Coming from here:
http://davesgarden.com/community/forums/t/1219535/
This is the place to talk about money and financial matters. I apologize when I get close to bringing politics into the discussion. With this topic it is sometimes hard to avoid. Nice that we have intelligent, tolerant people who agree to disagree.
This is not great to read.
http://nationaljournal.com/magazine/the-eurozone-s-contagion-catastrophe-20111201
The annual survey this year says to buy the items of the Twelve Days of Christmas would set you back $101,119!! Ouch.
Gizmodo has a list of recommended goodies to buy with $100k instead. Got me to think - what would you do with an unexpected $100K. Pretend that you don't need to pay tax on it and you have the entire amount. What would you do with it? Save, invest, spend, pay down debt? Buy a new car, remodel? Take a great trip? Donate to charity? A bit of each?
I'll donate my $100,000 to a worthwhile cause of my choice.
At this point in life we don't value money as we used to when young. We've learned with food, health, a roof over our heads and no one shooting at us (as they say) we can be content.
Back to the previous topic, I wanted to add, the percentage of people that are not contributing to the tax base is actually higher than documented. All workers that receive a check that is derived from tax money are not actually generating new income for the tax base.
They are indeed paying taxes but only returning a portion of it. Not meaning to step on toes but that includes peace officers, teachers, goverment workers, etc. Following the money trail....
Yes - any government job is a 'net loss'. Only a fraction is returned. Of course they are (some) providing a service.
10% goes to tithes, then I'd do all the remodelling jobs on the house we are planning
We are in process of refinancing our house, 3. something % and going to a 15 year for only $100 more a month
I was going to re-fi, but it's just such a pain and costly that it would not have saved me all that much.
I refinance with the formula if the cost of refinancing is less or equal to the savings over 2 years - then I do it. It does depend on how long you intend to stay in the house - the longer you stay - the more worthwhile it is.
If I got a $ 100k windfall I would be SO tempted to take the rest of what I owe on the house out of my 401k and pay off the mortgage.
My 100K ~
I could say I'd just travel. But maybe I would travel on a fourth or less, (ROME!) then set up some kind of annuities for my three kids, timing to start when they turn 30. Hopefully by that time they have a clue as to how to manage their lives without it, but this would give them a small monthly boost. Really small LOL. But dependable. Life could be so diferent if we could know that every month we will have enough for our needs. But you can never really know that, can you?
Then again I could use a new car...and they could wait till they're 50. Holy carp, my son only has nine years before he's 30 !!!!!!!!!!!!!!!!!!!!
Can we make this 500,000$ ?? Or tell me I cannot use it on my kids !!!!
Amazing how the job report is being met with joy just because the unemployment rate is down to 8.6%. It's only because so many have given up looking! With only 120,000 jobs added in November, that would normally only drop it a tick to 8.9%. Also, that 120K includes a lot of seasonal retail.
with the 100,000 I'd pay down debt and invest the rest.
If I had $100K of unexpected money I would allocate it this way:
$10K to charity/non-profits
$10K to payoff a home equity loan I took out a few years ago (worst financial mistake of my life).
$10K for a, uh, um, "plastic surgery" for my wife . . . she's always said that she wanted to enhance certain aspects of her appearance. I think she's great the way she is but I'm not going to argue with her about it.
$10K for improvements to our house - new gutters, crown molding, and a bunch of Japanese maples.
$10K for travel, spending money, gifts, and beer.
$50K savings and investments. In particular, I'd put money towards my daughter's college fund and our IRAs.
With enough beer, appearances improve dramatically! ^_^
Yeah, and I'm pretty sure it wouldn't take me $10,000 worth of beer to achieve that state of mind. ^_^ My wife, on the other hand, might need quite a bit more before I start to look more appealing.
Flashing $100K would do the trick!
Sally, re your 'allocation' of 100k. Many young people today 'worry' that their parents have not sufficiently funded their own later years or 'second wind' funds and thus may become a financial outgo at the very time families are raising kids and establishing. If you are 'funding' their college education, they will be far ahead of their non-debt free peers.
I remember when Pub Clear House first offered the option of one big pay off or a garanteed income for life. Age makes a difference in which option to choose.
I would take it for life. Looked at one of my retirement funds last night and the value is less than the amount invested. Should have just put the money in the bank - even at .25% interest I would be ahead.
YankeeCat, my wife says the same thing. But if you only get 0.25% interest from your savings account and inflation is 3.5% you're losing purchasing power even if you aren't losing money.
ROFL you guys!
Actually my real answer to the question is.:
Do not change lifestyle
Examine debt, payoff highest interest rate debt
Invest conservatively- Vanguard.
Continue to fund college savings in order to take state tax advantage up to 5K per child.
Continue to fund my IRA for tax break
Use up to several thousand for needed home repair and updating, include updating home furnishings if needed.
Buy a little more wine, and stop looking at the price tag first. Just look at it second. (See I'm not ALL boring)
i have heard the rates will drop further so for those considering wait - i almost dropped to a 10 yr. a couple months back and passed - saved 18K - the mortgage payment did go up a tad - rather just add more to the principle.
gsox - save that money for jm's - nothing stops isaac newton and looks normal :)
I agree on the money for jms!
I LIKE your wife, Victor.
Victorgardener, seriously, how will you invest your $100 Thou?
SallyG, you are FAR from boring. ;).
Tithe
Finish kitchen
Renovate one bathroom and refresh the other
Dream: a lot in the Adirondacks to build a cabin.
Money for traveling to visit grandkids.
Add to investments conservatively.
Jeff dodged a bullet. Or rather the school he teaches at did. Thankful he still has a job and will be paid after the sale of said school to another church who already has a school, but has a heart for Christian education. The new administration didn't want to see the school go belly-up. If the transfer had not gone through, there would not have been a next paycheck. None of the teachers had a clue as to how bad it had gotten. L O N G story, but it was pretty sad. So, that being said, maybe I should adjust my plan for $100K to :
Surviving
My general rule for an unplanned 'bonus' is to split among paying down any debt (usually more principal payments on mortgage), investing/saving and spending on something useful. If I got $100K, the spending would most likely go to redoing the kitchen. The investing part would be a combo of kids' college funds, retirement mutual funds, collectible books and maybe a bit to 'play' with on individual stocks.
Jan: phew!
Saw a piece on tv the other day where machine shops in the Midwest cannot find qualified workers. They want to hire and expand, but the talent is not there. These are $80k per year jobs with good benefits. Welders, steam fitters, etc.
Have some some from 1902
DH used to keep a penny jar, because of that.
I'm thinking of getting into 'bitcoins'
Gas popped up 10 - 15 cents about overnight, this week here.
And the price changes any time during the day not just overnight! Wonder if gasoline sales will now feature a lock in price or 100/1000 gallon "garanteed" price or some such loyal customer promo...to have us pay for it in advance?
Local church here has installed two electric vehicle recharging stations in their parking lot...get all of your batteries "recharged" at worship.
that was nice of them
Kids' school is putting in solar panels
Unfortunately it is illegal to melt down US currency - so no matter what the metal content is worth - it is still just a penny.
getting rid of the penny would make figuring out tax on things hard.
