Comments on: Reader’s Question: Financial Priorities And A Windfall

By: Planning to Spend a Windfall or Gift?

Planning to Spend a Windfall or Gift? — Tue, 26 Aug 2008 16:58:36 +0000

[...] example, this couple received a $10,000 windfall. However they choose to spend it, the first thing they should do is spend time planning. Ideally, [...]

By: PT

PT — Sat, 02 Aug 2008 05:16:29 +0000

Great post, Pinyo. I’d love to hear an update from the reader.

By: The Friday gathering: Ban bump keys edition

The Friday gathering: Ban bump keys edition — Fri, 01 Aug 2008 09:03:29 +0000

[...] Reader’s Question: Financial Priorities And A Windfall – Pinyo includes a number of personal finance blogger replies to a reader question. [...]

By: Lessons from a Straight Road | The Wisdom Journal

Lessons from a Straight Road | The Wisdom Journal — Fri, 01 Aug 2008 05:02:34 +0000

[...] If you experience a windfall, don’t make a decision on what to do with it until you have had some time to [...]

By: 300 subscribers - time to celebrate and post roundup! | Bible Money Matters

300 subscribers - time to celebrate and post roundup! | Bible Money Matters — Tue, 29 Jul 2008 14:35:52 +0000

[...] Reader’s Question: Financial Priorities And A Windfall @ moolanomy.com [...]

By: Bruce

Bruce — Tue, 29 Jul 2008 14:24:48 +0000

Well done to the newlyweds and the great advice everyone is giving them. It may be an occupational hazard but I read his question and all the great advice, and was a bit turned that nobody mentioned anything about the tax side of it all.

No the wedding isn't a write off.
Making a contribution to an IRA is a tax deduction.
Paying the interest on his school loans, a tax deduction.
Having a mortgage a tax deduction along with the property tax and a few other “homeowner stuff” that comes along with buying a house.
The windfall, not being claimed as income. Very cool.

I'd say your reader has his ducks lined up pretty good. The best advice given and would be mine as well, prioritize what is most important to you. Get as much information as you can from all angles then proceed. Mean while put the windfall into a savings account with a huge interest rate.

By: fathersez

fathersez — Tue, 29 Jul 2008 14:07:22 +0000

Man, this reader is one lucky guy!

A sound financial foundation, wedding bells in the air and sterling financial advice.

He cannot, but do well.

Regards

By: plonkee

plonkee — Tue, 29 Jul 2008 12:53:11 +0000

@Jerry:
Why not do both?

Do you know how much the wedding is likely to cost? In England it’s customary to have a sit-down meal with wine for around 70 people and an after party with food and cash bar. A wedding like that plus simple trimmings is going to set someone back around £10k.

If you had a basic idea of how much the wedding was likely to be, and added that onto your debt load, then you’ll see your total target figure. That might give you a better handle on what’s possible.

Personally, I’d hold back on funding a wedding until I was out of debt, and just move in together, but I have no issues with living together before being married.

By: Four Pillars

Four Pillars — Tue, 29 Jul 2008 03:21:34 +0000

Thanks for including my advice!

Mike

By: Brad

Brad — Mon, 28 Jul 2008 21:19:41 +0000

I agree on waiting to buy the house. You never know what could go wrong and cost you tons of money right before/after the wedding. If it were me, I would put the money straight into a high interest savings account as an emergency fund since it was money that I didn’t have to start with … so you won’t miss it really if you stash it for a rainy day.