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re: Need help with a lump sum
Posted on 7/13/18 at 11:18 pm to jsquardjj
Posted on 7/13/18 at 11:18 pm to jsquardjj
Thanks, there has been a lot of good advice in here and I do appreciate it.
To answer a few more questions, I am a consultant for small hotels and b&bs. My job paid only commissions based on my sales so i made a killing for a long time by working hard, but it has slowed the past few years with the competition from Airbnb and the general ease of using hotel websites. I will probably have to look in other directions in the future, which might explain my hesitation to use this cash to not pay down debt.
The cd option is where I was leaning, it’s just a littler strange because I need it to be an 11 month and not 12 month cd which is not offered for very good rates and I hate to see I chunk of change like this earn only 2%.
To answer a few more questions, I am a consultant for small hotels and b&bs. My job paid only commissions based on my sales so i made a killing for a long time by working hard, but it has slowed the past few years with the competition from Airbnb and the general ease of using hotel websites. I will probably have to look in other directions in the future, which might explain my hesitation to use this cash to not pay down debt.
The cd option is where I was leaning, it’s just a littler strange because I need it to be an 11 month and not 12 month cd which is not offered for very good rates and I hate to see I chunk of change like this earn only 2%.
3
Posted on 7/14/18 at 12:29 am to jsquardjj
Russia interest rate is like 7.25%
In the central bank heyday people were taking loans from Japan for like 2% and putting it in a savings account in countries like Brazil for +10% rates. Easiest money ever legally made
In the central bank heyday people were taking loans from Japan for like 2% and putting it in a savings account in countries like Brazil for +10% rates. Easiest money ever legally made
Posted on 7/14/18 at 3:09 am to zatetic
quote:
In the central bank heyday people were taking loans from Japan for like 2% and putting it in a savings account in countries like Brazil for +10% rates. Easiest money ever legally made
Carry trades do have some additional risks involved. It's "easy money" until it suddenly isn't.
Posted on 7/14/18 at 4:51 am to jsquardjj
quote:
The cd option is where I was leaning, it’s just a littler strange because I need it to be an 11 month and not 12 month cd
You can get a 6 month, roll that over into a 3 month, and then two consecutive 1 month CD's.
The rate you get won't be great but that's what happens when you get what is essentially a guaranteed positive return.
Posted on 7/16/18 at 10:28 am to jsquardjj
quote:
I have 200k between my sep and Roth, and then another 25k in my child’s 529. Im 30
This board makes me hate my life sometimes.
This post was edited on 7/16/18 at 10:29 am
Posted on 7/16/18 at 5:10 pm to jsquardjj
Good for you man, if you are truly 30 with all that and you didn't have a big chunk handed to you then you truly hustled hard.
What's worst case scenario if the stock market dips 10%? You put less down or you wait to pay off your loan? Do you have to make a single lump sum payment on the commercial loan or can you simply not make a payment until then? If you simply can't make a payment until then but can anytime afterwards, then I'd consider investing a decent portion in equities say 60% and put the other 40% in a CD.
Lastly, have you looked into refinancing? I'd strongly look into getting a fixed rate with your large lump sum you will have. Or at least look into better terms. I'd go to the bank that has your current loan first, see if they will do any cheap deals for you. $300k lump sum on a $600k loan will usually make someone want to talk.
What's worst case scenario if the stock market dips 10%? You put less down or you wait to pay off your loan? Do you have to make a single lump sum payment on the commercial loan or can you simply not make a payment until then? If you simply can't make a payment until then but can anytime afterwards, then I'd consider investing a decent portion in equities say 60% and put the other 40% in a CD.
Lastly, have you looked into refinancing? I'd strongly look into getting a fixed rate with your large lump sum you will have. Or at least look into better terms. I'd go to the bank that has your current loan first, see if they will do any cheap deals for you. $300k lump sum on a $600k loan will usually make someone want to talk.
Posted on 7/16/18 at 8:14 pm to bodsworth
quote:
710k in debt and some folks are suggesting he buy more property? Crazy! Pay down debt with the lump sum asap.
I guess that's one way to criticize a dude with an $875k net worth at 30..
Posted on 7/17/18 at 12:00 pm to KillTheGophers
quote:
look at some timber real estate...you could get a nice piece of acreage that yields timber with that cash and some loans.
If you know what you're doing and know the right timber people, you can sell good timber and wind up with a paid for piece of land at the end of the deal. But if you don't really know what you're doing, or you turn a bunch of goobers loose on your land, you could end up cheated and have brush piles, scared up trees and equipment tracks all over the place.
I know rental property and some about raw land. But when it comes to valuing trees, I'm not so strong. So I've been using a timber consultant for (pre-purchase) advice for years - he can broker deals too. For anyone who wants to get into that game, I'd suggest going that route. It's well worth the money (and mitigates the risk).
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