Tell me what to do with a $120,000 unexpected windfall

[Anonymous]

My plan for this money:

In the next 1-2 years, I may pull out $20,000-$25,000 to buy a car.

In 10ish years, I may use some of it to pay for my kids college expenses (2 kids, their grandmother has started 529s for them at birth and continuously funds them, so they might not need my help).

If my kids don't need it for college, I'm not sure how I'll use it.

Other details: married, both in early 40s, about $1 million in 401k savings, mortgage left on house is about $200,000 and 17 more years, very low interest. The house is also potentially income generating (we can rent out a nice 2-bedroom apartment within our house in DC once the kids leave for college, as we did before we had kids). So, I'm not too worried about retirement, between savings and rental income.


Where should I put this money? I don't want it to be that accessible so I'm not tempted to spend it down.

[Anonymous]

Buy land.

[Anonymous]

Invest it in index funds and wait.

[Anonymous]

Anonymous wrote:Invest it in index funds and wait.

+1

[Anonymous]

So weird that no one on DCUM ever has huge, unexpected losses, only windfalls.

[Anonymous]

Don't let granny over fund the 529. Not easy to use it for Roth later.
Are you eligible for Roth? Have you and spouse open Roths for 2024/2025. Leave the Roths to your kids as you don't need more for retirement. Add them as beneficiaries once they turn 18.
If not eligible for Roth, just investment account.
The car money into HSA, the rest into investment account and buy an etf or two.

[Anonymous]

We bought land.

[Anonymous]

Anonymous wrote:We bought land.

I’d actually consider this too. Someplace north - Maine with access to a lake/pond.

Otherwise an index fund.

[Anonymous]

Anonymous wrote:So weird that no one on DCUM ever has huge, unexpected losses, only windfalls.

LOL and it's always people who already have college fully funded and $1M in retirement in their early 40s.
This is a year's income for our family.
But if this happened to me I would indeed buy land.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought land.

I’d actually consider this too. Someplace north - Maine with access to a lake/pond.

Otherwise an index fund.

I'm confused--how is this a good idea?

[Anonymous]

Anonymous wrote:

Anonymous wrote:So weird that no one on DCUM ever has huge, unexpected losses, only windfalls.

LOL and it's always people who already have college fully funded and $1M in retirement in their early 40s.
This is a year's income for our family.
But if this happened to me I would indeed buy land.

New York Magazine used to have a "Money Feature" where they would interview someone in New York about how they saved up/earned money to buy an apartment or pay off their student loans. It was always funny because 75% of them would have the person talking about saving $50 from every early paycheck, etc, and then slowly transition to "thankfully my parents helped with the down payment" or "my spouse who works on wall street paid off the last $xxx,xxx of my loans"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought land.

I’d actually consider this too. Someplace north - Maine with access to a lake/pond.

Otherwise an index fund.

I'm confused--how is this a good idea?

With global warming, land up north will increase in value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought land.

I’d actually consider this too. Someplace north - Maine with access to a lake/pond.

Otherwise an index fund.

I'm confused--how is this a good idea?

With global warming, land up north will increase in value.

I heard that about Michigan as well. So you buy the land and just let it appreciate? We are immigrants and my family has money to invest but as Muslims, my father doesn't want anything to do with the stock market. I think land would be a good idea.

[Anonymous]

Treat yourself to a Ford F150 Raptor truck. The top of the line one comes with a 5.2 V8 super charged engine. Should cost you around $115k.

You'll be the envy of your neighborhood.

[Anonymous]

Anonymous wrote:So weird that no one on DCUM ever has huge, unexpected losses, only windfalls.

This forum gives terrible advice about what to do with losses or other emergency financial situations.