About three years ago, wife got t-boned. Other driver got the ticket. Car was totaled and she had to have shoulder surgery and therapy. OK, that's over and lawyer settled with the other party. Basically, we got a check for 20K. Not trying to brag here, our finances are doing OK....house paid off, 1 car payment and no other bills. Got some cash in the bank for "just in case." Have a 529 plan for my daughter that is 17. Really don't want to plop 20K in the bank as interest is peanuts nowadays. CD's don't pay much either. I'm 57, wife is 50. Roth IRA caught my eye, but I'd have to own the account for 5 years before I could touch it. I had thought maybe that was the way to go just in case I need to yank out some more money for college, but I'll be inside that 5 year window. We would both qualify to put in 7K each into two separate Roth IRA's. Heard of pre-paid annuities, but I just don't know. I'm not the type to drop some money in the stock market....out 2 401k's are doing that. I don't like risk....my butt still hurts from that 2008 debacle....so....wondering what some of ya'll might do????
Got some extra money from settlement....what to do....
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I'd buy another Porsche. 
Can you put the money towards a backdoor IRA?
First, don't tell anyone you have it. Second, put it in a savings account until your sure what to do. Don't make any big purchases in the meantime.
Put it all in Gamestop stock and let it ride. Soon you won't have any money to worry about.
But in all seriousness, 20k is not a life changing amount but it is certainly significant. What is your goal? Do you want to retire early? Do you want to make a big purchase some time in the next 5 years?
But in all seriousness, 20k is not a life changing amount but it is certainly significant. What is your goal? Do you want to retire early? Do you want to make a big purchase some time in the next 5 years?
The biggest concern now should be inflation. If the money is put in a bank account it will continue to shrink in value so sitting on it is last thing to do. IMO your choices are to invest in something that at least keeps pace with inflation or buy needed hard goods with intrinsic value. Gold and silver are such things silver being a valued industrial metal in high demand by the battery powered crowd. You already own your house which was very smart indeed.
Is your question about the accident or what to do with $20K? I'd think a $20K settlement is peanuts for someone that had to have surgery and therapy. I would think six figures just for the pain and suffering. As for the $20K, pay off the car note just to get rid of the nuisance factor of a monthly payment, assuming its not zero percent interest.
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Payoff the car and become completely debt free (do you owe more than $20,000 on vehicle?).
Anything left over, put into savings to give yourself 3-6 months of income.
Still have some left, then throw any left over into a ROTH.
Take what was your car payment and set that aside for money for your daughter (or make her get a job).
Yes, this is the same advice Dave Ramsey would give, but I have seen his advise work several times in my life and several family members and friends.
Anything left over, put into savings to give yourself 3-6 months of income.
Still have some left, then throw any left over into a ROTH.
Take what was your car payment and set that aside for money for your daughter (or make her get a job).
Yes, this is the same advice Dave Ramsey would give, but I have seen his advise work several times in my life and several family members and friends.
Diamond hands! Buy GME or AMC and let it ride. You won't have to worry about this money in the future.
I'd earmark the money for the daughter. College or technical school or whatever she needs to gain marketable skills and get into a lucrative career.
Depending on the loan interest rate, you might wanna pay it off. Then make those payments to yourself.
Otherwise you need to consider risk. Markets tend to be volatile in the short term.
I would likely pay off the car or talk to a good agent. I like Charles Schwab
Good luck
Otherwise you need to consider risk. Markets tend to be volatile in the short term.
I would likely pay off the car or talk to a good agent. I like Charles Schwab
Good luck
Roth!
I'm pretty sure yours gets out of penalty when you hit 59 1/2.
Otherwise, it's your money you're taking back out until you make money.
Some this year, some next.
Stick it money market, come a week where everyone panics, buy VOO.
Oh, has to be Vanguard!
I'm pretty sure yours gets out of penalty when you hit 59 1/2.
Otherwise, it's your money you're taking back out until you make money.
Some this year, some next.
Stick it money market, come a week where everyone panics, buy VOO.
Oh, has to be Vanguard!
Wow...some things I haven't thought about. On the wreck....the lawyer looked into it and being in Oklahoma, were 1 in 5 people actually have insurance, we were lucky. This guy doesn't have anything for us to go after even if we did. Plus, we're over it. 3 years is enough. I will tell you this, it was an EYE opener on what all we need to change coverage wise on our own insurances. Interest on the CRV loan is pretty low, like 1 or so, but not 0. Here's the thing about my daughter....great kid, making A's in high school, but she's been winging it and getting by. I'm not 100% sure she's college material to be honest. Got about 30K in that account and figure that'll be good enough for now because if she does flunk out of college, I really can't use that 529 money for much else. Appreciate the sage advice.
Hookers and Blow
Gentlemen, we're going to Oklahoma.
Gentlemen, we're going to Oklahoma.
Pay off the car. Stuff the remainder in an online savings account for a rainy day or future car. Pay the same amount as the car payments into this account monthly if you are all set retirement-wise.
I will be the one in the parking lot doing donuts.
Not a bad plan.
Dave is ok. His “if you don’t listen to me your stupid and wrong” mentality gets old after awhile... His plan is really great for people who are in a bad spot or have no impulse control. You can have car note or pay a credit card off every month a still be just as well of.
I would allocate the money among investment "vehicles" like this:
IRA - $10,000
401K - $5,000
XK8 - $5,000
Like this:
IRA - $10,000
401K - $5,000
XK8 - $5,000
Like this:
1998 Jaguar XK8 Convertible - cars & trucks - by owner - vehicle...
1998 jaguar XK8 convertible V8 automatic Power everything leather seats 150k car runs and drives great very nice car clean title no accidents very well-maintained if you are interested please give...
seattle.craigslist.org
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