All The Things To Do

What's the best thing for Ellie to do, now that she has a $50,000 inheritance?

QUESTION: Ellie’s parents gave her a $50,000 inheritance. They have no debt and $3,000 in their emergency fund. They have 2 teenagers as well. What’s the best way to use the inheritance?

ANSWER: Raise the emergency fund to 3-6 months of expenses, and put about $15,000 into college funds for each child. I would also have some fun with some of the money and give some of the money. Do a balance between those 4 things. If you wanted to take $10,000 and fund a couple of Roth IRAs, you could do that. Invest those Roth IRAs in good growth-stock mutual funds with long track records.