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Home > What would you do with 100k?

What would you do with 100k?

November 3rd, 2008 at 07:21 am

The was the question Smart Money magazine posed to the general public, and here are some of the humorus answers:

Example 1:
$4600 - 4 Front Row Outfield Season Tickets, Tampa Bay Rays
$2400 - 1964 Fender Deluxe Reverb Guitar Amp
$2000 - 1996 Fender Relic '60 Stratocaster Guitar
$3000 - 1968 Gibson Dove Acoustic Guitar
$2000 - 1942 Gibson Banner Logo LG-0 Acoustic Guitar
$7000 - 1982 Fender USA Reissue 62 Strat, 57 Strat, 52 Tele, 62 Jazz Bass
$3000 - 1975 Gibson Les Paul Custom Guitar, White
$2000 - 1993 Gibson '57 Reissue Les Paul Guitar, Goldtop
$2000 - 1991 Gibson Les Paul Classic Guitar, Cunburst Flametop
$3500 - 1968 Gibson ES-335 Guitar, Cherry
$3500 - 1964 Gibson SG Special, Cherry
$2000 - 1962 Hammond A-100 Organ
$40,000 - 1/3 Acre Lot w/Canal Access To St John's River, Florida
$15,000 - Used Houseboat
$2000 - Small Boat, 2 Kayaks, Fishing Gear
$1000 - 2 Metal Detectors
$3000 - 2000 Ford Windstar Minivan

Example 2:
Own a stake in some Asian massage palors in New York, New Jersey. They reap $4million a year Tax free!
Then buy the investments.

Example 3:
I would pay all my bills and take all the rest and bury it in my back yard!

Example 4:
Invest in a new prtfolio, last year's was up 137%. Thanks to your magazine.
Leave my wife and run away to a tropical island with my girlfriend.

Ok, maybe that last one isn't so humorous. In any case, there are also very intelligent answers, ranging from the conservative to the aggressive. So, if you were to receive 100k tomorrow, how would you manage it and why?

30 Responses to “What would you do with 100k?”

  1. Ima saver Says:

    I would put it in the bank!!

  2. merch Says:

    I would just finish my goals - finish emergency fund, 529s, take $10k and just have some fun, and then throw the remainder at the mortgage.

    It's good to have goals and a plan in place. Just makes achieving those goals that much faster.

  3. Caoineag Says:

    100k hunh? Well, a lot of that would go into a taxable investment account, probably 20k to my EF fund and then I would wait probably a year to figure out if I wanted to spend any of it. Its easy to burn through that so the time would let me figure out what I really wanted. But then, I have to be cautious about money because I am a natural spender and my goals require me to be a saver.

  4. swimgirl Says:

    I have a few things that I've been thinking about/budgeting for/saving for, so I would take care of those first. Car could use some work (about $2000--YIKES! but it's a great car, and of course I don't make payments so I'm happy to put some work into it), need a new roof, need to have a HUGE tree removed for about $1800, and I need a new bike. And I would consider a trip with my husband and children. We've been saving to go to Europe with him on one of his business trips. But, I would probably spend less than $12,000.

    So that would take a small portion of $100,000. The rest I would save...add some to EF so that it's comfortably large, probably add a large chunk to my mutual fund, get a decent-sized chunk of CDs because they ARE guaranteed, save some for next year to add to my IRA since maxed out this year, and I would buy some stock.

    I loved the examples where people would just spend like crazy. I would make a list of what I needed/wanted to do with the money, wait at least a month before taking any action. But most of that would go to savings. I don't need or want a new car, fancy vacation or guitars!

    Really, I can't think of what to do with that much money other than save it. MAYBE I could spend up to $20,000 if I fixed up more things around the house...new kitchen cabinets or something.

    But I would rather know that it's stashed away!

  5. disneysteve Says:

    I'd pay off what's left of the home equity loan. That's just under $3,000.
    I'd set aside $10,000 to make our 2009 Roth contributions after January 1st.
    I'd make some repairs and get new tires on the van: about $1,500.
    I'd put $40,000 in savings for our next cars.
    I'd set aside $5,000 for our summer vacation next year.

    The other $40,500 would probably go into general savings.

  6. jIM_Ohio Says:

    Take a vacation with 20k, pay taxes with 30k and bank the other 50k.

  7. monkeymama Says:

    $50k mortgage (take off a decade of amortization, probably more, and is my biggest adversary right now. I'd love the opportunity to knock it hard).

    $20k - kids' college (I'm not a big fan of paying their way entirely and have saved $0 of my own money, but a windfall like that and I'd invest it so I Wouldn't have to worry about it again).

    $10k - fund 2 years of ROTHS - dh (since we generally have not been funding his.

    $20k - Bulk up cash savings. (Would give us 6 months' SOLID emergency fund).

    Honestly, I think taxable investing scares me. So I would avoid it (but would clearly free up more cash to do dollar cost averaging into some taxable accounts - which is more my speed than figuring what to do with a lump sum).

    A casual observer (or my spouse) may notice I didn't "spend" any of it. I know my dh would want a few thousand for toys. BUT it isn't very noble of me. I just know this would grow our net worth and be VERY financially freeing. It would mean there would be a little more room in the budget for enjoyment. Maybe not immediately, but soon enough. I could maybe see taking $1k to splurge. Like a nice dinner out and a couple of toys. But that would be enough for me. Dh would be completely on board but would probably argue he wants $5k to spend. !!

    (P.S. I like #1 - hehe).

  8. monkeymama Says:

    P.S. I completely assumed tax-free, like inheritance? The first thing I always think of in these questions are taxes, but I played along. I had to comment seeing Jim's response.

  9. Broken Arrow Says:

    MM, since questions like these are merely hypothetical, and while I would be more exacting as well, the article that linked to it isn't very clear on it either. So, I say, feel free to take it as you wish.

    Yeah, I liked response #1 too. For some reason, when I read that, my mind started mentally playing Jimmy Buffett's Margaritaville in the background.

  10. PauletteGoddard Says:

    Optimistic Plan:

    $30000 pay for kitchen
    $1200 Roth IRA
    $4000 Roth IRA for hubby
    $2000 Coverdell
    $3800 Take boys to Osaka
    $3000 Landscaping
    $10000 charitable contributions with trusted, local agencies
    $5000 emergency fund
    $5000 Europe trip
    $1000 wedding gift for brother and sister-in-law
    $16000 remodel part of downstairs into some comfortable, lit heated sanctuary/retreat for me
    $17000 (decent used car)
    $500 graduation gift for nephew
    $1500 plane tickets to attend nephew's grad.

    Pessimistic plan:
    pay for kitchen, landscaping, sell or rent house and move into some rentable place for the next 24 months.

  11. disneysteve Says:

    Jim, let's hear about the 20K vacation. Our vacations typically run between 2K and 3K per week for the 3 of us, a bit more when we cruise. 20K would buy a heck of a trip.

  12. dmontngrey Says:

    Tape my mouth shut and bank the money! DH doesn't need to know about it, does he?? If he knew, he'd start begging for money to buy a race car.

  13. scfr Says:

    Assuming it's tax-free and this is $100K just handed to us for absolutely no reason?

    $10,000.00 to charity

    $10,000.00 to family

    $79,987.53 to the bank

    And the remaining $12.47? I'd stop at Panda Express on my way home from work to pick up a celebratory dinner to go! (Don't all start singing "Hey Big Spender" at once!)

  14. whitestripe Says:

    i think about this all the time, hehe. i guess we all do. so what would i do?
    first off, fix up BF's two cars in the garage (around $10k) so they could be used to drive around.
    second, buy the car we've always wanted (a nissan 200sx) and sell my current car. New car purchase: $17k less $6k for mine.
    I'd use $75k for a deposit on a loan to buy property and build a house.
    And with the other $4k, I would split it between BF and I and we could do whatever we wanted with it.

  15. frugaltexan75 Says:

    I'm partly with Scfr on this one.

    $10k to charity (probably the school I used to work at)
    $20k to family and friends
    10K to beef up Car Fund
    40k to House Downpayment Fund (Actually BUY a house!)
    8k to fully fund Roth for this year and next
    9k to beef up EF to 1 yr expenses
    3k for a Cruise and frivolous spending

  16. mbkonef Says:

    Wow - this is really getting me thinking. I would probably put $40K towards kids college funds ($10K x 4 kiddos). Then I would pay off our equity line of credit ($11K). I would probably bank the rest since DH is currently unemployed and use some of that to live off and invest some before tax time in ROTH IRA's. I know, pretty boring but I love safe and boring when it comes to money!

  17. reginaastralis Says:

    I love that the first example is from pretty close to home ... I would also LOVE to have canal access to St. John's River. I've always dreamed of living on a houseboat since our trip to Amsterdamn. And obviously, the price of season tickets to the Rays will probably sky rocket next year, I hope the poor guy is able to buy them soon, lol.

    If I had 100k, just handed to me, no questions asked, I'd pay off our debt (around $20k), put around $10k into Juliett'es college fund, and then $20k into my college fund ...

    That still leaves $50k for savings/investment. That's more than double my annual take home, I'm pretty happy with that. I won't lie, I'd use an undetermined amount of that 50k to do some much needed work to our home ...if we get it.

  18. fern Says:

    Oh, i love these fantasy questions.

    I would:
    * pay off my $68K mortgage to be 100% debt-free
    - Buy a new Prius $25K
    - Give $1,000 to my mother with the provision that she has to spend it, not save it (she's very frugal and doens't enjoy herself as much as i think she should)
    - Invest the remaining $6,000

  19. Koppur Says:

    My responsible answer:
    Pay off CCs - $6,000
    Pay off student loans - $85,000
    Rest in savings/investings - $9,000

    And the sad part is, even if I don't put the $9K in savings, I still wouldn't have enough to pay back a loan to Mums.

    Fun and non-responsible answer:
    $35K downpayment on a house
    $15K for reconstructive body surgery after weight loss surgery
    $6K to pay of CC debt
    $20K to travel the world with BF for a few months
    $15K to Mums and Dads for their retirement and for all they have helped me out over the years
    $4K donation to charity
    $5K to start college fund for future niece/nephew

  20. Maismom Says:

    Boring way to spend it: Pay toward our mortgage.

    Not so boring way to spend it:
    $20,000 A trip to France, fly first class, and stay at a super nice hotel
    $10,000 Buy a Hermes purse
    $20,000 Buy a Chanel suit
    $30,000 Buy a Cartier watch (the one with diamonds)
    $10,000 Eat like a queen every day during the trip

    Then, go to Italy and spent the rest of the money for Gucci & Prada

  21. baselle Says:

    Another 100K? Sigh. Probably put it with most of grandma's inheritance - into Vanguard, where it awaits entry into the stock market. Yeah, I know market timing and all that.

    I put dad's 95K into 2 40K CDs, where they are going to be later used as a down payment on a house. For the moment, the interest its earning is feeding into a checking account that I'm using for my 1/2 of the farmette.

    When you already have it, then another 100K just tops the tank.

  22. thriftorama Says:

    Um, I would buy a building and open my tiki bar. Maybe I should start playing the lottery...

  23. crazyliblady Says:

    That's easy. I would 1) pay off remaining medical bills, 2) pay off credit card, 3) sell both vehicles and buy me a Chevy Tahoe and my husband a Harley, and 4) buy a house. That might go a tad over $100K, but I figure if I at least get the medical and cc debt paid off and make a large down payment on a house, house payments would not be so bad.

  24. Ms. Pearl Says:

    Here is what I would do:
    Pay off all credit cards
    Save (invest) 15,000
    put 5,000 in our vacation fund
    put 5,000 into emergency savings
    put 20,000 into mortgage
    put away 10,000 for kids (5k each)

    hmm...that leaves me with appx 25,000. Not sure, probably invest or possibly more to the mortgage/savings.

  25. Snoopycool Says:

    I would tithe($10k), pay off car and student loan (~$30k). Put $50k toward mortgage. $10k in savings.

  26. Lost in Debt Says:

    I would pay off my final debts, help my kids with fuel for the winter and bank $25,000 for an emergency.

  27. AmbitiousSaver Says:

    I would pay off our debts, and that would leave just enough for us to buy some needed necessities we've been putting off

  28. sicilyyoder Says:

    I would pay my student loans off, then probably bank the rest.

  29. leela Says:

    Lets start with the debt:
    credit card debt - 15k
    car - 10k
    student loans - 15k

    That would leave me with my mortgage being the only think left. Since I owe 140k on that I would probably leave my mortgage alone.

    I would put 10k into my savings for emergencies, and set the rest up in CD's of 10k increments maturing in monthly intervals so that I would have access to the money if needed.

  30. Breezy Says:

    22, Just Graduated 4yr private college, B.A. English... No loans, debt free... Got a full time Job in South Korea at $2500.00 a month including furnished housing and 50% health insurance.

    15k to Seoul Korea for frivolous Spending / Travel on Weekends.
    25k Down payment on Used Porsche Carerra GT2
    10k Charity
    10k Mom
    40k CD

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