What to do with a death benefit?

[jehosofat]

I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:

 

[sstterry]

My wife and I both have million dollar polices only costing us 30/month each. This is where a good financial planner comes into play.

I need the name of your insurance guy!

 

[tom4018]

I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:

I asked here because there seems to be some common sense amongst us. $5000 is nothing to most people but to me it is something I want to make good use of. I would give it back if I could have my mother back. Lots of things I wish I would have done differently but it is too late now. Sometimes I wish I was the one that was gone.

 

[sstterry]

You need to talk to NonTypicalCPA about this. My advice would be not to eat the penalty. You have to pay taxes on top of the 20% (unless you are 59 and 1/2 then there is no penalty, only taxes). That is $1000 you won't get the benefit of watching grow in an IRA.

 

[Son of Butch]

I asked here because there seems to be some common sense amongst us.
$5000 is nothing to most people but to me it is something I want to make good use of.
I would give it back if I could have my mother back.
Lots of things I wish I would have done differently but it is too late now.

In that case 5k in IRA in a separate investment... so you can track it without mingling with other money.
When the time comes to use it, do so for a special purpose in a manner of remembering and honoring your mother
and let your family members know at that time, this is a gift from mom/grandma for us to enjoy.

 

[Brute 23]

Easy... pay off debt. Mathematically... interest on debt really cuts in to your rate of return on retirement investments. From an investment stand point... the market is at an all time high so its not exactly a buyers market. From just a general well being view... not having debt is a greater relief than seeing investments grow, IMO.

Like Dave Ramseys says... pay off the debt. If you regret it a month later you can always go back and get a loan. ;-)

 

[jehosofat]

Easy... pay off debt. Mathematically... interest on debt really cuts in to your rate of return on retirement investments. From an investment stand point... the market is at an all time high so its not exactly a buyers market. From just a general well being view... not having debt is a greater relief than seeing investments grow, IMO.

Like Dave Ramseys says... pay off the debt. If you regret it a month later you can always go back and get a loan. ;-)

Smart man talking right here.

 

[TexasBred]

I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:

Look around man. You're surrounded by financial wizards. Just ask them. :lol2: