Author Topic: I Won The Lottery...  (Read 2960 times)


  • Stubble
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  • Posts: 108
  • Location: Colorado
I Won The Lottery...
« on: October 26, 2013, 05:43:22 AM »
...well, not really..but, I did work my ass off for the past 15 years and have saved enough, by MMM standards to achieve FIRE status (single, early 40's)

I should have enough to pay $200-300k for a house..renting now, and have enough left over to invest and have a modest income stream at 4% SWR to cover living expenses.

That said, I'm having some difficulty coming up with plans for both the housing and the investment parts of a going forward plan...Do I pay cash or take a mortgage?  My instinct is cash for simplicity and finality, but, at today's interest rates would a mortgage be for investments, (yes I know there is a whole forum section on this), it sounds easy to say, "I'll just buy bonds and make 6-7%...", but, I've got very little experience in executing an income strategy...should I consult with and pay an advisor?

I'd love to hear some ideas and thoughts as I contemplate my next step.  I do feel fortunate and a little like I won the lottery, but what to do with the "winnings" is proving to be a little challenging

Thanks all!


  • Handlebar Stache
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  • Posts: 1499
  • Location: eastern canada
    • Optimacheap
Re: I Won The Lottery...
« Reply #1 on: October 26, 2013, 06:33:37 AM »
I have extra questions for you rather than an answer. Not sure you need/want to answer them here, but they might help if you asked them of yourself.
Does that $200-300K buy you the kind of home you want to live in for many years?
How basic are your housing needs? If you changed the way you think about "home", and lived somewhat differently as a result, would that change the rent vs. own equation in any way?
Are you likely to want to move a bit during FI? Or, are the things keeping you in one place likely to change in the next five to ten years?  In both those cases, renting might make more sense.
Can you get a house that includes an income stream (from renting or airbnb)? Do you want to?
Does the particular city/area that you want to live in favour owning over renting?
Will you be getting rid of a lot of accumulated junk/stuff as you plan your new life?
Do you know somewhere that you can earn 6-7% from bonds?
Is your local real estate market over-priced right now?

I'm not sure I'm helping here, but this is all I've got!


  • Bristles
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  • Posts: 483
Re: I Won The Lottery...
« Reply #2 on: October 26, 2013, 06:53:59 AM »
Read everything you can on financial management.  The down-to-earth stuff, not the weird stuff people talk about on infomercials at 2 in the morning.  At this point, how well you manage your assets is your most important issue.

Call Vanguard and tell them your situation.  At your asset level, they will work with you in a no to low pressure way.