What would you do with $300,000

[AndrewS]

Any advice would be appreciative.
Thanks

[Tony_G]

Buy 15 100K rental properties putting 20% down on each one of them and retire as soon as possible?

[Migrator Soul]

Turn that lovely windfall into a string of leveraged multi-family properties. Oh, and splurge and buy myself a nice sushi dinner.. Then throw the remainder after leaving a nice cushion for repairs into your taxable account. (Shoot me, I go out to eat maybe once a quarter. Lol)

I personally think property is an excellent way to go, unfortunately it takes a good chunk of cash, research and patience. Getting the cash, and some to spare for fixing things that will go wrong from time to time is the barrier.

[LeRainDrop]

Drop it like it's hot.

[CanuckExpat]

Go to Vegas, put it all on red, double my money.
Or this: Bogleheads: Managing a windfall.

Both good advice

[marty998]

Serena Williams-Novak Jokovic double for the Australian Open finals.

[Skalm]

Wife and I would quit and cash flow our school, then save the rest and start our careers.

[Larabeth]

I would probably go for Vanguard Diversity...
$60,000 Vanguard REIT
$150,000 Vanguard High Dividend Yield
$90,000 Vanguard US

Either that or leverage multi-family properties.  I just like hands-off investments at this stage. =)

[GuitarStv]

30,000,000 penny candies -> diabetic coma

[Retire-Canada]

Any advice would be appreciative.
Thanks

I'd invest it in the market and FIRE.

[zolotiyeruki]

Pay off the house, invest the rest.  Yeah, it's not the mathematically ideal thing to do, but I *really* like the idea of getting out of debt.  And all that extra cash flow each month would go towards ER savings.

[ohana]

Give us more info on yourself.  Do you have debt?  Do you have kids who need to go to college?  Etc.

Me, personally?  I'd put 2/3 into cash-producing investments (like REIT's), then take the other 1/3 and go sailing for a few years.

Also, I would feel blessed.

[soccerluvof4]

Put it in index funds and let it go to work for you

[AZDude]

I'd buy a Bentley... or maybe pay off the mortgage and buy some rental properties.

[AndrewS]

No debt. No kids. Just looking for investment advice as I don't want to deal with a financial planner.
I'd rather watch my own money. Thanks for all the recommendations.


Larabeth and Ohana. I like both of your ideas.

[ohana]

Realize that the windfall would be on top of my other investments.  I have a lot of index funds now, and would love to add more REITs.  I don't think landlording is for me, so REITs are a way to benefit from owning property without having to manage it. 

If you don't have a house, it might be great to use that $ to get one. 

Or come sailing with me . . . .  :)

[Fishindude]

Buy some form of real estate that is both safe and will earn a decent return.

[neo von retorch]

Apply it according to your already determined allocation plan :)

(Don't have an Asset Allocation plan? Build one. Then go. Here's an example tool: https://personal.vanguard.com/us/funds/tools/recommendation )

[Luck12]

6/10ths of a chick at the same time.

serious answer would depend on your risk tolerance and objectives.  But generally, putting 80% in Vanaguard Global Index, 20% in Total Bond index is pretty good. 

[redcedar]

Payoff house for sure and invest the rest. I would likely invest it in my taxable account since I am too light there but the temptation would be strong to build a plan to finally push to maxing all my tax deferred options.

[Psychstache]

After sorting out any tax implications, I would fill up all possible tax advantaged space, I would crank up my employer contributions to the max and use the windfall for day to day expenses.

Investments would be index funds according to my asset allocation.

Sent from my SM-G900V using Tapatalk

[AndrewS]

Land and tiny house. No payments. My needs are bare minimum.
I have no outlandish expenses. Sailing might be a great idea! :)
I just want to invest, relax a little and use my land for food.

[Jeremy E.]

retire

[RWD]

Apply it according to your already determined allocation plan :)

(Don't have an Asset Allocation plan? Build one. Then go. Here's an example tool: https://personal.vanguard.com/us/funds/tools/recommendation )

This. What does your investment policy statement say?

[AndrewS]

Thanks for all the tips.

[Koreth]

First, I would sit down and crunch the numbers on what my tax liability on that $300k would be after the all the other income I'd already earned and was projected to earn for the tax year,  and set that amount aside . It would really suck to go out and spend all of the $300k, only to find out later that the IRS demanding their share of it. If anyone can figure out how to get blood from a turnip, it's the IRS. I don't want to be that turnip.

Next, I'd pay off my remaining credit cards and student loans. Such things are drags on my monthly cash flow that I've lived with for far too damned long, dampening my ability to accumulate short, medium and long-term savings.

Then, I'd take a hard look at my level of emergency savings. Do I have enough to survive a short to medium term interruption of cashflow from my usual sources (job, etc)?If not, I'd fill them up until I could. If yes, I'd skip to the next step.

If I held a mortgage on my primary residence at this point, I'd consider paying it off entirely, or a large chunk of the principal so as to significantly shorten the reamaining time until the loan was paid off. This I'd have to consider carefully. House mortgage loan interest is tax deductable, and there's some good arguments that one can get better returns on investment by not paying off one's house. I'd have to do some soul searching to determine if such potential gains were worth having the debt hang over my head, or if the reduced stress of owning where I lived free and clear was preferable.

After that, I'd max out my tax-advantaged reitirement accounts for the year, be they 401(k)s, IRAs or HSAs.

Once that was done,  I'd stuff the remainder into my taxable investment account.

A final small sliver would maybe go towards a nice steak dinner with a tasty bottle  of wine or a good beer.

Then I'd probably keep living my life as though nothing ever had happened, continuing to earn as much as I can and save as much as I can, until my goal of Fuck You Money was achieved.

But that is what I would do. What might work best for you may differ.

[boarder42]

First, I would sit down and crunch the numbers on what my tax liability on that $300k would be after the all the other income I'd already earned and was projected to earn for the tax year,  and set that amount aside . It would really suck to go out and spend all of the $300k, only to find out later that the IRS demanding their share of it. If anyone can figure out how to get blood from a turnip, it's the IRS. I don't want to be that turnip.

Next, I'd pay off my remaining credit cards and student loans. Such things are drags on my monthly cash flow that I've lived with for far too damned long, dampening my ability to accumulate short, medium and long-term savings.

Then, I'd take a hard look at my level of emergency savings. Do I have enough to survive a short to medium term interruption of cashflow from my usual sources (job, etc)?If not, I'd fill them up until I could. If yes, I'd skip to the next step.

If I held a mortgage on my primary residence at this point, I'd consider paying it off entirely, or a large chunk of the principal so as to significantly shorten the reamaining time until the loan was paid off. This I'd have to consider carefully. House mortgage loan interest is tax deductable, and there's some good arguments that one can get better returns on investment by not paying off one's house. I'd have to do some soul searching to determine if such potential gains were worth having the debt hang over my head, or if the reduced stress of owning where I lived free and clear was preferable.

After that, I'd max out my tax-advantaged reitirement accounts for the year, be they 401(k)s, IRAs or HSAs.

Once that was done,  I'd stuff the remainder into my taxable investment account.

A final small sliver would maybe go towards a nice steak dinner with a tasty bottle  of wine or a good beer.

Then I'd probably keep living my life as though nothing ever had happened, continuing to earn as much as I can and save as much as I can, until my goal of Fuck You Money was achieved.

But that is what I would do. What might work best for you may differ.

You max tax advantaged before paying off a mortgage unless you have 0 tax exposure

[BlueHouse]

If it's a windfall, I would accept a higher risk investment and possibly change my future by changing careers.  If it's my own money that I've been saving for the past 20 years, then I would do exactly what I've been doing according to my master plan.