what would you do with an infusion of cash?
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Anonymous
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So we're about to sell some property and are going to be netting about $200K. After we pay off our credit cards, what would you do with the rest? We plan on putting some in DS' 529, though we haven't decided how much yet.
We'd like to find a high interest bearing account for some of it, if one exists anywhere these days. |
Anonymous
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1. Establish emergency fund if you don't have one already
2. Maximize retirement 3. 529 for child (how much depends on age and goals) 4. Small vacation or other treat (2-3k) 5. The rest in a Vanguard index fund |
Anonymous
Take 10% and have some life experiences (trip of a lifetime, something else you really want and would bring you much pleasure -- but avoid buying "things" -- research shows you will get much more joy from experiences like travel than from possessions). For the remaining 90%, do what the conservative DCUM folks tell you to do. But have some fun with that 10% -- you can't take it with you anyway. |
Anonymous
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This happened to us. DH normally makes about $120K a year and he got a one time payment of $290K.
We paid off DHs student loans, paid the taxes, put $50K into a SEP-IRA, and put the full tax deductible amount into the kids 529s (we have 4 kids) and are taking a family vacation overseas. The rest is sitting in a "high"-interest (1.15%?) savings account as we use it for our yearly expenses and hopefully a home renovation. |
Anonymous
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-debt
-savings -house projects |
Anonymous
What account is that? My Ally only gives .85% now. I'd love to move it. |
Anonymous
This, plus travel |
Anonymous
This. |
Anonymous
| I would use it as a downpayment on a sweet house. |
Anonymous
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OP here. I'm sort of torn, because we are looking to possibly start a business in a year or two, but we also have been planning (for a couple years) to take a nice European vacation when time/money permitted. DS is going to K next fall, so we are sort of thinking next summer for the trip.
We're also thinking about a possible relocation out of DC (hence the new business), so there is a lot to think about. |
Anonymous
| Is this your primary? If not you are going to have to pay gains, may be better to roll into another investment property. |
Anonymous
| It is hard to know without knowing more about your financial situation. What is your retirement savings like? Have you saved anything for college? What is your income? How much do you owe on your primary residence? |
Anonymous
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Not our primary house, so taxes not an issue.
Retirement savings are OK; we'll def put some in 401k. We've saved about $15k for college. Not planning to use it to pay mortgage down. |
Anonymous
| Good point to 10:13. Capital gains taxes ARE an issue if this property hasn't been you primary residence in recent years. Maybe you've already accounted for that in your net figure. |
Anonymous
Not if it's property being sold soon after being inherited. (not OP, but just did the same thing) |