What to Do With a $500,000 Inheritance

Shawn Plummer

CEO, The Annuity Expert

Options for Utilizing $500,000 Inheritance

Spend It

  • Immediate Gratification: Use the money for personal enjoyment, travel, or purchases.
  • Pay Off Debt: Clear outstanding debts like mortgages, car loans, or credit card balances.
  • Home Improvements: Upgrade or renovate your living space.

Invest It

  • Stock Market: Diversify your portfolio with stocks, bonds, and mutual funds.
  • Real Estate: Purchase property for personal use or as rental income.
  • Education: Invest in further education or fund education for family members.
  • Start a Business: Use funds to start or invest in a business venture.

Invest in a Fixed Indexed Annuity

  • Tax Benefits: A premium bonus can offset taxes owed.
  • Guaranteed Income: A Guaranteed Lifetime Withdrawal Benefit (GLWB) ensures a steady income during retirement.
  • Risk Management: Protects against market downturns while benefiting from potential market gains.

Using The Annuity Expert’s Calculator

Compare The Options

OptionProsConsBest For
SpendingImmediate satisfaction; Debt-freeNo long-term financial growthImmediate needs and debt clearance
InvestingPotential high returns; GrowthMarket risks; Requires knowledgeLong-term wealth accumulation
Fixed Indexed AnnuityTax benefits; Steady incomeLess liquidity; ComplexityRetirement security and tax planning


Deciding how to use a $500,000 inheritance involves balancing immediate needs with long-term financial security. Whether it’s spending, investing, or opting for a fixed-indexed annuity, the key is to align your decision with your financial goals and risk tolerance. Evaluate each option carefully, considering the pros and cons. For personalized advice, especially regarding annuities and retirement planning, consider using tools like The Annuity Expert’s calculator. Remember, this decision can significantly impact your financial future.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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