This weeks question comes from Ethan:
Im about to inherit a little bit of money.
Im 45 and have a wife and two kids.
This money is not enough to retire, but its enough to be life-changing.
I was able to pay off my student loans, for example.
I will have enough to pay off my mortgage but Im not sure if I should.
If I do that it wont wipe out my inheritance but it would be the bulk of the inheritance.
But I dont know if there are other considerations to think about because mortgages are weird.
Mind the Interest Rates
What a problem to have!
If not, tackle those first.
If you do, then things get interesting.
Essentially every expert I spoke to said the same thing: Dont pay off your mortgage.
If its fixed at 4.1 percent, youre more likely to get a better return on a different investment.
(Consider simply the cost of inflation on goods you use every day.)
And there are other things youre missing.
You dont want to pay off the low interest mortgage and forgo potential higher earnings.
If you do choose to invest, your allocation should be fairly aggressive, given your age.
That said, it does come down to your priorities.
But there may be a middle ground.
This will reduce your monthly payments going forward.
Theres no guarantee that that will work, however.
Here are some other options.
If the state doesnt have a tax break, then they should find the best and least expensive plan.
you could find a list of thebest and worst plans here.
Campbell highlights the Utah Education Savings Plan (called the My 529" plan) as a standout.
Craig Cowles, a Texas-basedCertified Financial Planner, says that cash is king.
There may come a time when you have a tax bill or unexpected medical bills.
They can easily zap you of $10,000 for a one time event, says Cowles.
So keeping some of it liquid is certainly a consideration.
Just to be on the safe side.
