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$150,000 in cash.(Hypothetical)

D

dej(Jed)

Well-known Member
Ok suppose you got your hands on $150K tax free. What would you do with it?

1. Buy more old tractors?
2. Give it to the kids?
3. Give it to your significant other?
4. Buy a new pick up?
5. Put it in the bank?
6. Hide it in your mattress?
7. Other?
 
Depending on your age - if young invest in Roth
Ira - if older spend baby spend. Can't take it with you
 
Pay off debts so I was not paying interest. Then I could live with a lot less stress. (done it!)

Or I could do as my brother did. He took his inheritance, his 401K and his retirement all at once. In 6 months, his home was in foreclosure and no one knows where all that money went. Then his wife divorced him because he was still not paying the bills. It's all down hill from there for him.
 
Depends on ones age and retirement plans and options. At my age I would SORT OF DO NUMBER 5 except it would be in a very conservative Mutual Fund such as one of the American Funds. Once maybe 5 to 10 years older, I would consider transferring it into a Non Revocable Trust so the kids and/or spouse eventually get it.

Ol John T and all
 
Be smart and don't even think of doing #2 on the list. According to the finacial experts, that is the worst thing that you can do. It might make you feel good, but it gives the kids the wrong impression about how to live and handle money.

Kids need to learn that they have to work and earn their way through life; it will make better people of them.
 
7) I'd buy residential properties, depending on the area. Right now homes are going cheap in my area like 1/2 to 1/10th their value. Yes, still...

The "economic recovery" never reached here and with corn prices in the tank its likely to get worse before it gets better. :)
 

I'd go out and buy an IH 856, and then I'd start hunting for a pickup truck that was built pre-computer chip/pre-emmissions, and rebuild it if needed.
 
I'd buy more old tractors....but first I would need to build more barns to keep them in....wait... better make that $300,000 !!
 
Guys, Spend 30,000K on some important projects, put the rest in an....
Index Annuity, Monthly point to point and see if I can't put the 30K I spent back in about 2 yrs!
Cash on hand IS King?!
Later,
John A.
 
Build my simple $10,000 animal barn and pond. Put $50,000 into home addition and $30,000 in each child's college account.
 
Pay everything off, about 1/6th of that. Buy a newer tractor about 125 HP with MFW. Then I just don't know.

Rick
 
1/3 of it to pay off the mortgage on the house, 1/3
going for remodeling of the house, and 1/3 in the
bank or some investment
 

Pay off the new tractor, addition on the house, new car (and be able to keep the current one to play with) and save the rest for retirement in about 3-4 years.
 
R you said that as a joke but out of pocket for this years crop was over that figure by quite a bit. Just like going to Vegas big gamble . Corn looks great but getting it out may be rough so far almost record rain for first 15 days of October.
 
Buy another tractor, upgrade the dog kennels, landscape the yard, build a small pole barn, travel to Nebraska and west to see Alan and Delta Red, invest some in more land, save/invest the rest. I agree, land is something tangible the kids can sell after we're gone.

Larry
 
Not bragging, I've been blessed and have a good bit for a 66 Y.O. that has worked and saved since my teens, but, I'd give it[the 150], plus what I've got already, to be healthy again. Then I'd be able to work and at least get by, if I couldn't earn enough to live on at least I'd be happy and feel good.
But it's like always been.....wish in one hand and.........
 
Quit my job and start my new career of living on $1 dollar a day. That would be just enough at this point for me to call up work and say I'm done.
 
You only think I was joking. The only way you'll likely make a profit next year is if somebody gives you the inputs.
 
That is not a lot of money any more. I always
thought if I won the lottery I would just pay off
debts, then farm a small farm and enjoy life!
150,000, I need a shop and a bigger pack barn for
the cows, and I need another steer lot. Call me and
I will give you my address that you can send the
check too. JK LOL
 
I do not believe that I would buy anything and I don't have debts so I guess I would put in a safe deposit box until I decided what to do with it. As far as retirement funds it would not be enough to make any real difference. Some mentioned buying more land but unless you live in some desolate area it would not buy much. I agree that the idea of giving it to the kids is not a good one. I doubt that anyone would be much better off in a year or two after they received the money.
 
I'm only 27 and bought my first house almost a year ago. I would pay off my house and build my shop and problaly buy a tractor or two. On the other hand having $100-150K in the bank wouldn't be bad at all.
 
Some say $150,000.00 is not much money, just try to
save that much ahead. It will seem like a lot more
if you have to save out of earnings , rather than
just dreaming about how to spend it. Truth is that
it will not buy the big ticket items, land ,homes
and the like. But it could take the pressure off
most peoples lives. As for myself, I am sure the
money would be reinvested into our farm. Takes
money to make money. Bruce
 
(quoted from post at 05:37:21 10/15/14) Ok suppose you got your hands on $150K tax free. What would you do with it?

1. Buy more old tractors?
2. Give it to the kids?
3. Give it to your significant other?
4. Buy a new pick up?
5. Put it in the bank?
6. Hide it in your mattress?
7. Other?
Click to expand...

Thanks for the comments. I think that at 64, $150,000 would put me comfortably into retirement. I have no mortgage, own several acres and I have good health. I think I would go with a new pickup and then just see what I would want next. Hypothetical of course..
LOL
 
It really doesn't work that way here. The property taxes and maintenance eat up almost or all the rent.
 
$150k aint much anymore.

But....I would set $25k aside for my son to go to college. Then, pay off my house, do some home improvements, then put the rest in a retirement account.
 
Put 100K in the bank, the remaining will pay off all my and my Wife's bills and have a good chunk of tractor money left!
 
dej(Jed),
I retired at 55, have investments in stock
market. I'm 65, haven't tapped into investments
yet. When market crashed in 08 I cashed in some
stocks and took a major loss, on paper, which is
tax deductible $3K per year or it can offset any
capital gains. I put the money back in to the
market and it's back to where I started per 08.

Recently my brokers, I have two, thought it would
be a good idea to buy into short term bonds. One
is paying 7% the other 6.5% with a bonus at end
of term.

I too have no debt, all properties are paid for.
I paid cash for my last two homes and last two
vehicles.

Some think the market is too risky. Keep in mind,
my losses in 08 were just paper losses. Yes he
market has risks, but take your paper losses and
it's income tax reallocation.

7% on $150k won't take long to pay for a new
truck, if you can find last years model with no
interest. It won't take you long to pay for a new
truck and still have the $150k in your pocket

Best advice is to talk to an investment adviser.
 
I would find a college co-ed who needed her tuition
paid and, on a monthly basis, have her do odd jobs
around the house in the couple of days I had left to
live.
 
Being skeptical of many organized church groups(
especially the ones who say give your money to
Jesus , but give their address) I would send
bibles to as many as possible after giving
$100,000.00 to Cambolteds mission work. Should
anybody want to know Ted and Sonny Weimers
Cambodia work is the real deal. If you should have
any Case tractors he needs donationed they also
carry a letter for tax donation.
 
The 6.5% are grocery store bonds. Krogers owns about 30 different stores in the US. They are under old owners name. The bonds are used to build new stores. Once the building is finished, bonds is paid off, with bonus.

the 7% are corp GM bonds backed by their equipment and buildings.

Check with your financial adviser. There are some good deals out there. I just bought both in the past few months. Not everyong may qualify to buy them.
 
Interesting comment. I've often thought that if I was not so tied down with making a living it would be interesting to do just that. If nothing more than to prove it could be done.
 
I had GM bonds that went from triple A rating to toilet paper after external_link got through with them.
 
But....If I don't count property taxes, utilities, fuel and mortgage..I make it on less than $6 a day.

(sorry about my past post. My math was wrong)
 
By the numbers
1-of course but not a good investment
2- Kids? maybe some but not all
3- wife? no he!! no
4- my present truck is doing fine, however a 3/4 ton instead of 1/2 ton would be nice.
5- Bank? realy poor investement very nnalert, almost as good as 6- mattress.
7- other , maybe invest in houses and lots ( if you know the joke). probley go to a lawyer and ?/ see #3
 
I would put it one of those CD's my local Savings and Loan has been advertising the last two months !

1.1 percent interest. $1650 per year ! Wait, a little more than that if compounded daily (grin)

Seriously, would be better than investing in wrong stock and losing money. With my investing record and grain marketing skills I could easily lose !

Bill
 
If you think you can retire comfortably on 150K, you must not plan on living long. And make that 100K after you buy that new pickup.

Conventional wisdom is that you should draw no more than 4 percent of your retirement savings per year. And that assumes some diversification of your savings (i.e. stocks and bonds) so you're earning better than bank interest. 4 percent of 150K is 6K. Not much unless you have other sources of income.
 
Good advice. When it comes to retiring, your retirement should be equal to your current income plus have an inflation factor built in to retirement income.
 
Since I'm retired and everythings paid for , I would do more of what I do with my money I already have. Buy low and sell high. I don't believe in paying/risking my $$$$$ to some suit and tie guy promising me the world when he knows better. Besides it's kind of fun buying and funner yet selling. I shoot for 100% but sometimes the situation lowers that to 75% or 50%. Give it all to some idiot for 1.1 - 7 % , not a chance.
 
We had the opportunity to receive about a third of that amount in a lump sum after taxes. I DID pay off everything I could without using all of it. Now, two months after the fact, it's really nice getting the statements with -0- due and no balance. The secret now is to not get into the same situation again. Our net income is now actually more than before without the debt hanging over our heads. How did we get that way to start with? A third poor planning, a third poor money management, and a third due to circumstances beyond control. Could have done something about the first two, but things just happen.

What now??? We still have a little debt, but will have that taken care of in a year, using some of the "new found" extra money not being used for interest payments on balances. It should be noted that many of the things we bought on time are now gone, but the debt was still there.
 
I have read similar advice from many money mangers but never really figured out why I would need my current income to retire on if I live on less than a third of my current income now? Plus everything I own is paid for, my current company retirement, which is made and maxed out, will pay me about half of what I make now, I have retirement accounts and savings and income producing cattle etc. Granted, illness may strike, if illness strikes me and its bad I'll just croak instead of pay but if it is my Wife I would pay. Otherwise I don't get the need to match my current income in retirement, I mean where does it end, how about if a persons income substantially increases 3-5 years before retirement?
 
Hire a 28 year old, blonde Swedish masseuse. Pick a real cute one that speaks no english but understands basic sign language. :D (Strictly for medical reasons, I have a lot of aches and pains)

Gene
 
(quoted from post at 22:40:39 10/15/14) Hire a 28 year old, blonde Swedish masseuse. Pick a real cute one that speaks no english but understands basic sign language. :D (Strictly for medical reasons, I have a lot of aches and pains)

Gene
Click to expand...

I like your suggestion.
 
The reason your income needs to be the same is called INFLATION. You will also need to have a way for your retirement income to keep up with inflation.

When I started working I made less than $7K, retired with $52k/year income 31 years later. Your retirement needs to increase too or you will be like my brother.

My brother is in the poor house because he thought he would need less money to live on when he retired.
 
These are different, GM bonds not GM stock. They are backed by the GM buildings and equipment. Totally not the same. Yes GM stock became worthless. This isn't the place for finical advice. Talk to your finical adviser. If you don't have one, get one.

What people need to see if that when they were working they got raises. I started working in college for $1/hr minimum wage. Now minimum wage is more than 7x. The 31 years I worked my wages increased over 7X. My mom died when she was 88. Her SS was a little over $600. When she first started drawing SS she thought she could live on that. NO WAY. People need to thing long term or you will be like my mom and brother. Living with your kids or in the poor house.
 
Pay off my house, car, and credit card balance, that would take about $45,000. Then over haul my John Deere GW tractor and soup it a little like my other G is. Then try to find a really good middle '90's Ford F 250 pickup or cherry out the '95 F 150 I have now that's gettin' pretty rusty and get me a little bigger trailer like a 10-12,000 lb. hauler. I'd just "fritter away" what's left, if there is any, after that....Hey, I'm 80 years old now so why save for anything? I would give my church a pretty good little wad too by the way. I have to Thank God in some way for me being as healthy as I am and seeing me through some of the "pickles" I got myself into in my younger days.
 
How is inflation going to catch me? I told you at the atart that I live on less than a third of my present salary right now.
 
So do I, but I paid cash for my pole barn, last 2 houses, last 2 vehicles, take trips, cash for room addition, cash for 2 new trailers, tractors. I haven't been to a bank to borrow money for decades.

Are you aware that over half the homes sold to retired people in the expensive areas of Florida pay cash for their homes that average over $500K?

You buy a Willie Nelson, travel buss, you can easily spend $500K, not to mention the fuel bill.

If you live long enough INFLATION will bite you in the wallet. The average life for people today is over 80. You retire early, like I did, hope to live for another 30 years, you have better plan on everything costing more.

I guess you could live like a hermit and not want to do anything in your retirement. As for me, I'm having too much fun. I just wish I could have gotten out of college and went directly in to retirement.
 
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