What to do with my windfall?

jh963 · 12-20-2007, 04:38 PM

My company is being bought out by a larger company and all of my company stock will be bought out from under me (no choice) in February. The amount after taxes will be a couple hundred thou.

Before I ask it, just put all of those witty thoughts aside...

No, I'm not going to give the money to you.

So what are some ideas of what I should do with the money? Here's a sketch of my situation:

* My wife and I have no kids. I work, my wife doesn't. We're in good health.
* I'd like to retire in about 5 years but could end up working another 10 (I'm about 55).
* This money will represent about 1/5th or 1/6th of my retirement funds.
* Over 50% of my retirement funds are in the stock market, the larger portion in index funds, but a significant portion in individual stocks.
* I consider myself a moderately experienced investor.
* I own 2 condos: 1 completely paid off and currently being rented (in Arizona). We will move into this one (and sell the other one) when I retire. The other condo, the one we're living in (in California), has about 50% equity: the mortgages are fixed rate at about 6%.
* other than the mortgages, we have no debt at all.

I have a few ideas about what to do, but I don't want to prejudice your ideas. So, what are some interesting ideas about what to do with the money?

Thanks,
J.

dex · 12-20-2007, 05:24 PM

Dollar cost average over the next year into your retirement investments.

If you don't have your retirement investments allocation - that is a different question.

LOL! · 12-20-2007, 05:52 PM

I agree with dex. Put it towards your asset allocation. Don't have one? Get one.

unclemick · 12-20-2007, 06:00 PM

Well - if you really want to tick yourserlf off - do what I did - buy a balanced index appropriate to your age and financial situation as a benchmark and waste winter evenings(when there's not football) measuring your managed investments against it. Over forty years - guess who won the series - and I cheated with a ten year head start - no index funds in 1966.

heh heh heh - Pssst Target Retirement.

Caroline · 12-20-2007, 06:03 PM

My vote -- bail out now.

Or at least, get used to the idea, just in case. If your company is being bought out you will either a) get "rightsized" out of a job anyway or b) find youself doing two (or three) jobs for the price of one as everyone else is blown out of the water around you.

Not to be a wet rag here, but I was part of a large group of professional colleagues when we were assimilated by Megacorp 7 years ago, and there aint' nary a one of 'em left but me.

So... it does no harm to run a few numbers and see how it works out. Pay the mortgage, don't pay the mortgage, move now, move later, that type of thing. Might actually be a nice surprise!

Not exactly what you asked for, but it pays to consider all the options.

Good luck to you, whatever you do!

12-20-2007, 04:38 PM	#1
jh963 Confused about dryer sheets Join Date: Oct 2007 Posts: 1	What to do with my windfall? My company is being bought out by a larger company and all of my company stock will be bought out from under me (no choice) in February. The amount after taxes will be a couple hundred thou. Before I ask it, just put all of those witty thoughts aside... No, I'm not going to give the money to you. So what are some ideas of what I should do with the money? Here's a sketch of my situation: * My wife and I have no kids. I work, my wife doesn't. We're in good health. * I'd like to retire in about 5 years but could end up working another 10 (I'm about 55). * This money will represent about 1/5th or 1/6th of my retirement funds. * Over 50% of my retirement funds are in the stock market, the larger portion in index funds, but a significant portion in individual stocks. * I consider myself a moderately experienced investor. * I own 2 condos: 1 completely paid off and currently being rented (in Arizona). We will move into this one (and sell the other one) when I retire. The other condo, the one we're living in (in California), has about 50% equity: the mortgages are fixed rate at about 6%. * other than the mortgages, we have no debt at all. I have a few ideas about what to do, but I don't want to prejudice your ideas. So, what are some interesting ideas about what to do with the money? Thanks, J.

12-20-2007, 05:24 PM	#2
dex Thinks s/he gets paid by the post Join Date: Oct 2003 Posts: 3,048	Dollar cost average over the next year into your retirement investments. If you don't have your retirement investments allocation - that is a different question. __________________ Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral

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12-20-2007, 05:52 PM	#3
LOL! Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 2,298	I agree with dex. Put it towards your asset allocation. Don't have one? Get one.

12-20-2007, 06:00 PM	#4
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,554	Well - if you really want to tick yourserlf off - do what I did - buy a balanced index appropriate to your age and financial situation as a benchmark and waste winter evenings(when there's not football) measuring your managed investments against it. Over forty years - guess who won the series - and I cheated with a ten year head start - no index funds in 1966. heh heh heh - Pssst Target Retirement.

12-20-2007, 06:03 PM	#5
Caroline Full time employment: Posting here. Join Date: Mar 2005 Posts: 904	My vote -- bail out now. Or at least, get used to the idea, just in case. If your company is being bought out you will either a) get "rightsized" out of a job anyway or b) find youself doing two (or three) jobs for the price of one as everyone else is blown out of the water around you. Not to be a wet rag here, but I was part of a large group of professional colleagues when we were assimilated by Megacorp 7 years ago, and there aint' nary a one of 'em left but me. So... it does no harm to run a few numbers and see how it works out. Pay the mortgage, don't pay the mortgage, move now, move later, that type of thing. Might actually be a nice surprise! Not exactly what you asked for, but it pays to consider all the options. Good luck to you, whatever you do!

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