Author Topic: Need Advice  (Read 451 times)

Shanks Keating

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Need Advice
« on: July 01, 2018, 03:19:09 PM »
Hey Mustachians!

Thanks for all the inspiration.  My wife and I just made 185k off the sale of a house we remodeled.  We paid off debt, and put 6,000 away for rainy day money.  We are debt free.  We have two HS aged daughters and one 3 yo.  I still work full time.  My wife does not work outside of the home.  We have not had this much money available to us at one time before.  What should we do with it? 

Thanks so much for the help! 


BTDretire

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Re: Need Advice
« Reply #1 on: July 01, 2018, 05:37:25 PM »
Hey Mustachians!

Thanks for all the inspiration.  My wife and I just made 185k off the sale of a house we remodeled.  We paid off debt, and put 6,000 away for rainy day money.  We are debt free.  We have two HS aged daughters and one 3 yo.  I still work full time.  My wife does not work outside of the home.  We have not had this much money available to us at one time before.  What should we do with it? 

Thanks so much for the help!

 Congratulations!
   Save some for taxes, and it's probably due in a quarterly payment.
 What you do with it depends, are you going remodel another house?
Do you have any stock investments?

CoffeeR

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Re: Need Advice
« Reply #2 on: July 01, 2018, 05:39:34 PM »
Thanks for all the inspiration.  My wife and I just made 185k off the sale of a house we remodeled.  We paid off debt, and put 6,000 away for rainy day money.  We are debt free.  We have two HS aged daughters and one 3 yo.  I still work full time.  My wife does not work outside of the home.  We have not had this much money available to us at one time before.  What should we do with it? 
What do you want to do with it? What are your priorities? What are your goals?

I am going to assume you are US based and make some broad based general assumptions you want to save and be FI. Answers change depending on locality.

Depending on priorities and time line, max out all your retirement accounts and/or open new ones you might qualify for. See the investment order here:

https://forum.mrmoneymustache.com/investor-alley/investment-order/

Some retirement accounts can only be funded with a paycheck, so if need be, use part of your money from the house sale to live on so you can max out your retirement accounts from your paycheck.

If your retirement accounts are maxed out, open a taxable brokerage account and start investing your money. Many good brokerage accounts are available. I personally use Schwab. Fidelity is another good choice. I would avoid Vanguard (customer service issues), though a lot of people here will give me flak for saying that. What to invest in depends on many factors and you would need to disclose a whole lot more about your situation. If you are a new to all this (e.g investing), I would go to the boggleheads forum. Read. Read some more.

Rob_bob

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Re: Need Advice
« Reply #3 on: July 01, 2018, 05:44:01 PM »
For a good answer you will need to provide more info.

The short answer depends on what your goals are.  Funding your retirement whether early or not needs to be a priority.  You can only fund a retirement while working, you can't fund it during retirement.  You need time to compound investment returns so the sooner you start the better off you will be.  The higher % of your income you can save for retirement the sooner you will have enough. 

Shanks Keating

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Re: Need Advice
« Reply #4 on: July 01, 2018, 07:17:58 PM »
This all helps point me in a good direction so we can make some informed decisions.  Thank you!  I'll start with Bogleheads and the investment order link and see where it takes us.  It has been fun reading this site over the last year or so.  Reading about what other people are doing is a lot different than having the opportunity to make some big decisions ourselves.