A allows them to invest the inheritance while they continue to carry heavy debt. This way, they can take advantage of the booming stock market. Plan B allows them to liquidate the inheritance to pay off the debt. Then they can invest on a monthly basis using their increased cash flow. Both of their choices include keeping a mortgage-free home that is part of the estate they've inherited.
Personality is Important Both plans make sense, but only one meshes with their personalities.
They rave that they will own a house with no mortgage. They are debt averse, and the debt they have does not result in a tax break. I trust them to deploy their extra monthly cash flow toward more investing after they pay off the debt. Will has shown his mettle with a nice nest egg for his age, and Beth graduated two years ago and is clerking for a federal judge. She has not yet made much money.