Author Topic: Windfall  (Read 848 times)

lizmc1779

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Windfall
« on: March 04, 2019, 01:06:17 PM »
Iím about to come into about $400K. Struggling with what to do with it. Suggestions welcome!!

Stats - 40 yo, married, 3 kids (7 yo and 4 yo twins)
No debt except for mortgage ($370K at 3.75%) and small-ish student loan ($24K at 1.6%)
About $625K in retirement and $20K in cash
Kids have 529 accounts that I pay $100 each every month (larger UTMA accounts set up and funded by grandparents)

We have some work do to on our house - gutting kitchen and three bathrooms - thatís only large splurge/expense Iím planning on.

I guess Iíve never just had a ton of money to decide what to do with and it seems overwhelming.

Frankies Girl

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Re: Windfall
« Reply #1 on: March 04, 2019, 01:42:36 PM »
https://www.bogleheads.org/wiki/Managing_a_windfall

Nothing. You do nothing (that isn't absolutely required like retitling accounts/taking RMDs - required minimum distributions from inherited IRAs). Give yourself at least a few months to do some reading/research and figure out what out of the above link fits your family situation/goals best. The first thing mentioned is "TAKE YOUR TIME" and they're totally right.


ysette9

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Re: Windfall
« Reply #2 on: March 04, 2019, 01:49:36 PM »
Maybe go out to dinner as a family, but then follow what Frankie’s girl said. Do nothing for six months and let the ideas percolate in the back of your mind. Then see what the Bogleheads wiki recommends and/or come back here.

Dee18

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Re: Windfall
« Reply #3 on: March 04, 2019, 05:37:52 PM »
Just do with it what you were planning to do with the next $400k you earn. 

nereo

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Re: Windfall
« Reply #4 on: March 05, 2019, 08:37:14 AM »
I'd strongly recommend treating windfalls like any other earned income.  Hopefully you already have a plan for how you invest your money (maybe, hopefully, even an IPS?).  Keep doing that. Definitely do nothing (as Frankies Girl suggested) for several months while you adjust to this 6-figure increase... but your financial goals shouldn't change.

There's likely ways you can further reduce your taxable burden this year, like maxing out tax-advantaged accounts on earned income.

FIRE@50

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Re: Windfall
« Reply #5 on: March 05, 2019, 08:47:23 AM »
I agree with what everyone has said. Take some time to think about it and then just follow your current plan.

After that, I would maybe splurge on a fun car. I'm a Lamborghini man, but some people like Ferrari. ;p

ysette9

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Re: Windfall
« Reply #6 on: March 05, 2019, 09:19:30 AM »
I agree with what everyone has said. Take some time to think about it and then just follow your current plan.

After that, I would maybe splurge on a fun car. I'm a Lamborghini man, but some people like Ferrari. ;p
Mod alert! Someone remove this guy’s MMM credentials!

;-)