If you had $100,000 cash what would you do with it?

Question

Just wondering if there's any clever people that can help a usually poorly mangaed financial person to come good.

Answer 1

1. I would set aside 6 months of living expenses in an emergency fund ($15,000).

2. On top of that, I'd put in enough to cover any short term goals (vacation, car, insurance, etc in the next year or so). ($10,000)

3. I would max my Roth IRA for 2007 and 2008 ($9000).

4. I would establish a 6 month reserve fund (bond index) and set aside closing costs for the rental real estate investment I plan to purchase in 2008. ($10,000+5,000).

5. I would add $10,000 to my stock index fund which is for undetermined long term goals.

6. I would put $5,000 toward my mortgage.

7. I would give away $10,000.

8. I would put $25,000 aside for any potential future wedding.

Answer 2

1. Pay off personal debt.
Anything left....
2. Put 5,000 in Checking account to act as a buffer to prevent getting into debt again. Don't use it as extra income.
Anything left...
3. Put 10,000 in Savings account to have as emergency fund.
I read somewhere that you should work towards having 3 months of your pay in savings as a backup in case you lose your job.
Anything left...
4. Pay off or down payment on a house.
Real Estate never is a bad choice but requires work to maintain.
Anything left...
5. Start retirement account like an IRA or Roth or 401K.
Start early, you want to understand why... just ask anyone with a parent in a retirement home...
Anything left...
6. Only if you are into it... try investing your money in stock. But You Have To Keep Track and know when to get out.
Anything left
7. Screw it you did all the right things... now go buy something nice for the wife and then head to Vegas. No wife then when you go to Vegas plan a stop at the bunny ranch...
Enjoy

Answer 3

I would take $70,000 and pay off all my debt except for the mortgage. I would put the $30,000 and invest it in a money market account, buy some stocks and start a savings account for my children. Eventually I am going to need a new car. So I would either use the money to buy one or take out a loan. So the debt I would owe would be the mortgage where I can make extra payments each month and a car payment if I decided to do the loan option.

Answer 4

Pay off outstanding bills $10,000.00
Open up A few savings accounts $50,000.00
in my kids name so no taxes
Pay down my morgage $30,000.00
put the rest in a checking account and sit on it for a year then refinance my house with a better interest rate
buy a new car and pay cash for it, after I talk them down on price.
Actually, as long as I would stay working 100,000 could seriously make me rich.

Answer 5

Invest it in Real Estate. Maybe not at this exact moment, but soon when the real estate market is at rock bottom. Until then I'd put it in a CD.

- or -

I'd buy a few Louis Vuitton purses and Louis Vuitton luggage.

Answer 6

I would pay off all my student loans and debt.

Put a down payment on a house.

Donate 10%.

And invest the rest into some good stocks.

Oh and of course i would buy myself lots of cute purses and shoes!

Answer 7

Save $10,000.00 for emergencies, get a down payment on a house, pay off your car titles, and go on a vacation. And I wouldn't tell anyone about the 100 grand because more money, more problems!

Answer 8

Well ,if you have any debts it would be wise to pay them off first. Don't incur interest on debts if you can help it. Put the rest ( if any) into guaranteed bonds. Alternatively, spend it, or travel as far as it will take you! and have fun. What the hell!

Answer 9

I would pay off all my debt & cars, give a large donation to the Watchtower and buy a "disaster kit" w/ the rest of the money.

Answer 10

I would pay off my home and invest the rest in mutual funds that I am already investing in. I would also go on a nice cruise.