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In response to
"Financial overshare: As you may have heard, I'm sitting on the proceeds of our house. Curious what you all feel about where to put it knowing that -- (edited)"
by
oblique
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here are my thoughts...
Posted by
colin (aka colinski)
May 3 '22, 14:49
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1) keep the money, use it to fully fund all accounts to the max every year for the next 5 or so years until its functionally gone... it's there as money to be used, but it also lets you max out everything worry free for quite some time.
2) you can invest in shorter term investments to try and make some gains, but you put it at slight risk and you're probably not talking massive gains, plus there's taxes and a whole lot of other things.
3) buy another house.. get a vacation place. even if it's not heavily used, you are putting money into something that more than likely will become MUCH more valuable over the next 10 years than any investment. you could also buy a commercial building (doing that now because of a similar situation). real estate is still a very solid way to store and grow money for us essentially non-rich folks.
4) start or invest in a business. you have the money to buy or start or invest in a business. even if you break even in a few years, you can help someone with their dream or you can start towards your own. this is another great use of your money.. build something with the intention of selling, just like with real estate (also doing this one at the moment :) )
i totally get this..we sat for 2 years on the house proceeds because we weren't sure what to do, and suddenly two opportunities came up and we had the money to move on it (and to buy a new motorcycle, cause you gotta live a little). maybe waiting is the best option... drop it in savings, it's covered by insurance, you're not going to lose it.. yeah, you could be making more on other investments, but maybe you need some time to figure out what's best.
also, give some of it away - support a food bank, friends/family in need, mutual aid.. cause, you know...
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