Milwaukee 8 envy
Road Master
Joined: Jul 2010
Posts: 1,045
Likes: 102
From: Waukesha, WI
Play the long game, invest the inheritance so the money does the work and grows over time. That way when retirement rolls around, or in the unfortunate event of a hardship, you'll be in good shape.
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Road Master
Joined: Feb 2014
Posts: 1,082
Likes: 380
From: Queanbeyan, Australia
Good advice. My plans for the inheritance are to pay off my home loan debt. My inheritance will be about $180K, and my outstanding debt is $200K, so if I put all the inheritance into the home loan debt I'll inly have $20K left to pay off. The saved interest is good as investing the inheritance elsewhere. Once I pay off the home loan completely which should only take a couple of years with that low a residual I can then save up for a new bike. The only outstanding debt I'll have left is the debt on my investment properties - interest on this debt is tax deductible as these are "investment geared " loans.
Road Master
Joined: Jul 2010
Posts: 1,045
Likes: 102
From: Waukesha, WI
Good advice. My plans for the inheritance are to pay off my home loan debt. My inheritance will be about $180K, and my outstanding debt is $200K, so if I put all the inheritance into the home loan debt I'll inly have $20K left to pay off. The saved interest is good as investing the inheritance elsewhere. Once I pay off the home loan completely which should only take a couple of years with that low a residual I can then save up for a new bike. The only outstanding debt I'll have left is the debt on my investment properties - interest on this debt is tax deductible as these are "investment geared " loans.
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Road Master
Joined: Feb 2014
Posts: 1,082
Likes: 380
From: Queanbeyan, Australia
Another thing to consider, depending on how many years are left on the loan, is doing a refinance at a lower rate and possibly a shorter term if possible. While it feels great not having mortgage debt, that would leave more cash available to invest or acquire another rental property if you wanted to be more aggressive with passive income.
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Road Master
Joined: Feb 2014
Posts: 1,082
Likes: 380
From: Queanbeyan, Australia
Using the inheritance to pay off my home loan (non tax deductible) debt is as good as an investment since I will be saving on interest repayments as well as rent - as good as money in the bank. Plus I'll own the property outright which is a good "bricks and mortar" investment.
Road Master
Joined: Jul 2020
Posts: 1,195
Likes: 1,346
From: Banana Republic of amerika
Using the inheritance to pay off my home loan (non tax deductible) debt is as good as an investment since I will be saving on interest repayments as well as rent - as good as money in the bank. Plus I'll own the property outright which is a good "bricks and mortar" investment.
If that is your plan Ill raise you with this, keep living as if you still had the mortgage and put the money in savings. It will be hard to do for most, but if you are disciplined enough, it can be done and youll be better off in the long run.
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Road Master
Joined: Feb 2014
Posts: 1,082
Likes: 380
From: Queanbeyan, Australia
That's exactly my plan - the money I would otherwise would have put into repayments / rent I will save and invest so I can buy my next bike with CASH!!!!!! At the moment I am paying about $600 per fortnight in principal/ interest repayments on the home loan - if I were able to save this amount I could easily save $600 x26 fortnights per year = $15,600 pa. At that rate it would only take me 4 years to save up for a new FLHTK (at current prices) =. Here in Aus an new FLHTK is about $41K.
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Road Warrior
Joined: Aug 2008
Posts: 1,895
Likes: 121
From: Southern WV
Buncha Debbie Downers in here. I upgraded from my 13 RGU to a 20 Limited last month. Man I love that new bike. Pay your debt down? Sure. But don't put it off if you want a new bike. You may not live to see a 131 standard. You may not be allowed to buy a gas powered vehicle if the current crop of idiots continue to multiply. Enjoy life some while you are able.
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Road Master
Joined: Feb 2014
Posts: 1,082
Likes: 380
From: Queanbeyan, Australia
Buncha Debbie Downers in here. I upgraded from my 13 RGU to a 20 Limited last month. Man I love that new bike. Pay your debt down? Sure. But don't put it off if you want a new bike. You may not live to see a 131 standard. You may not be allowed to buy a gas powered vehicle if the current crop of idiots continue to multiply. Enjoy life some while you are able.