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


Buck531
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I wouldn't pay off my house.

 

I would pay it down to around 70% LTV and do a 15 yr loan at 2.75% that is tax deductible.

 

Then take the money that would have went to pay off the house and buy tax free muni bonds paying ~4%.

 

= Free money

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buy a bodykit....:gabe:

 

 

no in reality 100k:

 

50-75k on down payment for house and use the rest for brand new family car, fix my beater or get a newer beater.

 

200k:

 

buy house on some decent land buy two new cars, go to school and get a drift toy.

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If I were left 100-200K I'd probably pay off my house or most of it and refi the rest to a tiny payment to increase my disposable income and security.

 

Otherwise I'd trade with it and not be working a fulltime job if at all for someone else.

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I wouldn't pay off my house.

 

I would pay it down to around 70% LTV and do a 15 yr loan at 2.75% that is tax deductible.

 

Then take the money that would have went to pay off the house and buy tax free muni bonds paying ~4%.

 

= Free money

 

This guy gets it

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The question of "paying off the house" also comes down to, are you happy where you are and not likely to move? For me I'd say yes. I got 3400sq ft of home and 5 acres in just the right place that I could live here the rest of my life just fine. The pay off bonus is I don't have to pay a huge price for it monthly until I'm about retirement age and can use that money to enjoy life and trade some more.
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