IWW4 comments on what should I do with a $150K present after taxes?

[+] IWW4@lemmy.zip -4 points 2 months ago* (9 children)

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[–] Klanky@sopuli.xyz 3 points 2 months ago* (last edited 2 months ago) (3 children)

I’m 42 and in the US, I’d call 150K pretty close to life-changing for me. I could afford some large maintenance items on our house, pay down the mortgage by a good chunk, and not have to worry about some upcoming medical bills. Sure I’d still have to work but it would definitely have a huge positive change on my life going forward. 🤷‍♂️

Edit: and also beef up our emergency fund! All of this would make us ‘feel’ much more comfortable.

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[–] IWW4@lemmy.zip 4 points 2 months ago (2 children)

Come on man.. would you get to stop working? Would you bot have a house maintenance issue in the future?

Income is all about the flow, not the peaks.

Nothing would change for you.

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[–] Klanky@sopuli.xyz 3 points 2 months ago (1 child)

I agree it is all about the flow, I even said in my comment I’d still have to keep working. It would help tremendously and take some pressure off us which mentally would feel like a breath of fresh air.

Believe it or not, I get where you’re coming from on this. I guess I’d just love to have 150K is all. 🤣

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[–] IWW4@lemmy.zip 3 points 2 months ago

Does that change your life?… no.

When it comes to money, one must be a realist at all times.

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[–] mycodesucks@lemmy.world 1 point 2 months ago (4 children)

Depending on your age, it's ABSOLUTELY life changing. If you're 20, drop it into an index fund, and most likely you'll never have to save another dime for retirement for the rest of your life.

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[+] IWW4@lemmy.zip -2 points 2 months ago* (last edited 2 months ago) (4 children)

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[–] oantby@lemmy.today 3 points 2 months ago (2 children)

S&P500 lifetime inflation-adjusted return is 7-8%. meaning, if one put away 150K in the S&P500 at age 20 and worked for 40 years, putting away nothing else but gaining that inflation-adjusted 7-8 (conservatively call it 7), and then pulled out a measly 4%, allowing the remaining growth to account for inflation, they’d be pulling an inflation-adjusted income of >80K, ignoring any other income.

I’m not saying one shouldn’t put anything else away or strictly count on matching historical S&P return, but yes, putting away 150K at 20 could absolutely mean you don’t need to put anything away again.

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[–] IWW4@lemmy.zip 1 point 2 months ago (1 child)

It will not change your financial situation at all..

Yes, it will be great for a retirement account, but it doesn’t change your fucking life one iota.

That’s the crazy weird ass thing about money. That’s what we all need to fucking wake up to.

It’s all about the flow not the big amounts…..

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[–] rezifon@lemmy.world 1 point 2 months ago*

Having the whole retirement situation handled at age 20 has the potential to completely change someone’s life.

Every large decision you’ll make in your life will be influenced by money. Your risk tolerance is influenced by money.

At 20 year old with a 150k safety net can make different choices than the same 20 year old without those savings.

Having confidence that their retirement is funded can completely alter the trajectory of someone’s life because they took more risks or chose a career on passion and not for more income.

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