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re: Say you're handed $500K in cash today.....
Posted on 8/28/19 at 11:57 am to btnetigers
Posted on 8/28/19 at 11:57 am to btnetigers
I would pay off all of my debts. Then reassess.
I would probably make a few minor improvements to my home.
A nice vacation.
The rest gets invested in some way or goes to savings accounts to get the kids set up. My dad started a Roth for me when I was young and has continued to contribute until I took it over. It's money I never plan to spend and is not factored into my retirement. Honestly, I would love to cash it later in life and hand it to my grand kids most likely in the form of a ROTH.
Or blow it on my beach condo
I would probably make a few minor improvements to my home.
A nice vacation.
The rest gets invested in some way or goes to savings accounts to get the kids set up. My dad started a Roth for me when I was young and has continued to contribute until I took it over. It's money I never plan to spend and is not factored into my retirement. Honestly, I would love to cash it later in life and hand it to my grand kids most likely in the form of a ROTH.
Or blow it on my beach condo
0
Posted on 8/28/19 at 12:03 pm to btnetigers
26, Single, No debt, live with SO that I pay half of the monthly note.
1. Cap off emergency fund
2. Max Roth IRA
3. Trade car in for a Tundra (need to get rid of car before causes more issues, need truck for my job)
4. Book a trip to an away LSU or Saints game
5. Wait at least a month before I make any other moves. Allows me to do research on my options going forward: maybe buy some land to build future home.
1. Cap off emergency fund
2. Max Roth IRA
3. Trade car in for a Tundra (need to get rid of car before causes more issues, need truck for my job)
4. Book a trip to an away LSU or Saints game
5. Wait at least a month before I make any other moves. Allows me to do research on my options going forward: maybe buy some land to build future home.
This post was edited on 8/28/19 at 12:07 pm
Posted on 8/28/19 at 12:05 pm to btnetigers
My circumstances are diff from OP's, so different choices for me:
--pay off mortgage
--give 9 nieces/nephews each $15K; they're all college aged or older & several could use a boost in young adulthood, and we have no kids
--invest remaining half in a three fund portfolio
--go about life as usual, using cash freed up from mortgage payoff to travel a bit more (already traveling a bunch, so there is an upper limit here LOL)
--pay off mortgage
--give 9 nieces/nephews each $15K; they're all college aged or older & several could use a boost in young adulthood, and we have no kids
--invest remaining half in a three fund portfolio
--go about life as usual, using cash freed up from mortgage payoff to travel a bit more (already traveling a bunch, so there is an upper limit here LOL)
Posted on 8/28/19 at 12:10 pm to btnetigers
VDIGX
Posted on 8/28/19 at 12:13 pm to btnetigers
Single with a girlfriend.
Spend $50k on discretionary items and then invest the rest likely into real estate.
Spend $50k on discretionary items and then invest the rest likely into real estate.
Posted on 8/28/19 at 12:58 pm to btnetigers
quote:
If you had a sudden windfall of $500K, given to you today - what would you do with it?
We're building a house, so
In all seriousness, I would just generate permanent income with it. I'm too old to try to get rich and I could blow through that money quickly if I let myself.
Realistically, that's over $1500 a month, net, forever and then pass that on to the kids.
Posted on 8/28/19 at 1:58 pm to btnetigers
Payoff mortgage 210k remain
Upgrade, probably buy a 2-3 year old truck 30k as mine is getting old, but no real need to replace.
Trip for the wife and I ~10k
Invest the rest 250k
I don't need much, like my job, and could really take some awesome trips with no mortgage.
Upgrade, probably buy a 2-3 year old truck 30k as mine is getting old, but no real need to replace.
Trip for the wife and I ~10k
Invest the rest 250k
I don't need much, like my job, and could really take some awesome trips with no mortgage.
Posted on 8/28/19 at 2:31 pm to btnetigers
~$150k left on the house
~$23k left on the SBA after the 2016 flood.
~$20k for some odds and ends at the house (mainly a new fence)
-Top off both mine and the wife's 401ks for the year
-6 months of paycheck savings for me, the wife and our joint savings
-Invest the rest
~$23k left on the SBA after the 2016 flood.
~$20k for some odds and ends at the house (mainly a new fence)
-Top off both mine and the wife's 401ks for the year
-6 months of paycheck savings for me, the wife and our joint savings
-Invest the rest
Posted on 8/28/19 at 2:42 pm to Bard
I wouldn't touch the principle. I'd put it into an account invested pretty aggressively, this should be $30-40k then use the income in the following:
Max roths
kids 529s
nice vacation maybe
extra to house payments
This should give my wife and I almost $50k invested yearly to retirement accounts. I have no major need to do more then that right now along with a house paid off in our 40s and $500k in taxable accounts.
With 15 year interest rates at 3.25%, I see no reason to pay off a mortgage in my 30s. That's incredibly cheap money historically and paying my mortgage off in my late 40s would be great too.
Keeping the principle whole for as long as possible and using most of the income while life works its way out would be my plan.
Max roths
kids 529s
nice vacation maybe
extra to house payments
This should give my wife and I almost $50k invested yearly to retirement accounts. I have no major need to do more then that right now along with a house paid off in our 40s and $500k in taxable accounts.
With 15 year interest rates at 3.25%, I see no reason to pay off a mortgage in my 30s. That's incredibly cheap money historically and paying my mortgage off in my late 40s would be great too.
Keeping the principle whole for as long as possible and using most of the income while life works its way out would be my plan.
This post was edited on 8/28/19 at 2:47 pm
Posted on 8/28/19 at 2:55 pm to btnetigers
quote:
you had a sudden windfall of $500K, given to you today - what would you do with it?
Strippers and cocaine
Posted on 8/28/19 at 3:07 pm to bstew3006
Red 3.
Posted on 8/28/19 at 3:40 pm to btnetigers
quote:
..I know $500K isn't a ton of money
Posted on 8/28/19 at 4:15 pm to btnetigers
I feel like this is more of an OT topic
Posted on 8/28/19 at 5:27 pm to kingbob
I like your answer. Don’t really understand why others didn’t. Oh well... such is life.
Let’s see, what can I dream up? Same as you, I’d donate a good 10% to church and/or charity. I’d pay off the last remaining property mortgage that I have. And that (used) 911 GT3 that I’ve had my eye on for awhile would move into the garage. Better set aside a slush fund for track days and maintenance too. Eh, take the lady friend on a trip to Monaco for the F1 race weekend. And put the balance in my trading account.
I could either do ALL that... or I could buy private health insurance.
Let’s see, what can I dream up? Same as you, I’d donate a good 10% to church and/or charity. I’d pay off the last remaining property mortgage that I have. And that (used) 911 GT3 that I’ve had my eye on for awhile would move into the garage. Better set aside a slush fund for track days and maintenance too. Eh, take the lady friend on a trip to Monaco for the F1 race weekend. And put the balance in my trading account.
I could either do ALL that... or I could buy private health insurance.
Posted on 8/29/19 at 12:33 am to btnetigers
quote:
Say you're handed $500K in cash today..... by btnetigers
Paying off all my debt and may invest some of the rest.
Posted on 8/29/19 at 12:41 am to btnetigers
The easiest would be $100k on the house - that is the last of my debt.
Then college funds for the 3 kids I guess. maybe $50k each.
Third would be charity. 10% / $50k would feel alright.
Then would probably be a new car since I don't have one - I'd go for something electric.
Then some new shoes and a watch. Same for the lady friend.
The rest would just go with my other cash in Vanguard as i wait for the bottom of the market.
Then college funds for the 3 kids I guess. maybe $50k each.
Third would be charity. 10% / $50k would feel alright.
Then would probably be a new car since I don't have one - I'd go for something electric.
Then some new shoes and a watch. Same for the lady friend.
The rest would just go with my other cash in Vanguard as i wait for the bottom of the market.
Posted on 8/29/19 at 7:53 am to btnetigers
$500k wouldn't be "never work again" money but i wouldn't have to make that much each year to live comfortably
i'd probably use 100-50k to use as a downpayment on a home (to make a 15-year mortgage cheap)
the remaining 350-400k would be invested across different levels of return/risk
if i'm not paying a large note on a home and my retirement it basically set, i have a lot more disposable money/flexibility each month
i'd probably use 100-50k to use as a downpayment on a home (to make a 15-year mortgage cheap)
the remaining 350-400k would be invested across different levels of return/risk
if i'm not paying a large note on a home and my retirement it basically set, i have a lot more disposable money/flexibility each month
Posted on 8/29/19 at 7:57 am to SlowFlowPro
quote:
$500k wouldn't be "never work again" money but i wouldn't have to make that much each year to live comfortably
People don’t understand that the average retiree in today’s dollars spends $250,000 on medical care on a 30 year retirement. Factor in inflation and a longer retirement span than 30 and that 500,000 is not nearly enough.
Posted on 8/29/19 at 8:05 am to OleWarSkuleAlum
quote:
People don’t understand that the average retiree in today’s dollars spends $250,000 on medical care on a 30 year retirement. Factor in inflation and a longer retirement span than 30 and that 500,000 is not nearly enough.
that $500k (or 350-400k) isn't just sitting there. it has 30 years to grow. 350 at a modest 5% average growth over 30 years is about $1.5M
again, i said this would be a supplement while i continued to work (just not as hard and enjoyed life more), not a full retirement
i used to get into this argument by saying $1.5M (or so) could be "never work again" money. that argument was based around a 5% return getting me $75k each year. then they would argue $1.5M wasn't enough to retire on. the whole point is that i'd treat the $75k as salary and invest money each month as if it were regular salary.
Posted on 8/29/19 at 8:09 am to SlowFlowPro
quote:
that $500k (or 350-400k) isn't just sitting there. it has 30 years to grow. 350 at a modest 5% average growth over 30 years is about $1.5M
You’re making a lot of assumptions there. The general rule of thumb is a 4% withdrawal rate and most retirees are not 100% equities as your example would suggest.
Most importantly you do not even acknowledge sequence of return risk, etc
This post was edited on 8/29/19 at 8:10 am
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