[forHISglory]

I was asked this question today, and found it intriguing to think about.

"If you were given $100,000, tax free, how much of it would you spend each year? And why?"

They gave the following choices:
A. $4000
B. $10,000
C. $20,000
D. $50,000

So.... what would be your choice, and why?

 

[ladytoysdream]

Is this just a one shot deal or yearly ?

 

[TheRootedNomad]

I don't like any of the answers but in the spirit of the question I guess I'd have to say D.

The first year I'd pay off the remainder of my house and put a large chunk down on a rental house.

The second year I'd pay off the rental house.

 

[krbshappy71]

I was asked this question today, and found it intriguing to think about.

"If you were given $100,000, tax free, how much of it would you spend each year? And why?"

They gave the following choices:
A. $4000
B. $10,000
C. $20,000
D. $50,000

So.... what would be your choice, and why?

50,000 this year and 50,000 next year.

1) life is short, I might not be around for the following years
2) save interest being charged on my debts
3) anything I buy this year for stockpile would go up in price in subsequent years
4) refer to item #1

 

[Greebo]

D) $50,000 - I'd pay down our mortgage debts.

 

[Russ]

50,000 this year and 50,000 next year.

1) life is short, I might not be around for the following years

3) anything I buy this year for stockpile would go up in price in subsequent years

uhhh.. this seems contradictory to me.

 

[Greebo]

uhhh.. this seems contradictory to me.

It's called hedging

 

[Darlene]

I'd spend 10,000 this year. I'd pay off our car and do a little home maintenance & bank the rest. After the car is paid off all we'll have to pay for food, utilities, insurance and dumb taxes and that we do on dh's pension. We live pretty basic here and have few wants/needs.
Then again we keep talking about moving out of state, that money would put ants in our pants to do so...

So when is the money coming, lol? I'm ready for it.

 

[ladytoysdream]

"If you were given $100,000, tax free, how much of it would you spend each year? And why?"

I would spend the $ 50,000 and pay off the balance of the HEL and his truck payment. Only bills left would be utilities, food, insurances, etc. Any money left after paying off the 2 bills, would be going into stockpile for groceries. Including a small greenhouse.
The other $ 50,000 would be kept in the bank till we both could agree on the wisest way to spend or save it.

If the same amount of money continued yearly, we would make a agreement with the farmer next to us to buy his farm.

 

[imagine]

From the choices I would spend the $50,000 each year to pay off/down debt including mortgage. This would save on interest payments and would give me more money in my pocket.

I keep imagining what it will be like to have the money I'm now paying to credit cards/mprtage in my pocket and available for other expenses.

If I could pay them off in one swope my month income would feel like I had received a huge raise.

 

[danni]

D. $50,000

The first year I would pay off the debt and max out our RRSP's and TFSA's. The next year we would look for a few acres to buy and move our trailer onto it.

 

[Contrary Housewife]

We are debt free already. The first year I'd spend $20k. I'd have our kitchen and baths remodeled, and then we'd use some on travel to someplace nice. The floors and cabinets are really dated (original 40 year old installation) and starting to come apart.

We would travel because we could.

The rest of the money would go for retirement/investments and more travel.

 

[Russ]

$50000
pay off the HELOC = 12,500
balance would go towards the mortgage

 

[forHISglory]

In answer to Ladytoysdream, the money was a one shot deal, not a yearly pay-out. So you would receive a one time amount of $100,000.

My answer would be to take out $4000 and invest the rest. If invested correctly, the money should recover to the original amount very nicely. I would continue to take out $4000 a year and leave the principle. Our position right now is debt free, so I don't have a dire need for the extra cash, but the $4000 a year would be nice for enjoying some extras in life: vacation, adjust the thermostat, etc. But at some point in the future, I might need a larger chunk of cash, and it would be there waiting for me.

 

[bumplett]

B. $10,000 per year for the next 10 years.

The balance is gaining interest in the meantime.

 

[ravenmaniac]

D, I would pay off the small personal loan we have and put the rest on the mortgage.

Now I want to buy a scratch-off. But I'd be better off putting that $5 into my ING account.

 

[nuisance26]

~D:$50K
We're house shopping right now. That's a lot of principle to not be paying interest on for 30 years!~

 

[farmgirl_82]

B: $10,000

Our mortgage payment is only $8700 max/year for the next 5 years. once those 5 years are up-we would pay off the remaining mortgage ($30,000)

The extra would go towards putting an addition on the house or finishing out the basement.

If there's any left over after that - put extra towards groceries and school tuition.

 

[mom2three]

50 K/year to pay down debt.

 

[Ramona]

In answer to Ladytoysdream, the money was a one shot deal, not a yearly pay-out. So you would receive a one time amount of $100,000.

My answer would be to take out $4000 and invest the rest. If invested correctly, the money should recover to the original amount very nicely. I would continue to take out $4000 a year and leave the principle. Our position right now is debt free, so I don't have a dire need for the extra cash, but the $4000 a year would be nice for enjoying some extras in life: vacation, adjust the thermostat, etc. But at some point in the future, I might need a larger chunk of cash, and it would be there waiting for me.

With Treasuries paying less than 1%, I think it would be difficult to find a guaranteed, safe return of 4%. If it were possible, I'd be right there beside you