Entertainment fund

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hoops777
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Entertainment fund

Post by hoops777 » Thu Nov 14, 2019 10:53 pm

My wife has a difficult time spending money.We are retired 67 and 69 and are inheriting 85,000 unexpectedly.I have convinced her to use that for travel,entertainment only,so she does not have to stress.
Looking for suggestions on how best to invest it at Schwab in taxable.My initial thought is to sell some funds every few months and transfer into our checking to reimburse whatever we spent.Open to a better idea.We are in the 12 pct tax bracket.We live in California.
K.I.S.S........so easy to say so difficult to do.

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firebirdparts
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Re: Entertainment fund

Post by firebirdparts » Fri Nov 15, 2019 4:55 am

It might be fun to build a bond ladder and then have a rule that when the bond matures, you have to blow all the money. I am taking you at face value here.
A fool and your money are soon partners

Dottie57
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Re: Entertainment fund

Post by Dottie57 » Fri Nov 15, 2019 4:59 am

firebirdparts wrote:
Fri Nov 15, 2019 4:55 am
It might be fun to build a bond ladder and then have a rule that when the bond matures, you have to blow all the money. I am taking you at face value here.
Good idea!

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Watty
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Re: Entertainment fund

Post by Watty » Fri Nov 15, 2019 5:34 am

firebirdparts wrote:
Fri Nov 15, 2019 4:55 am
It might be fun to build a bond ladder and then have a rule that when the bond matures, you have to blow all the money. I am taking you at face value here.
You could do the same thing with CDs.

You could also make a rule that any money for that year that is not spent by December 31st will be donated to a political cause that you really do not like, for example a hypothetical "Save the Slugs" group. That way if it gets to be November and she has not spent the money yet then you can prod her to book a trip so that the money would not go to the slugs.

chipperd
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Re: Entertainment fund

Post by chipperd » Fri Nov 15, 2019 6:13 am

firebirdparts wrote:
Fri Nov 15, 2019 4:55 am
It might be fun to build a bond ladder and then have a rule that when the bond matures, you have to blow all the money. I am taking you at face value here.
+1. Love that concept to deal with the emotional aspect OP reported. Planful, reliable structure, when followed through on, invariably helps with emotional issues tied to money.

flyingaway
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Re: Entertainment fund

Post by flyingaway » Fri Nov 15, 2019 8:52 am

I have an entertainment fund for my casino hobby, which is about $140K in a money market fund. I plan to use about $20K each year.

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oldcomputerguy
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Re: Entertainment fund

Post by oldcomputerguy » Fri Nov 15, 2019 8:54 am

You might find this wiki article on Managing a windfall helpful.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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hoops777
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Re: Entertainment fund

Post by hoops777 » Fri Nov 15, 2019 11:56 am

A ladder seems too complicated.I was thinking something simple like a tax free calif muni fund and just sell a couple thousand dollars or whatever the expenses were every few months.
K.I.S.S........so easy to say so difficult to do.

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1789
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Re: Entertainment fund

Post by 1789 » Fri Nov 15, 2019 12:37 pm

Why not keeping it simpler. Put money In Schwab money market and transfer whatever needed to your checking account. I think you want to minimize the work and time on this. No?
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

surfstar
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Re: Entertainment fund

Post by surfstar » Fri Nov 15, 2019 12:41 pm

I'd throw it in a balanced/mixed fund and spend it as you go.

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hoops777
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Re: Entertainment fund

Post by hoops777 » Fri Nov 15, 2019 1:26 pm

Schwab has a money fund that was yielding 2.3 but has been dropping like a rock now down to about 1.5.I would like to keep it simple with taxes as well.
K.I.S.S........so easy to say so difficult to do.

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