Recent windfall

[Mxylplyx]

I'm about to be in the same boat. Got around 90K tax free coming in via a life insurance payout from my wife's estranged father whom I've never met. My plan is to pay off my car and other small revolving debts, which is around 30K, put about 30-40K in a 529 towards my 6yo sons college, and stash the rest in savings to finally achieve my ideal of 6 months of living expenses. This would free up monthly income to stash away in investments, which is something I've not been able to do outside a retirement account at this point.

 

[Humpy]

What would you do if you had just got a 15k unexpected windfall. With a additional monthly settlement of about 1.2k. The monthly payments (pension) should only go up not down.

Sell everything and buy a nice blue-water catamaran. Use the 15K for alcohol provisioning. The 1.2K a month should keep a person sailing indefinitely once they get away from North America.

 

[DaveSimmons]

I'm boring, so more stock index ETF shares for me. Woohoo!

 

[Dice144]

I'm boring, so more stock index ETF shares for me. Woohoo!

Took a chunk and got some mutual funds. Thanks for the feedback so far!

 

[dud]

It is for the rest of my life and goes up as long as COLA goes up. ( its a disability payment) I just said pension cause it was on my mind at the time. Got hurt while in service. Finally got the months of back pay that took forever to get.

So roughly $1200 a month plus inflation raise (hopefully).

Please tell us this is a Social Security disability payment ...

 

[Eug]

I wish I had a $15k windfall. Would make wedding planning a little easier.

If you don't have a wedding, then you'll have a $15000 (or whatever) windfall in money well not-spent.

 

[brianmanahan]

i am used to bogleheads style windfalls

it doesnt count as a windfall unless you are getting like 500$k after tax

 

[Exterous]

Do you have any other debts? If so, at what interest rate? If not then invest it unless you have something like PMI on your mortgage and using the $15k would get you out of that

I have a ton of bills that $15 would pay off. Dentist, credit card, car...

I'd be curious to know the breakdown of your dentist, credit card and car bills that total $15

i am used to bogleheads style windfalls

it doesnt count as a windfall unless you are getting like 500$k after tax

:thumbsup:

 

[Dice144]

Do other debt and no PMI payments as the VA mortgage loans do not carry PMI.

Credit is paid off before paying any interest monthly.

 

[xanis]

No debts for me and no mortgage so I'd probably take out $4K and go on a vacation, then drop the rest into the IRA/Savings accounts.

 

[Hugo Drax]

What would you do if you had just got a 15k unexpected windfall. With a additional monthly settlement of about 1.2k. The monthly payments (pension) should only go up not down.

My brain tells me to shove 75% of it in stock market and rest to pad my emergency fund.

My heart is saying HEY put it on the house and cut mortgage down a few years.

I know stock market SHOULD return more than the 3.5% mortgage interest. Sitting on the cash until I can make my darn mind up.

Lazy part of me is saying mutual fund, but I enjoy actually hand picking stocks.

Only if you avoid trying to pick specific stocks and actively manage it.

If you buy SPY over time and reinvest dividends maybe some IWM in the mix depending on your age. I say go for it.

But if your gonna try to "Beat" the market, then just pay off your mortgage.

 

[Linux23]

Vegas?

 

[jagec]

i am used to bogleheads style windfalls

it doesnt count as a windfall unless you are getting like 500$k after tax

LOL, sure you are.

 

[brianmanahan]

LOL, sure you are.

lol not that i would ever get such a windfall. one thing i know with %100 certainty is that i will never get anything resembling a windfall in my life.

i just meant reading about them, which on bogleheads seems like someone gets one every other week. "oh i just got 7$ million from my grandma/for selling a business/etc, what do i do?" D: