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I will be coming into somewhere in the neighborhood of $10,000 through a government payout, all tax free here in the next few weeks. Trying to think of what I should do with the money.
So I pose the question, what would YOU do if you came into $10,000 tax free?
I wouldn't do anything special with it. I'd deposit it in my brick & mortar bank. Since it's excess money, I'd push it to my 1.2% Ally Bank emergency fund as soon as the check cleared. I'd probably wait for a market correction and buy VOO.
That's about a month's worth of savings (most months) so I can tell you exactly where it goes... a little less than $2k goes into a 401k, about $5k goes towards a new condo and the rest is sent to a taxable.
I will be coming into somewhere in the neighborhood of $10,000 through a government payout, all tax free here in the next few weeks. Trying to think of what I should do with the money.
So I pose the question, what would YOU do if you came into $10,000 tax free?
That all depends on whether you live in the US or Canada?? Canadians can put up to 5500.00 a years in to TFSA's ( which includes investments into Bundled Mutual funds that compound their dividends) and when you remove it.. you pay ZERO taxes!! Savings accounts (TFSA) don't always pay much now.. but you can always transfer it there once interest rates go up!!
If you receive the money and invest it outside of that. Canadians only have to pay Capital Gain taxes on it!
Have no clue what American's can do with such large amount... IF American.. maybe pay of high interest loans or pay down your mortgage.. or put into Retirement Fund of some sort. Personally I would put into something you can access without penalty incase of Emergency funds needed.
I kind of Laugh when you get responses to spend it.. enjoy it..travel etc etc... Hey, it's a windfall why BLOW it for instant gratification??? Why not pay down debt load?? or Invest it?? Course I have no clue how old you are either
It would go into my car fund. Although I still owe about $2k in medical bills from my fall/accident. Who knew a broken arm could cost so much! So if only be sticking $8k away. Still, I’d be very happy to get the bonus. Congrats to you!
I have a bunch of credit card debt, and limited savings. So I would probably put $2k into savings, use $6k to pay off credit card debt, and maybe use $2k for things I want that I have been denying myself due to debt payments (if I didn't need $2k worth of stuff, I would split the remainder between savings and debt payoff). With the money freed up from paying off $6k or more, I would redirect to the rest of the debt (not much more than that) and pay it off more quickly.
My wife may not agree, so most likely just put it in various accounts and such like a financially responsible person.
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