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Started By
Message
re: Debt Free Or Invest 100k
Posted on 1/7/25 at 3:01 pm to DarthRebel
Posted on 1/7/25 at 3:01 pm to DarthRebel
quote:This is the hard part and why so many Americans are ill prepared for retirement, or quite simply, can't retire.
If you paid off debt and turn the debt payment into investing $1,183.77 monthly for 10 years
Sacrifice and delayed gratification are foreign concepts to the masses.
1
Posted on 1/7/25 at 3:13 pm to WillFerrellisking
Stock market is crashing right now. Go buy a 4 wheeler it’ll make you happier than stocks or being debt free
Posted on 1/7/25 at 3:19 pm to el Gaucho
Already have 4 wheelers for me and boys, a side x side and a camp in MS.
Boat was last thing I needed to upgrade and we did. Gave old boat to wife’s uncle.
Boat was last thing I needed to upgrade and we did. Gave old boat to wife’s uncle.
Posted on 1/7/25 at 3:27 pm to WillFerrellisking
I wish I was old enough to get social security one day
Posted on 1/7/25 at 3:30 pm to el Gaucho
lol, you older than dirt
Posted on 1/7/25 at 4:31 pm to WillFerrellisking
quote:
my current employer is selling out and I no longer want to continue in same field so little uncertainty there.
This uncertainty leads me to thinking paying off debt is the better way to go. With no debt looming over your head, if that uncertainty turns into unemployment over your head, your stress levels won’t shot through the roof. Will still be stress, just not as much if you had various debts.
quote:
This 100k will be more so a gift from current employer due to no retirement plan from them
Before you do anything with this money, factor in tax consequences as this “gift from employer” will be considered taxable income.
Posted on 1/7/25 at 5:01 pm to Weekend Warrior79
Employment uncertainty is a good reason to hold liquid low risk assets/cash. Why sink funds into depreciating auto & boat that would be tough to liquidate in a personal financial crisis? Worst case, $100k is gonna last awhile paying essential expenses to keep afloat. That buys time to ditch the toys.
Posted on 1/7/25 at 5:26 pm to wiltznucs
With your uncertainty i would pay off everything..... if your wife has to carry the load for a while while you get established it isn't stressful and causing issie with you two.
Leading issue in marriage is $.
Leading issue in marriage is $.
Posted on 1/7/25 at 5:35 pm to TorchtheFlyingTiger
My comment was building off of OP’s comment about the wife having a good paying job. Had he not included that, I would have suggested putting a chunk of those funds into an account with moderate liquidity
Posted on 1/7/25 at 6:14 pm to WillFerrellisking
My old friend and mentor told me years ago, "You will be surprised to find out how little money it takes to live well when you don't owe a dime to anybody". I paid everything off years ago. Since then I have seen the wisdom of this. Wife and I live well on Social Security, two state pensions, and a company buy out. Excess funds every month are significant. Have not touched retirement accounts since age 62 (9 years ago). Company pay outs end in 2026 the year I hit RMD age. Opened a non qualified account when I retired. Excess money transferred in monthly. Hope all works out for you!
Posted on 1/7/25 at 6:38 pm to Weekend Warrior79
I overlooked the bit about wife's job being good paying. Perhaps even more concerning that they're not saving for retirement. YOLO I guess.
Posted on 1/7/25 at 7:18 pm to TorchtheFlyingTiger
She has decent retirement plan from her job and an IRA which I also have an IRA. My current job (working for a family member) doesn’t have a 401k but had other benefits and pays well.
Posted on 1/7/25 at 10:09 pm to bayoubengals88
quote:
This is the hard part and why so many Americans are ill prepared for retirement, or quite simply, can't retire.
Sacrifice and delayed gratification are foreign concepts to the masses
Very true.
Once my mortgage is paid in the next couple years, that money is going straight to investing and not partying. I plan to retire before 60.
Posted on 1/8/25 at 6:18 am to WillFerrellisking
Not advice, only what I would do. I’d put $7K in my Roth. I’d put $20K in t-bills to pay taxes next year. I’d put $20-25K in a HYSA if you don’t already have an emergency fund. I’d pay off the boat and car. I’d invest the rest unless you have a 6+% interest mortgage on the house.
Posted on 1/8/25 at 6:49 am to Suntiger
However boat and car would take 90k of the money. I would put 20k In a HYSA for taxes and then pay off boat and as much of the car as possible. Debt on depreciating objects is the worst investment ever. That's why I haven't had a car payment in 10 years. However wife wants a new car so hopefully we just pay cash for it
Posted on 1/8/25 at 9:16 am to tigerbacon
Too many unknowns for specific advice. Some considerations to think about:
How disciplined will you be with extra disposable money you will have if your bills are lower because of the lower debt? Will the extra money just disappear with nothing to show for it?
How much of debt is at high interest? Defining what is too high is debatable but anything above 10% is safe to consider high interest. Paying off high interest is a good use for the money.
Splitting the money into different uses is worth considering. Maybe pay off boat, max out a Roth IRA, pay some towards your mortgage, and keep some to fund your "emergency fund" for some peace of mind.
I will say that being in your 40s, you should be building a decent retirement fund. Your comment about it being almost non-existent says this needs more priority in your money decisions. On the other hand, 90k in liabilities is not bad, so you aren't doing a terrible job with your decisions, either.
How disciplined will you be with extra disposable money you will have if your bills are lower because of the lower debt? Will the extra money just disappear with nothing to show for it?
How much of debt is at high interest? Defining what is too high is debatable but anything above 10% is safe to consider high interest. Paying off high interest is a good use for the money.
Splitting the money into different uses is worth considering. Maybe pay off boat, max out a Roth IRA, pay some towards your mortgage, and keep some to fund your "emergency fund" for some peace of mind.
I will say that being in your 40s, you should be building a decent retirement fund. Your comment about it being almost non-existent says this needs more priority in your money decisions. On the other hand, 90k in liabilities is not bad, so you aren't doing a terrible job with your decisions, either.
Posted on 1/8/25 at 4:31 pm to WillFerrellisking
quote:
Roughly 90k between house, 1 vehicle and a new boat (purchased last year) note. Boat being the highest interest and makes up majority of debt.
quote:
but also worried about my retirement which is almost nonexistent as of now.
quote:
lol, I’m no where near retirement age and want to fish when I retire. This boat will last me till I die. Also want to fish before I die so I bought a boat. If I die tomorrow I don’t need the retirement money but would have fished outta new boat.
Now back to subject, debt free or invest?
Yes, let’s get back to the subject. You’re an idiot when it comes to finances
This post was edited on 1/8/25 at 4:38 pm
Posted on 1/8/25 at 5:16 pm to kc8876
You sound smart, tell me what I should do then big guy, pay off debt or invest?
Posted on 1/8/25 at 5:24 pm to WillFerrellisking
quote:
lol, I’m no where near retirement age and want to fish when I retire. This boat will last me till I die. Also want to fish before I die so I bought a boat. If I die tomorrow I don’t need the retirement money but would have fished outta new boat.
^This means that you’ll almost assuredly frick up this…
quote:
Now back to subject, debt free or invest?
So just pay off your debt and continue yolo’ing it.
Posted on 1/8/25 at 6:52 pm to slackster
Had to google “yolo’ing it” but that sounds like a plan!
After talking with the wife pretty sure we are investing it. I want to pay off debt but happy wife happy life right. Will talk with our financial advisor and go from there.
Couple details I’m leaving out that would probably change all the negative Nancies minds of what and how we living but don’t have time for that.
Thanks to all
After talking with the wife pretty sure we are investing it. I want to pay off debt but happy wife happy life right. Will talk with our financial advisor and go from there.
Couple details I’m leaving out that would probably change all the negative Nancies minds of what and how we living but don’t have time for that.
Thanks to all
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