I'm tryin to make a dollar out of fifteen cents. It's hard to be legit and still pay tha rent."
July 30, 2012 5:34 PM Subscribe
I'm about to come into a large sum of money (in the $300-$500k range). I've never had a large sum of money. Looking for advice on what to do next.
posted by anonymous to work & money (32 answers total) 13 users marked this as a favorite
In the next couple of months, I will likely come into a pretty significant chunk of money due to a legal settlement - in the $300-$500k range. My wife and I are not broke (between us we have about $40k in 403b/IRA accounts, and about $15k in student loan debt), but we've certainly never had this kind of cash in our lives, and have no idea how to effectively manage this much money.
Some data points:
- We are interested in potentially purchasing a home, so we would like to have the money available to us as opposed to tying it up in investment. However, we live in New York City for the moment, and even with our combined incomes we're unlikely to be able to afford a decent apartment in the city, even with a $300k down payment.
- We would obviously like to try and invest this money wisely and see it grow, but again, we would like to have it somewhere that we can get at it without seeing a significant financial penalty (as you might in a 401k, for example.)
As you can see, we're flying kind of blind here. We never anticipated this windfall, and we're wondering how to make it work best for us.
Is it best just to invest for the time being and deal with penalties if we decide to buy? Should we just let it collect interest in an account while we look for an apartment to buy? Is there some brilliant third option we're not thinking of? Could you help, Metafilter?