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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: MommyCake on May 31, 2018, 10:03:38 AM

Title: What would you do with 10k?
Post by: MommyCake on May 31, 2018, 10:03:38 AM

My dad recently gave me 10k and I am having trouble deciding what to do with it.  Some options:

-put it all into Vanguard
-put it onto rental property mortgage - 4.025%
-put it towards down payment on another rental property
-put it into children's accounts (a 2 yr old and a 4 mo. old)
-rental property upgrades:  repave driveway (blacktop is crumbling) and/or install new windows (SO & I have differing options on whether these items are a need or not... he says not yet)

I am considering putting half into Vanguard and half into Ally online savings..... what would you do?

Title: Re: What would you do with 10k?
Post by: Cromacster on May 31, 2018, 10:09:44 AM

It would depend on if I had any expected expenses coming up, but most likely I would throw it all into Vanguard.  I try to treat any windfall as "non-existent" and just invest it to let it grow.

Which is what I did when I received a small inheritance (4k) when my grandfather passed.  Although he probably would have preferred I go to a baseball game, smoke a fine cigar while sipping scotch, but instead it might let future me go to several baseball games.

Title: Re: What would you do with 10k?
Post by: RWD on May 31, 2018, 11:20:34 AM

You should treat windfalls the same as any other money and allocate according to your investment policy statement. Money is fungible so it doesn't really matter where the money came from.

See also: Investment Order (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153)