Play with my hypothetical money?

[Deleted]

The student loans that are in your dad's name -- why do you mention that they're in your dad's name? Who is responsible for paying them off?

[Deleted]

Oh, and is the $100,000-$200,000 before or after taxes? Do you know how much will be left after taxes if it is before taxes?

[SJ]

Pay off the credit card, save some in cash, and invest the rest.

Who is responsible for the SL's in your dad's name?

[Deleted]

I'd pay off CC & car then invest the rest. Eventually use what i needed out of that as downpayment.

[80sjunkie]

Can you save more for retirement? Not that you need to do so but it might be worth it for the tax advantages for the next few years.

[cjeanette]

I would pay off the cards and invest in something short term as a house fund

[jewel]

I would pay off the CC and car.

I'd cash the rest in $1 gold coins and swim in it like Scooge McDuck.

Or, I'd spend 5% or so on a nice vacation. I'd put the rest in lower risk investments (like Vanguard mutual funds) and let it sit until you're ready for a down payment on a house.

[SJ]

If your understanding with your dad is that you are responsible for the loans, I'd be inclined to pay them off. You aren't getting any tax benefit from them and I'd prefer things to be clean and not like I had to "owe" my dad money each month.

Even though you are doing well on retirement, I'd make sure you were taking advantage of all available options (Roth, SEP, 401K etc)

[gt7301b]

1) pay off credit card

2) set 5-10k aside for a vacation

3) invest 1/2- 3/4 of the remainder on a monthly basis over the next year in an taxable account

4) save some portion for a down payment in a more risky averse account

[SJ]

And I would definitely take a vacation!

[cjeanette]

Nov 12, 2012 17:58:15 GMT -5 jewel said:

I'd put the rest in lower risk investments (like Vanguard mutual funds)

You do understand that not all of their funds are low risk....right?

[Deleted]

1. Pay off credit card
2. Pay off student loans (or the portion that you are meant to pay of the student loans). It sounds like they're mostly your financial responsibility even though they're in your dad's name, so I don't see the "they're in my dad's name" thing as being of much importance.
3. Party time! Fun vacation or something like that.
4. Invest a round number (like say there is $47,494 left after the other part -- I'd invest $40,000 of it) in short term investments
5. Party time again! Keep the unround $7494 in some sort of fun money account and use it for more fun things

Just my opinion. I am far from an expert.

[lys]

ditto Jenny - pay off ALL debt, take a vacation ( but not too pricey) and save the rest for an emergency fund, house downpayment and expenses, as well as for future vehicles. Make sure you are maxing out your retirement.

[Deleted]

Nov 12, 2012 18:13:01 GMT -5 swizzlestx said:

I'm pretty sure I'm not responsible, but it would probably just be easier/better to get it paid off.

I do want to start a Roth for both us, and it's in our short-term financial plan.

It depends on what you mean by "responsible" for them, and what the arrangement that you have with your dad. You may not be legally responsible for them (meaning that if payments aren't made, maybe the collections agencies will go after your dad and it will hurt your credit), but if you're expected by your father to put up almost all of the money that's going into repaying them (even if it is via your dad), I'd consider you financially responsible for them. And in that case, I'd give your dad or the student loan company the amount that is your expected future contributions and get it done with.

If you're giving your dad money for them just to be nice even though he doesn't expect you to contribute anything, then okay -- you aren't responsible financially for them and I wouldn't give him anything more than you usually would, unless you think it would make you feel bad or make him mad that you came into all this money and yet are making him pay back the loans.

[jewel]

Nov 12, 2012 18:07:20 GMT -5 cjeanette said:

Nov 12, 2012 17:58:15 GMT -5 jewel said:

I'd put the rest in lower risk investments (like Vanguard mutual funds)

You do understand that not all of their funds are low risk....right?

Definitely, I just meant lower risk investments, in general, and that Vanguard mutual funds might be a good place to look. They do have some good low-risk options, IMO.

That's just what I would do, not what might be best for anyone.

[dexteroni]

Nov 12, 2012 18:04:39 GMT -5 jenny1980 said:

Pay off all debt. Ear mark the rest for a nice down payment. And take a sweet vacation.

This, except I would also fully fund Roths for 2012 and 2013.

[Deleted]

1. Pay off all debt, including SLs bc the rates are high.
2. 5k each for Roth IRAs for 2012 and 2013 (you have until April 15 to contribute for 2012)
3. Vacation!
4. If definitely spend a few K shopping
5. Invest the rest, earmarked for eventual house fund.

[juliahenry]

So, if I understand it correctly, your dad was trying to help but messed up the process with your student loans and now the debt you incurred to go to school is in his name and you pay him $300 each month? And you don't plan to tell him about your windfall? And you won't pay him anything above and beyond the $300 a month that you have agreed to pay?

I'm sorry but that does not seem honest. What would your parents think if they found out you had the $ but were not telling them?

[saywhatnow]

Nov 12, 2012 18:04:39 GMT -5 jenny1980 said:

Pay off all debt. Ear mark the rest for a nice down payment. And take a sweet vacation.

Just the advice I would give.

[juliahenry]

Nov 12, 2012 21:50:42 GMT -5 swizzlestx said:

Nov 12, 2012 21:47:36 GMT -5 mofongo said:

This really wasn't clear in your initial few posts.

That's why it's usually good to read the whole thread. :-)

I did read the whole thread. And it really wasn't clear - you stated that you had no intention of telling your folks about the money and that your student loans were not legally your responsbility. You didn't say that you were definitely going to pay back your folks until after I called you on it.

[cjeanette]

I was thinking about this and realized I am going to hell.

If it were my parents back right after the CC debt and before anything else. They would know about a windfall anyway.

My ILs? They would get their minimum payment for life.

Sent from my SPH-D700 using proboards

[Here]

I would just keep paying the student loans unless I wanted to pay it off faster because of the interest rate or the satisfaction of having them paid off. The fact that they are in yours dads name does not matter.

[juliahenry]

Nov 12, 2012 22:18:47 GMT -5 swizzlestx said:

Nov 12, 2012 22:05:39 GMT -5 juliahenry said:

I did read the whole thread. And it really wasn't clear - you stated that you had no intention of telling your folks about the money and that your student loans were not legally your responsbility. You didn't say that you were definitely going to pay back your folks until after I called you on it.

I'm not going to argue with you but I actually said it in a post directly above yours.

And no, I don't intend to tell them about any money and I don't think I need to. Should I tell my employer too and let them pay me less because I have more money?

My dad and I had an agreement and I personally think I'm only responsible for holding to that agreement. I'd rather pay it off and be done with that if I have the means to do so, but I don't think I need to tell my parents why or from where the money came.

Swizzlestx, I'm sorry. I read through again this morning and yeah, that did sound pretty judgy and very black-and-white.

It's your money, you should do what you want/need with it. I hope you're able to get rid of all the debt obligations fairly and discreetly.

[juliahenry]

Nov 13, 2012 14:01:55 GMT -5 swizzlestx said:

Nov 13, 2012 9:07:49 GMT -5 juliahenry said:

Swizzlestx, I'm sorry. I read through again this morning and yeah, that did sound pretty judgy and very black-and-white.

It's your money, you should do what you want/need with it. I hope you're able to get rid of all the debt obligations fairly and discreetly.

No worries, family and money can be tricky! I view this a little differently as I had no say in the decision, though I realize it ultimately benefited me and not my parents.

I don't think I should be allowed to post on nights when I have to do kiddie bedtime all by myself.

And yeah, I don't think I'd be too happy about getting stuck into certain financial arrangements just because my folks made them happen...