I’m 28 and just got $150k from a car accident settlement. My parents never really taught me about money, so I’m looking for advice. What would you do with $150k? I have a steady job, and I’m currently in college in Tennessee. I make about $3,500 a month and spend around $1,800 on bills. I also have $15k in debt (credit cards, car loan, student loans). I’m hoping to create some passive income and set myself up for long-term success. What’s your take?
Spend it all on cocaine and strippers. Seems like a solid plan.
Kei said:
Spend it all on cocaine and strippers. Seems like a solid plan.
The memories would be priceless! Experiences over money any day.
Start by paying off your debt so you don’t keep paying interest. Then put the rest in a money market fund like SWVXX, which makes 5% interest. You’d get around $500-600 a month from that until you figure out what else to do. Easy way to get passive income.
@Orin
Check out this forum for more advice on investing.
I’m 26, talked to a good wealth advisor, and have always been smart with money. First, pay off any high-interest credit card debt. Then set aside some cash for an emergency fund (around $30k for 6 months of expenses). After that, put aside $26k to max out your IRA for the next four years ($6.5k a year). That leaves you with $79k, which you can invest. Maybe spend $5-10k on education or future goals and the rest on a mix of index funds, REITs, or dividend stocks. Over the long term, index funds usually beat dividend stocks. A financial advisor might even suggest waiting until a market downturn to buy stocks. Hope that helps, and feel free to DM me!
Buy a skyscraper and start a hotel. You’ll be swimming in cash!
Finnick said:
Buy a skyscraper and start a hotel. You’ll be swimming in cash!
Where do you find a skyscraper for $150k? I can’t even find a decent house for that much!
Finnick said:
Buy a skyscraper and start a hotel. You’ll be swimming in cash!
Where do you find a skyscraper for $150k? I can’t even find a decent house for that much!
Florida.
@Hart
Just remember the HOA fees and special assessments, lol.
Dakota said:
@Hart
Just remember the HOA fees and special assessments, lol.
There’s a fire sale happening after Hurricane Milton, check it out!
Pay off any debt with interest over 10%. Then open an IRA and invest in S&P 500 index funds. After that, forget about it and let it grow.
- Pay off your $15k debt, especially credit cards with high interest.
- Put 3-6 months of living expenses into a high-yield savings account for emergencies.
- Max out your Roth IRA for 2024 and invest in low-cost index funds like SPY, VOO, or VTI.
- Put whatever’s left into a brokerage account and invest in similar index funds to diversify.
I’d buy a rental property and hire a property manager, but that’s based on my situation. For you, start by paying off your debts. After that, put the rest in an index fund until you have enough to buy your own house. It’s a big chunk of money, but it’s not life-changing. You’ll still need your job, but you can relax a little.
If you want to get into stocks (it’s pretty simple), check out JEPI and JEPQ. They pay monthly. Put 35% in those and the rest in VOO or SPLG for growth. In 30 years, you’ll be glad you chose VOO or SPLG, and JEPI/JEPQ will pay you a few hundred bucks a month. If you don’t need the cash flow, reinvest the dividends.
Pay off any high-interest debt first, like credit cards and student loans. And never get into that mess again!
Congrats on the settlement, that’s wild! Definitely smart to think long-term. First, tackle that debt—it’ll free up more cash every month. Then maybe split the rest up: put some in a high-yield savings account for a safety net and invest the rest. Since you’re into passive income, look into real estate crowdfunding or dividend stocks. It’s a lot to learn, but there are tons of resources out there. I’ve been learning myself, and this forum has been super helpful for getting started. Good luck!
Normally, I’d say pay off the $15k debt and use the rest as a down payment on a house. But interest rates are high right now. Still, if you can find a house where the mortgage, HOA, taxes, and insurance add up to your current rent, you’d start building equity right away.
Look into cheap property in Southeast Asia. There’s a glut of condos, houses, and commercial spaces right now.
Pay off your debt, save the rest, and invest it. Simple as that.