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One cc is 14.99 with $2500 balance, the other interest free for another month or two then 16.99 and $1600 owed. Heloc, as stated above is 4% and rising as fed does. Car is 3.15%. Mortgage is 6.25, fully paid and then some by the rent, inclusive of taxes and insurance. No balloon on the heloc. I have 20 more years to pay it off but with rising interest rates I don't see the point.
That 6.25% mortgage rate seems high - is there a reason you have not refinanced it? I'd say definitely pay off the credit cards, invest some of the rest in equity-heavy mutual funds, and take most of what you'd otherwise put into bonds or CD's and throw it at the mortgage if you aren't going to refi. 6.25% is rather high and you are not likely going to earn that over the medium term (say, 2-5 years) in any low-risk instruments. With a rate differential of >2% between heloc and fixed loan, if you aren't going to refi, I'd actually say put it to the 6.25% loan first and just chance it on rates. If the rate differential were only 0.5% I'd definitely say put it on the HELOC, but 2% is quite a bit of difference.
If the HELOC has a balloon payment due in, say, the next 5 years, then pay it off first.
I asked this question before the OP told us that the funds were from bank accounts and had therefore already been taxed.
Funds that are in retirement accounts that have been tax deferred, such as conventional IRAs or 401Ks are generally taxed upon disbursement, including disbursements to heirs. It's very common to inherit "cash" from such retirement accounts - hence my question about the source of the funds as well as my caution about income taxes.
One cc is 14.99 with $2500 balance, the other interest free for another month or two then 16.99 and $1600 owed. Heloc, as stated above is 4% and rising as fed does. Car is 3.15%. Mortgage is 6.25, fully paid and then some by the rent, inclusive of taxes and insurance. No balloon on the heloc. I have 20 more years to pay it off but with rising interest rates I don't see the point.
What is your long-term plan for the rental home? Was it your primary but now that you are living with a SO, you are renting it out because you do not wish to sell it?
Why not pay off all of the debt, get rid of one vehicle unless you absolutely need it sell the house and really be debt free completely. Then invest part of the money safely (I don't understand investing so find someone you trust to help you) then live very frugal, don't borrow again and continue to be completely debt free.
They all just keep raising rates in Palm Beach County, supposedly because of all the bad drivers and risk.
I see some things haven't changed in the 30 years since I lived there.
If I were you, I would use your inheritance to clear off all your debts first, other than the house (since you are covering that expense with renters). So in addition to the home equity loan, I would get rid of your credit card balances and car payment. The reasons are two fold: (1) you probably won't make as much in interest income as you're paying in interest on these debts, and (2) the rates could rise, costing you even more money. Another benefit is that, once the car is yours free and clear, you can reduce the amount of insurance you carry on it, and thus your costs. (At least, that's the way it is where I live; not sure if that's true in Florida.)
Before considering where to invest the remaining money, I would consult with your SO and determine "their" (not stated whether SO is male or female) financial situation. If they are letting you live rent-free in their house, you're getting a very good deal; the right thing to do would be to reciprocate by helping with some of their debts as well. (By that I don't mean putting your name on their debts, but instead simply contributing towards paying them down.)
With whatever you have left after that . . . I don't know, open an IRA maybe? If you don't have any retirement savings yet, the time to start accumulating it was yesterday.
How does that statement answer my question of where to invest 72k?
Look, you haven't even told us what you hope to get out of investing the $72k, which isn't very much money. Income? Growth? Do you have a 15 year time horizon, given you're 50 now?
With whatever you have left after that . . . I don't know, open an IRA maybe? If you don't have any retirement savings yet, the time to start accumulating it is yesterday.
Without earned income, you cannot contribute to an IRA.
I suggest getting a financial adviser. Sit down with with them and (a good one) will listen and listen. They can take into account your new "freelance" career, rent received, and all other aspects to help guide you. Perhaps even to a day when you can fully retire. A much better idea than listening to a bunch of strangers on the internet. Congrats and good luck.
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