All Forum Posts by: Account Closed

I'm in Brooklyn NY, but invest in my hometown (LR).  Can't wait to go home next week!

$25k - Vanguard Total Stock Market

$25k - added to personal REI opportunity fund

I like to take advantage of tax-deferred and tax-free growth accounts:

• Max out rIRA 
• Max out 403(b)
• Contribute X amount to taxable account 

Anything beyond X amount in the taxable account and cash from side business gets funneled to REI. This plan works for me now, but will likely change in the future.

The enemy of a good plan is the search for a perfect plan.

@Account Closed

I'm not sure of the rental market in that area, but it is very, very small.  You may want to focus your efforts closer to Little Rock.  I had to look up where Mayflower is and remember that I've been there maybe 5x times.  

I would suggest getting your personal finances in order prior to real estate.  Play offense and defense.

@Larissa Luna

$24k in credit card debt!  Get rid of that and do not add to it.  You mentioned "just in credit cards..."  I assume you have more debt that should be eliminated too.    

@Erica Winship

I agree with @Morgan Klein.  Do nothing for a year and act as if you do not have the money.  Managing this windfall is key.  Build a solid financial base and then explore options on growing the money, placing it in tax advantage accounts, etc. 

I would suggest reading this article from Bogleheads on managing a windfall:  https://www.bogleheads.org/wiki/Managing_a_windfal...

You have been warned.

@Clay Gradis

What made you purchase with all cash?  

Strengthen your foundation.  

Pay off the debt and build up some cash.  Do you have a emergency fund in place for your family?  Would you have a separate account for reserves?  What if a personal emergency happened and a major expense with the rental happened at the same time?  Would you be ok or go deeper into debt?