@lookingfordavid If you get $80k and no tax due to combat zone here’s what I recommend:
- Pay off all Credit cards (13500)
- Place $66,500 into a CD (USAA has a 9 month CD at 5% interest)
- Every 9 months either collect your $3325 of interest OR put the interest back into the CD and restart the 9 month clock.
You’re already used to not having this money. Why not have a free to you vacation every year off of interest. The only “cost” to you is not having access to your money in the event of an emergency. But if you have credit cards, they can cover down for the at most 8 months until you get your money out of the CD.
Also if you roll the interest back into the CD (and rates stay the same at 5%) then at these year marks you will have this amount of money:
5: $84800
10: $108000
15: $138000
20: $176000
25: $225000
30: $287000
Idk what year mark you’re at in your career, but if you’re at the 10 year mark, then when you can retire in 10 years, $100,000 would be a hell of a down payment on a forever home.