Say you're handed $500K in cash today.....

$25k for the toddler in a 529
$75k-$100k for each kid in High School to fund (help fund) college. I guess put it in a 529?

Let's say you have $225k left over. Put aside $25k for the next two year's badass vacation.

Invest the remaining $200k.

I’m single with no kids, so I’d Blow half on home/car/debts, donate 1/10, invest the rest.

I would buy a new car ($30k) and the home I’m currently renting straight cash ($200k), renovate my house (update kitchen, bathrooms, new floors, remove popcorn ceiling, new ceiling fans, new paint on walls, etc for around $30k), pay off my meager remaining debts ($4k), take a couple vacations ($16k), donate a big chunk to St. Jude ($50k), and pour the rest into either buying an investment property to rent out or into my IRA ($180k)

500k would be damn near life changing for me, basically give me a decade worth of equity over night.

I would go have a serious conversation with my CEO about what I wanted to do regarding changing some things up. If he was amenable, great. If not, I'd put in my notice and in 30 days, I'd be working for myself doing something completely different.

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I have a mortgage, one car note,

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most will say pay these off, but it honestly depended on the interest rate

I'd live a little and take a vacation with the kids and then invest the rest in an EFT or low-cost fund like vanguard.

I feel like I'm in a pretty good place investment wise so this would be mostly fun money.

$100k - Porsche Cayenne plug-in hybrid or Tesla X
$50k - Epic vacation with wife and kids. 1st class international trip
$150k - $50k to each of my kids to set them up a little better coming out of college (Ages 11,7,3). 529's are already covered
$50k - give it to my wife and tell her to do whatever she wants with it

$150k leftover - invest

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Hmm. I'd pay 100k on mortgage or down payment for a new home. 50k for each kid in a 529. 50k in a high yield savings account to supplement an existing emergency fund. That leaves 200k. With that, I'd save 100k for down payments for 3 single family rental homes. I'd put the last 100k into starting a business or into low cost mutual funds.

So many variables to consider, but one comment to everyone planning your kids college...

In the START program at least, you get a $4,800 deduction (assuming you're married) for each little rugrat each year. If you have 2-3 little rugrats, that turns into a little bit of money over the next several years. You can invest in a non-qualified account and move over the $4,800/yr. to take advantage of the tax breaks. End result = same amount in 529, but you get the tax deductions along the way...

Other than that, pay off any high interest debt...

Then, real estate. Or move to Puerto Rico.

1. Keep your jobs.

I've seen people quit their jobs and lose their minds when they receive a windfall like that. Between mortgage and 2 kids I'm assuming heading to college in the next few years. That 500k will disappear very quickly. Don't make this mistake.

2. Pay off mortgage and car note.

I'm a let's keep less debt on the books guy. If market tanks and you lose your job then at least you have your house. It's likely a better money strategy to invest the money depending on your interest rate but I like the piece of mind knowing my debts are settled.


3. $20k for nice vacation.

4. Divide Rest for Investments, 529 for youngest kid, and High Interest Savings Account for 2 high schoolers.

This depends on how much liquid assets you have today, where your 401k stands for retirement and how many good working years you have left.