What would you do with extra money?

[nycdisneygal]

I am getting a payout on something work related (kind of like an investment). . Its a sizeable amount. Trying to figure out what to do with it. Right now we are maxing 401K, I paid off my school loans last year, my husband has a lot of bitcoin and we have some money in stocks. We have 2 mortgages (our house we live in and a place in NY that we have had since before our oldest was born but TBH since we live below our means our 2 mortgages are probably much less than what my colleagues probably for 1 house as we bought a very modest not very large house. No car payments as we paid for new one last year with cash and bought out our lease with cash on other (and we opted not to buy fancy cars). We did travel this year and planning a big multi generational overseas trip next year. GIven the current economy and climate what would be best use of the extra money ( I have taken a but of a pay cut but still doing well) . I told DH i want to put deposit on a place in florida near orlando. LOL. We had previously made extra mortgage payments.

 

[cedricandsophie]

I would suggest you sit down with a financial consultant to look at all your goals, assets and obligations. He or she will have a much better idea on how you should use this money. There are fee for service consultants and those that work fir a brokerage firm. I prefer the fee based consultants since they don’t have a commission at stake based on your investment decisions

 

[MICKIMINI]

I'd sell the house you are not living in and pay cash (not sure your budget) for a house in Florida. If you are 55 (possibly 50 if you ask nicely) Del Webb's Stone Creek in Ocala is gorgeous. We got a listing yesterday for a 2014 2/2 1400 sf for 279K that looks clean. HOA $333. Amenities at this location are amazing. We were there a few weeks ago and priced out a new build similar to this for about 360K

 

[_19disnA]

Even if you have maxed out your 401K, you can still put money into a personal investment account. CD's are also a possibility providing a fixed return given the higher interest rates depending on your investment horizon. Your financial advisor (if you have one), can make recommendations on various available options. Investing for your future is never a bad idea regardless of what the markets/economy happen to be doing this year. The economy has always moved in cycles and investing never goes out of style. I wouldn't make a decision to invest or not based on this year's markets. Partly the answer will be determined by how close to retiring you are well as your current financial situation.

Buying another house wouldn't be my first choice since you will have taxes/maintenance and various upkeep expenses. Managing a house in Florida if you live (I believe in NY) adds a lot of extra complications.

 

[barkley]

We have 2 mortgages (our house we live in and a place in NY that we have had since before our oldest was born but TBH since we live below our means our 2 mortgages are probably much less than what my colleagues probably for 1 house as we bought a very modest not very large house

i can say that one of the best days ever for us was when we paid off our mortgage. depending on the interest rate you are paying vs. what you could yield entirely risk free elsewhere it is a great place financially to be in.

CD's are also a possibility providing a fixed return given the higher interest rates depending on your investment horizon

yup-and if you look around there are some decent deals to be had. now-i only like to do mine with a brick and mortar vs. an online but i just signed on for a 5 year lock with the opportunity to do a one time bump up in rate at 5%. for an entirely risk free investment that's not a bad return.


don't forget to consult with a tax person to see what ramifications you may have there with your windfall.

 

[georgina]

We're over 60 and retired so I doubt you would want to do what I would do with extra money. Really going to depend on other factors - age, kids? Do you have 6 months of living expenses in a cash type of fund? College funds? Upcoming expenses? It's really an individual thing.

I want to do a complete bathroom remodel and buy a new electric vehicle so I would keep some in cash for that and put the rest in a Vanguard balanced fund. My 27 year old DD who's tech company went public a few years ago found herself awash in cash and opened a donor advised fund with Vanguard to give some away.

 

[QueenIsabella]

If you don't have an immediate need or plans for the money, I'd consider a 6-month CD. Or, put it in a brokerage account and resolve not to touch it for 6 months. That way, you buy breathing room to think about what is truly important for you to do with the money. Upgrade next year's trip? 529's for the kids/grandkids? Home upgrades? Gifts to the charity of your choice? Gifts to adult children? My answers might not be your answers.

 

[kuhltiffany]

Definitely pay down a mortgage. Eliminating debt is like having your own insurance in case something happens to your income. With 2 mortgages, I would be trying to pay one off now, then the next one too, before buying another.

 

[Twilghtsprkle]

Set up a trust and put all my assets into it to protect them.

 

[tvguy]

I second seeking the advice of a Financial Advisor.

Off the top of my head, given rising mortgage rates and declining values, I'm not sure I'd be comfortable with adding any more Real Estate to my portfolio.

I live in California and got my $700 inflation relief check from the state yesterday. My wife thinks I should use the money to buy a new computer. I do have to make a decision there as my computer is almost 16 years old, and I am running Windows 7 which will no longer be supported after next year and Chrome and my virus software keep telling me I need to upgrade because they will be discontinuing support. I had having to replace a piece of hardware that is working just fine, just because some software companies are trying to force me to pay to upgrade.

 

[OrangeBirdGirl]

I'd just save it. You never know what could come up down the road that you would want it for. It's all so personal preference though. We have no desire to own a 2nd (or 3rd home) so that is why my reaction is not to put money down on the FL property.

There's nothing we really want where if we got a big payout we'd say "oh now we can go buy this". But I guess if we were given enough money and forced to spend it vs save it, depending on if it would cover it we'd take an expedition cruise to Antarctica.

 

[DLgal]

For now, put it in a high yield savings account until you decide what to do with it. Rates are over 3.3% and continue to rise every few weeks.

 

[cvjw]

We have thrown our extra money in short term treasuries. Paying 4.4%.

 

[tvguy]

For now, put it in a high yield savings account until you decide what to do with it. Rates are over 3.3% and continue to rise every few weeks.

LOL. 3.3% is high yield? My wife and I had our life savings in a CD in 1982..........16%.

 

[DLgal]

LOL. 3.3% is high yield? My wife and I had our life savings in a CD in 1982..........16%.

Oh stop. It's high for 2022. It's literally been 40 years. Let the past stay there. It's not relevant anymore.

 

[tvguy]

Oh stop. It's high for 2022. It's literally been 40 years. Let the past stay there. It's not relevant anymore.

It may be VERY relevant the way things are going with the Fed. And it really just part of the normal economic cycle.

 

[DLgal]

It may be VERY relevant the way things are going with the Fed. And it really just part of the normal economic cycle.

How is it relevant? Are there currently savings accounts that the OP can use for her windfall that will pay her 16% interest? No, there are not.

The economy the 80s will never return. Those variables will never exist again. That ship has sailed.

 

[tvguy]

How is it relevant? Are there currently savings accounts that the OP can use for her windfall that will pay her 16% interest? No, there are not.

The economy the 80s will never return. Those variables will never exist again. That ship has sailed.

Hope you're right, but history tells us you are not.

 

[mattburmeister]

Hope you're right, but history tells us you are not.

 

[DLgal]

Hope you're right, but history tells us you are not.

No it doesn't.