What to do with a big 600k windfall? (2022 edition)

Can I just point out to everyone that nobody should ever unexpectedly receive a 600k inheritance. We have to start talking with family about money. Anyone could have been much better prepared if they knew this was coming. We do a big disservice by treating money as taboo and not talking about it.

Ok off my soapbox, here is your game plan - what I would do (in order):

Take the 600k and put it in a high yield savings account like Ally/Schwab

Read the book The Smartest Investment Book You'll Ever Read - it is a super easy read, breaks concepts down into small chunks and will allow you to be educated on what to do. Never just blindly trust an "advisor". You want to understand basics and this book will help you do that: The Smartest Investment Book You'll Ever Read

From the 600k you need to establish your emergency fund. Add up all your costs to live for a month and multiply by 6. You are to keep 6 months worth of living expenses in this high yield savings account from now until you die.

Do you have any debt? Student loans / car loans / credit card loans? If yes, pay them off in full.

Next priority is saving for retirement. Open a Roth IRA at Vanguard/Fidelity/Schwab. You can still contribute 6k for 2021 until April 18. Do this. You can also contribute 6k for 2022

Within the Roth IRA, take the 12k and invest in a target date retirement fund that matches the approximate year you would retire

I don't know how much money will be left because I don't know size of your emergency fund or how much debt you are going to pay off, but your general priorities after 1-6 should be:

Down payment for house if you want to buy (aim to put at least 20% down)

Can invest any remaining money in a non-retirement brokerage account -use the same company you used for your Roth IRA and invest in similar target date fund or total stock market index fund (like VTI)

After 1-6, help family members if you want, but don't feel obligated to get them out of bad financial situations they have created. Under no circumstance should you co-sign a loan for a family member or put your name on any of their assets (like house/car). Your grandma wanted you to have this money. You are honoring her wishes by taking care of yourself.

Try to avoid the urge to go spend on expensive items like fancy cars. In general you want to continue living like you did before you received the 600k.