What to do with $1 million

[Anonymous]

We expect a lump sum of about $1 million next year. We have about 600k left on our mortgage and no other debt.

Would you pay off the house? Pay off half the house?

DH and I both like the idea of being completely debt free. However, we know it is better in the long run to invest the money. But we still both go back to wanting to be debt free. We are late 30s with 3 kids.

[Anonymous]

Give it to me.

[Anonymous]

Diversification

[Anonymous]

Anonymous wrote:Diversification

+1 I would not pay off the house. I would invest and put it towards retirement and college funds. What is your mortgage interest rate?

[Anonymous]

We paid our house off already, so with 1M, we'd retire. That's 40k annually at 4%, which is more than enough to happily live off for the rest of our lives.

[Anonymous]

Anonymous wrote:We paid our house off already, so with 1M, we'd retire. That's 40k annually at 4%, which is more than enough to happily live off for the rest of our lives.

What do you people invest in to get 4% return?

[Anonymous]

Do not pay off the mortgage. Invest the money in a diversified portfolio of Vanguard mutual funds. If you want to know why this is the best approach, compare the after tax return on paying off your mortgage (i.e., the savings on payments excluding the mortgage interest tax break) with the after tax return on a diversified portfolio of mutual funds. You will be making a few extra percent a year using the bank's money.

[FruminousBandersnatch]

If I had a million dollars (if I had a million dollars)
Well I'd buy you a house (I would buy you a house)
And if I had a million dollars (if I had a million dollars)
I'd buy you furniture for your house (maybe a nice chesterfield or an ottoman)
And if I had a million dollars (if I had a million dollars)
I'd buy you a k-car (a nice reliant automobile)

And if I had a million dollars I'd buy your love
If I had a million dollars I'd build a tree fort in our yard
If I had a million dollars you could help, it wouldn't be that hard
If I had a million dollars maybe we could put a little tiny refrigerator in there somewhere
(You know we could just go up the and hang out)
(Like open the fridge and stuff and, girl, there'd be foods laid out for us)
(With little pre-wrapped sausages and things, hmm)
(They have pre-wrapped sausages but they don't have pre-wrapped bacon)
(Can you blame them? Yeah)

If I had a million dollars (if I had a million dollars)
I'd buy you a fur coat (but not a real fur coat that's cruel)
And if I had a million dollars (if I had a million dollars)
Well I'd buy you an exotic pet (yep, like a llama or an emu)
And if I had a million dollars (if I had a million dollars)
Well I'd buy you John Merrick's remains (all them crazy elephant bones)

And if I had a million dollars I'd buy your love
If I had a million dollars we wouldn't have to walk to the store
If I had a million dollars we'd take a limousine 'cause it costs more
If I had a million dollars we wouldn't have to eat Kraft dinner
(But we would eat Kraft dinner)
(Of course we would, we'd just eat more)
(And buy really expensive ketchups with it)
(That's right, all the fanciest dijon ketchups, hmm)

If I had a million dollars (if I had a million dollars)
Well I'd buy you a green dress (but not a real green dress, that's cruel)
And if I had a million dollars (if I had a million dollars)
Well I'd buy you some art (a Picasso or a Garfunkel)
If I had a million dollars (if I had a million dollars)
Well I'd buy you a monkey (haven't you always wanted a monkey?!)

If I had a million dollars I'd buy your love
If I had a million dollars, if I had a million dollars
If I had a million dollars, if I had a million dollars
If I had a million dollars, if I had a million dollars
I'd be rich

[Anonymous]

Similar answer to the OP with $430k drop. I would shore up my children's college funds. I would pay off our house. I would take the family on a nice vacation ($20k?). I would donate to my favorite charity. I would fund the emergency fund if it hadn't already been funded.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We paid our house off already, so with 1M, we'd retire. That's 40k annually at 4%, which is more than enough to happily live off for the rest of our lives.

What do you people invest in to get 4% return?

Index funds...

[Anonymous]

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

[Anonymous]

Refi the house and pay enough of the loan balance down to enable an affordable 15 year mortgage. Invest the rest. Vaca is a cool idea, too.

[Anonymous]

Crystal and caviar.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

[Anonymous]

I'd buy a bank-sponsored forum and ask questions just like this to drive business to my firm.