<prompt> Human: Posting this in reference for my buddy, who is in the room as I typeTo make a long stort short ... I inherited 50,000 from my familys estate, and Im not completely sure what to do with this extra money. Im currently employed In the Portland area, making a modest wage, and with no outstanding loans or debts beyond student loans. I live very frugally, staying rent-free with a relative and just covering basic bills gas, food, internet. Im throwing as much money as I can into my RothIRA at work, often meeting the maximum matching amount.My initial thought was to just put this extra money into my IRA for retirement, but I feel like there are better options out there for me for investing long-term. Whats the best long-term investment for my situation to make my money work for me?Edit1: As some of you pointed out, I meant to say Roth 401k through employer, not separate Roth IRA. Is there a big difference between these two? I mean, If I have a Roth 401k through my employer, is there a need for a Roth IRA?Edit2: Thanks for the advice everyone! It sounds like the best thing I could do is pay off those student loans first. The argument on risk tolerance makes sense: paying off a certain negative return does seem better than netting a possible positive return.Edit3: Clarification on inheritance ... long-story short, I dont owe taxes on it. I believe it was technically a monetary gift, for which I do not need to report on my taxes as income according to the person who gave it to me, who knows a lot more about tax code than I do.  <response>: There are some options, but its going to start with a plan: What is this money for? What do you want it to do? Whats your risk tolerance? Some investment ideas can include: Pay off your student loans. Depending on the interest rate those have, this can be the best idea. Think of paying off loans as making an investment at the interest rate of the loan. Then factor in that those returns are guaranteed and you might have your best conservative investment option. If you dont have an emergency with 6 months expenses, you can set one up. Open an IRA, Roth or Traditional, making various investments within. You can contribute 5k for 2012 before tax day, 5.5k for 2013. I Bonds. Invest in mutual funds in taxable accounts. Municipal or corporate bonds. Municipal bonds can be federal and state income tax exempt, and there even some bond funds of those. Invest in stocks on your own. Commodities, precious metals, etc. are an option, though I wouldnt get into them until you have a lot of other diverse assets and investments elsewhere. Real estate or REITs, same caveat as above. 