My wife and I make about $100,000 a year combined, and we're debt-free. Recently, we got an insurance settlement of $95,000. We have an $89,000 mortgage and a 19-month-old baby. Should we use the settlement money to pay off the house and use the rest to start a college fund for our son?
Absolutely! Then, if you guys save the equivalent of a house payment until your son is ready for college, he could travel the world while he's studying. If I'm in your shoes, I'd pay the house off tomorrow. In fact, I do it today if there's still time to get to the bank.
Being completely debt-free, and with your income, you guys have the money to do just about anything. You can start the kiddo's college fund, save for retirement, and you'll have the money to build wealth, too.
Don't let this great opportunity to change your family tree pass you by, Michael. You two have the chance to live great lives and retire early-and wealthy.