Author Topic: What to do with Bonus?  (Read 2085 times)

RH

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What to do with Bonus?
« on: November 28, 2014, 12:34:19 PM »
Hi,

I'm fortunate enough to be getting a $25K bonus in Dec. What should I do with the money?

About us:
35 years old
$250K in 401K
$40K in Roth
$60K in savings (I know...I need to invest)
$200K equity in rental property
$150K equity in primary residence
zero debt except for Mortgages

I've only contributed $5K into 401K this year and zero into Roth.

I have a feeling I should start investing the funds in a regular vanguard brokerage account so that we can access the funds when do to the Roth IRA conversion ladder in 10 years. Thoughts?

Thanks


stuckinmn

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Re: What to do with Bonus?
« Reply #1 on: November 28, 2014, 02:57:40 PM »
What's your marginal tax rate?  If you're getting a 25k bonus it's probably higher.  I'd put as much as your plan allows in your 401k, then to roth, then to taxable.

hodedofome

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Re: What to do with Bonus?
« Reply #2 on: November 28, 2014, 06:05:32 PM »
Help out the economy and buy an OLED TV.

Gin1984

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Re: What to do with Bonus?
« Reply #3 on: November 28, 2014, 06:20:57 PM »
What is your mortgage debt amount?

TheThirstyStag

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Re: What to do with Bonus?
« Reply #4 on: November 28, 2014, 10:37:25 PM »
What is your mortgage debt amount?

This is a good question.  If it's significant, you might want to consider paying it down somewhat with your bonus.

 

Wow, a phone plan for fifteen bucks!