What to do with 100k bonus

[Anonymous]

I will be getting 50% bonus off my 200k base. This is first time I am getting such sum of cash at once. What should I do with it?
I have 500k outstanding loan balance on the house and 120k student loans. I know that common sense say to dump it a on student loans but my wife needs a new car. What should I do?

[Anonymous]

So $55k or so after taxes? I’d purchase an affordable car (either lightly used for cash or new at 0%) and put the rest to student loans.

But it depends on if “needs” a car is really just “wants” a car or not.

[Anonymous]

What do you do for living? Lawyer?

[Anonymous]

Student loan. You wife can have a reasonable car with a 5 year loan. You really would pay down debt for a car?

[Anonymous]

Car and student loans.

[Anonymous]

Anonymous wrote:So $55k or so after taxes? I’d purchase an affordable car (either lightly used for cash or new at 0%) and put the rest to student loans.

But it depends on if “needs” a car is really just “wants” a car or not.

Really needs one as she has been without a car for 6 years to save us money.

[Anonymous]

if you really need another car, I'd buy one for less than 25K (maybe one that is lightly used 2 years or so). Then I'd put 30K on the student loans.

And maybe before the student loans I'd do a little vacation or maybe just a really fabulous dinner out (Inn at Little Washington or something truly extravagant).

[Anonymous]

Can you get a car with a 0% rate loan, or lower than the student loan rate? Then I would say pay down the student loan. If you are cash poor, then paying all cash for the car might be the answer.

[Anonymous]

Hookers and blow.

[Anonymous]

Anonymous wrote:Hookers and blow.

This is the only reasonable answer.

[Anonymous]

Buy whatever car you would have bought with your normal income, don’t go nuts upgrading to something more expensive just because. Check to see what kind of rate you can get financing the car. If it’s higher than your student loans, pay for the car and the put the balance on the student loans. If it’s lower than the loans the whole bonus goes to those.

This is assuming she actually needs a car, not just wants one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hookers and blow.

This is the only reasonable answer.

Blow and hookers is a more reasonable sequence.

[Anonymous]

$1k for fun
$20k for a car
$30+k for the loans.

[Anonymous]

Anonymous wrote:$1k for fun
$20k for a car
$30+k for the loans.

With that much debt, I’d say only forgoe the $1k for fun. But agree with the rest. A used low mileage car for no more than $22k. The rest directly to the loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$1k for fun
$20k for a car
$30+k for the loans.

With that much debt, I’d say only forgoe the $1k for fun. But agree with the rest. A used low mileage car for no more than $22k. The rest directly to the loan.

No, people need petit indulgences to get through. $1 isn't going to end the student debt and will add quite a bit to the morale of the household.