Author Topic: First World Problem - How to spend $175K  (Read 1233 times)

SaveME

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  • Age: 44
  • Location: Culver City, CA
  • Frugal but with no solid direction
First World Problem - How to spend $175K
« on: February 15, 2021, 10:51:58 AM »
Profile:   Single, 41, no dependents
Gross:   $90,000 + 10-15% bonus
401K:   $19,500
AGI:      $70,500
Exp. /yr:   $20,000
Assets:
Trad. IRA   $319,000
Roth IRA   $20,000
401k      $19,000
Cash:   $175,000
Total:   $533K

No Debt   

My first-world problem is what to do next? I cashed out Vanguard mutual funds (139K) last March before the market correction with the intention of buying a home. What I didnít expect was the housing market to get more competitive.

Iíve already paid the capital gains tax and am now sitting on this pile of digital cash. I left LA in April 2020 and have been living in Airbnbís for 1-3 months at a time and enjoying the flexibility, but at this point see the value in finding a home base and setting down roots.
My company is fully remote but only incorporated in CA and UT and theyíre expanding to other states next year. Iím currently staying in Salt Lake City, UT and itís growing on me.
I liked Colorado and Flagstaff too but could see myself continuing this #nomadlife for a while longer, exploring some other cities like Austin, Boise or even Montana. Or does it make sense to do something else? What would you do?
« Last Edit: February 15, 2021, 11:25:11 AM by SaveME »

AMandM

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Re: First World Problem - How to spend $175K
« Reply #1 on: February 15, 2021, 01:04:16 PM »
If your expenses are really only $20k a year, you could retire now.

So in your shoes I would ask myself some big life direction questions.
What shape would your ideal life have--travel from a home base, be a nomad, settle down, ...?
What do you want to spend your life on--pleasure (what kinds), helping others (in what ways), spending time with family (who and where), developing new skills (what and how), earning still more money (why and how), ...?
Even if you have no financial dependents, are there people you care about, for whose sake you place limits on your life choices?

SaveME

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  • Posts: 9
  • Age: 44
  • Location: Culver City, CA
  • Frugal but with no solid direction
Re: First World Problem - How to spend $175K
« Reply #2 on: February 16, 2021, 08:27:05 AM »
Thank you AMandM. I definitely love working on hard problems, enjoy being active, helping others and spending time with family. I think going after all of these things makes sense and an ideal future balances them out. It's easy to let the rat race affect your judgement and get caught up in the hype of what you should be doing. Appreciate your response and wish you the best as well.

Mr. Green

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Re: First World Problem - How to spend $175K
« Reply #3 on: February 16, 2021, 08:41:00 AM »
I love the thought of exploring cool towns. Boise, Missoula, Sioux Falls, Colorado Springs. There's a bunch of them, and that's just the Western part of the country. Maybe spending some time in a few different ones would lead you to where you wanted to settle. I would move around an explore, especially if you're enjoying that. But that's just me.

 

Wow, a phone plan for fifteen bucks!