Post by theintended on Sept 18, 2012 19:55:43 GMT -5
I'd either use it to pay for most of the house addition I want, or I'd still take out a 50K home equity loan, use that plus 30K of the windfall cash plus money we've already saved to pay for the addition. Then I'd invest the remaining 70K.
Renovate my kitchen. So just spend it, lol.... Otherwise, we'd prob pay off our debts since we ave a god amt of investments nw, and that would free up a thousand dollars a month for spending/investing in perpetuity.
I would pay off my SL's and our cars, and that would leave us with about 30k leftover and we'd still have our mortgage. I'd consider paying off our 2nd mortgage to get us 20% equity in our house, but I'm not sure if that's worth it or not since we don't pay that much on it monthly. I'd probably stick the rest in savings, minus 5-7k for a vacation to Europe.
Even if 100k paid off ALL our debt including mortgage, I don't think we'd pay off the mortgage. I'm not super well versed in taxes but I believe the tax benefits make it the lowest priority for payoff (since my SL interest is higher than the mortgage interest rate and I can't even deduct all the SL interest I pay). I also don't mind paying for housing as much as I mind paying for a degree that seems more like my past than something I'm using daily, if that makes sense.
Since I have no consumer debt right now. I would save it until I found a nice house I liked and could afford. I would use a portion to put a down payment on the house. I would use some to buy a nice new to me practical four door car. I would save and invest the rest.
Invest it all. Not sure in what, but I'm sure we'd find something to throw it in. Probably just double the contracts in one of our accounts until one of us comes up with another investment idea.
Our only debt is our mortgage. Since the rate is so low on that, we'd be much better off investing the $100K.
But if I really just "came into" this, as in, I didn't work at all to earn it and wasn't counting on it for anything in particular, I would be inclined to spend some part of it on travel or fun stuff and not just invest the entire $100K. I don't see that as an option on this poll.
Post by dragonfly08 on Sept 19, 2012 6:03:56 GMT -5
Our only debt is the mortgage on our primary home and two of our three investment properties, so $100 K wouldn't leave us debt free. We might pay off/down one of the smaller mortgages on a rental, put some in the kids' college funds, and then invest the rest.
Our debt is a van at 0% and a reasonable mortgage.
I'd blow $10k on a family vacation and an adult vacation and probably another $5k on guilt free clothing shopping. The rest would end up in investments of various sorts.
Post by kimibrighteyes on Sept 19, 2012 7:02:16 GMT -5
The only debt we have is about $30k for a car loan, but the interest rate is only 0.9%, so I wouldn't pay it off. I would renovate a couple of rooms in the house and invest the rest.
Post by simpsongal on Sept 19, 2012 7:41:30 GMT -5
I have about $100K left in SLs, so this is a very appropriate question. I get SL money from my agency, so I wouldn't pay off my $22K in federal loans. I would pay off my $23K NJClass loan (6.9% $(%&@!)). I wouldn't pay off my $50K in private loans b/c the interest rates are so low.
We'd probably (1) buy a new car w/cash (~$25k); (2) build a patio & do some more renovations (~$25K), (3) buy stock ($25K)
Post by heyrebekah on Sept 19, 2012 9:42:06 GMT -5
I would probably put a chunk of it towards our mortgage so we could refinance at a lower rate and then invest the rest. And um, honestly, by "invest" I mean invest in a bunch of furniture & stuff for our house.
We don't have any debt. I would probably keep on the look out for some of the foreclosures in our area that would allow me to pay in cash ($30k or so) and then dump $20k into it. Then I'd purchase a car for about $15k and save/invest the rest.