What Would You Do With $100,000 Right Now

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MarkLovesTheBlues
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What Would You Do With $100,000 Right Now

Post by MarkLovesTheBlues » Sat Feb 03, 2018 4:49 pm

Like the title of this post asks: What would you do with $100,000 in cash (in taxable account) right now if you were close (< 6 years) to FIRE?

Half of DW's and my NW is in taxable accounts and half in tax-sheltered accounts.

In our taxable accounts, we have a combination of stock mutual funds and individual stocks and would like to dedicate this cash to something less risky but something that hopefully returns a little more than a bank account.

I'm 51 and DW is 52, and we have no kids.

Please let me know if you need any other information in order for you to provide advice. Thanks in advance.

Olemiss540
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Re: What Would You Do With $100,000 Right Now

Post by Olemiss540 » Sat Feb 03, 2018 6:16 pm

Payoff my house.

What do I win?
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Olemiss540
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Re: What Would You Do With $100,000 Right Now

Post by Olemiss540 » Sat Feb 03, 2018 6:19 pm

Olemiss540 wrote:
Sat Feb 03, 2018 6:16 pm
Payoff my house.

What do I win?
Give this guy the win, he deserves it.

OP,

You might get better responses (higher quality than mine atleast) by posting your post in "asking portfolio questions" format in the wiki. Things like existing assets, tax rates, contribution rates etc etc help to guide what recommendation best suits your current needs. Thanks for posting!
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

MotoTrojan
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Re: What Would You Do With $100,000 Right Now

Post by MotoTrojan » Sat Feb 03, 2018 6:20 pm

Invest per IPS. Have a great dinner out or weekend trip.

Jon H
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Re: What Would You Do With $100,000 Right Now

Post by Jon H » Sat Feb 03, 2018 6:21 pm

You’ll get the best advice if you post your portfolio. If you decide to do so, follow this format: viewtopic.php?f=1&t=6212
Consider gain and loss, but never be greedy and everything will be alright (fortune cookie)

Agggm
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Re: What Would You Do With $100,000 Right Now

Post by Agggm » Sat Feb 03, 2018 6:26 pm

MotoTrojan wrote:
Sat Feb 03, 2018 6:20 pm
Invest per IPS. Have a great dinner out or weekend trip.
+1

aristotelian
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Re: What Would You Do With $100,000 Right Now

Post by aristotelian » Sat Feb 03, 2018 6:30 pm

I have that amount a few times over and it is invested according to my allocation.

mortfree
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Re: What Would You Do With $100,000 Right Now

Post by mortfree » Sat Feb 03, 2018 6:35 pm

Since you are DINKs I’ll assume $0 debt.

I’d do home improvements, upgrade to a new(er) vehicle, help nieces or nephews financially, charitable donations.

If you want to “make” money I’d invest anywhere from 40:60 to 60:40 for AA

abracadabra11
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Re: What Would You Do With $100,000 Right Now

Post by abracadabra11 » Sat Feb 03, 2018 6:36 pm


WanderingDoc
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Re: What Would You Do With $100,000 Right Now

Post by WanderingDoc » Sat Feb 03, 2018 6:43 pm

abracadabra11 wrote:
Sat Feb 03, 2018 6:36 pm
2 nights here: https://www.fourseasons.com/newyork/acc ... penthouse/

Money well spent.
"Located between Madison Avenue and Park Avenue on Billioinaire's Row"

They could at least have spelled Billionaire correctly. 8-)
Rent where you live, buy where others pay your mortgage for you. | I'm not looking to get rich quick, I'm not looking to get rich slow (indexing}, I'm looking to get rich.. for sure {real estate}.

The Wizard
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Re: What Would You Do With $100,000 Right Now

Post by The Wizard » Sat Feb 03, 2018 6:48 pm

WanderingDoc wrote:
Sat Feb 03, 2018 6:43 pm
abracadabra11 wrote:
Sat Feb 03, 2018 6:36 pm
2 nights here: https://www.fourseasons.com/newyork/acc ... penthouse/

Money well spent.
"Located between Madison Avenue and Park Avenue on Billioinaire's Row"

They could at least have spelled Billionaire correctly. 8-)
The wealthy are different from you and me ...
Attempted new signature...

Jack FFR1846
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Re: What Would You Do With $100,000 Right Now

Post by Jack FFR1846 » Sat Feb 03, 2018 6:56 pm

Leftover 2017 Nissan GT-R
Bogle: Smart Beta is stupid

ChinchillaWhiplash
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Re: What Would You Do With $100,000 Right Now

Post by ChinchillaWhiplash » Sat Feb 03, 2018 7:44 pm

Buy 475 shares of BRK.B

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abuss368
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Re: What Would You Do With $100,000 Right Now

Post by abuss368 » Sat Feb 03, 2018 7:48 pm

I would stay the course with our investment plan and invest accordingly.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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abuss368
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Re: What Would You Do With $100,000 Right Now

Post by abuss368 » Sat Feb 03, 2018 7:50 pm

MarkLovesTheBlues wrote:
Sat Feb 03, 2018 4:49 pm
Like the title of this post asks: What would you do with $100,000 in cash (in taxable account) right now if you were close (< 6 years) to FIRE?

Half of DW's and my NW is in taxable accounts and half in tax-sheltered accounts.

In our taxable accounts, we have a combination of stock mutual funds and individual stocks and would like to dedicate this cash to something less risky but something that hopefully returns a little more than a bank account.

I'm 51 and DW is 52, and we have no kids.

Please let me know if you need any other information in order for you to provide advice. Thanks in advance.
I would consider if the individual stocks in the investment portfolio are needed, and perhaps a plan to simplify and remove. You would have to better understand the tax impact from any unrealized gains.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

abracadabra11
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Re: What Would You Do With $100,000 Right Now

Post by abracadabra11 » Sat Feb 03, 2018 7:58 pm

WanderingDoc wrote:
Sat Feb 03, 2018 6:43 pm
abracadabra11 wrote:
Sat Feb 03, 2018 6:36 pm
2 nights here: https://www.fourseasons.com/newyork/acc ... penthouse/

Money well spent.
"Located between Madison Avenue and Park Avenue on Billioinaire's Row"

They could at least have spelled Billionaire correctly. 8-)
I didn't bother to read anything on the website, but just looked for something extravagant and wasteful. Pretty hilarious to find such a simple spelling error.

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Noobvestor
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Re: What Would You Do With $100,000 Right Now

Post by Noobvestor » Sat Feb 03, 2018 7:59 pm

If you have an IPS that specifies your glide path should change based on total portfolio value, and this trips one of the thresholds, follow the rules you wrote down for yourself. If your glide path is age-based, put this in your portfolio as you would any other amount of money. Either way, take this as an opportunity to write (or revise) your IPS so you don't have to deal with cash influxes like this on a case-by-base basis.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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badbreath
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Re: What Would You Do With $100,000 Right Now

Post by badbreath » Sat Feb 03, 2018 9:08 pm

Just dump it into the market. 75% VTSAX 25% VFWAX or your fav Ex USA in a taxable and don't look back.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

Chadnudj
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Re: What Would You Do With $100,000 Right Now

Post by Chadnudj » Sat Feb 03, 2018 9:12 pm

Invest it all in a tax-free muni bond fund.

Every year, use half the dividends/interest payments to do something fun in retirement, and reinvest the other half. Rinse and repeat.

treatyall
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Re: What Would You Do With $100,000 Right Now

Post by treatyall » Sun Feb 04, 2018 12:10 am

I'd pay off the rest of my student loans and keep the remaining invested in my taxable account for growth... maybe use some for a vacation.

mega317
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Re: What Would You Do With $100,000 Right Now

Post by mega317 » Sun Feb 04, 2018 12:42 am

MarkLovesTheBlues wrote:
Sat Feb 03, 2018 4:49 pm
something less risky but something that hopefully returns a little more than a bank account.
Bonds. CDs are also acceptable.

TwstdSista
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Re: What Would You Do With $100,000 Right Now

Post by TwstdSista » Sun Feb 04, 2018 4:21 am

$5000 - vacation (I wanna go to the zoo!)
$11000 - fund 2018 Roths
$6000 - HSA
$28000 - i401k (actually checking to live off of in place of income which I would divert to my i401k)
$50000 - savings (new car and/or future health insurance)

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JoMoney
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Re: What Would You Do With $100,000 Right Now

Post by JoMoney » Sun Feb 04, 2018 4:46 am

My aim is to have an asset allocation of 90%(S&P 500 index)/10%(Cash & Short Term Treasuries) by the end of the year.
If an additional $100,000 materialized in my bank account, I would put a little less than 90% of it in stock index fund and the rest would go into short-term treasury index fund.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

mancich
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Re: What Would You Do With $100,000 Right Now

Post by mancich » Sun Feb 04, 2018 6:35 am

If it was new/found money, I'd set aside maybe $5,000 for a vacation, $10,000 for some stuff I want to change around the house, and invest the remaining $85,000 per my IPS. :beer

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Toons
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Re: What Would You Do With $100,000 Right Now

Post by Toons » Sun Feb 04, 2018 6:38 am

Vanguard Intermediate Term Tax Exempt.Admiral.
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

grettman
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Re: What Would You Do With $100,000 Right Now

Post by grettman » Sun Feb 04, 2018 6:46 am

Fill up 2018 IRA and Roth IRA tax space.

Use some to accelerate paying down my mortgage.

Use the rest to put toward my Corvette Z06 fund.

MrVargas
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Re: What Would You Do With $100,000 Right Now

Post by MrVargas » Sun Feb 04, 2018 7:43 am

- Pay off non-mortgage debt - 42K
- Pay off Mortgage to the point where I do not owe PMI - about 30K
- Book a deluxe Disney World Vacation for this summer for my family - 8k
- Some house remodeling & maintenance items - 15k
- Add to Emergency fund - 5k

*Doing the Roth IRA contributions would be the financially smarter thing to do instead of the Vacation or house remodeling. In my defense, I would instantly max out my workplace retire plan after doing this.

Moritat
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Re: What Would You Do With $100,000 Right Now

Post by Moritat » Sun Feb 04, 2018 8:13 am

I'd put 50% is selective stocks (or selective ETFs) and the other 50% in a 6 month brokered CD. It appears that in 6 months, interest rates will be higher, so the money from that CD can be evaluated at that time. The LAST thing I would do is put any of this money into bond funds!

hudson
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Re: What Would You Do With $100,000 Right Now

Post by hudson » Sun Feb 04, 2018 8:44 am

These replies fit me:
by Chadnudj » Sat Feb 03, 2018 9:12 pm
Invest it all in a tax-free muni bond fund.

by mega317 » Sun Feb 04, 2018 12:42 am
Bonds. CDs are also acceptable.

by Toons » Sun Feb 04, 2018 6:38 am
Vanguard Intermediate Term Tax Exempt.Admiral

Like Toons, I like VWIUX; I might consider Baird's more conservative version, BMBIX.

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