Ramsey Everyday Millionaires We’re Inheriting $1.3M—What Should We Liquidate First?
6 snips
Nov 7, 2025 In this discussion, caller Justin, who recently inherited a mix of retirement accounts, seeks advice on managing his newfound wealth. He weighs the pros and cons of liquidating his accounts, particularly in relation to paying off the mortgage and enabling his wife to stay home. The conversation dives into strategies about handling Roth and HSA inheritances, and how to approach traditional IRA withdrawals while managing tax implications. Ultimately, they emphasize the importance of disciplined financial habits in building wealth.
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Unexpected Inheritance Alters Plans
- Justin described unexpectedly inheriting large IRA balances after an uncle's sudden death.
- The windfall changed their mortgage and childcare planning immediately.
Use Liquid Assets To Pay Off Mortgage
- Use the annuity lump sum and brokerage cash to immediately pay the mortgage and simplify assets.
- Roll inherited annuity money into a traditional IRA and use traditional IRA withdrawals to finish the payoff, accounting for taxes.
Treat Beneficiary Annuity As Clear Cash
- Treat beneficiary annuity money as clear cash you can use immediately.
- Apply small inherited accounts (like an HSA) to tidy up finances and consider cashing out small amounts for simplicity.