Wondering what to do with $100,000 in savings? Here are 4 smart options.

Core Insights - The article discusses strategies for managing a significant savings balance, emphasizing the importance of prioritizing financial decisions to maximize benefits and minimize risks. Group 1: Debt Management - Paying off high-interest debt should be the first priority, especially debts with an APR of 6% or higher, such as credit cards averaging over 21% and personal loans averaging over 12% [3][4]. Group 2: Emergency Fund - Establishing an emergency fund is crucial for covering unexpected expenses without incurring debt, with recommendations to keep these funds in accessible savings accounts or high-yield savings accounts [4][5][6]. Group 3: Sinking Funds - After setting up an emergency fund, creating sinking funds for specific upcoming purchases is advised, utilizing time deposits like CDs and Treasury bills for potentially higher interest rates [6]. Group 4: Retirement Contributions - Maximizing contributions to tax-advantaged retirement accounts, such as 401(k)s and IRAs, is recommended after addressing short- and mid-term savings needs, with specific contribution limits outlined for the 2025 tax year [7][8][9].