what would you do with 20k cash

[thefairlaneman]

What is the best thing to do with 20 k today? My morgage pay off is about 30k at 6% and the wife has a couple of credit cards. Ive paid them off several times before only to have her continue to use them and bring the balance back up to a couple of k so that idea doesnt work. Buying stock now would take a genius to figure out so what would be the best return on 20 k I dont have room for another old car so what is best? I have a good friend who has made alot of money in coins but that takes years and expert knowledge so thats out. any ideas?

 

[zach103]

Re: what would you do with 20k cash

BUY ANOTHER BOATT!!! come on simple as that loll

 

[achris]

Re: what would you do with 20k cash

Easy....

1. Pay off the wife's credit cards. Then cut them up!!!
2. Pay the rest onto the mortgage.

Every financial adviser I know, or have heard on the TV, says that the best thing to do is to pay off all the debts first, starting with the ones with the highest interest rate. Then, and only then, do you start playing with investment.... You have no idea how nice it is to live in a house that you own!!

Chris...........

 

[thefairlaneman]

Re: what would you do with 20k cash

Thanks but I have paid them off and cut them up before. Problem is that doesnt close the account. She likes using them to much and because she makes more money than I do I cant forse the issue. I hate credit cards and never use one. After I paid them off last time I said NEVER AGAIN and I mean it. I guess I will just put it on the house. I was hoping for a big profit quick return sorta plan thats someone else has tried. Maybe I will ask her what the balance on her cards is as of today, then run out and spend the same amount on another boat. It would need to be one big enough for me to sleep in though lol

 

[achris]

Re: what would you do with 20k cash

.... I was hoping for a big profit quick return sorta plan thats someone else has tried.

Big return = big risk... and it's the 'risk' bit that frightens me

Maybe I will ask her what the balance on her cards is as of today, then run to the boat store and spend the same amount on a new boat.

I've seen a lot of couples get into this... It's a downward spiral, usually ending in divorce and lots of debt...

It would need to be one big enough for me to sleep in though lol

See my previous comment

All you need is to be comfortable with what ever you do with it...

Have fun

Chris.........

 

[JustJason]

Re: what would you do with 20k cash

Do what I did.... toss all credit cards except for 1 that's in the house and only for emergencies. 1 that neither spouse will ever carry, and never use withought consulting the other.
And get a debit card instead.
Its funny how much you don't buy when it's comming out of your account in real time.

 

[jay_merrill]

Re: what would you do with 20k cash

Given what is going on in this economy, I would put it someplace safe and relatively liquid. Its getting very "ugly out there" and you never know when you might need the money to help with the bills if your employer should go under, etc.

This is probably not the time to rely on traditional advice in regard to paying off bills, the mortgage, etc.

 

[SgtMaj]

Re: what would you do with 20k cash

Convert it to Canadian dollars and stick it under your matress.

Why? Because banks, as well as the American dollar don't seem to be sure things anymore.

 

[tashasdaddy]

Re: what would you do with 20k cash

I would tuck it away. may need it to buy gas. 6% mortgage, i would not payoff, that is cheap money.

 

[gonefishie]

Re: what would you do with 20k cash

Precious metals and hide it.

 

[achris]

Re: what would you do with 20k cash

I would tuck it away. may need it to buy gas. 6% mortgage, i would not payoff, that is cheap money.

Pay off the house... That way you'll have a good credit rating when you need to borrow money to buy petrol...

 

[Splat]

Re: what would you do with 20k cash

Gold

Bill

 

[CN Spots]

Re: what would you do with 20k cash

CN Spots Bank and Trust? would love to help you with your financial distribution needs!

 

[levittownnick]

Re: what would you do with 20k cash

First, don't take advise from me. Second, paying off the house only lowers the monthly housing expense slightly, you still have insurance, tax, gas & electric ...etc. This will lead to having a few extra bucks at the end of the month and that will be blown on whatever. I would deposit it in a safe account, not the one that gets the most return. Third, look at what that money means to you in practical terms. I mean, a persons earns ? $ per week and takes home some because there are deductions. From that, traveling expenses to get to work are deducted and other expenses come out of it just to maintain your job (lunch, clothes, etc.). You have to maintain some domicile, food and other expenses also. Whats left commonly referred to as "disposable income" is really what your weekly net pay is. Take that and divide it into that $20K that you were talking about and that will give you what that money is really worth. Its funny but when someone tells you what they earn, they tell you what they gross, but when a business tells you what they earn, they have deducted all there operating expenses including rent, electric, etc.

 

[zach103]

Re: what would you do with 20k cash

take half and put it in a cd? for the bank if im correct you get interest on it.. we have a couple. but keep an eye on it if you do.. the government took mine cuz they said it was inactive. they took 6k from me . took almost 2 years to get it back. do that wiht half of it.. than use the other half to pay off some cards. work to the house, work to the boat. work to the yard. and most important.. go on a nice weekend at the shore with the wife. get away from the world

 

[thurps]

Re: what would you do with 20k cash

I'de send it in small unmarked bills to thurps.

 

[stevenw00]

Re: what would you do with 20k cash

The "smart" thing to do is figure out a way to get your wife to stop building balances on the credit cards. Using them is fine, as long as they are paid in FULL every month.

Once you have accomplished that, pay off the cards, and then look at what you have left. You want to keep at least 3 months, if not 6 months or more, worth of income in a savings or money market account (something that builds a little interest but is available if you need it), and then "make money" w/ the rest.

I would talk to a financial advisor, if you haven't already. If you don't have a good retirement setup, then do that ASAP. If you can put it in a CD or whatever, and get a gauranteed return of 6% or higher, then do that. This covers the interest that your mortgage is costing you. If you can't get at least 6% then pay on the mortgage! Another option is to "gamble" w/ the money and go for a higher risk LONG TERM investment, depending on your age. The younger you are, the better it is to go for the higher risk investments. If you're already close to retirement, you don't want to risk losing your money because you don't have time to earn it back.

 

[xxxflhrci]

Re: what would you do with 20k cash

I would tuck it away. may need it to buy gas. 6% mortgage, i would not payoff, that is cheap money.

Sorry, but I don't agree. Paying off money owed at 6% is basically the same as earning 6%.

 

[Tacklewasher]

Re: what would you do with 20k cash

Sorry, but I don't agree. Paying off money owed at 6% is basically the same as earning 6%.

But I understand TD's sentiment.

If you can do this, it is a great idea.

Pay off your mortgage.

Set up an automatic withdrawal for the same amount as your mtge payment to a new bank account that is not attached to your bank card. Get the best interest you can but the big key is paying yourself back the mtge that you were paying, and gaining the interest on it.

 

[avenger79]

Re: what would you do with 20k cash

pay someone to build my garage so I don't have to do it. It's getting cold out now you know