What to do with Windfall

[street]

Quote:

Originally Posted by USGrant1962 Not when you can get 4%+ in a money market account.

Thanks again, and that is the way I think about too. I have always been for paying off debt. It worked great for when I paid off my home when I was 30 years old. I had a lot of years to invest because I had no mortgage.

Yes, like Pacergal said, it is what they want to do.

[Ronstar]

Like others, I would suggest pay taxes, pay off non mtge debt if any, set up 529 college fund and/or an equity index fund.

Congrats to your son! and hopefully the water buyer will need more in the future.

[street]

Quote:

Originally Posted by Ronstar Like others, I would suggest pay taxes, pay off non mtge debt if any, set up 529 college fund and/or an equity index fund. Congrats to your son! and hopefully the water buyer will need more in the future.

I'm very happy for them also. It sure will give them an added bust in life if they plan it out.

Thanks

[USGrant1962]

In case you didn't know, 529 accounts can be funded lump sum for up to 5 years of gift tax exclusion, called gift tax averaging. So $80K can go in in a lump. My mom funded our kids that way many years ago.

Here's one article that discusses it: https://www.savingforcollege.com/art...ing-a-529-plan

[street]

Quote:

Originally Posted by USGrant1962 In case you didn't know, 529 accounts can be funded lump sum for up to 5 years of gift tax exclusion, called gift tax averaging. So $80K can go in in a lump. My mom funded our kids that way many years ago. Here's one article that discusses it: https://www.savingforcollege.com/art...ing-a-529-plan

Outstanding information. I will pass this along to him and he can look into this option.

Thank You!!

[USGrant1962]

Quote:

Originally Posted by street Outstanding information. I will pass this along to him and he can look into this option. Thank You!!

Now that I think about it, a grandparent can do the 5-year thing under the gifting rules but I'm not sure the account owner can. Usually the parent is the owner and the child and future college student is the beneficiary. Anyway, it is something to look into.

[SecondCor521]

Quote:

Originally Posted by USGrant1962 Now that I think about it, a grandparent can do the 5-year thing under the gifting rules but I'm not sure the account owner can. Usually the parent is the owner and the child and future college student is the beneficiary. Anyway, it is something to look into.

The account owner can as well.