What to do with 100k

[omnitude]

Hello! I’m on here looking for advice or any experience with this situation. Me and my wife have come into a unfortunate situation, which resulted in us getting 100k. We’re middle class, both 25, and do have a house we just bought last year. I’m wondering what some of you would recommend to do with the money? Put it on the house? Invest? We’re not sure but would love to hear some opinions/options. Thank you in advance

Edit: So I realized after reading all the comments I have left a lot of relevant info out, so I’m going to try and answer everyone’s questions here. Me and my wife are 25, our only debt is the mortgage (280k left currently at 6 percent) the only reason I’m hesitant to pay into the mortgage is from what I know most interest is taken in the first 5 years and so although you do save money down the line making a payments on the principle ( We’re allowed 15% a year) I feel/hope the money could be better utilized currently somehow?lol. To add on we have 1 son currently 6months old, we have set up a resp for him and contribute the max, additionally have about 20ish thousand in long term investments(10k is in crypto, hoping for the best here!) Thank you to everyone for the kind words, and one thing I’d like to say is everyone thinks it’s worth it to get into a situation like this where you end up with some money, however my wife(she was hit by a car and suffered many injuries, and lives with constant back pain) and I would rather be 100k in debt tomorrow if it meant she gets back to 100 percent. It’s horrible to watch someone you love be in constant pain, and even worse to live through it. Thank you all and god bless

 

[alexjml]

@omnitude The real answer here? Talk to your financial advisor. If you're playing around with a couple thousand bucks or less, you can ask people online. When were talking about large sums of money, especially considering that you just bought a house (so I'll assume you have anywhere between 200-600k in a mortgage), you shouldn't be messing around with it. Paying for some good advice specific to you from a qualified professional is the only way to go.

 

[4theloveofgod1]

@alexjml Problem is most financial advisors are garbage and only interested in selling u a investment

 

[thuy0358]

@4theloveofgod1 I agree. Went through a couple, and they all just want to sell you products. If you must use one, then go with a fee based FA. And ask a lot of questions for ANY recommended financial products. Also don't feel like you have to cover everything in one session. If the FA cannot answer or avoid answering, then he's fired.

I was so fed up with FAs that I started managing ALL my own investments - stocks, ETFs and real estate.

 

[enjoymovies]

@thuy0358 That's the best course of action. Hire a fee based one every few years just to do a one time assessment of allocations and keep the control yourself.

 

[resjudicata]

@4theloveofgod1 Actually there is a slight difference in Canada . A financial Advisor is a Sales person. A Financial Adviser MUST act in the best interest of the client and have some type of certification.

 

[alexjml]

@4theloveofgod1 Out of curiosity, how old are you?

 

[mbperkins]

@alexjml probably old enough to realize that retired car salesmen selling "investments" isn't the same thing as a financial advisor.

 

[4theloveofgod1]

@mbperkins Did u get up on the wrong side of the bed??? Why are u so negative

 

[moises7]

@4theloveofgod1 He's right. So many people work hard their entire lives but see terrible returns listening to "investment advisors" who are nothing more than commissioned salesmen. When you're dealing with multiples of your salary, you should spend the time to figure things out for yourself.

 

[4theloveofgod1]

@alexjml My God why are u getting angry?
im just stating the facts

 

[txstudent145]

@4theloveofgod1 An opinion is the opposite of facts. “Most financial advisors are garbage and only interested in selling you an investment” is an opinion. And that opinion is not helpful to the discussion or OP’s question.

 

[moises7]

@txstudent145 It's pretty accurate. And it is quite helpful for both the discussion and OPs' questions. Someone needs to call out the previous "advice".

 

[txstudent145]

@moises7 Ok as a contrast I have had nothing but good experiences with FA’s. I’ve received good advice and they helped run numbers that made a huge difference to my investments. My OPINION is most FA’s are excellent. Could most be great, then? Maybe, maybe not. But that would be a very incorrect assumption and my opinion would not be based on fact, only personal experience and my own beliefs.

OP seems like they have a really tough situation to deal with and a significant amount of money that could be life changing at a younger age. They need someone to help go through scenarios and review their particular situation.

To have someone dismiss FA’s entirely based on a personal opinion does a great disservice to the question asked and could prevent someone from seeking quality advice.

 

[4theloveofgod1]

Watch this and plz tell me Warren and Charlie is wrong.

 

[resjudicata]

@alexjml this is the way.

 

[drow57]

@alexjml large sums of money? 100k? C'mon, I make that in a weekend.

 

[resjudicata]

@drow57 Doing what?

 

[topdog]

@alexjml Then in a year or two he'll be back with another of these "should I fire my financial advisor, market went up 12%, I'm down 10%, my portfolio is moslty milk futures."

 

[mbperkins]

@topdog that would be virtually unheard of in 50 years on a long term investment.