onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: What Should I Do With My Inherited $20,000 – Investment or Savings Options?
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
Finance

What Should I Do With My Inherited $20,000 – Investment or Savings Options?

Last updated: June 26, 2025 10:54 am
Oliver James
Share
6 Min Read
What Should I Do With My Inherited ,000 – Investment or Savings Options?
SHARE

Any instance of inheriting money is one of the most challenging positions anyone can be in. Whether it’s from a beloved family member or a family member you really don’t know, receiving unexpected money can be a life-changing event for most people.

Contents
Key PointsReceiving Unexpected MoneyHigh-Yield Savings AccountInvestment Opportunities

Key Points

  • There is no question that receiving an inheritance can be challenging to navigate.

  • It’s hard to avoid major impulse purchases whenever you receive a windfall.

  • The hope is that this Redditor can set money aside and let it grow for years.

  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)

In this Redditor’s case, their post in r/personalfinance indicates that they received a $24,000 inheritance, and they are unsure of their next steps. While this isn’t enough money to retire on, it’s certainly a good chunk of change the Redditor wants to smartly use after making a few necessary purchases.

Receiving Unexpected Money

For this Redditor, receiving the $24,000 was an unexpected small windfall after the passing of their grandma, and they are happy to have it. Having spent $4,000 already on a laptop and phone, they now realize they don’t have any immediate need for the money, so they are trying to figure out what to do with it.

Unsurprisingly, the Redditor was inundated with advice, to the point that the mods of r/personalfinance decided to lock the post. One of the initial concerns is that $4,000 for a laptop and phone likely means the Redditor went all out with a top-of-the-line PC or Mac and a brand new iPhone or Galaxy smartphone.

As you can get phones and laptops for much cheaper, there is an immediate indication that this money needs to be put somewhere, so the Redditor can avoid getting themselves into any more impulsive situations.

High-Yield Savings Account

At the top of the list is to put this money into a high-yield savings account. While $20,000 isn’t going to grow so much that the Redditor can retire, this is a great start for a healthy savings account. Instead of going out and spending more money on things the Redditor likely doesn’t need, investing this money in a HYSA is one of the best potential scenarios for them.

Not only does this mean they can earn a small bit of money, likely between 3-4% right now, but they have quick access to this money. None of this is to say that the Redditor can’t spend at all, but they have already bought a few of the “wants” they thought they would need, so the rest of the money can be put aside for a rainy day.

Investment Opportunities

On the other hand, nothing is stopping this Redditor from doing something entirely different if they don’t need the remaining $20,000 immediately. If they already have sufficient savings, they should invest the money in an index fund or ETF. The reality is that if this Redditor invested this money for the next 30 years and earned a still conservative 7% over time, without any other investment, it would be worth $152,245. This number can fluctuate slightly or significantly depending on the risk level this Redditor is willing to undertake. Still, there is no question that this money can really work for this Redditor.

Another possibility is to consider investing this money in a Roth IRA for tax-free growth. This is yet another opportunity for the funds to grow, with minimal tax implications, and work for the Redditor in a way that allows them to afford even better phones and computers in the future.

Most importantly, this Redditor needs to stop making impulse purchases and focus more on their future financial goals. There is no question that this will put a hole in their pocket and encourage them to spend more, but they shouldn’t. It’s not fair to say that they didn’t need a new phone or computer, but beyond that, avoiding any future impulse purchases should be top of mind.

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality. (sponsor)

The post What Should I Do With My Inherited $20,000 – Investment or Savings Options? appeared first on 24/7 Wall St..

You Might Also Like

AMETEK to acquire FARO Technologies in deal valued at $920 million

Could IBM Stock Surge Another 16%?

HELOC rates slightly up as Fed leaves rates the same

The S&P 500 Just Completed a Feat So Rare It Was Last Witnessed During the Great Depression — and It Has a 100% Success Rate of Forecasting Where Stocks Go Next

GoFundMe removes fake campaign after fraudulent fundraiser exploits grieving community

Share This Article
Facebook X Copy Link Print
Share
Previous Article Woman ‘Started Screaming’ After M Lottery Prize Win: ‘My Daughter Thought Something Bad Had Happened’ Woman ‘Started Screaming’ After $1M Lottery Prize Win: ‘My Daughter Thought Something Bad Had Happened’
Next Article George Pickens backs out of hosting his own youth football camp George Pickens backs out of hosting his own youth football camp

Latest News

Back-to-school sales tax holidays in these states will save you money
Back-to-school sales tax holidays in these states will save you money
Finance July 9, 2025
Nvidia has the best product, but its real edge is having the best customers
Nvidia has the best product, but its real edge is having the best customers
Finance July 9, 2025
What ex-South Korean leader Yoon faces following his new arrest over martial law
What ex-South Korean leader Yoon faces following his new arrest over martial law
News July 9, 2025
Challenge to Trump’s birthright citizenship order faces first major legal test after Supreme Court ruling
Challenge to Trump’s birthright citizenship order faces first major legal test after Supreme Court ruling
News July 9, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.