IF I WON 250,000 Dollars - how do I plan for the future?

Question

I have 2 very young kids and my job that isn't all that steady.

Answer 1

First of all, if you win $250k, the government has to get paid first - so now you only have $125k. If you live in a high tax state, such as NY, they'll take another chunk, so now you only have $100k.

This is how I would plan for the future.

1) Take $10K and spend it as you please. This takes care of the psychological need to enjoy the windfall.

2) Take $20k and put it in a 529 account for your children.

3) Take $10k and give it to charity.

4) Take $10k and put it in GMAC Demand Notes as your "emergency fund". Then, if you need money, you can tap it at no cost, and they pay 6% interest right now.

5) Take the balance, $50k, and put 20K in a S&P like mutual fund, 20k in a Global Fund, and 10k in a bond fund.

Answer 2

Put the cash in a IRA or some plan that has different investment options. In 20yrs you should have enough to retire on. Most of us start with zero....you will be way ahead of the game.

Answer 3

1. check to see if you state has a tuition guarantee program and pay for their college tuition at today's prices...

2. invest the rest in a diversified fund... at a modest 6% return, that 250k is worth 15K a year in interest alone. That is quite a supplement to your income, and if you let it compound, it will provide for an excellent retirement.

Answer 4

Go to a bank and ask for their investment department. Also real estate is a good investment because it almost always goes up in value over the years.

Answer 5

So you didn't actually win 250,000?

So you bascially want to plan ahead incase $250,000 accidently falls into your lap?

Sounds like a good plan.

Answer 6

You would be wise to consult a financial advisor, they can help you make your money work for you.

Answer 7

paid off bills, invest some and enjoy

Answer 8

financial advisor