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  • Babies and windfalls

    Wife and I are 35yo PTs, expecting our 3rd child (will be 3 under 5yo), and looking at a windfall of ~80k in 2022. I would appreciate your input…

    Gross income: ~180k

    EF: 4-months

    I-bonds: 20k (viewing as stash for larger vehicle/extra e-fund)

    Retirement accounts: 630k (50%US, 20% int’l, 20% bond, 10% reit)

    Taxable: none

    529s: 22k

    Debt: Mortgage of 250k at 2.875 with home value ~350k

    NW just north of 800k not including windfall.


    We have consistently been 30% savers and actually hit 40% the past few years- the progress has been rewarding. As such, we are actually considering spending the windfall! We are looking at recreational/hunting properties (I can smell the wood burning stove now) in our rural area and would keep it <30min from home. It is likely my old man would put down another 100k or so if the right property became available. What do you say? Land loans are 4-5% right now… would you dare take the loan and invest? With an uncertain timeline, where would you store the funds? My initial thoughts are max I-bonds and …. ? Or, don’t do it!? Thoughts, please.


  • #2
    wait. you're going to spend the windfall to go all-in with a family member? I would not do that.

    If I were you, given you already have a healthy savings rate, I'd spend 10-20% it on anything you want. For the remainder, I'd probably put it in taxable or 529s as long as you and your wife are maxing all your retirement plans

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    • #3
      Originally posted by JBME View Post
      wait. you're going to spend the windfall to go all-in with a family member? I would not do that
      I understand the concern. The money would be gifted and property placed in my name. FWIW, I am the only child.

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      • #4
        Do they have public properties you can use for hunting/recreation that are also close? Does this mean you would have to buy said recreational vehicles or do you already own them?

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        • #5
          So you're getting an $80k windfall and then another family member is giving you a $100k windfall? Are you sure there are no strings (emotional or psychological) attached? From a money standpoint, if you're getting $180k free and clear with no strings attached and then want to basically spend it all on one thing I still wouldn't spend so much money like that. I'm not trying to be miserly...by all means enjoy some of this money. 10-20% of the dollars you are posting is still plenty of money to spend to enjoy something. You're basically saying you want to use it for a vacation home if I understand correctly. Just understand it's not an investment and it's a consumption item/something solely to enjoy.

          I still wouldn't do it personally but that's me. Your mortgage is reasonable for the salary listed and I assume you are otherwise debt free (no student loans or car loans) and a healthy savings rate so you have a lot of good there. I just worry about spending that much of a gift on a single thing.

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          • #6
            You seem pretty set to me with a reasonably affordable house. I would be more worried about time constraints with three under three. I would go cheap and rustic myself and not take on a mortgage for it.

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            • #7
              Originally posted by Shant View Post
              You seem pretty set to me with a reasonably affordable house. I would be more worried about time constraints with three under three. I would go cheap and rustic myself and not take on a mortgage for it.
              3 under 5- exhausting nonetheless

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              • #8
                180k buys 120acres around here- no need for public land nearby. Adding a small cabin may be a goal later in life. Agreed I would not want another building to take care of now.

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                • #9
                  Originally posted by MWPT View Post
                  180k buys 120acres around here- no need for public land nearby. Adding a small cabin may be a goal later in life. Agreed I would not want another building to take care of now.
                  Does your spouse hunt? Or is this for you and your dad..

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                  • #10
                    Property without a structure sounds terrible with 3 under 5. Just saying. Seems like a good idea at the time.
                    That taxable would look at lot better without a zero. I'd treat the spouse to a nice vacation and call it done. I am sure you will find ways to spend it in the future. It will hurt alot more spending money you already have.

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                    • #11
                      As long as you can continue saving 20%, you can afford to buy the property.

                      Just cos you can afford it, doesn’t mean you should buy it. Will it really bring you a lot of joy?

                      If I were you, I’d go on a nice vacation with my family for 10-15k, put 12k in my spouse and I’d backdoor Roth IRA, and use the remaining 50k and split it evenly amongst the 3 kids 529.

                      Others on here would buy crypto or a boat 🤣

                      As long as your lifestyle stays in a range where you can save 20% of your gross income annually, do whatever makes you happy.

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                      • #12
                        Originally posted by MWPT View Post
                        180k buys 120acres around here- no need for public land nearby. Adding a small cabin may be a goal later in life. Agreed I would not want another building to take care of now.
                        Is your wife into this? I get that it's an inheritance given to just you but I can't see myself being happy about my husband blowing it all on land that he'll use while leaving me at home with 3 kids under 5.

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                        • #13
                          Originally posted by ObgynMD View Post
                          Others on here would buy crypto or a boat 🤣
                          What about a fake yacht in the metaverse?

                          A metaverse mega yacht that just sold for $650,000 is the most expensive NFT sold in The Sandbox virtual world | Currency News | Financial and Business News | Markets Insider (businessinsider.com)

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                          • #14
                            Originally posted by childay View Post
                            Does your spouse hunt? Or is this for you and your dad..
                            Fair point. Yes, she does.

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                            • #15
                              Wtffffff. Why not just buy a yacht in real life? 🤦‍♀️

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