What do you/did you spend your bonus on?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
am61175
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Re: What do you/did you spend your bonus on?

Post by am61175 »

2019 was first year in a new role that came a decent bonus pool, and the company over performed so I ended up clearing like 14k.

I promptly finished maxing my 2019 Roth (which included a re characterization to a traditional IRA then a conversion due to the income shift), backdoored 2020 Roth and gave my g/f a nice Xmas, by buying her some Handama Akoya Pearls (necklace and earrings). The rest I saved.

Going forward, I plan to use that yearly bonus to max the next years Roth IRA, and put the remaining into a completely rediculous savings fund for purchasing dual night vision goggles :D (and yes, I maxing all retirement accounts (HSA, IRA, and 403b) and putting 1k a month into brokerage) :D
Wings5
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Re: What do you/did you spend your bonus on?

Post by Wings5 »

This year we may splurge on nicer mountain bikes. We all enjoy riding and hopefully this will give us more time together outdoors.
AllMostThere
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Re: What do you/did you spend your bonus on?

Post by AllMostThere »

Nice annual bonus that averages ~ 20% of salary. I have consistently used the following process:
1) 50% in 401K. Always max out on annual basis.
2) 25% towards house payment. House is now paid off.
3) 25% split equally into my DD & DS 529. Both have fully funded accounts, with DD starting college this fall.

I never count on the annual bonus, so the above are just extras. Very, very near FIRE now. :sharebeer
oldfatguy
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Re: What do you/did you spend your bonus on?

Post by oldfatguy »

I got a frozen turkey once in the late 1980s. That was the only "bonus" I've ever received.
suemarkp
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Re: What do you/did you spend your bonus on?

Post by suemarkp »

If I had debt, I'd apply about half the bonus to that. The rest goes to precious metals. No bonus this year, so no PMs for me. Gold is up 15% from last year, so I would have hesitated buying this year anyway.
Mark | Kent, WA
BrownEyedGirl_27
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Re: What do you/did you spend your bonus on?

Post by BrownEyedGirl_27 »

anoop wrote: Sat Feb 08, 2020 10:28 am
BrownEyedGirl_27 wrote: Sat Feb 08, 2020 9:09 am
anoop wrote: Fri Feb 07, 2020 11:41 pm I normally just move the bonus to a savings account where it earns about 0.1% and keep living life as if I didn't get it.

I'm a minimalist so I don't like buying stuff that I don't consider essential. If something is essential, then I guess I need to buy it regardless of whether I get the bonus. When I buy stuff I'm more concerned about what happens if it breaks (i.e. how replaceable it would be), whether it is durable (very hard to find such stuff nowadays), and how it was made (the way employees are treated, environmental concerns, etc.). Buying anything is a stressful process of hours of research followed by analysis/paralysis, so I hate shopping for anything.
How about moving it to a high yield savings account and earn some interest?

I get you though about how much time and effort it takes to look for high quality, fair trade and sustainably made material goods. I’ve been reading about different clothing companies that buy back your old and gently used clothing and resell or reinvent them. It is nice not paying full price for a brand new item while not contributing to more textile waste.
I closed all my high yield accounts to simplify my life. I could move it to the brokerage and buy treasuries which is something I do periodically as the balance in savings hits a certain threshold.

I do that research not just with clothes but also appliances, home goods, furniture, etc. I try to buy things that last long and use them for a long time. This is of course very frustrating in the current environment where almost nothing is designed to last a long time.

The cynical side of me sees companies selling used clothes as a marketing gimmick which will lead to brand dilution. Thrift stores already fill that space quite effectively. If they truly care about the environment they should make durable products instead of engaging in fast fashion.
You’re one of the rare people who value the max amount of wear out of any given item. That’s a good thing, but also time consuming.

Guess I didn’t see it that way at all, but I’m thinking maximizing the amount of wear out of a single piece of clothing can be achieved by brands offering that service. I don’t throw my clothes away after a couple uses; I’m not interested in fast fashion. Go look at Patagonia’s Worn Wear site and you’ll see. The CEO actually discourages consumers buying excessive Patagonia! So do your research before you dismiss this business model...Worn Wear is not an outlet store—they’re original clothes in good and great condition being repurposed for the next shopper who values sustainability.
"Your mind has a mind of its own. At the very moment when you are most convinced of your own rationality, you may be feeling rather than thinking your way toward a decision.” | Jason Zweig
Normchad
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Re: What do you/did you spend your bonus on?

Post by Normchad »

For many years, we put bonuses and over time checks into the 529 plan. Once that was good, we used them to retire debt.

I don’t want to ever assume that another bonus is coming next year. Thus we avoided “spending them” or using them to fund lifestyle creep.

With raises though, I used to take the “increase” from one months salary, and spend that on material possessions. So if I made an extra $300 a month, I’d but a $300 power tool or something.
mancich
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Re: What do you/did you spend your bonus on?

Post by mancich »

Mine comes in early March. Backdoor Roth, set aside money for family vacation in the summer, investment in taxable account, some to charity (with company match), and we owe a few thousand in Federal taxes. Finally, I'm going to treat myself to a new chain saw. :beer
gmc4h232
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Re: What do you/did you spend your bonus on?

Post by gmc4h232 »

Winter Half: diamond ring for the wife + Vanguard Charitable DAF + VTSAX

Summer Half: 12k to backdoor roths + 8k to 529s + MAYBE a new shotgun, or fishing gear....
Last edited by gmc4h232 on Sun Feb 09, 2020 6:31 am, edited 1 time in total.
gmc4h232
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Re: What do you/did you spend your bonus on?

Post by gmc4h232 »

mancich wrote: Sun Feb 09, 2020 5:54 am Mine comes in early March. Backdoor Roth, set aside money for family vacation in the summer, investment in taxable account, some to charity (with company match), and we owe a few thousand in Federal taxes. Finally, I'm going to treat myself to a new chain saw. :beer
Highly recommend Stihl MS261
invest4
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Re: What do you/did you spend your bonus on?

Post by invest4 »

When we were a younger family, we spent the bonus on upgrades to our house or toward a vehicle:

* Finishing the basement
* Patio / landscaping
* Upgrading from a used Chrysler to a Honda minivan and eventually paying for all of our cars in cash

As the years passed and we didn't have significant expenditures, it was simply part of our overall income and went toward maxing out tax advantage accounts (Roth and HSA) as well contributions to 529. Of course, lifestyle inflation is mixed in there as a general item (nicer vacations and better places to eat including some super special ones (once or twice in a decade)...$400-$700 for wife and I.
nura
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Re: What do you/did you spend your bonus on?

Post by nura »

Dumped whole bonus in to Wellesley income fund, hopefully can move to riskier investments if opportunities arise due to election year volatility.
Tdubs
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Re: What do you/did you spend your bonus on?

Post by Tdubs »

Wife's IRA.
DesertDiva
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Re: What do you/did you spend your bonus on?

Post by DesertDiva »

I spent last years bonus on a cruise. We just came home last night and are adjusting to reality. :happy
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corn18
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Re: What do you/did you spend your bonus on?

Post by corn18 »

We used to spend our annual 6 figure bonus, mostly to pay off debt from things we bought the previous year (cars, campers, boats, horses, horse trailers, vacations and who knows what else). But we were idiots and weren't saving anything. So you are light years ahead of us. My IPS now says we have to live on my base salary alone. My military pension, bonus and RSUs all go into savings. Every March, the bonus and RSU proceeds go into my brokerage account and sits in cash for a week or so as I dream about what supercar we could buy. Then I buy FIDO zero funds in accordance with my AA. Pretty boring, really. But at least we have some savings now.
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Pierre Delecto
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Re: What do you/did you spend your bonus on?

Post by Pierre Delecto »

corn18 wrote: Sun Feb 09, 2020 10:06 am We used to spend our annual 6 figure bonus, mostly to pay off debt from things we bought the previous year (cars, campers, boats, horses, horse trailers, vacations and who knows what else). But we were idiots and weren't saving anything. So you are light years ahead of us. My IPS now says we have to live on my base salary alone. My military pension, bonus and RSUs all go into savings. Every March, the bonus and RSU proceeds go into my brokerage account and sits in cash for a week or so as I dream about what supercar we could buy. Then I buy FIDO zero funds in accordance with my AA. Pretty boring, really. But at least we have some savings now.
How do you have 6-salary bonuses, RSUs, and a base salary? Perhaps one spouse in military, other in incorporate life getting RSUs and bonuses?
J295
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Re: What do you/did you spend your bonus on?

Post by J295 »

Every bonus I got we paid down our home mortgage. Paid it off early, retired early.
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corn18
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Re: What do you/did you spend your bonus on?

Post by corn18 »

Pierre Delecto wrote: Sun Feb 09, 2020 10:10 am
corn18 wrote: Sun Feb 09, 2020 10:06 am We used to spend our annual 6 figure bonus, mostly to pay off debt from things we bought the previous year (cars, campers, boats, horses, horse trailers, vacations and who knows what else). But we were idiots and weren't saving anything. So you are light years ahead of us. My IPS now says we have to live on my base salary alone. My military pension, bonus and RSUs all go into savings. Every March, the bonus and RSU proceeds go into my brokerage account and sits in cash for a week or so as I dream about what supercar we could buy. Then I buy FIDO zero funds in accordance with my AA. Pretty boring, really. But at least we have some savings now.
How do you have 6-salary bonuses, RSUs, and a base salary? Perhaps one spouse in military, other in incorporate life getting RSUs and bonuses?
Just me working. Retired from military, now work in megacorp earning a ridiculous total comp (salary, bonus, stock).
Don't do something, just stand there!
Foredeck
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Re: What do you/did you spend your bonus on?

Post by Foredeck »

We did a kitchen remodel with 0% interest credit card the previous year. Paid that off early. The remaining went to VMMXX and savings account.

Oh and I bought a pair of Allen Edmonds shoes.
Last edited by Foredeck on Sun Feb 09, 2020 10:34 am, edited 1 time in total.
CalcHP12c
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Re: What do you/did you spend your bonus on?

Post by CalcHP12c »

Live and budget off base salary. Save a portion of bonus (we usually top off retirement and 529 and some in taxable for future dreams) Then justify all the extra life style creep you want for the year out of the remaining. Nicer hotels. Better flight times that cost a bit more. An extra weekend away. Concert tickets. Get the coffee grinder. Keep the fun in life!
Grt2bOutdoors
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Re: What do you/did you spend your bonus on?

Post by Grt2bOutdoors »

Petrocelli wrote: Sat Feb 08, 2020 5:29 pm All of it went into the Vanguard California Intermediate Term Bond Fund (VCAIX).
Not a new watch? :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
mancich
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Re: What do you/did you spend your bonus on?

Post by mancich »

gmc4h232 wrote: Sun Feb 09, 2020 6:31 am
mancich wrote: Sun Feb 09, 2020 5:54 am Mine comes in early March. Backdoor Roth, set aside money for family vacation in the summer, investment in taxable account, some to charity (with company match), and we owe a few thousand in Federal taxes. Finally, I'm going to treat myself to a new chain saw. :beer
Highly recommend Stihl MS261
+1. I am looking at a Stihl. I already have Stihl backpack blower and trimmer, and love them
BanquetBeer
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Re: What do you/did you spend your bonus on?

Post by BanquetBeer »

I was surprised by the people who max (50%) contribute to 401k. Mostly because tax wise it makes no difference if you contribute from the bonus or from your paycheck.

I also see people surprised about others relying on bonus; I’ll comment that some companies are very consistent with bonus payments (my current company bonus has been +/-5%, so 95% to 105% of my average bonus meanwhile my SO’s company has been 50%-170% of “target”)

We live off of salary, save bonus. I’ll typically do Roth contributions around that time and just DCA it in with the rest of my monthly savings as my emergency fun fluctuates.
international001
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Re: What do you/did you spend your bonus on?

Post by international001 »

I thought spending your bonus was an anti boglehead to do.
I spend money when I need it based on my net worth and my projected income, not on my last paycheck or the last time I sold some stock
I try to earn/save as much money as I can, regardless of what I want to eat tomorrow

Accounting independence. Same reason why it's stupid (but politically sounds good) create a state lottery to improve education. It's just the same bucket.
Random Poster
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Re: What do you/did you spend your bonus on?

Post by Random Poster »

BanquetBeer wrote: Mon Feb 10, 2020 5:09 pm I was surprised by the people who max (50%) contribute to 401k. Mostly because tax wise it makes no difference if you contribute from the bonus or from your paycheck.
I did it this year for two reasons:

1) I will likely get laid off in a few months and by contributing 50% of my bonus to the 401k, I am able to max it out for the year. I might not be able to max out the 401k otherwise, depending on when the layoff occurs.

2) By contributing so much, one gets the value of compounding earlier than if they contributed smaller amounts over a greater period of time. For a 401k that is invested in a bond fund, I guess that this compounding is of some benefit.
pepys
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Re: What do you/did you spend your bonus on?

Post by pepys »

[deleted]
Last edited by pepys on Tue Feb 25, 2020 12:31 am, edited 1 time in total.
Student2
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Re: What do you/did you spend your bonus on?

Post by Student2 »

Dottie57 wrote: Sat Feb 08, 2020 10:56 am
twr wrote: Sat Feb 08, 2020 9:33 am
yangtui wrote: Sat Feb 08, 2020 9:14 am
TomatoTomahto wrote: Sat Feb 08, 2020 7:03 am
you think of it as “lumpy salary,” and mentally account for it over 12 months.
This is the correct way to think about it. You need to base your consumption decisions off of part your total compensation from all sources. I dislike the word bonus. It implies that it is extra and special. Like a gift from your employer or something. My goal has always been to get the highest fixed salary I can get with little to no variable comp. If I had a sales role I suppose variable comp would make sense.
The way we’ve always approached bonuses is assuming we weren’t getting any additional money for the year, and to plan our annual budget around our fixed income. I’m really intrigued by the fact people treat it as part and parcel of their total compensation from a mental accounting perspective. Nothing wrong with that approach, it just assumes too much variance for my blood to put down on a spreadsheet.
+1
+1 too.
When I got my current job, it came with a bonus. DH and I decided that we would behave as if there was no bonus, base our budget on fixed income only and save the bonus dollars. That said, as time has passed and we've been able to hit our savings goals earlier and earlier each year, we've started using some of the bonus money. We take 5% of the total for discretionary spending...Okay, it's just me. DH prefers to save his 2.5% and I spend the other 2.5% on furnishings for our house. The remaining amount goes into the taxable account.
helloeveryone
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Re: What do you/did you spend your bonus on?

Post by helloeveryone »

twr wrote: Fri Feb 07, 2020 11:28 pm This is the first year my DW and I are getting a seizable bonus (five-figures) and curious what others spend theirs on?

We max all our tax advantaged accounts already, nicely fund our son’s 529, and put extra towards mortgage and taxable on a monthly basis, so I feel pretty comfortable spending our bonus on “frivolous” things.

I have my sights set on a Sonos Play:5, a nice coffee grinder, and some new luggage. :greedy
this grinder is amazing! well worth the $139
https://baratza.com/grinder/encore/
zeal
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Re: What do you/did you spend your bonus on?

Post by zeal »

My past bonuses haven't been above 4 figures and they always come around Christmas time when it's pretty easy to spend money. I usually plan to put half of it in savings/retirement and spend the rest on gifts for family and friends. Typically what happens though is that 90% of it gets saved. This past year we spent some on Christmas, some on 2020 Roth IRAs, some on new furniture, and I bought the parts to build myself a new PC.

If we got a 5-figure bonus, we'd likely do the same but also take a nice weekend away together.

Our current wishlists...
Hubs: a punching bag and some adjustable dumbbells for my home gym.
Wifey: a puppy. :P
iamlucky13
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Re: What do you/did you spend your bonus on?

Post by iamlucky13 »

I'm another person who just sees the bonus as a "lump" in my income. I don't automatically spend it.

However, it does raise my savings level relative to my goal for the year, so I would be willing to make some discretionary purchases I am considering. In reality, I tend to plan major purchases on a long term basis, so although the bonus helped me get to the savings level where I am ok making the purchase, there is no conscious decision like "receive bonus, spend X% of it."
greenmonster
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Re: What do you/did you spend your bonus on?

Post by greenmonster »

twr wrote: Fri Feb 07, 2020 11:28 pm I have my sights set on a Sonos Play:5, a nice coffee grinder, and some new luggage. :greedy
I sprang for a Play:5 at bonus time a few years ago after applying the majority of my bonus to my mortgage. No regrets - it's a fantastic speaker that I use daily and the Sonos platform itself is great. My only caution is that if this is your first Sonos you'll probably want more...I'm now up to five speakers total (two One's, two Play:5s and a Beam). :happy
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twr
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Re: What do you/did you spend your bonus on?

Post by twr »

greenmonster wrote: Wed Feb 12, 2020 11:44 am
twr wrote: Fri Feb 07, 2020 11:28 pm I have my sights set on a Sonos Play:5, a nice coffee grinder, and some new luggage. :greedy
I sprang for a Play:5 at bonus time a few years ago after applying the majority of my bonus to my mortgage. No regrets - it's a fantastic speaker that I use daily and the Sonos platform itself is great. My only caution is that if this is your first Sonos you'll probably want more...I'm now up to five speakers total (two One's, two Play:5s and a Beam). :happy
I’m already beyond saving, as I already have two Play:1 and a Beam. I also have my sights set on a Sub but not 100% sure I need it with the Beam and my living room isn’t huge.
Glockenspiel
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Re: What do you/did you spend your bonus on?

Post by Glockenspiel »

I saved my $375 bonus. The company partially duped me into working for them with the promise of good bonuses, that have never materialized in the last 4 years.
JimmyD
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Re: What do you/did you spend your bonus on?

Post by JimmyD »

Last year, I left a job that paid a 10% bonus for a job that pays about a $500 bonus. Salary was right about the same.

I am INFINITELY happier at my new job for dozens of different reasons, but primarily because I now work ~35 hours/week as opposed to ~60.

Don't miss the extra money a bit.
mega317
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Re: What do you/did you spend your bonus on?

Post by mega317 »

Glockenspiel wrote: Mon Feb 17, 2020 11:32 pm I saved my $375 bonus. The company partially duped me into working for them with the promise of good bonuses, that have never materialized in the last 4 years.
I'm sorry this happened to you. We should refer people to this post when they are including future bonsues in their spending plans.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
dcabler
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Re: What do you/did you spend your bonus on?

Post by dcabler »

If it doesn't coincide with a known immediate need (new roof, car, house needs to be painted, etc), then it goes straight to my taxable investment account.
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Phineas J. Whoopee
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Re: What do you/did you spend your bonus on?

Post by Phineas J. Whoopee »

I didn't receive bonuses until after I had retired my school debt. I'm not complaining about my compensation back then.

For the first few times I allocated half for wants, and the other half for the retirement portfolio (in taxable as it turned out). Later the whole after-tax amount started going into the portfolio.

I also, once, had a nice after-tax gain on an incentive stock option. By that time I had real estate debt on my dwelling. The gain, which was above the top of my optimistic estimate, went to pay most of that off. At the time I had a fixed rate of 5.875%, and bond yields, in terms of YTM, had already begun dropping, so it was an easy decision. The large payment rendered later refinancing impractical, because it didn't leave me owing enough to make closing costs worth it. I since have retired that debt, too.

PJW
Last edited by Phineas J. Whoopee on Tue Feb 18, 2020 6:21 pm, edited 1 time in total.
SeaToTheBay
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Re: What do you/did you spend your bonus on?

Post by SeaToTheBay »

2013-2017, they went to my student loans.

Currently, my bonus is targeted at 45% of my base salary, and my wife's is 20%. Historically little deviation from that target.

We save it all (split between 401k and taxable) except for 15% of mine (gross) goes into a separate taxable account for my "fun car" (50% of my incremental base salary raises also go as a one-time contribution to the same account). I have invested this account most aggressively since it is "play money", and it has done extremely well (99.8% gain last year!). I now have my fun car and a good portion invested to fuel my dreams of other fun cars and to cover the running costs of the current one.

Wife doesn't spend any of it. And the fun car fund was her idea! :D
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SmileyFace
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Re: What do you/did you spend your bonus on?

Post by SmileyFace »

A couple of notable spends we've spent on in the past:
- Nice family vacation. The memories last a life time.
- Inground Pool and landscaping. Again - lots of nice memories with the kids that will last a lifetime.
- New car with cash. Feels good to drive away with something that will last a long time loan-free.

Other years we have just invested it in taxable.
Puretaxableindexer
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Re: What do you/did you spend your bonus on?

Post by Puretaxableindexer »

I always invest whenever I have a bonus. I make it a point to invest it unless there is an emergency situation at that moment. I love investing over buying material things.
HEDGEFUNDIE
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Re: What do you/did you spend your bonus on?

Post by HEDGEFUNDIE »

DW received a $60k bonus this year, almost double the expected amount.

We are plowing it into taxable until the Tesla Model Y comes out.
Jack FFR1846
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Re: What do you/did you spend your bonus on?

Post by Jack FFR1846 »

A lot of my bonuses happen during a 3 week period right about now. The company bonuses (there are several) showed up in today's pay check. RSUs just vested and of course, I sold them at market open yesterday. In 2 weeks, ESPP buys.

Total I'd estimate at about $20k coming in (includes my pay check times 2 and of course original espp money outlayed over the last 6 months). My plans are to buy one share BRK/b in order to get rid of $5 of free cash in my eTrade brokerage account that's sitting, waiting for a bonus and put the rest in my credit union LTD account that gets me 1.92% APR.

I already bought my chainsaw a week ago, so spent $318 (Husqvarna 440e) and $30 worth of parts to fix my 25 year old Husky 51.

I'm already thinking about the next big bonus time 6 months from now. Thinking maybe I'll get a new "big" chainsaw. Probably go Stihl this time as I've never owned one. Probably in the $700 range.
Bogle: Smart Beta is stupid
mak1277
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Re: What do you/did you spend your bonus on?

Post by mak1277 »

Historically I have always saved the vast majority of my bonus. But I (fairly recently) have hit my retirement number so I decided I would try to spend this year's bonus on frivolous and fun things. So far I've gotten a new deck/fence for the house, bought ridiculously overpriced world series tickets last fall for my dad and I and bought my wife a mustang. I still have a big chunk to go, so I'm trying to figure out my plans for that bit. I really want a high end luxury watch (think Patek or the like), but even though it's totally fun money at this point, I'm still struggling to pull the trigger on it.
international001
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Re: What do you/did you spend your bonus on?

Post by international001 »

Hit your number is a mental trick
It would make more sense to spend a higher amount the higher your number is over some threshold (e.g. proportinally)
Utility wise, it's not very efficient to oversave first and then overspend
mak1277
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Re: What do you/did you spend your bonus on?

Post by mak1277 »

international001 wrote: Thu Feb 20, 2020 2:11 pm Hit your number is a mental trick
It would make more sense to spend a higher amount the higher your number is over some threshold (e.g. proportinally)
Utility wise, it's not very efficient to oversave first and then overspend
My perspective is that I know my "number" is sufficient for retirement. As long as I am still working, I can spend every cent I make if I choose because it won't harm my ability to retire and cover my needs. As long as I can avoid lifestyle inflation, all my current earnings have no marginal utility beyond spending them on fun stuff.

And I wouldn't say I oversaved....I lived the life I wanted to live all along, I just lucked into a really good employment situation that boosted my NW beyond what I thought possible.
BrownEyedGirl_27
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Re: What do you/did you spend your bonus on?

Post by BrownEyedGirl_27 »

mak1277 wrote: Thu Feb 20, 2020 11:33 am Historically I have always saved the vast majority of my bonus. But I (fairly recently) have hit my retirement number so I decided I would try to spend this year's bonus on frivolous and fun things. So far I've gotten a new deck/fence for the house, bought ridiculously overpriced world series tickets last fall for my dad and I and bought my wife a mustang. I still have a big chunk to go, so I'm trying to figure out my plans for that bit. I really want a high end luxury watch (think Patek or the like), but even though it's totally fun money at this point, I'm still struggling to pull the trigger on it.
Congrats mak1277! Kind of nice to have the world as your oyster?? :moneybag I think the only thing I slightly worry about is hitting our number and then having to decide how to divide up assets among family members. That could get kind of hairy, and I know already that I won't be providing 'economic outpatient care' to my future kids. Do you have kids, and do you feel comfortable passing down your wealth to them or will you be planning on spending down the portfolio before you die? Cheers either way! :sharebeer
"Your mind has a mind of its own. At the very moment when you are most convinced of your own rationality, you may be feeling rather than thinking your way toward a decision.” | Jason Zweig
db79
Posts: 16
Joined: Fri Oct 21, 2016 12:00 pm

Re: What do you/did you spend your bonus on?

Post by db79 »

House projects and 529 every year.
RJC
Posts: 696
Joined: Fri Dec 14, 2018 1:40 pm

Re: What do you/did you spend your bonus on?

Post by RJC »

Wife usually splurges on something and the rest goes to VTSAX. I’m happier watching our accounts grow more than anything at this point (accumulation phase).
investingdad
Posts: 1786
Joined: Fri Mar 15, 2013 10:41 pm

Re: What do you/did you spend your bonus on?

Post by investingdad »

I won't spend any of mine this year, but last year I dropped 10k of bonus money on an antique violin that I absolutely love playing.
Trader Joe
Posts: 1986
Joined: Fri Apr 25, 2014 6:38 pm

Re: What do you/did you spend your bonus on?

Post by Trader Joe »

am61175 wrote: Sat Feb 08, 2020 7:47 pm 2019 was first year in a new role that came a decent bonus pool, and the company over performed so I ended up clearing like 14k.

I promptly finished maxing my 2019 Roth (which included a re characterization to a traditional IRA then a conversion due to the income shift), backdoored 2020 Roth and gave my g/f a nice Xmas, by buying her some Handama Akoya Pearls (necklace and earrings). The rest I saved.

Going forward, I plan to use that yearly bonus to max the next years Roth IRA, and put the remaining into a completely rediculous savings fund for purchasing dual night vision goggles :D (and yes, I maxing all retirement accounts (HSA, IRA, and 403b) and putting 1k a month into brokerage) :D
I typically invest my bonus. My peers typically purchase a new car every year with their bonus. They are very, very proud of this and I can see that it makes them very happy.
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