What Would You Do With $100,000 [Archive]

Dave

04-03-04, 08:21 AM

If for some reason you were $100,000 richer all of a sudden, what would you do with the money?

It's obviously not enough to allow you to stop working, but it could change your life significantly.

Would you paydown a mortgage or some other debt, save it, spend it on something crazy, give some away???

Think about it, and think of what you could do with it and then apply that to how it would change your life, good, bad or indifferent.

strangeboy

04-03-04, 08:51 AM

I would spend about $20000 on new furniture... probably another $10000 on clothes and a few big nights out.... probably pay 2 years rent and then do something responsible with the remaing $50000 like invest it or some other financially beneficial thing that I know nothing about.

Texan

04-03-04, 09:31 AM

Pay off the last little bit of my credit card debt.
Use a significant amount on a down payment for a new house.
Keep some cash accessible for a trip to Australia on New Year's Eve.
Invest the rest.

Kimmy

04-03-04, 04:02 PM

a good car and a long vacation

Barb101

04-03-04, 04:09 PM

Donate it all to my favorite charity. :D

cuda

04-03-04, 04:24 PM

Pay off all my loans and wait for the next $100,000 to land in my lap. :what:

robb

04-03-04, 04:46 PM

Buy a really big subwoofer. Maybe two.

RicardoHead

04-03-04, 05:55 PM

Don't know for sure, but I'm figuring about $100 a pop, so I could rent about 1,000 hookers at one time.

Ahhh, me, a thousand sleazy chicks, and 30 minutes of heaven....

:Boobies::Boobies::Boobies::Boobies::Boobies:
:Boobies::Boobies::Boobies::Boobies::Boobies:
:Boobies::Boobies::Pimp::Boobies::Boobies:
:Boobies::Boobies::Boobies::Boobies::Boobies:
:Boobies::Boobies::Boobies::Boobies::Boobies:

STIBROKER

04-03-04, 06:07 PM

Originally posted by Dave
If for some reason you were $100,000 richer all of a sudden, what would you do with the money?

It's obviously not enough to allow you to stop working, but it could change your life significantly.

Would you paydown a mortgage or some other debt, save it, spend it on something crazy, give some away???

Think about it, and think of what you could do with it and then apply that to how it would change your life, good, bad or indifferent.

so dave....are we talking about your tax return....give stibroker a call.....

Pistol Pete

04-03-04, 08:34 PM

Move the hell out of here and start a contract design company with one employee.
I want to live in the country, away from cars, jets, dogs, and loud sub-woofers. I want a shooting range out passed my back door. I want to sit on a back porch on fall mornings and watch fog fill the land while hawks dive for breakfast. I want to see bobcat families crossing my property and deer grazing on wild strawberries. I want to be able to shoot off fireworks on Independence Day without wondering if the local government will send their thugs to arrest me.
I want out of the city.

shotglass

04-03-04, 08:50 PM

I guess you're assuming I am able to keep the wife from finding out about it...but probably use the cash to pay off the house and put a fence around the back yard.

STIBROKER

04-03-04, 10:51 PM

Originally posted by shotglass
I guess you're assuming I am able to keep the wife from finding out about it...but probably use the cash to pay off the house and put a fence around the back yard.

yo shot....why pay off the house????? it's the lowest intrest rate ya got and you could make more money puting it in an tax deffered account than paying off the house....what's your intrest rate on the house ....4 to 7 %.......pay off all your credit card's if anything.....

Sideout

04-03-04, 11:00 PM

Originally posted by STIBROKER
yo shot....why pay off the house????? it's the lowest intrest rate ya got and you could make more money puting it in an tax deffered account than paying off the house....what's your intrest rate on the house ....4 to 7 %.......pay off all your credit card's if anything.....

Not everyone has credit cards, but rates don't matter a whole lot when you're talkin hundreds of thousands of dollars. You pay off the house because it's your biggest monthly payment by far and you'll save a whole lot more in the long run. Not to mention having 100% equity ain't bad.

Ah...we can dream, eh Shotty?

jillamanda

04-04-04, 05:57 AM

Originally posted by Barb101
Donate it all to my favorite charity. :D

:Angel: :rolleyes:

jillamanda

04-04-04, 06:06 AM

I just can't get into this 'money makin' money' shit. I'm with Sideout - it'd be nice to be able to pay all your bills on time, and maybe even have the odd week where you can afford to blow your weekly wage on whatever you damn well wanted to. I'd use $100,000 to achieve this. Let's face it, there's only so much money to go around, so if all these people insist on getting rich, then it follows that others have to be content not to be rich. :shrug:

bearfoot

04-04-04, 07:36 AM

Your dream sounds great Pete...I hope it comes true foryou.
I'm looking for acerage right now...need more space around me that can't be invaded by people & cars...but to get it I have to sell my house by the ocean.....it's in a fantastic position and I know I'll never be able to afford to buy back in to a place like this (it was good timing in the market that got me in here in the first place).
Anyway...if I scored 100grand I'd rent this place out and let it pay itself off and use the cash as a major deposit on the acerage I want...the beach house would be paid off in a few years and I could use the rental as income. (too cool)
I do volunteer work for animal aide and want to take on more critters so the place I get would sorta be for charity as well...'cept for I get alot of satisfaction from helping strays so it's a rather selfish donation.:rolleyes:

STIBROKER

04-04-04, 09:45 AM

Originally posted by Sideout
Not everyone has credit cards, but rates don't matter a whole lot when you're talkin hundreds of thousands of dollars. You pay off the house because it's your biggest monthly payment by far and you'll save a whole lot more in the long run. Not to mention having 100% equity ain't bad.

Ah...we can dream, eh Shotty?

but the house is not earning an intrest rate.....and the mo. savings that would go to the house payment you would most likely start saving....why start from scratch ....my way....in the end ...you still have a payed off house and the $100,000 with 20 to 30 year's of tax defered growth.....

RicardoHead

04-04-04, 10:56 AM

Originally posted by STIBROKER
....my way....in the end ...you still have a payed off house and the $100,000 with 20 to 30 year's of tax defered growth.....
Know what you're saying Sti, but if you've had to look for a job in this effed up economy lately you might think differently.

Here in San Diego if you have bought a house anytime in the last few years you are literally a slave to a mortgage payment and property taxes, which combined are now averaging between $3500 and 4000 a month. That means one thing: your employer has you by the cajones and takes every opportunity to squeeze hard. Most recent purchasers are in the situation where if they lose their job, they lose everything, and the financing deals they are forced into for $450k condos (yes, condos) are enough to make you cringe. That's what happens when decent paying jobs are a bitch to come by and 80% of layed off employees end up taking jobs for way less than what they were making.

It's a constant bullshit pressure situation when you got that house payment on your back, and although 100k will not even come close to paying it off, if you can get rid of the monkey, you are well advised to do so, unless you, like so many people I know, are into having essentially zero disposable income every month because you've rigged your tax withholdings to subsidize your debt outflow, and you are dreading April 15.

Texan

04-04-04, 10:59 AM

Keep your beach house, BF!

Kimmy

04-04-04, 11:02 AM

Originally posted by jillamanda
:Angel: :rolleyes:

:laugh:

Sideout

04-04-04, 01:00 PM

Originally posted by STIBROKER
but the house is not earning an intrest rate.....and the mo. savings that would go to the house payment you would most likely start saving....why start from scratch ....my way....in the end ...you still have a payed off house and the $100,000 with 20 to 30 year's of tax defered growth.....

Your way you've paid about 4 times what the price of the house was. If you're worried about savings and earning, the extra couple grand you don't have to pay every month in a house payment would make a decent start I would think. The biggest chunk of money you can ever save is by paying your mortgage off early, unfortunately unless you come upon a large chunk of money like Dave's scenerio, it's not a reality for most of us. :what:

I think the idea Shotty was going for was a good one - get debt free as fast as you can.

STIBROKER

04-04-04, 01:15 PM

Originally posted by Sideout
Your way you've paid about 4 times what the price of the house was.

but over a 30 yr term with tax deffered growth you would make more......now if you used the intrest to ex~pay the morg. down I might buy that.......and losing the job was not the question.....

Principal borrowed: $100000.00
Annual Payments: 30 Total Payments: 360
Annual interest rate: 7.00% Periodic interest rate: 0.2333%
Regular Payment amount: $410.89 Final Balloon Payment: $0.00

The following results are estimates which do not account for values being rounded to the nearest cent.
Total Repaid: $147920.40
Total Interest Paid: $47920.40
Interest as percentage of Principal: 47.920%

and on the other hand.....

annualized
yield
%6
%4.38
Year annuity1
Annuity Value annuity1
% Change annuity1(assuming a 27% tax Rate)
Annuity Value annuity1(assuming a 27% tax Rate)
% Change
0 $100000 N/A $100000 N/A
1 $106000 %6 $104380 %4.38
2 $112360 %6 $108952 %4.38
3 $119102 %6 $113724 %4.38
4 $126248 %6 $118705 %4.38
5 $133823 %6 $123904 %4.38
6 $141852 %6 $129331 %4.38
7 $150363 %6 $134996 %4.38
8 $159385 %6 $140909 %4.38
9 $168948 %6 $147081 %4.38
10 $179085 %6 $153523 %4.38
11 $189830 %6 $160247 %4.38
12 $201220 %6 $167266 %4.38
13 $213293 %6 $174592 %4.38
14 $226090 %6 $182239 %4.38
15 $239656 %6 $190221 %4.38
16 $254035 %6 $198553 %4.38
17 $269277 %6 $207250 %4.38
18 $285434 %6 $216327 %4.38
19 $302560 %6 $225802 %4.38
20 $320714 %6 $235693 %4.38

Dave

04-04-04, 01:29 PM

That's all fine and dandy if you live 30 years to enjoy it.

Here's what I would do.....assuming this found money was a tax free exchange.......I would payoff all credit card balances, that would be about $12,000. Then, I would payoff my car loan, that would be another $10,000. That would free up enough montly cash flow to make my life a little easier. Next, I would buy somethings that I was never able to buy before, that would cost me about $20,000 say, after that, I would take a really nice 2 week vacation. spend say, $15,000 on that......that leaves me with a little over $40,000 that I would stick in educational funds form my kids.

That would free up about $1,100 of monthly debt payments, I keep the mortgage because of the low rate and breath a little easier at the end of each pay period......not to mention all the stress it would relieve.

RicardoHead

04-04-04, 02:25 PM

Originally posted by STIBROKER
.......and losing the job was not the question.....

I've noticed life's always a lot easier when you discount uncertainty.

Principal borrowed: $100000.00
Annual Payments: 30 Total Payments: 360
Annual interest rate: 7.00% Periodic interest rate: 0.2333%
Regular Payment amount: $410.89 Final Balloon Payment: $0.00

The following results are estimates which do not account for values being rounded to the nearest cent.
Total Repaid: $147920.40
Total Interest Paid: $47920.40
Interest as percentage of Principal: 47.920%

Methinks your periodic rate is hosed, senor. If your int rate is 7%, your periodic rate has to be about .583333% which yields:

A monthly payment of $665.30 with a zero balloon,
Total repayments of $239,508.80
Total Interest Paid: $139,508.80, and ....

Interest as percentage of Principal: 139.509% ..... which is a far cry from the 47.920% you cited.

I think you divided the annual interest rate by the number of years of the loan, or you assumed there were 30 months in a year, or that the 30 year loan was only paid for 12 years after which you defaulted because you lost your job.:what:

Dave

04-04-04, 02:34 PM

*Shaking head*

All these numbers....Sti, couldn't you just say you would blow the money on whores, weed and doritos and move on :hehe:

robb

04-04-04, 03:19 PM

bah, like Im gonna live in my house that long.

robb

04-04-04, 03:27 PM

I'd go on a safari with it. A good one. That would be about $20-30k for the wife and I. Then I would save the rest for another trip.

Probably would buy the wife a new car too, used Mercedes or an SUV. I hate her Civic.

Don't have any credit cards or car loans to pay off. Just a house and I owe so much on that, why bother.

STIBROKER

04-04-04, 04:03 PM

Originally posted by RicardoHead
Total repayments of $239,508.80
Total Interest Paid: $139,508.80, and ....

Interest as percentage of Principal: 139.509% ..... which is a far cry from the 47.920% you cited.

even still.....in a tax defered annuity at 6% in 20 year's..... $320,714.00

JBMoney

04-04-04, 09:17 PM

http://bushwhacked.net/bits/SomethingInteresting.jpg

JBMoney

04-04-04, 09:23 PM

Sideout

04-04-04, 10:32 PM

Originally posted by JBMoney
Remember this?? Those were good times...

:laugh: :laugh:

:bore:
I will send $100000 in small, non-sequential, unmarked bills to JBMoney. I have no problem with this. I will not remember that I even had the money.

*bawk...bawk*

STIBROKER

04-04-04, 10:36 PM

I would blow the money on whores, weed and doritos .........

Barb101

04-04-04, 10:56 PM

Originally posted by Sideout
I will send $100000 in small, non-sequential, unmarked bills to JBMoney. I have no problem with this. I will not remember that I even had the money.
http://bushwhacked.net/forum/images/posticons/asskisser.gif :p

Sideout

04-05-04, 06:52 AM

Originally posted by Barb101
http://bushwhacked.net/forum/images/posticons/asskisser.gif :p

Bite Me!

:OOPS: whew, for awhile there, I thought I had stumbled back into the Riddle thread...

RicardoHead

04-05-04, 08:44 AM

Originally posted by STIBROKER
even still.....in a tax defered annuity at 6% in 20 year's..... $320,714.00
Yeah, but if you took the $665.30 per month and invested it at 5% after 20 years you'd have about $274,600 which is $46,114 less than your way, but your way you'd still owe $57,300 on the original loan, so by paying it off early you come out $11,186 ahead plus you have the added priceless benefit of being able to tell your boss to stick it up his ass at any time inbetween, whereas your way, your boss has you by the balls.

Point is, in the end, it all works out about the same, only being debt free no one has you by the balls except the divorce courts

Eagle3

04-05-04, 01:15 PM

Put it away in a vacation fund. Let it draw interest and each year draw out enough to take the family on a killer vacation..... but that's just me. :what:

Dave

04-05-04, 02:02 PM

Ok Clark Griswold :hehe:

Freak

04-06-04, 11:10 AM

Originally posted by Pistol Pete
Move the hell out of here and start a contract design company with one employee.
I want to live in the country, away from cars, jets, dogs, and loud sub-woofers. I want a shooting range out passed my back door. I want to sit on a back porch on fall mornings and watch fog fill the land while hawks dive for breakfast. I want to see bobcat families crossing my property and deer grazing on wild strawberries. I want to be able to shoot off fireworks on Independence Day without wondering if the local government will send their thugs to arrest me.
I want out of the city.

I'd get the hell out of here and possibly start a company with the wife.
I want to live in the city by the cars, jets, dogs, and loud subwoofers. I don't want to go outside and get the remnants of dead animals that the eagles and hawks picked over out of my yard so the kids won't get into it. I don't want to have to have to spray the house for all the freaking spiders, grasshoppers, and ladybug-like creatures that want to come in from the fields. I am tired of hearing the firecrackers, m-80s, deer rifles, etc. go off until 630 in the morning on July 5th.
I want in the city.

jillamanda

04-07-04, 09:18 AM

Originally posted by Freak
I don't want to go outside and get the remnants of dead animals that the eagles and hawks picked over out of my yard so the kids won't get into it. I don't want to have to have to spray the house for all the freaking spiders, grasshoppers, and ladybug-like creatures that want to come in from the fields. I am tired of hearing the firecrackers, m-80s, deer rifles, etc. go off until 630 in the morning on July 5th.
I want in the city.

Where is this Shangri - la? :rolleyes:

Dave

04-07-04, 09:24 AM

Originally posted by Freak
I'd get the hell out of here and possibly start a company with the wife.
I want to live in the city by the cars, jets, dogs, and loud subwoofers. I don't want to go outside and get the remnants of dead animals that the eagles and hawks picked over out of my yard so the kids won't get into it. I don't want to have to have to spray the house for all the freaking spiders, grasshoppers, and ladybug-like creatures that want to come in from the fields. I am tired of hearing the firecrackers, m-80s, deer rifles, etc. go off until 630 in the morning on July 5th.
I want in the city.

You and Pete should swap cribs

Freak

04-07-04, 10:20 AM

Originally posted by Dave
You and Pete should swap cribs

Going from Nebraska to Oklahoma???

That'd be equal to switching from kissing your sister to kissing your brother.:p :Poke: ;)

JBMoney

04-07-04, 12:06 PM

Originally posted by Freak
That'd be equal to switching from kissing your sister to kissing your brother.:p :Poke: ;)

Speaking from experience, of course.

Freak

04-07-04, 01:08 PM

:shrug: I dunno...I'm just going from what the Texas boys say...

JDub

04-07-04, 02:44 PM

Dickie. :nolike:

KrzDefKat

04-10-04, 08:41 PM

I would pay off the mortgage I took out on my house to go back to school for 2 years, the money I had to borrow to live on when I broke my leg, and my line of credit. That would leave me some to put into a GIC.
It's not easy to get a good paying job. I'd rather be assured of a roof over my head. ;)

Bucko

03-22-05, 08:36 PM

I'd buy a new ass. Mine has a crack in it. :sure:

gopsdragon

03-23-05, 11:12 AM

DMS

03-23-05, 12:00 PM

yup.on the house

JasmineDreamz

03-23-05, 12:12 PM

I could put one kid through college and put the other one in military school.

JBMoney

03-23-05, 12:42 PM

I'd put it on my house, which would save me over $200,000 in interest over the course of my loan. Then I would be set for retirement because for 20 years or so the $1300 a month I now put on my house would go to living luxuriously from my 40's on. :D

Assuming you could invest at about, or more, than the approx. 4.75% cost of the loan, you should put the money elsewhere and continue to write the mortgage interest off on your taxes.