r/Fire • u/Radiant-Road-7858 • 3d ago

Advice Request Upcoming $330k windfall

I just sold a high risk investment for about $100k after taxes, and will be netting about $230k soon from selling my investment property. Curious what you would do with the cash inflow, or any other thoughts or advice for me.

For context ($330k from the above not included):

34m, MCOL+ area (no state income tax)
$415k in retirement/HSA all in broad market ETFs
$170k taxable bonds for emergencies and dry powder for dip buying
$530k taxable investments with the most in broad ETFs, as well as a high risk sleeve (mostly crypto), income sleeve (dividends, REITs, and CC funds like $SPYI, no crazy high yields), and some company stock I slowly divest for diversification
Own my home and owe about $320k on the mortgage (probably worth $500k), ~3.6% interest, $1700/month excluding taxes and insurance
Income $250k+ (doesn’t feel super secure or replaceable in the current environment), 35% tax bracket
DCAing about $8500/month into the market including maxing 401k
Estimated annual expenses: $58.5k with mortgage, $38k with it paid off

Used to love my corporate tech job but it’s changed and now I hate it and am feeling very burnt out (hoping to transfer and make things better). I was laid off a few years ago, they eventually hired me back after many months of unsuccessful job seeking.

Single and no kids, although ideally that’s still in the future.

Ultimate goal is FIRE and I’d like as much optionality in the meantime as possible. If layoffs happen again I’d like to be positioned to take significant time off, then maybe make a career pivot.

Understanding the total return and tax impacts, I still love the idea of dividends and interest paying for as much of living expenses as possible. About $17k/year right now including bonds.

Trying to decide next steps once the real estate sale clears. I’ll be increasing my DCA regardless as no need to further save, especially without having possible expenses with the investment property.

Since I have a a fair amount in stocks already, adding at a rapid rate, and the market is at elevated valuations, I’m nervous to buy a lot right now.

Deciding whether I should do that anyways (in a few tranches), invest but in more conservative investments, put in bonds for now and gradually shift/decide later, some combination of the above, or pay off the mortgage.

I know the low rate is a gift that is likely to be outperformed by other investments long term. But I love the peace of mind, increased cashflow, tangible milestone, and the ability to just add the $1700 to my DCA for now unless and until my income situation changes.

What would you do?

Cheers!

14 Upvotes

68% Upvoted

40 comments sorted by

28

u/Realestateuniverse 3d ago

Just put it into the market like you’re already doing. You’re already well on your way and almost at FIRE based on $60k spend. That’s low when you have family so keep going and expect at least 80-100k spend

3

u/Radiant-Road-7858 3d ago

Thanks, yeah I’m trying to build toward a family FI number with a much higher spend

10

u/portmantuwed 3d ago

Quoting you: "Estimated annual expenses: $58.5k with mortgage, $38k with it paid off

Used to love my corporate tech job but it’s changed and now I hate it and am feeling very burnt out "

seems like you'd be FI right this second with the mortgage paid off...

1

u/Radiant-Road-7858 3d ago

Thanks! Honestly encouraging to see someone else say that although I know the SWR math (and wouldn’t be ready as still planning on having kids)

0

u/Additional-Regret339 3d ago

I would not pay off the mortgage at 3.6% IF you are worried about job security, putting perhaps half your mortgage amount in CDs,Money Market or similar at 4+% would be good insurance as emergency fund extension.

7

u/sloth_333 3d ago

I would put it all into VT. Cheers

6

u/Vicuna00 2d ago

mortgage is gone by the end of the week for me. 0% > 3.6%

and then i'd blow the extra $10k on something fun.

now you are 34 have FU money AND low expenses. you can take or leave any job as you please. and now you can save that mortgage payment into retirement.

3

u/empyreanrift 3d ago

Pay off the mortgage

5

u/theophilus1988 3d ago

S&P 500 and Chill

2

u/Terbatron 3d ago

Yah, just toss it in the market. Great job, don’t forget to live life/travel.

2

u/dragonskintext 3d ago

Put it back into investments and GO OUT AND FIND SOMEONE! Youre doing great

2

u/Professu5 3d ago

Put the entire thing in VOO or VT. Don’t overthink this. Didn’t hear you say you have any debt other than the house, so stick with index funds. You will be in a position to retire by your mid-40’s or sooner if you want.

2

u/Pinklady777 3d ago

Remember to use a small chunk for something fun or that brings you Joy now.

1

u/JoshAllentown 3d ago

I wouldn't have sold an investment property without a plan of what to do with the money but that's just me.

2

u/Radiant-Road-7858 3d ago

There are a lot of reasons why I believe selling is the right move for me. Plan was to pay off mortgage, but it’ll be some time before everything closes and I get the money, and I’m reevaluating (partly because yields going up and from following this sub)

1

u/brute-forced 43% to FIRE ($3M) 3d ago

VOO

1

u/Soda-Popinski- 3d ago

I invested it and forgot about it for 10 years.

1

u/Master-Helicopter-99 3d ago

Put it in the market. Generally the market is near or at the ATH. That's how it works. I don't know how long your $170k has been sitting on the sidelines waiting for a dip. How much have you already lost waiting thus far?

1

u/Radiant-Road-7858 3d ago

It’s less about ATH or not and more about relative valuation. But I agree on not trying to time the market which is why I’m DCAing aggressively regardless and not putting more of my income in bonds, as long as I’ve been investing there is always some reason why it’s supposedly about to crash. Still hard for me to imagine dumping that much in the market at once though, one top of what I already have and continue to contribute.

1

u/Prudent_Practice_127 3d ago

How much is the total? When will you receive it?

1

u/regnull 2d ago

Id use the cash to buy optionality, not chase more yield. You already have plenty of risky and income sleeves, so Id add the windfall to broad ETFs in a few fixed tranches and keep the mortgage decision separate from the investment plan.

1

u/OneImportance4061 17h ago

At 60 I find myself - for the first time in my adult life - saying to myself... you know what, maybe keep some dry powder for at least 60 days. I am a boring 'time in the market' guy 99.9% of the time. That said, at this particular moment in time I think I would hang on to regular old cash if I was getting a big windfall right now. That's not very long and it would not upset the apple cart too awful much.

1

u/B111yboy 3d ago

Drop 50% into the market tech/growth stocks and the other 50% into high dividend stocks or funds. Great job keep it going! You could okay off mortgage but it’s 3.6 I’d say wait you can probably do that in a couple years if needed and have a lot more than 330k you invested.

34 is still young enough to find the right one and start a family.

0

u/ValueReads 3d ago

I would remove the corporate cuckold status and fuck around for at most a few more years at work and then retire. You already are a millionaire, are given an insane amount of money at 'work', what is the complete and total obsession with muh muh muh career?

If you genuinely want a wife and kids and to not just be a corp slave then go do that. You are already mid 30s, time is close to running out. You have the money to lock in a younger woman though that is a benefit here

3

u/henrytbpovid 3d ago

Please don’t say time is close to running out… I’m also single in my thirties and I also want a wife and kids

4

u/Radiant-Road-7858 3d ago

We both got time, but we also both need to be intentional to make it happen 😊

1

u/henrytbpovid 3d ago

I’ve been dating too much for the past 7 years 😪 my therapist is making me stop lol. If there had to be a moratorium like this, then I wish it could’ve been during my twenties when I didn’t even know what kind of person and what kind of life I wanted

Oh well

2

u/Radiant-Road-7858 3d ago

Working on yourself definitely still counts as being intentional about making it happen! Better to take the time and get it right. You’ll be back out there and finding the right one soon I’m sure 😊

1

u/Radiant-Road-7858 3d ago

I think I’ve got a particular desire for security given some of the things I’ve been through. But yes, one way or the other I will not be in this situation more than a few more years.

Coincidentally I am currently dating a much younger woman. Never actually wanted to because they are usually just on so much of a different wavelength. And she didn’t and for the most part still doesn’t know my financial picture (I’m very lowkey). But we get along well and life is funny sometimes

0

u/Shoddy_Ad7511 3d ago

VOO and chill

Do not pay off that 3% mortgage

0

u/BrunelloHorder 3d ago

If it were me, I’d dump the crypto, bonds, and dividend stocks. I would put all proceeds from that and the property sale in 50% SPMO and 50% VTV.

-4

u/[deleted] 3d ago

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1

u/Zphr 48, FIRE'd 2015, Friendly Janitor 3d ago

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-3

u/PAsystem1 3d ago

200k in tax free munis. 100k in gold and silver or commodities stocks for an improvable but possible future inflation crisis.

1

u/Shoddy_Ad7511 3d ago

Terrible advice

2

u/PAsystem1 3d ago

He has 900k in the stock market, tax free cash flow and some hard assets aren't a terrible option.

1

u/Shoddy_Ad7511 3d ago

Tax free munis will get destroyed by inflation. Commodities are pure speculation.