What Should I Do: Just a Puff-Fall, Not a Windfall

[JDSwim3]

Retired. 60-70% of living expenses are fixed, including some non-taxable benefits. Remainder is taken from tIRA, as needed. tIRA distributions have averaged just 2% of balance since retirement four years ago.

Recently sold my motorcycle, and now have a a puff-fall of $10K.

Not quite sure what to do with it. No immediate home repair or upgrades needed. Some of my thoughts:
1) Contribute $8K to wife's Roth (she's a self-employed author; we haven't contributed in a few years), gamble the rest on a few stocks
2) Put it all in the SWTSX component of our modest mid-five figure taxable account for TBD later use (note - for our portfolio longevity analysis purposes, our taxable is not included in our portfolio; it has been used solely for Roth conversion tax, which we may have concluded last year)
3) Create a CD or Bond ladder of some sort and just let it ride
4) Treat it as truly found money, and take a really nice vacation

Ideas welcomed and encouraged. Thank you.

[bombcar]

Why did you have a motorcycle? Why did you sell it?

I'm going to guess you had it for fun because you enjoyed it, and you sold it because you don't or can't ride much anymore.

So the $10k was "asset allocated" to fun - is investing in a Roth IRA fun? If it is, you'd maybe take more from the trad IRA to invest there. "Saving it for a rainy day" sounds unfun, too.

Gambling on a few stocks might be fun, but why? If number go up, what will it do for you? You just deferred the "what do" question and made it worse, because now it's bigger!

I suggest that you consider 4 - $10k ain't that much, you're doing fine, and you're not getting younger. The motorcycle would have wanted you to have fun.

[Harmanic]

Coincidentally, the ibond limit is $10,000.

[Retired@58]

Withdrawal rate of 2% from tIRA, blow the 10k on window treatments.

Seriously, tax on Roth conversion if nothing bad was to happen because of the conversion, like next IRMAA bracket.

Vacation if you have been hiding in the house during retirement so far.

You haven't provided enough detail for a real informed decision, but unless the 10k is a significant percentage of your savings it won't likely matter.

Best regards,

Retired@58

[1moreyr]

Why did you have a motorcycle? Why did you sell it?

I'm going to guess you had it for fun because you enjoyed it, and you sold it because you don't or can't ride much anymore.

So the $10k was "asset allocated" to fun - is investing in a Roth IRA fun? If it is, you'd maybe take more from the trad IRA to invest there. "Saving it for a rainy day" sounds unfun, too.

Gambling on a few stocks might be fun, but why? If number go up, what will it do for you? You just deferred the "what do" question and made it worse, because now it's bigger!

I suggest that you consider 4 - $10k ain't that much, you're doing fine, and you're not getting younger. The motorcycle would have wanted you to have fun.

I am getting ready to sell my motorcycle (for about $10K) and the cash stays in the fun bucket!
I so endorse your suggestion.

[Cletus Davenport]

Take the vacation……. Your heirs won’t care……..

[JDSwim3]

I suggest that you consider 4 - $10k ain't that much, you're doing fine, and you're not getting younger. The motorcycle would have wanted you to have fun.

Love the application of the "fun" factor. Too many idiots behind the wheel on their cell phones these days. I see about 2 events per day where I'd be wiped out, so decided to hang up my leather.

[bombcar]

I see about 2 events per day where I'd be wiped out, so decided to hang up my leather.

When I saw that 60% of motorcycle accidents/fatalities are not the rider's fault, I went and got a pilot license. At least something like 80-90% of general aviation have "pilot fault" as a major cause. That I can control.

But ... maybe you could take some flying lessons!

[JDSwim3]

You haven't provided enough detail...

Bottom line - savings are fine; we have a fairly modest lifestyle. When I take SS at FRA, our currently budgeted withdrawal rate will be around 1% for several years assuming a net ROI of just 1%.

So I guess two things - spend the $10K on fun, and increase our budget.

[JDSwim3]

But ... maybe you could take some flying lessons!

Haha. Our son is a commercial airline pilot; I'll leave the flying to him.

[Retired@58]

I am glad my gut reaction to your Original Post was correct.

I am a recovering tight-a$$$, and am working up to a 2% WD rate.

Blow the 10k on something.

[retired@50]

...
Not quite sure what to do with it.
4) Treat it as truly found money, and take a really nice vacation

This ^.

Regards,

[delbcavista]

puff-fall should be added to the dictionary, love it. if it makes you feel better, put$5k towards #1 and the rest towards #4, and if you don't want to do that, put all towards #4 after donating about $250-500 to a cause you love?

[finite_difference]

I see about 2 events per day where I'd be wiped out, so decided to hang up my leather.

When I saw that 60% of motorcycle accidents/fatalities are not the rider's fault, I went and got a pilot license. At least something like 80-90% of general aviation have "pilot fault" as a major cause. That I can control.

But ... maybe you could take some flying lessons!

No giant potholes in the sky!

[secondopinion]

I would increase my lifetime budget by $25-30 a month with that money. That would cover say my video game budget, my dirt cheap phone plan and buy a decent phone every few years, or an annual medical bill.

[StevieG72]

I bought a boat after selling my motorcycle.