Best way to invest windfall.

[54regcab]

Assume the person inheriting the money is a typical CB member with all of the above options.

[crofttk]

This is a no brainer for me. As my CCs carry the highest interest rate burden, I'll take the immediate investment return of 13% AFTER TAXES (my current balance weighted average APR) any day.

 

In certain circumstances, though, I MIGHT look at how much cash flow would be freed up by paying off a car loan and accounting for the interest rate expense of letting the CC balances stand.

Edited April 10, 2005 by crofttk

[cotterpin]

I'd put all 10k on one spin of the roulette table in Vegas

[rpatty]

Honestly this is a tough one to call, because "average" is pretty hard to judge. Personally, I voted for the car loan because it's often a fairly hefty monthly expense, and it frees up more money in the budget to be used on the other things. But given a real-life situation, the actual details might change that choice. For instance, in my personal life, my car is paid for already, so I would do other things ... probably make my student loans go bye-bye.

[hegemony]

Assume the person inheriting the money is a typical CB member with all of the above options.

<{POST_SNAPBACK}>

"assuming" "typical" is the problem with this poll. IT DEPENDS is the only reasonable answer.

[Hwkdrvr]

My Roth IRA is maxed; my 457 is maxed; my Emergency Fund is topped off; I have had my eye on a commodities fund that requires a $10K minimum investment. That is where I would put that windfall.

 

Michael