Author Topic: Windfall + New Job + Where to Stash a Down Payment?  (Read 961 times)

lovesasa

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Windfall + New Job + Where to Stash a Down Payment?
« on: July 16, 2017, 03:30:17 PM »
Life Situation: Female age 27, Colorado. Started 2 new jobs in mid-April. One is 8:30-5:30, the other is an online teaching gig I work from 4:30-7:30am.

Some of you may remember my post from a few months ago. Now I've been working, moved, and received a windfall, so my situation has changed. I decided not to buy a new car, but I did move to a more expensive apartment (that's 30 minutes closer to work). I was able to base my budget numbers here off of my actual spending instead of anticipated spending.

Gross Salary/Wages: $3,200/mo (Job #1)- started both in April, so it makes more sense to do monthly here.
401K Contribution: 10%
401K Employer Match: 4%
Insurance Deduction: $92/mo* (Anthem Silver + HSA, employer pays bulk of premium)
HSA Contribution: $141.66* per pay period (max contribution based on 24 pay periods)  I'm trying to find out if there's a way I can still maximize it for 2017, as I only started contributing in June.
Profit-Sharing: I'm ignoring it for now as I won't be vested at all until 2 years of service, and it does not require any contribution from me.
Term Life Insurance: Paid by the employer $50,000. I don't have any dependents so my 3 nieces are currently listed as my beneficiaries.
Year-End Bonus: Not guaranteed, but very likely. Probably a few thousand dollars. They pay it in increments per quarter over the next year. I'm not exactly budgeting for this, but plan on using it to top off my Roth IRA for the year.

**I'm actually on a bi-weekly pay schedule. Health Insurance and HSA are only withheld the first 2 pay periods of every month. I know that twice a year I will get a "bonus" paycheck. I plan on using the one in August to pay for my trip to Paris (plane tickets are paid for, and my friend's points are paying for our hotel), and stashing the next one after that into my emergency fund.

Other Ordinary Income: ~$1300/mo  (Side Hustle)
Taxes are not withheld for my second job as I am an independent contractor, so I have my first job withhold the maximum with 0 deductions. Next year I might have them withhold more, depending on what my tax bill looks like this year.

Qualified Dividends & Long Term Capital Gains: I have some gains in my taxable investment portfolio. Total balance is around ~13K. I was working abroad for the past 3 years without access to tax-deferred vehicles. I recently switched the majority of my monthly contributions to go towards a Roth IRA ($105/week or $420/month). I still contribute $15/week to my taxable account. I may owe some gains on the non-qualified annuity I recently received (see below under assets).

Rental Income, Actual Expenses, and Depreciation: N/A

Adjusted Gross Income: $3958/month (not sure I'm calculating this correctly)
Taxes:
Federal:  $185.43 bi-weekly, $370.86 monthly
FICA: $99.20 bi-weekly
Medicare: $23.20 bi-weekly
State: $63.00 bi-weekly
(Calculated here: https://www.adp.com/tools-and-resources/calculators-and-tools/payroll-calculators/401k-planner.aspx)
(I will double check these against my pay stub when I'm at work.)

Estimated Net Pay After Taxes, 401K and Insurance: ~$3,100-$3,200/month

Current expenses:
(45%) Housing & Utilities: $1250/month + ~$100/month Utilities + $50/mo Internet (necessary for my 2nd job)
I realize now this is face-punch worthy. However, I'm in a lease until next June. 5 miles to work. It's the first nice place I've lived in 10 years.
Renter's Insurance: $20/mo? I paid for a year up front so it's not a recurring expense, in reality.
(5%) Transport: $75/month. Currently driving a paid off 2003 Buick Rendezvous. Spending $75/month on gas. I'm currently still on my mom's car insurance but will be switching to my own soon, which will increase this. Any tips for negotiating? I don't have any moving violations in the past ~5+ years and it's an old car. I was looking at getting a new car but my brothers (both mechanics) said I should be able to get another 100k miles out of this one, so I'm sticking with it. My commute is about 5 miles each way, so I'm trying to work up the nerve to bike. I'm perpetually late, so we'll see...
 
(15%) Food: $500 (I need to cut back here)
Groceries: $300/mo, including household goods and toiletries
Restaurants: $150/mo, mostly going out at lunch with coworkers (I need to work on this. I just moved here and am trying to make friends at work.)
Alcohol: $50/month

Other Expenses ($265)
Entertainment: $25/mo (includes audible subscription, occasional entrance fee or movie). - Trying to go to museums on free days (thanks Bank of America!) and using library passes. My friend lets me mooch her Netflix account in exchange for mooching my recycling bin.
Shopping: $190/mo (mostly books, household goods) - Also facepunch worthy. I'm hoping now that I'm more settled in my new apartment this will go down. I've also replaced most of the clothes that were lost during my move (United lost a bag). Trying to cut this down by using library ebooks and shopping at Goodwill.
Gifts: $25/mo - I try to buy things when I see them on sale and hold them until holidays/birthdays.
Personal Care: $25/mo (haircuts, nail polish, epsom salt for bubble baths, etc). I'm working on self-care.

Short Term Savings: ($610)
Emergency Fund: $230/pay period (~$460/mo). This got decimated when my life was turned upside down and I unexpectedly gave up a job abroad to come home this year (due to family medical emergencies) and was out of work for 9 months. Once this is rebuilt, I plan to re-direct this savings amount towards a "down payment" fund. Current balance ~$1500 (see "assets"), goal: $10,000.
Car Fund: $50/mo - Repairs, maintenence, etc.
Travel: $100/mo - Currently have over 60K United miles and 75K miles with Chase Sapphire. Currently planning a one week trip to Paris in October.

Long-Term Savings:
401K: 10% + 4% match
HSA: $3,400 ($141.66/pay period; ~$282/mo)
WiseBanyan: $15/week taxable, $105/week Roth IRA
Whole Life Insurance: $100/mo I bought a policy through Northwestern Mutual in 2013. I was talked into it for the "safe" growth and tax benefits. I had originally planned on keeping it as a part of my retirement portfolio, but now I feel like that was a bad decision. I hung onto it while I was abroad because it covered repatriation of my body in the case that something happened, and would have provided my mom the money to pay off my student loans (she co-signed). Now that I'm back in the US and I have paid off my student loans, I'm not sure what to do about it. It is paid through July. Not sure what to do after that... Should I cancel it and take out the minimal accrued cash value? Should I keep it until the 8 year mark when I'm supposedly in the black on it? I've got about $2300 in "cash value" in it.

Assets:
WiseBanyan (Taxable): $13,446.68 (balance as of today). 75% stocks, 25% bonds, invested in diversified ETF index funds through Vanguard and Schwab. I was investing $100/week into this while I was abroad, as I was ineligible for 401K or IRAs. Now I'm contributing $15/week.
WiseBanyan (Roth IRA): $1,397.68 (balance as of today). 80% stocks, 20% bonds, invested in diversified ETF funds, mostly Vanguard. Currently contributing $105/week ($420/month). Plan on using my year-end bonus to max this out for the 2017 year. In future years my weekly contribution will max it out.
Emergency Fund: $1500, adding ~$230 (25% of my take-home pay from my first job) per pay period. In a Capital One 360 account earning ~0.75% APR. I'm currently looking into credit unions with higher returns to stash this savings.

Other: Recently received $20,000 as a beneficiary to a non-qualified annuity. I don't know what to do with my share so I'm letting it sit (I have 5 years to get it out?). It was earning 5% with all earnings reinvested, but I don't think I have the option to keep that deal. I think I should get the funds out this year as I am in a lower tax bracket (having only worked since April) than I will be in next year. I do have the option to keep the funds in a "high interest" earning checking account with the original company (Jackson). I would like to have the money earning some interest, but somewhat accessible. I would like to use it towards the down payment on a duplex/triplex/quad in the next 2-3 years.

I will likely be receiving another large windfall in the next few years. My family has a jointly owned piece of property that is worth a good bit of money. The rest of my family wants to sell, but it will be a complicated process and will likely take a few years. Once it is sold, I will receive a large amount of money (Maybe $250K?) I really have no idea how to prepare for this, so my strategy thus far has been to pretend it doesn't exist and continue to live my life as if I weren't going to receive anything.

I don't really count my road bike (Giant TCR) or Buick as assets, but I guess they could go here.

Liabilities: 
  • I technically owe my mom $6,000. She doesn't want it back right now, though. She's not charging me any interest. For now I've mentally earmarked that much in my investment account as "her" money. She's ok with this.
  • I paid off my student loans while working abroad.
  • I pay off my credit cards every month in full and have no other debt

Specific Question(s):
  • What should I do about my whole life insurance plan? It seemed like a good "safe" investment at the time, but a lot of what I read is that they're stupid investments unless you're "wealthy." I've already had it for 4 years, so I don't know if I should just keep it or cut my losses and cancel the plan. I'm definitely falling victim to the "sunk cost" fallacy with this one.
  • What should I do with the annuity I received? Part of me wants to invest it, but I have the goal of buying a multiplex in a few years, so I would like to have it accessible for a down payment. I don't want it earning next to nothing during the intervening years, however.
  • Should I hire a fee-only financial advisor? How do I find one? Or can I handle this all on my own? I'm a bit intimidated because of the complex nature of my assets (stocks, annuities, land...)
  • Tips for negotiating car insurance when I switch? I'm a USAA member so I plan on sticking with them.
  • I would like to buy a house or better yet a multiplex in 2-3 years. What next steps do I need to take? I have great credit (high 780s to low 800s depending on how much I put on my credit card that month). I won't qualify for a mortgage until 2018 due to changing careers this year. Should I cut back some of my other savings to save more towards a down payment? Where do I stash it?
"Get over the idea that only children should spend their time in study. Be a student so long as you still have something to learn, and this will mean all your life."
- Henry L. Doherty

PapaBear

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #1 on: July 17, 2017, 07:15:29 AM »
Quote
What should I do about my whole life insurance plan? It seemed like a good "safe" investment at the time, but a lot of what I read is that they're stupid investments unless you're "wealthy." I've already had it for 4 years, so I don't know if I should just keep it or cut my losses and cancel the plan. I'm definitely falling victim to the "sunk cost" fallacy with this one.

The best cure for sunk cost fallacy is some math. Have you calculated the returns of the last few years of the policy? A good way to calculate realistic returns (not the stuff the insurance company calculates for you) is the MS Excel function IRR (Internal rate of return). Here, you can use the cash values of previous years together with all payments and payment dates to calculate the return. You can compare that with the return of a similar investment in a total bond index, as whole life policies are usually invested in bonds. The other benefits are not that important to you now, as you don't have any dependents.
-> If you decide to keep it, include the policy cash value as part of your overall bond allocation. You can then shift the asset allocation of other investments to more stocks.

Quote
What should I do with the annuity I received? Part of me wants to invest it, but I have the goal of buying a multiplex in a few years, so I would like to have it accessible for a down payment. I don't want it earning next to nothing during the intervening years, however.

How strong are your desires to buy a multiplex soon? Is this something that can wait until you receive the second windfall? In that case, I would invest the annuity now and wait for the second windfall to buy real estate. If you want to buy soon, the stock market is usually not a good spot for your down payment.
How is the specific tax situation of that annuity?

Quote
Should I hire a fee-only financial advisor? How do I find one? Or can I handle this all on my own? I'm a bit intimidated because of the complex nature of my assets (stocks, annuities, land...)

My suggestion would be rather NO to the financial advisor. Your liquid net worth is not that high right now, so there is not that much stuff to look at, and the hourly fees will be the same. If you are somewhat interested in financial topics, in the long term it is way better to invest the time and effort to learn about the basics and build on that in the future. In the end, you are responsible for yourself, and this is a DIY forum after all :) Use this or other online forums to discuss your ideas and questions and you will be most likely better off in the long run, as you will understand what you are doing and deciding for yourself. Again, this is only feasible, if financial topics are not the bane of your existence :) 
Additionally, I guess some of the complex topics (land, annuity, etc.) will be sold at some point anyways, thus reducing the complexity.

---

On another note: Did you calculate whether it makes more sense to invest in the Roth instead of increasing your contribution to the 401k or investing in a traditional IRA? Depending on your tax brackets, investing pre-tax money might make more sense. I think the spreadsheet linked in the "How to write a Case Study" post can help you in the decision.
« Last Edit: July 17, 2017, 07:30:19 AM by PapaBear »

MDM

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #2 on: July 17, 2017, 12:20:20 PM »
Currently planning a one week trip to Paris in October.
...
I technically owe my mom $6,000.
Do the right thing: pay your mom first, then vacation to your hearts content.

Quote
Specific Question(s):
  • What should I do about my whole life insurance plan? It seemed like a good "safe" investment at the time, but a lot of what I read is that they're stupid investments unless you're "wealthy." I've already had it for 4 years, so I don't know if I should just keep it or cut my losses and cancel the plan. I'm definitely falling victim to the "sunk cost" fallacy with this one.
  • What should I do with the annuity I received? Part of me wants to invest it, but I have the goal of buying a multiplex in a few years, so I would like to have it accessible for a down payment. I don't want it earning next to nothing during the intervening years, however.
  • Should I hire a fee-only financial advisor? How do I find one? Or can I handle this all on my own? I'm a bit intimidated because of the complex nature of my assets (stocks, annuities, land...)
  • Tips for negotiating car insurance when I switch? I'm a USAA member so I plan on sticking with them.
  • I would like to buy a house or better yet a multiplex in 2-3 years. What next steps do I need to take? I have great credit (high 780s to low 800s depending on how much I put on my credit card that month). I won't qualify for a mortgage until 2018 due to changing careers this year. Should I cut back some of my other savings to save more towards a down payment? Where do I stash it?
1. Insurance is for insurance.  Investing is for investing.  Don't use insurance for investing.  As PapaBear noted, you have no dependents so no need for insurance.  Withdraw what you can, and consider that "found money" to use on whatever investment/e-fund/loan repayment you wish.
2. For someone your age, annuities are practically guaranteed to be a bad deal.  Exactly how bad a deal depends on the specifics of the annuity, and there are so many variations that one needs to look at each contract for its fine print.  Might be worth taking the lump sum this year.
3. You can definitely get good advice here or at www.bogleheads.org on the stocks.  Maybe on the annuities (but you'd need to spell out the details) and the land (but that's dependent on location, thus knowledge of local conditions...).   See fee only financial advisor - Google Search for ideas.
4.  Try an independent agent and compare those quotes with what you have from USAA.
5.  See Investment Order, which includes "It is up to you whether to consider "saving for a house down payment" as a "day to day expense", vs. lumping the down payment savings in with "taxable investments" at the end."

lovesasa

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #3 on: July 19, 2017, 07:14:12 PM »
Currently planning a one week trip to Paris in October.
...
I technically owe my mom $6,000.
Do the right thing: pay your mom first, then vacation to your hearts content.

It's a weird situation, but she actually doesn't want me to pay her back yet. I would feel more comfortable with this off my back as well, but I basically am trying to consider it as I'm holding it in savings for her.

Quote
1. Insurance is for insurance.  Investing is for investing.  Don't use insurance for investing.  As PapaBear noted, you have no dependents so no need for insurance.  Withdraw what you can, and consider that "found money" to use on whatever investment/e-fund/loan repayment you wish.

Good point. I've been considering the investment account somewhat as a combination of insurance and the bond allocation of my portfolio. I got the plan when I was living abroad and my mother was a cosigner on my student loans (which have now been paid off.) I think I will do the calculations mentioned above by PapaBear and decide if I would be comfortable with my money sitting in a bond allocation earning a comparable return. My guess is likely no.


Quote
2. For someone your age, annuities are practically guaranteed to be a bad deal.  Exactly how bad a deal depends on the specifics of the annuity, and there are so many variations that one needs to look at each contract for its fine print.  Might be worth taking the lump sum this year.

I don't think keeping the annuity is even an option. I have 5 years to take it out so I'm trying to figure out what the tax consequences will be, and where to put it once it's out. PapaBear made the good point that I will have other funds available for an eventual down payment, so I may just invest the annuity funds. I would like to have some liquidity, so I might use part of it to top up my emergency fund.

Quote
3. You can definitely get good advice here or at www.bogleheads.org on the stocks.  Maybe on the annuities (but you'd need to spell out the details) and the land (but that's dependent on location, thus knowledge of local conditions...).   See fee only financial advisor - Google Search for ideas.

Thank you

Quote
4.  Try an independent agent and compare those quotes with what you have from USAA.

Stupid question, but where does one even find an independent Agent? I have heard that many agencies won't even try to match USAA rates.

Quote
5.  See Investment Order, which includes "It is up to you whether to consider "saving for a house down payment" as a "day to day expense", vs. lumping the down payment savings in with "taxable investments" at the end."

Thank you. I have been trying to follow this post for determining my savings allocations. I intend to buy a rental property (ideally a 2-4 multi-unit property) so I guess this would count as an investment property. It seems like I should max my 401k contributions instead, but I need a place to live anyway and it seems to make more sense to prioritize the investment property a bit more. I'd rather "pay rent" to myself and have a potential future income stream, than have my current rent be going out the door, so to speak. I have 2 years to figure it out, I guess.

Thank you for your advice!
"Get over the idea that only children should spend their time in study. Be a student so long as you still have something to learn, and this will mean all your life."
- Henry L. Doherty

MDM

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #4 on: July 19, 2017, 08:52:04 PM »
Stupid question, but where does one even find an independent Agent? I have heard that many agencies won't even try to match USAA rates.
You could google
    independent insurance agent your_city your_state
and see what turns up.

If USAA is that good, then you may already have your answer.

lovesasa

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #5 on: July 20, 2017, 08:11:58 AM »
Quote
What should I do about my whole life insurance plan? It seemed like a good "safe" investment at the time, but a lot of what I read is that they're stupid investments unless you're "wealthy." I've already had it for 4 years, so I don't know if I should just keep it or cut my losses and cancel the plan. I'm definitely falling victim to the "sunk cost" fallacy with this one.

The best cure for sunk cost fallacy is some math. Have you calculated the returns of the last few years of the policy? A good way to calculate realistic returns (not the stuff the insurance company calculates for you) is the MS Excel function IRR (Internal rate of return). Here, you can use the cash values of previous years together with all payments and payment dates to calculate the return. You can compare that with the return of a similar investment in a total bond index, as whole life policies are usually invested in bonds. The other benefits are not that important to you now, as you don't have any dependents.
-> If you decide to keep it, include the policy cash value as part of your overall bond allocation. You can then shift the asset allocation of other investments to more stocks.

Thank you. This seems like a really reasonable way to look at this. I will do the calculations and see if I would feel comfortable having a similar amount of my portfolio in similarly performing bonds.

Quote
Quote
What should I do with the annuity I received? Part of me wants to invest it, but I have the goal of buying a multiplex in a few years, so I would like to have it accessible for a down payment. I don't want it earning next to nothing during the intervening years, however.

How strong are your desires to buy a multiplex soon? Is this something that can wait until you receive the second windfall? In that case, I would invest the annuity now and wait for the second windfall to buy real estate. If you want to buy soon, the stock market is usually not a good spot for your down payment.
How is the specific tax situation of that annuity?

I would like to buy in about ~2019, but a lot could change between now and then. It is definitely something that could wait until the second windfall, so your suggestion makes sense. On the other hand, if the market crashes in the next couple of years (Northern Colorado is currently the most overpriced real estate in the country) I would like to have the funds available to jump on a good deal.

I don't really understand the tax situation, unfortunately. I know it's a non-qualified account, so I'm pretty sure I have to pay tax on any of the gains. I'm not sure if this will be considered capital gains tax or income tax. Because I am a beneficiary, I don't think I have to pay tax on the original amount of the annuity, but I'm unsure. My grandparents bought the annuity and reinvested the growth/dividends, from what I understand. From what I understand, they never took anything out of it, and intended the annuity to eventually go to my cousin and I, which it now has.

Quote
Quote
Should I hire a fee-only financial advisor? How do I find one? Or can I handle this all on my own? I'm a bit intimidated because of the complex nature of my assets (stocks, annuities, land...)

My suggestion would be rather NO to the financial advisor. Your liquid net worth is not that high right now, so there is not that much stuff to look at, and the hourly fees will be the same. If you are somewhat interested in financial topics, in the long term it is way better to invest the time and effort to learn about the basics and build on that in the future. In the end, you are responsible for yourself, and this is a DIY forum after all :) Use this or other online forums to discuss your ideas and questions and you will be most likely better off in the long run, as you will understand what you are doing and deciding for yourself. Again, this is only feasible, if financial topics are not the bane of your existence :) 
Additionally, I guess some of the complex topics (land, annuity, etc.) will be sold at some point anyways, thus reducing the complexity.

Thank you. I will keep reading!

Quote
On another note: Did you calculate whether it makes more sense to invest in the Roth instead of increasing your contribution to the 401k or investing in a traditional IRA? Depending on your tax brackets, investing pre-tax money might make more sense. I think the spreadsheet linked in the "How to write a Case Study" post can help you in the decision.

I somewhat did the math for this year. I think I'm right on the cusp of where it makes sense. This year, I only have 9 months of income, so I'm barely low enough to be the 15% tax bracket after my pre-tax contributions. This of course depends a lot on whether or not the annuity I received is counted as income or as capital gains. I will need to re-evaluate for next year, as my salary will be for the full year, and hopefully will be higher.

One reason I like the Roth IRA is that it is more accessible if I do decide to pounce on an income property and need some extra funds towards the down payment.
"Get over the idea that only children should spend their time in study. Be a student so long as you still have something to learn, and this will mean all your life."
- Henry L. Doherty

PapaBear

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #6 on: July 20, 2017, 04:05:19 PM »
The only thing I could find regarding the taxation of gifted annuities was the following:

Quote
Gifts and Assignments of Annuity Contracts

If a contract owner gives an annuity contract as a gift, the contract owner may have to pay income tax at the time of the transfer. The contract owner must include in income the difference between the cash surrender value of the contract and the owner’s investment in the contract at the time of the transfer. This rule does not apply if the transfer is made between spouses or former spouses as part of a divorce. (Gift taxes also may apply.)

In addition, any assignment or pledge of (or agreement to assign or pledge) any portion of an annuity contract’s cash surrender value is treated as a withdrawal of such amount from the contract. Hence, the tax treatment that normally applies to withdrawals also applies to assignments or pledges of annuity contracts.
http://www.irionline.org/government-affairs/annuities-regulation-industry-information/taxation-of-annuities

Maybe the annuity provider can shed a bit of light on the tax situation - just to make sure that everything is handled in the most tax-efficient way.

lovesasa

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #7 on: July 24, 2017, 05:58:17 AM »
The only thing I could find regarding the taxation of gifted annuities was the following:

Quote
Gifts and Assignments of Annuity Contracts

If a contract owner gives an annuity contract as a gift, the contract owner may have to pay income tax at the time of the transfer. The contract owner must include in income the difference between the cash surrender value of the contract and the owner’s investment in the contract at the time of the transfer. This rule does not apply if the transfer is made between spouses or former spouses as part of a divorce. (Gift taxes also may apply.)

In addition, any assignment or pledge of (or agreement to assign or pledge) any portion of an annuity contract’s cash surrender value is treated as a withdrawal of such amount from the contract. Hence, the tax treatment that normally applies to withdrawals also applies to assignments or pledges of annuity contracts.
http://www.irionline.org/government-affairs/annuities-regulation-industry-information/taxation-of-annuities

Maybe the annuity provider can shed a bit of light on the tax situation - just to make sure that everything is handled in the most tax-efficient way.

Thank you. I've been doing some googling as well and have been having a hard time understanding the tax liability situation. I think I will just need to take my lunch break some time this week and call the company to figure it out.

I don't know if it's considered a gift, as I am a beneficiary and the original holder has passed away. It was my understanding that the original amount of the annuity will not be taxed, but the gains will be. I'm not sure though.
"Get over the idea that only children should spend their time in study. Be a student so long as you still have something to learn, and this will mean all your life."
- Henry L. Doherty

CrispySub

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Re: Windfall + New Job + Where to Stash a Down Payment?
« Reply #8 on: July 24, 2017, 09:50:29 PM »
As with any piece of financial advise, I recommend performing your own due diligence on any investment opportunity.

That being said, I see promise in opening the non-accredited Street Shares account ( streetshares.com/?referral_id=471859200 ) to get access to their Veteran Small Business Loans bonds (the 'Earn 5% Interest' link near the top of their page).

If everything works as expected, it should provide 5% annual yield with the ability to withdrawal money at a 1% fee prior to one year held.  So essentially, it could act as a 1-5% APY savings account if the money isn't touched for at least 3 months and 5% every year there after.  There is also a bonus if the investment is 10k or more.

The link I sent does have my referral ID, but you do not need to sign up with it. I just think that this may be an equivalent place to store your money since you were happy with your other 5% return.