What is the best thing to do with $10,000?
July 29, 2014 7:32 AM Subscribe
I have just found out that I will be inheriting $10,000. I want to maximize whatever I do with it, but I am not sure where to start...
posted by JoannaC to Work & Money (19 answers total) 1 user marked this as a favorite
Some particulars which may be useful:
- I do have unused room in my retirement account (RRSP). If I wanted to take money out of there to go back to school or buy a home, that is permissible, so putting the money in the RRSP will not lock it up per se.
- With that said, I am quite happy to be a renter and have no plans to buy a home. I only mention that because I think it's what my parents want me to do with the money, and so I feel that a solution for it which leaves that option hypothetically open, even if I do not plan to do it, will please them.
- I am common law married. We will be doing it officially next year, but already have money saved for it. We also contribute regularly, together, to a joint vacation account. I have no personal debt right now. He does, but will not let me help him with it.
- We plan to have a child as soon as the universe wills it to be so. We have about $10,000 already saved in a special savings account to cover extra stuff when/if this happens. I am not sure what else we would need to buy or to have, money-wise, for a child that this current savings will not cover.
- There is a possibility I will go back to school one day for a master's degree. If so, I am allowed to remove money from my retirement account for this purpose, so again, there is no penalty in putting it there...
So, it seems like maybe taking out $1000 or so for a vacation/some lifestyle upgrades might not be horrible, and then I should out the rest in my RRSP. Or...should I? Is there something better I can do with this money, given my situation?