What would you do with $500,000?
Posted on May 05, 2007 under Uncategorized |
You can tell a lot about a person by what they spend their money on, and I’m not just talking about their financial savvy. You get a feel for what interests them or what’s important to them.
I got to thinking about this as I see these network game shows such as Deal or No Deal or Are You Smarter than a Fifth Grader.
Aside from all the taxes, people receive a large sum of money all at once. They obviously haven’t budgeted for this one time increase, so they’re faced with the important question of what to do with it.
I now pose the question to you. What would you do if you were given $500,000?
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by prlinkbiz, on May 5 2007 @ 1:48 pm
It always amazes me at what people would buy. I would put all that money into cash flowing investments like real estate and businesses. That way, the money really becomes the gift that keeps on giving!
by Ashley, on May 5 2007 @ 3:45 pm
That’s a lot of cash, but probably a new house, maybe in NC. If not that, then help out my church and missionaries and take up travelling.
by Mike Engelhart, on May 5 2007 @ 4:21 pm
OK, here’s what I’d do. Assuming this is a full 1/2 million after taxes in a lump sum, I would pay down my mortgage about $100k and reamortize the note (either with the same lender, or refinance). That would decrease the mortgage by about $450 per month or so, which would be about a 23% reduction.
With another $100k, I would really fix up the house. We have a nice sized 4 bedroom, 3 1/2 bath 3 story house that was never done up nicely. I would redo the master bath, paint the upstairs and third floor, and I would recarpet the master and third floor.
I would get really nice window treatments and shutters across the front of the house. I would extend the deck around the pool and fix up the stonework around the pool and waterfall. I would put a fire pit and BBQ pit out back there, too.
I would redo the driveway and put nice storage built-ins in the garage to take the clutter off of the floor.
The other $300k would be put away for the kids’ bar-mitzvah’s, college, and our retirement.
Oh, and I’d take a month off this summer and travel to Japan and Hong Kong or something like that.
by Raspberry, on May 8 2007 @ 9:49 am
I’d probably let it sit for a while just so I can see it in the bank.
I’d donate some to my church, invest some in real estate, tuck some of it away, and then I’d want to travel.
by What would you do with 500000 Fiscal Musings | fire pit, on June 13 2009 @ 10:18 pm
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by Jack, on July 27 2009 @ 1:29 pm
I concur sir