Buy a new daily driver (I'd be keeping the Jeep of course) $10,000.00 or less.
Put a couple thousand into the Jeep.
Use a good chunk of the money to pay for school.
Save the rest in a bank account.
I already have decent chunk saved up for a house so I'd save the rest of the money for emergencies/school.
I would probably spend a week on vacation as well. Probably just head up to Maine for a week. Nothing too expensive/extravagant.
is this after the $40-50K that you would lose in income taxes?
only if you're the type of person who pays them
10 years ago I would probably have a waaaaay different plan , but after recently being out of work for an extended period my priorities are definitely different.
-30% to an interest bearing account to pay the taxes at the end of the year
-all credit card/line of credit debt gone
-my and the wife's student loans gone
-$1000 for me and the wife to go out for dinner and shopping
-any left over goes to car loans
for me, once I get rid of all of my monthly payments to the credit devil and student loans, I can afford the good things in life like toys and investing.
Here in GA they take the taxes out of it right when you go get it, so it'd be like 60k or so.
Wife's suv and my truck payments would be gone - under 12k total there.
Throw, say, 20k at the mortgage and see about a refinance.
Have a $2000 party.
Max a roth ira for both of us, 9k.
Throw the rest at something, rental property or mutual fund/metals combo, something like that that is an actual investment vs parking it in some checking or savings accounts.
100grand winner though would realistically be gone right quick. Married with a mortgage or something and the wise play is get rid of the car notes and dunk the mortgage and re-fi for cheaper then throw the extra monthly nut in the bank somehow for savings. Maybe park 10% into hard savings - ira - that you can't touch for a while.
I think most of it would be eaten up just paying off car loans, ccs, my wife's grad school loans. Anything left over would go to some renovations we want to do on the house. Paying off the debt alone though would change our lives! What's funny is that we never think about winning the mega-millions as being life altering, just winning a silly little scratch off or a decent pick 5.