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Taxable petty cash
Old 10-28-2004, 09:46 AM   #1
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Taxable petty cash

The SO has 50k of excess petty cash built up with no known use (reserve, fun to do, etc).

I'm leaning toward establishing an income stream since we have room before she jumps a tax bracket. We're talking less than 5% of combined assets so no rebalancing required.

In the middle ala Ben Graham - current income plus acceptable growth over the next 10-15 years.

Looking at Vanguard Wellesley, Target Retirement Income, 2005. I.e 3% + now plus some inflation fighting growth. Auto deduct to checking - of course - since she has zero interest in investments.

Thoughts? Comments? Alternatives?

BTY - she nixed the world cruise idea.

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Re: Taxable petty cash
Old 10-28-2004, 01:30 PM   #2
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Re: Taxable petty cash

UncleMick, you've got $50K burning a hole in your pocket? * Splurge! * Buy something crazy!

How about long-term care insurance for you and the SO?

IIRC, you're living in a hurricane zone with no insurance, right? * Buy some peace of mind. * *You deserve it *

And a laptop.

And an amphibious kayak-cycle.

$50K of excess petty cash. * Ah, the possibilites....
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Re: Taxable petty cash
Old 10-28-2004, 02:08 PM   #3
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Re: Taxable petty cash

Send it over here, I'll take care of it for you.

My fees will be very reasonable. And I'll send you photos in near real time from the cruise...
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Re: Taxable petty cash
Old 10-28-2004, 02:28 PM   #4
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Re: Taxable petty cash

I view an extra $50K as an extra $2K a year to be added to my annual budget. *I can think of lots of fun things to do with an extra $2K a year. *Blowing $50K in one shot goes totally against my FIRE grain.

Why do you call it "taxable?"
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Re: Taxable petty cash
Old 10-28-2004, 03:11 PM   #5
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Re: Taxable petty cash

Taxable in the sense that any interest/income/principle are outside of IRA/roth/401k tax defferred shelter.
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Re: Taxable petty cash
Old 10-28-2004, 04:34 PM   #6
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Re: Taxable petty cash

Might want to look at an intermediate term tax exempt bond fund...vanguard has a couple...depends on your tax profile of course.
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Two words, unclemick:
Old 11-05-2004, 10:29 AM   #7
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Two words, unclemick:

Healthcare insurance.

You have the money, so maybe it's time.
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