What would you do with $1.5 million? (spinoff)

[kdonnel]

I'd use the after tax portion for a down payment on a house in our city. That would leave us with a mortgage about equal to what we are currently paying in rent.

Ouch

 

[DLgal]

Ouch

I know, right? Considering taxes, HOA, and insurance our $3700/month rent payment translates to a $500,000 mortgage on a house worth about $1.3M, which is the LOW END for a 4 bedroom home here.

 

[Meriweather]

Well, we are retired, house is paid off and we have retirement money that is enough, so I would pay off my 2 children's mortgages, money for the grand kids college education

 

[Disneylover99]

My husband and I are close to retirement. That money would allow us to retire a couple of years early.

 

[prairie_girl]

I'm going to pretend this came from a lottery because we don't pay taxes on winnings.

I'd design and build a house for my husband and I to live in for the rest of our lives. Near water, surrounded by trees, and totally accessible. Then, I'd give my daughter a large chunk so she could go to school without having to take out loans. I'd give some to each of my siblings and offer some to my parents. They might not take it, but I'm sure I could talk them into a trip somewhere. I'd give some to a daycare where I am the chairperson. This would require some research, as they are a non profit, and I wouldn't want to put them in financial difficulties. Then, donations to charities, and set the rest aside.

 

[JimMIA]

I'm going to pretend this came from a lottery because we don't pay taxes on winnings.

Um...yes you do if you live in the US. You may not have to pay any state taxes (we don't in Florida), but you would certainly have to pay US income tax.

 

[Donald13]

Oh I love posts like this on here. Gives everyone a chance to show off how debt free they are!!! So much fun.

 

[luvnwdwgal]

Buy a ranch style home, pad our retirement fund, give son and daughter-in-law some, and put money in trusts for our 3 granddaughters.

 

[ronandannette]

I would set aside whatever would be needed for taxes and invest the rest before year-end.

Since there is no tax on lottery winnings or gifts here in Canada (and presuming it would have to be one or the other) the whole shebang would be mine.

The first $500K I'd enjoy figuring out how to donate. Unfortunately that's not enough to start my foundation, nor is the left-over million probably enough for me to retire on just yet, so I'd take a couple of weeks off as soon as I could arrange it to research how to maximize the value for my favorite charities.

I'd pay our mortgage off or maybe even consider moving, which we've never aspired to but we're in the middle of a change of circumstances and a different house might make them easier. My DH would definitely retire and would immediately take off for lengthy visits with his two grown daughters and their families, at which time he'd determine how to best help them with some money. We'd set aside some as a future education fund for the grandkids and let them know so as to maybe inspire their imaginations beyond what they'd previously dreamed. We're currently aware of a number of friends and family members that could sure use a little help and it would be a joy if we were able.

That would leave about $500K for us to just supplement our lifestyle for the rest of our days and never spend one more second concerned about money.

 

[DisneyOma]

Oh I love posts like this on here. Gives everyone a chance to show off how debt free they are!!! So much fun.

My post was about paying debts, as are a lot of others? But if someone was a million and a half dollars in debt, (as in, there's no money left over to play with) they have more problems than feeling like others are touting their debt-freeness!

 

[cvjw]

Give it to the financial advisor to invest with the rest of our money. Leave it alone and let it grow. It has doubled in the last year already.

 

[Kathryn Merteuil]

Pay off the house (and some upgrades), get a new car... then probably put a lot in savings, and invest. I am not sure I would try to retire b/c I would KIND OF miss the social aspect of working (and insurance, I am way too young for Medicare).

 

[RamblingMad]

Invest it.

I'm in no rush to pay down my 2.8% mortgage or my 1.9% car note.

 

[pineapplepalms]

I’d use it towards a down payment on a bigger, nicer house so we could move directly without having to move out to a rental, sell our current house to free up equity, then move again once we buy a new house. Although I’d have to do the math… it may not be enough. Or we could use it to buy a house somewhere less expensive.

 

[ronandannette]

Oh I love posts like this on here. Gives everyone a chance to show off how debt free they are!!! So much fun.

I'm not debt-free, nor is attaining it {{gasp }} my highest priority. I don't really care what others think about that though, nor do I begrudge anybody managing their money differently. I don't ask internet strangers for financial advice nor do I give it, unsolicited. Oh, and we lease our cars - try admitting that in a DIS discussion about finances.

 

[kanerf]

Pay off all the credit card debt and the time shares. Set up a fund of some kind that pays the MFs in perpetuity. Not too worried about the house since I only owe about 40K. Oh and wipe out the student loans. Invest the rest.

 

[mel&me]

I would set aside whatever would be needed for taxes and invest the rest before year-end.

yep, what he said

 

[QueenIsabella]

Actually, the windfall might be tax-free, if it were inherited stocks (there's a step-up basis, basically you receive them at the value on the day the person died). Also, insurance payouts are typically not taxed.

A $1.5M investment can be assumed to throw off $60k/ year in income, in perpetuity, base on the common 4% withdrawal rate. Given that there might be inflation, it would be a nice sum, for sure, but you wouldn't be able to quit your job and live high.

What would I do? Fund the kids' college, maybe fix up the house some. Basically, though, I don't see major lifestyle changes.

 

[HeatherC]

Payoff our house and invest the rest.

 

[Starport Seven-Five]

Invest it.

That amount would push us well past the "financial independent" line. I would probably roll back to 3 days a week (need to check where the line is that keeps health insurance) which would be enough to pay the bills. Along with that I would apply for permanent remote work status. Convince my wife to quit her job and we would travel way more than we do now spending a month or so in each place.