If you came into a largeish amount of money unexpectedly....

[Anonymous]

Would you spend any or just go on as if it didn't exist. ($60k)

[Anonymous]

I inherited $50,000 a few years back. I put it all into a money market fund for 6 months, then diversified according to my investment allocation.

[Anonymous]

Go on as if it didn't exist. Invest it.

[Anonymous]

I would take 10% or so and buy something I've always wanted. The rest would go straight into retirement.

[Anonymous]

Anonymous wrote:I would take 10% or so and buy something I've always wanted. The rest would go straight into retirement.

How can $60k go into a retirement account? IRA has a $5500 cap. 401ks/pension/profit sharing are tied to work + have a lower limit...?

[Anonymous]

I would save half.

I would take 1/3 ($20K) and make the house repairs that we need to make and are currently saving for.

These are not the "want" repairs like decorating, new floors, etc, but the "need" repairs that will end up costing us more money if we don't get them done, like the new roof and electrical/plumbing upgrades. Whatever of that $20K is not spent on repairs would go to make advance payments on our mortgage

I would by each of my kids one fun extravagant gift, like the $100+ Lego sets that they are always coveting but will likely never get.

I would take another $5K and take the family on a vacation.

I would put the remaining $4-5K in an easily accessible savings account to be used for emergencies.

[Anonymous]

It depends (of course). Do you already have ample retirement savings and an eight month emergency fund? Do you have high interest debts? What is your home situation-rent, own, mortgage, thinking you need something bigger someday?

All of these issues would take proirity over spending it.

[Anonymous]

Anonymous wrote:It depends (of course). Do you already have ample retirement savings and an eight month emergency fund? Do you have high interest debts? What is your home situation-rent, own, mortgage, thinking you need something bigger someday?

All of these issues would take proirity over spending it.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would take 10% or so and buy something I've always wanted. The rest would go straight into retirement.

How can $60k go into a retirement account? IRA has a $5500 cap. 401ks/pension/profit sharing are tied to work + have a lower limit...?

I didn't say a tax-deferred retirement account. The majority of our retirement savings are not tax-deferred.

[Anonymous]

If I only had mortgage debt, I would use a little for a splurge, e.g, a trip or desired item. I would put the rest into existing investment accounts or in a savings account, if you don't have any until you figure out how to best invest it.

[Anonymous]

When I inherited a smaller (but still in tens of thousands) amount from a grandparent, I used a small portion to buy something I wanted but could not otherwise justify and invested the rest. Some of that we used years later towards a house.

[Anonymous]

Invest in BRK/B and let Warren Buffett manage your money for you. Your investment will appreciate nicely and because they pay no dividends you'll have no annual tax consequence. You really will be able to put it away and forget about it knowing it is appreciating in value and it will without question be there sometime in the future when it's needed.

Berkshire is the best bet out there for anyone who wants to invest, but is not watching the markets closely.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would take 10% or so and buy something I've always wanted. The rest would go straight into retirement.

How can $60k go into a retirement account? IRA has a $5500 cap. 401ks/pension/profit sharing are tied to work + have a lower limit...?

I didn't say a tax-deferred retirement account. The majority of our retirement savings are not tax-deferred.

Then they are just general long term savings.

[Anonymous]

I'd take about half of it to replace windows, flooring, and some other basic home renovations that need to be done.

The other half I'd add to savings.

My husband would most likely argue for spending all of it--adding travel and/or a new kitchen to the items I listed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would take 10% or so and buy something I've always wanted. The rest would go straight into retirement.

How can $60k go into a retirement account? IRA has a $5500 cap. 401ks/pension/profit sharing are tied to work + have a lower limit...?

I didn't say a tax-deferred retirement account. The majority of our retirement savings are not tax-deferred.

Then they are just general long term savings.

Isn't that the same thing? I'm 48. Long term pretty much equals retirement.