughly (including my projected living expenses).
2) Should I pay off the car?
3) Are there any no-brainer investments I should be making with it? I have no experience with stocks, etc. and frankly I find investing to be daunting.

I am not interested in purchasing real estate, as I'm not sure where I would like to live after school and frankly don't want to deal with the headaches of home ownership while in school.

Obviously I realize that a financial adviser would be best qualified to answer these questions, I'm just curious to hear what ideas you all have. Thanks in advance for your help!

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[CUninja]

A family member of mine passed away recently and as it turns out I am to be the recipient of a portion of that person's estate to the tune of $100k.

I currently have no credit card or student loan debt, owe about 24k on my car (2.9% interest rate), and have a Roth IRA, which until now has been sitting rather idle. In addition, I have a few thousand dollars in a rainy day fund. I've also been accepted to pharmacy school for the coming year!

I'm posting in the hopes of getting some advice as to what to do with the money in my situation, specifically:

1) Should I use the money to pay tuition/living expenses/etc., or keep it liquid and take out loans for the full amount of my expenses? School will run me around 150k, roughly (including my projected living expenses).
2) Should I pay off the car?
3) Are there any no-brainer investments I should be making with it? I have no experience with stocks, etc. and frankly I find investing to be daunting.

I am not interested in purchasing real estate, as I'm not sure where I would like to live after school and frankly don't want to deal with the headaches of home ownership while in school.

Obviously I realize that a financial adviser would be best qualified to answer these questions, I'm just curious to hear what ideas you all have. Thanks in advance for your help!

No, you should not pay off the car as it is very low interest. If I were you I would max out the subsidized portion of loans as it is interest free until you graduate. You may or may not want to take out additional. I would invest whatever else you have left over after costs. At the end of school, you may be close to paying things off with what you have made from your investments.

 

[rph3664]

My advice? Pay off the car and use that money to subsidize your education. The fewer student and other loans you have, the better.

 

[Dkpharm]

Your education is your greatest investment right now.
If I were you I would
a.) pay that stupid car down
(the reason for this is that the alternatives are to invest it/put it in the bank, and neither guarantees you the 3% return paying the car does.)
b.) set aside enough in cash to pay all and any upcoming tuition/fees for the next 12 months
c.) invest the rest in a well-performing mid-cap index mutual fund (here's where you see professional advice) This is for short-mid term gains, and you want to be able to see that money soon to pay off future tuition bills.
d.) get a part time job & work your ass off. this is no time for slacking. 100k only goes so far.

this is what I would do. I hate debt

 

[jasonkido]

Your education is your greatest investment right now.
If I were you I would
a.) pay that stupid car down
(the reason for this is that the alternatives are to invest it/put it in the bank, and neither guarantees you the 3% return paying the car does.)
b.) set aside enough in cash to pay all and any upcoming tuition/fees for the next 12 months
c.) invest the rest in a well-performing mid-cap index mutual fund (here's where you see professional advice) This is for short-mid term gains, and you want to be able to see that money soon to pay off future tuition bills.
d.) get a part time job & work your ass off. this is no time for slacking. 100k only goes so far.

this is what I would do. I hate debt

All the above. I hate debt and especially interest. Think about the money you are saving by putting that 100k on your principle loans and even the car loan at a measly 3%

 

[pinipig523]

1. Don't pay off the car - just pay it 6 months ahead.

2. Pay off your loans.

 

[PharmDstudent]

Pay off your car, sell it while your car has any value left, negotiate and buy another car at a lower price than what you own on your current car, contribute to your IRA prn, and then use the rest for pharmacy school tuition. Pharmacy school is expensive!

 

[kvl1027]

Pay off the car and any credit card debt you have.

Then use the rest to aquire hookers and booze. Pharmacy school is expensive, you gotta live as little.

 

[PharmaSex]

See a financial advisor for safe investment options

Pay off the car over a few months to improve your credit score

Don't buy Apple products, visit the casino, or have too many occasions of "buying yourself something nice"

 

[jdjefferson]

Sorry for your loss.
Visit with a financial advisor. You may be surprised next year by a very large tax burden (inheritance tax).
You are young--max out a Roth IRA then save for school. Sell your car and buy something more affordable--clearing that loan will improve your credit score. Think long-term!

 

[GodsSon2011]

A family member of mine passed away recently and as it turns out I am to be the recipient of a portion of that person's estate to the tune of $100k.

I currently have no credit card or student loan debt, owe about 24k on my car (2.9% interest rate), and have a Roth IRA, which until now has been sitting rather idle. In addition, I have a few thousand dollars in a rainy day fund. I've also been accepted to pharmacy school for the coming year!

I'm posting in the hopes of getting some advice as to what to do with the money in my situation, specifically:

1) Should I use the money to pay tuition/living expenses/etc., or keep it liquid and take out loans for the full amount of my expenses? School will run me around 150k, roughly (including my projected living expenses).
2) Should I pay off the car?
3) Are there any no-brainer investments I should be making with it? I have no experience with stocks, etc. and frankly I find investing to be daunting.

I am not interested in purchasing real estate, as I'm not sure where I would like to live after school and frankly don't want to deal with the headaches of home ownership while in school.

Obviously I realize that a financial adviser would be best qualified to answer these questions, I'm just curious to hear what ideas you all have. Thanks in advance for your help!

easy..
1) pay off car (whoever says other wise is stupid)
2) use rest to pay for education until its zapped away. No investment is going is be greater than graduating with little to no loans..Loans are 6- 6.8% right now so unless you going to get an investment higher than that each year during pharmacy school then there is not point..simple math

 

[StevePerry]

Pay off the car and any credit card debt you have.

Then use the rest to aquire hookers and booze. Pharmacy school is expensive, you gotta live as little.

Muuuuuuuuuuh Man! Couldn't have said that **** better myself...