How to spend windfall

[Anonymous]

Anonymous wrote:OP again. I just told my nanny and she is in tears of joy. I feel great about this. Thank you to anyone who wrote.

Well done, OP. This is a really special and impactful way of using your money. Not sure how much that was, but if you have kids in public school or ties to any teachers in your neighborhood, a big gift certificate to a teacher supply store could be another really meaningful way to share your windfall.

[Anonymous]

You put a BOFA into a “sinking fund.”

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you have no needs or desires, give it to charity. This is like asking "what do I do with extra money if I don't need extra money?"

If you don't want to donate it, drop it in the taxable account and add to the balance.

+1 Donate it in your deceased relative’s name. If you spend 30k on vacations per year you’ve really got more than most people in the world.

+1.

You don't have any needs or wants that have not been covered except charity. I would create a Donor Advised Fund (DAF) and add some more money into it. Your DAF might be tax-deductible if you itemize your tax return this year. And then you can donate, say @ $2k or $5k a year in your deceased relative's name. It will be a mitzvah and it will make you feel good inside to boot.

[Anonymous]

Anonymous wrote:OP again. I just told my nanny and she is in tears of joy. I feel great about this. Thank you to anyone who wrote.

That's wonderful!

[Anonymous]

Don’t forget to file a gift tax return

[Anonymous]

Anonymous wrote:How about a cow?

Don't ever buy this, because largely the milk is free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Choose a family you love or respect, for which this money would make a big difference. Donate anonymously.

OP here. Thank you to whoever wrote this. I know exactly what I will do. Our former nanny and now sometimes babysitter has been struggling to pay off her car. I want to pay it off for her.

This is exactly the kind of creative idea I was looking for.

I love this. I was going to suggest saving it until Christmas and doing one of those Christmas Angel programs where you adopt a family and buy them gifts...but lots of families.

[Anonymous]

I would save it.

[Anonymous]

I am trying to figure out the mindset of someone who considers getting significantly less that 1% of her net worth to be a windfall.

[Anonymous]

Anonymous wrote:I am trying to figure out the mindset of someone who considers getting significantly less that 1% of her net worth to be a windfall.

Really? I am only worth about $300k but I would be pretty psyched to get a windfall of $3k.

[Anonymous]

Anonymous wrote:
You don't have any needs or wants that have not been covered except charity. I would create a Donor Advised Fund (DAF) and add some more money into it. Your DAF might be tax-deductible if you itemize your tax return this year. And then you can donate, say @ $2k or $5k a year in your deceased relative's name. It will be a mitzvah and it will make you feel good inside to boot.

OP again. I already have a DAF that I funded with $30,000 in 2017 due to the tax changes in 2018. But, it's a good idea to put any "extra" money in there going forward, though there won't be a tax benefit any longer.

Oh, and to the PP who spoke of a gift tax form, there is no need. You can give $15,000 to anyone with no tax implications or notice whatsoever. We will just have the gift come from both me and my DH.

Nanny and I are arranging for a time to meet and she relayed that when she woke up the next morning, she had to ask her DH if it were a dream that I offered to do this. It's good to share with others!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it would be fun to donate part to a poorer/local charity. You’ll get treated like a bigwig and probably get a plaque or something. Not to mention the goodwill from the universe.

I think this would be a very noble thing to do. However, a portion of $22,000 won’t get you a plaque or make you a big wig. You need to be giving a whole lot more than that.

Our local park has pillars for the $2000 circle donors — all businesses. For $5000 and they probably would have named the park after you! Maybe find something like that, as a memorial to your benefactor?

McLean Central Park does this too - for a few hundred, they put your name on a plaque. Guess it beats paying the high taxes of a new house?

[Anonymous]

Anonymous wrote:I received an inheritance of $22,000 and have been stuck on how to spend it. Quick facts:

Full zero-based budget

Maxed out all tax-advantaged retirement accounts - two 401K's, two Roth IRAs, family HSA

$34,000 cash in home repair sinking fund for 14 year old home

Two years Medical OOP max in cash

$30,000 cash for vacations

$2500 cash for auto sinking fund

Own $635k home free and clear

Save additional $18,000 in taxable accounts

$1M in tax-advantaged accounts

$2M in taxable accounts

$260k in 529s for DD

Do I just save it? I have no real needs or desires. I just upgraded my car earlier this year.

donate it to me. I have loans lol

[Anonymous]

To the OP--what a generous thing to do for your former nanny!

We also have a DAF and we didn't fund it further in 2017 so afraid we missed the mark on that; should have thought about that due to tax reform.