What would you do with 500k cash gift?
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Anonymous
| Not exactly a gift but I will receive ~500k that’s non taxable in 6-12 months - mid-30s married professional with 2 young children. I have an underfunded 401k so plan on maxing out contributions to all retirement vehicles, paying off my student loans (40k) and putting money into my children’s 529s. I’m interested in investing the rest in the stock market or real estate. Just curious what you would do to invest that amount - or 300k of it. HHI is 230k (split almost evenly) and house has 200k equity - no other debt beyond my student loans. |
Anonymous
| I’d get a divorce, but I don’t really think that’s what you’re asking. |
Anonymous
| Is your house serving your needs? Does it need some improvements? Do you have an emergency fund? Are you insured? |
Anonymous
|
Me personally, I would pay off my house. Then we could afford to live on one income and I could basically retire.
Not sure what to suggest for you though lol |
Anonymous
We'd buy a new car in cash - current one is 12 years old and we're hoping it lasts a little longer. Maybe do fun stuff $100k more - some work on the house, some travel - and save the rest. It's not the most exciting list! |
Anonymous
| hookers and blow |
Anonymous
| Roll around it in naked while drinking champagne and eating caviar. |
Anonymous
Okay this was funny. |
Anonymous
| Personally I’d pay student loans and then do a nice kitchen remodel (kitchen is 40 years old so a remodel wouldn’t be wasteful). |
Anonymous
| I would pay off my house if the $300k was enough to do so. I would not squander the money on expensive renovations and travel as other posters have suggested. If your house is paid off you can have more flexibility and/or more cash flow to do those things. |
Anonymous
| Fix up the house, buy a new truck, then invest the rest. |
Anonymous
I'm the PP with the renovations and travel - and we wouldn't do expensive either. We need a ceiling fixed ($12k) and some updates to a bathroom (let's say, generously, $10k). No gold toilets - just normal house stuff. Our idea of a good trip is getting in the car and driving someplace we've never been before. In other words, car aside - let;s say $35k - we'd save most of it. I guess we could, alternatively, pay off our house. $300k would do it! Or do all of the above, really. Whee!! |
Anonymous
I wouldn’t pay off my house because 300K wouldn’t come close to paying off the mortgage nor would it significantly reduce payments. Our house is worth quite a bit and it’s nice but the kitchen is old and literally falling apart, so it would increase the sale price of the house at least a little. And then, you know, we would have a nice kitchen. The worth of travel increases in value as time goes on, so that is a big boost in your quality of life. Im not extravagant when I travel, but I wouldn’t put that off until I was in the perfect financial situation. You never know, you could get MS or something and not be able to travel later on. Memories are important. This is all to say that the “best” thing to spend the money on is going to be different for everyone! |
Anonymous
| Just invest it in index funds. |
Anonymous
| Put it in safe investments and live knowing you can go on vacations, do home renovations, or just have the occasional splurge. |