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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Thank you for the very solid comments here. I also did a double take at “income producing prostitutes.” Hilarious. I do like the idea of taking some set amount of money and deciding to spend it each year. We are financially conservative, although not for any particular reason. Like many, we have saved regularly and our investments have done well over the past two decades. We were unable to have additional children so that kept our expenses low. That said, we don’t deny ourselves anything. It would take some thought to spend an extra $50,000 a year. I think I’d like to put us on a waiting list for a new car. There are a few new electric cars coming out that interest us.

I know there are some software programs that model how much you can spend, I like to do my own research rather than hire help. My experience with hired financial advisors has not been great. Our estate documents will funnel this money to our child so that has been done. Spouse is already basically retired, working one or two days a week for pure pleasure.[/quote]

OP, try to maximize your tax sheltered/tax advantaged savings.. Here's a list I can think of.
- 401K - 29,500 + 6,500 catchup
- Mega roth (if available).  
- Backdoor Roth - for you and spouse
- iBonds - for you, spouse and kid - $30K/year.  While this is not tax advantaged per se, it is tax deferred for 30 years.
- Company ESPP (typically get 10-15% discount)

If any of the above results in a shortfall with your budget, offset that by drawing down earnings from the inheritance. [/quote]

[quote=Anonymous][quote=Anonymous]Thank you for the very solid comments here. I also did a double take at “income producing prostitutes.” Hilarious. I do like the idea of taking some set amount of money and deciding to spend it each year. We are financially conservative, although not for any particular reason. Like many, we have saved regularly and our investments have done well over the past two decades. We were unable to have additional children so that kept our expenses low. That said, we don’t deny ourselves anything. It would take some thought to spend an extra $50,000 a year. I think I’d like to put us on a waiting list for a new car. There are a few new electric cars coming out that interest us.

- 401K - 29,500 + 6,500 catchup
This is $20,500 + 6,500 catch up, I believe. I’m still 49 so only the $20,500 this year. Done.

- Mega roth (if available).  
Yes, I was eligible for this for the first time this year and have it set to max out. Between employee and employer contributions, I’ll hit the max of $61,000. Done.

- Backdoor Roth - for you and spouse
Yes, $6,000 to each Roth IRA through a TIRA contribution. Done.

- iBonds - for you, spouse and kid - $30K/year.  While this is not tax advantaged per se, it is tax deferred for 30 years.
Tried this once about 10 years ago but got stuck with some IRS bank requirement that I couldn’t figure out.

- Company ESPP (typically get 10-15% discount)
I defer 10% of my salary to ESPP and get 10% discount quarterly. I sell immediately and use as cash.

We live on the rest (no mortgage) so don’t have a lot of spare take home pay. We will need to draw down the investments to fund a fancy vacation or new car.  This is what makes it harder. It’s not like we have extra cash month to month. We would have to plan and sell something. We do have a donor advised fund with like $35k that we donate from regularly. [/quote]

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