If you were left a large sum of money.. what would you do?

[Buck531]

I'm not saying I was left a large sum of money, but if I did that would be awesome.

 

So say your parents passed away and left you with say 100k or even 200k. What would you do with it? Invest it? Pay bills? Buy a house?

[Furloaf]

Spend some, save some, invest some, start a business with the rest.

[Buck531]

Spend some, save some, invest some, start a business with the rest.

 

What kind of business?

[Mensan]

I know a guy with a Dan's Deli food cart that grosses 125K+ a yr.

[Furloaf]

What kind of business?

 

Personally, a fabrication/machine shop probably but I have a few other ideas also. The premise is to find what market is lacking and capitalize on that gap.

[Buck531]

Personally, a fabrication/machine shop probably but I have a few other ideas also. The premise is to find what market is lacking and capitalize on that gap.

 

Ah. I've always wanted to own a restaurant but I feel it would backfire 6 months into it and fail.

[Furloaf]

Yeah restaurants are usually a pretty saturated market.

[Buck531]

Yeah restaurants are usually a pretty saturated market.

 

Yeah but I'm fat and I like to cook. :lolguy::megusta:

[coltboostin]

Sad, but 100k is not a lot of money these days.

 

BUT-if I was left 200k, I'll throw 80k at the highest yield CD/BOND I could find, 20k to "play" the market, 10k for a Vaca, and 90k to buy more rental properties.

[Scotty2Hotty]

I'd buy land.

[Ahmadi6490]

I'd buy land.

 

and build a house with a huge stocked pond

[BStowers023]

Doomsday prep :lolguy:

[Rocky31186]

Pay off any bills (credit cards, house depending on how much mortgage is left) fix things that have needed fixed.

 

Save the rest

Edited January 12, 2013 by Rocky31186

[BigOxley]

Pay down mortgage or strippers.

[SRTurbo04]

Two chicks at the same time.........

 

 

 

 

Pay off bills take a small vacation put the rest in savings

[John Bruh]

Start my own dealership.

[Rally Pat]

Pay off my student loans, my car, and my credit cards, all of which I wouldn't even have if I was smarter about money back then, maybe buy something nice, then put the rest in the 4 types of mutual funds Dave Ramsey recommends.

[Forrest Gump 9]

The way things go, buy guns and flip them.

 

Or when all else fail, gold and silver.

[RS69]

Pay off debt, then buy land. The restaurant idea is not a good idea, it is tough to get started and a very small profit margin even if you are successful.

[evan9381]

Pay off my house and car, then only have to work to pay for savings/retirement/utilities/fun stuff

[macpyro2]

Start a high end exotic performance shop call it dynamic covert tuning and wing it.

[nurkvinny]

100k =

10k to each kid's college fund

30k for a large chunk of land

40k towards current house mortgage

 

200k =

20k to each kid's college fund

40k for a larger chunk of land

100k towards current house mortgage

[El Karacho1647545492]

In some cases, paying off the house or car may not be the best idea. I.e. if you have an excellent interest rate, your money could actually earn you a better return on interest if it were invested in something else.

[nurkvinny]

Remember though, paying off a mortgage uber early can save $100k+ in interest.

[El Karacho1647545492]

Remember though, paying off a mortgage uber early can save $100k+ in interest.

 

I certainly realize this, but it all comes down to simple math that most people can't be bothered to do because they THINK it's complicated.

 

Example:

 

$100k remaining balance on mortgage with a 4% annual interest rate, remaining time on loan is 20 years.

 

Based on a simple interest calculator, you'll see that over the course of 20 years you will pay $80k in interest if you make minimum monthly payments.

 

If, however, you have an investment that you can be certain will net you greater than $80k over the course of 20 years, it makes more sense to keep that $100k and invest it rather than pay off the mortgage. Yes, the bank gets to make money off you, but the opportunity cost of preventing that may be too great.

 

Of course, that is a ceteris paribus example. Reality doesn't work that way, but it's at least worth a consideration.