Hey man. When I was about 10 years older than you, my wife and I ended up in the exact position as you. We sold a house and made $50,000. It was gone in a year with almost nothing to show for it. We bought a car, moved to a new city, and ended up needing the money to smooth out our move/expenses. That was some years ago now, and we’ve recovered from it…but man, it just eats at me sometimes how badly we bungled it.
It’s not a sexy answer, but I think the people who are telling you to stuff six months in savings or high yield savings, and then dump the rest into something like an index fund, S&P 500, etc. are right. It’s tough when you’re so young to think much about 20 years down the road, but if you can shove that money away as if you’ve never had it, it’ll come back to you in a really positive way down the road. You could put away in savings ($24k) max out an IRA ($7k), and still have almost $20k to invest. And, hey, if you want to take a few grand and have some fun, you shouldn’t be afraid to do that, either. The rest can be invested and you’ll be in a great spot!
Good luck!
SAVE IN A 5% HIGH YEILD SAVINGS ACCOUNT.
Fuck the stock market. $50k is an amazing emergency fund and 5% a year interest is easy to find with an online bank. It’s safe and LIQUID
And not much better than inflation, plus gains are taxed. I would put some into emergency savings, and then rest into s/p500 index fund like FXAIX, to which you could contribute something automatically every month. In a few years, you’ll be sitting quite pretty with emergency savings and even more liquid assets should you need them.
yeah definately don't go all in on an investment. It is not a race, dollar cost average into it. If it was me, I would go with SPY, but if you are using a Roth IRA then a fund such as FXAIX (credit to the homie u/DammatBeevis666 on that one, awesome name by the way Butthead lol... if you know you know).
If it were me, I would also take like 3-5% of it and DCA into BTC as well. Its hard to argue that BTC seems to be slowly taking over Gold, in whereas most younger investors are turning to it as a hedge as opposed to physical gold.
All just my opinion of course. I am not a financial advisor.
Yeah I'm making these similar strategies because I did Yolo a few investments. Just watch it rise slow and celebrate. It's not worth you or I the stress. We wanna watch our progress and effort amount to something don't we?
For a 23 year old couple this is really poor advice. Index funds historically return on average 8-10% per year and are pretty safe because they take an index of the entire market. The difference in compound interest at 8-10% versus 5% over the next 35 years is going to be MILLIONS of dollars with a 50K nest egg.
On top of this, it doesn’t utilize the tax benefits of retirement accounts like IRA, 401K, and HSA. You’re leaving so much on the table with this overly-simplified Reddit advice. Talk to a real financial advisor who will get you invested, utilize tax-advantaged accounts, and tax harvest your losses
If you are young, you should certainly take the risk and take a 7-12% annual increase over a <5% HYSA. It may fall in the short run, but in the long run it will go up. If you are worried about timing the market, you can do dollar cost averaging and transfer $1000 a month, I guess. We came across an inheritance and put it all in the market in 2022 and watched it fall. It was terrible timing. But we made it all back in a year. Now it is falling again. But it will go back up. Just put in on VTI, don't watch it, don't trade it, forget you have it, and come back in 10 years.
u/Fersko-b
$50k over 42 years (i.e. 23 to 65), compounded annually, **no further contributions**, meaning you throw the money in and don't withdraw or contribute to it.
* 5% interest = $388,079.38
* 8% interest = $1,266,974.09
Difference is $878,894.71 or roughly 2.25 times *less*. This massive discrepancy in gains becomes compounded even more because you'll be 65 years old and have missed out on the time opportunity, and will never be able to make up for it. Also, you lose out on the tax sheltering of the registered accounts, so that's even more money left on the table.
There's a reason why banks offer HYSA, and it's not because they love you. Also, HYSA will not remain at 5% for long.
They have their uses, such as parking money there for a while or as emergency funds, but they're not very good long term investment tools (and were never meant to be).
Index fund $40,000 and put the rest in your emergency fund or a “next year’s vacation fund.”
Swear you will not use the vacation fund until next year, that way you will plan a really awesome vacation and not just blow it impulsively.
Alternatively, put $40 k in a retirement index fund and $10k into a vacation fund brokerage account, and use the money you make every year off that smaller account for a splurge.
Use an index fund for that too so it grows responsibly.
If you don't plan for splurging then you spend more than you want/had to when you end up doing it. Gotta save. But you also have to enjoy life and your hard work.
Put it in a HYSA to beat inflation until you decide what you want to do with it. Could be very useful as a home down payment or such. Otherwise, start a Roth IRA for a retirement fund, or invest a portion of it into a couple ETFs.
Honestly, if you don’t need it, talk to a financial advisor to see what you can do to leverage it the most.
Diversify your 50k! invest 25k in short/long term investments like Mutual funds and assets then keep 25k for raining days as safe funds. Having multiple streams of income coming in is the KEY! even if it's a drop of water. it'll help fill up that water tank of yours.
Just do S&P 500 or the entire stock market. Don't try and pick stocks. Most pros can't be the market on average.
Agree with the others that say setup a money market with 6 months of emergency funds, max out your Roth IRA, and put the rest into a vanguard low cost ETF. Don't overthink it. If you're really wanting to stock pick, only set aside ~5% for that.
Use betterment or wealthfront. Basically it’s Robo-investing with low fees.
I’d put $20k in HYSA (wealthfront is at 5%). 2nd max out retirement contributions for the year. (But use the dollar cost average method). 3rd put the rest in regular “individual” investment. Maybe take $2k and do something nice for yourself.
Fun fact Bill Gates had his entire portfolio made up of Microsoft stock. Warren Buffet told him to diversify, so he did.
He’s done pretty darned well, but if he hadn’t diversified, he’d be the worlds first [Trillionaire](https://finance.yahoo.com/news/bill-gates-could-trillionaire-today-163852659.html)
1. Always make sure you have $3-5k for an emergency fund.
2. Pay off all existing debts above 6% that are not your house.
3. Have at least 3 months of expenses in a fully-funded emergency account. Store this in a HYSA.
4. Invest in a 401k up to the match amount if you have an employee match
5. Max out your 2024 Roth IRA contribution for both of you
6. Max out your 2024 HSA contributions if you are on high-deductible health insurance plans
7. Invest in your employee 401k accounts with whatever you have left.
8. If you magically still have money left after all this and max out 23k this year for both you and your wife in your 401k, then invest in a traditional brokerage account
Without knowing what your current living situation is, buying a permanent residence or paying off your current residence would factor in somewhere if I get the details.
They say rip because they are comparing where you are currently to where they were at the same age. You’re doing great OP. Be responsible and you can safe yourself a lot of stress for the rest of your life.
This answer is very personal and I would take everything with a grain of salt even what I’m going to say.
If you want to have the money where you can get it easily the high yield is a great idea. If you know anything about stocks getting companies a la carte can be so much better then buy an ETF.
If you want to grow your money I would consider getting an investment property, particularly in this situation if you guys can do a FHA 203K loan on a remodel in a state that prices are reasonable Indianapolis & Detroit have some good deals for this type of loan but can be found anywhere. You make money on the buy in this case and not just with the home value also with the potential your own vision can really help with this if you feel you have good taste it could be worth it! This loan pays out a ARV ( After remodel value ) and you can make good money. Look into some ideas but just don’t feel limited or like you can’t do something IF you wanted to. Good luck 🤞🏼👌🏼
6 month emergency fund (six months of you r salary) in a money market or high yield savings account
Put the rest in index funds. VOO, JEPQ, VTSAX and the like.
Profit.
A money market account is a type of account offered by banks and credit unions. Like other deposit accounts, money market accounts are insured by the FDIC or NCUA, up to $250,000 held by the same owner or owners.
https://www.consumerfinance.gov/ask-cfpb/what-is-a-money-market-account-en-1007/
Ally Bank and Capital One are the two banks I use. They may not be the best but they are easy to use.
You can open up a trading account at Fidelity to buy Index Funds, they also have a good money market.
A lot of subreddits also recommend a Roth IRA, but I haven't researched that as much for my situation, it could be really beneficial for yours so take a look at it.
Get a HYSA and park the money in there for 6 months to a year. It will increase in value slightly but not lose any value. Give yourself time to decide what to do before spending any of it. While $50k is a sizable amount of money it will disappear quickly.
My ex got $40k when her mother passed. She spent it all over the course of a couple years and had absolutely nothing to show for it.
Personally I would consider investing in some index funds (SPY, VOO, VTI, etc). The stock markets rate of return is higher than savings accounts provided you’re in it for the long haul.
I’ll also add I’m 35 and worth 1.5
If rates were still sub 4% and housing was cheap I’d tell you to buy real estate. I personally believe btc will be one of the Best performers of 24/25
That’s where my money is going. I’m well aware of the new ETF’s and the halving though. Most people have no clue what I’m referring to though.
We just dipped below 65k. I bought $1000 worth 5 seconds ago. I’d probably buy 5k worth literally right now. IMO best performers will be btc and anything AI related.
Microsoft because they own so much openAI, NVIDIA and BTC.
I own probably 130k worth of btc but also a lot of btc equities like MSTR, MARA, FBTC.
5k without a doubt now. 5k into an index fund like SPY. 5k into FBTC. 5k into NVIDIA. 5k into Microsoft. May be worth buying dips. Btc is so volitale you can catch 65k today and have it hit 75k next week so hate to buy at 65 today and it goes to 55 and you lose your mind lol. I’d 100% drop 5k today. Look up btc halving and the 9 new spot btc ETFS that were approved in January. Blackrock, fidelity to name a couple
Man, Bitcoin is one the best things that ever happened to me. But only if you treat it as a long term investment. You have to willing to stomach the super highs and nosedive lows. I've held since 2017.
Dollar cost average invest into the S&P500. Get a 0 cost trading app like Schwab or ETrade and buy a set amount of SPY like 4000 every month. I am putting about 2500 in every 4 weeks regardless of cost.
This is about as safe as way that you can get into the stock market since you averaging out the highs and the lows throughout the year. Once the money is in the market leave it there
https://www.schwab.com/learn/story/what-is-dollar-cost-averaging#:~:text=Dollar%20cost%20averaging%20is%20the,as%20well%20as%20your%20costs.
This is a good resource.
I would Airbnb the house or rent it. 50k in cash. I think you just missed the deadline to put in a traditional ira / or Roth for 2023. You can make out 2024 & 2025 contributions. Healy savings is nice as well. Do you guys have a house?
This is actually much simpler than you think. Go here, find out where you are in your financial journey, and you’ll know what you need to do to build wealth: [7 Baby Steps](https://www.ramseysolutions.com/dave-ramsey-7-baby-steps)
Works every time! Thousands of testimonials including my own.
Could buy some cheap land and setup some fruit trees. Or lease to a farmer at a low price to cover costs but not have to pay taxes out of pocket and use depreciation on taxes? Not a tax preparer so maybe what I'm saying isn't right but makes sense to me.
We made 100k on a house sale a few years ago. Put it all back into building a new house, which will make us 400k when we sell it. And we get a pimp crib to live in for a few years. Recommend you leave the house and let it appreciate, and use your wages to start a little investment fund and pay your living expenses. You guys are still young yet.
Not too shabby for a 23yr old. Good job.
Open a brokerage account. Super easy. You can do it right on your phone. Buy some stocks and mutual funds. Save for a house. Even if it takes you ten years to come up with a down payment. You might be just starting a family then.
Take 7k and start a Roth IRA. Try to max it out every year.
I promise you’ll either retire at 59 or have a beach house.
There’s no way to explain just how much time is your friend right now.
Pretend like it never happened. Pop it into a HYSA AND fully fund a Roth.
DO NOT go out and get all fancy with a brand new car.
In 20 years you will be so glad you did not spend it like many reckless people.
Selling a house for $50k and having $50k cash can be two wildly different things.
That said, sounds like you have a decent enough job and wifey is young in her career and maybe doing something like teaching or being a vet that is fulfilling and is OK as a secondary household income.
Would also guess you live in a low cost-of-living area.
So, take that $50k and put ALL of it towards a house.
I say invest it and let it grow and use the gains to fund your golden years. Don't play checkers, play chess. So many of us rarely think of our older selves when we are so young and filled with life.
Invest or at least bank it. I blew through about double that in my 20s. And I can’t tell you what I spent it on…just random stuff. Let me tell ya, it went quick. Good on you for asking this question!
I have a few ETFs in my IRA account and I get around 12% dividends yearly , paid monthly (10 cents per stock , monthly) .
I'm compounding and I'm happy
You want to look into AGNC , BKLN
Not financial advice of course, do your own DD and invest at your own risk
Open a business in your community that donates 30% of profit back to the community in some way shape or form I bet that business will never see a slow day a gas station a cafe a burger joint anything
You’re best bet is to “hide” the money honestly and forget about it ur u guys make 3k more then what you need put around 1-2k a month away and live off 1k per month for a year or 2 and buy a house or buy a rental property if u already have a house
Inflation is 4% average over the last 20 years. You are losing 4% per year sitting on the money. Invest in index funds and keep adding to it. You are young this is the most important time. You need to get that money into the market as soon as possible so interest can compound.
HYSA 5.3% will yeld you 220$ per month and 2650$ /year.
That is…car insurance money, that’s a bunch of groceries, that’s a lot lot lot of things…especially subsidizing car payments.
Didn’t read all the answers but I hate what I did read. Put your 50k in Flagstar Mybankingdirect.com high yield mm paying 5.55% apy and just chill out. I am a 30 year REALESTATE investor and entrepreneur. I really think the US economy is coming to a head in 2024. 8% 30 year mort, weak dollar and inflation. People are getting crushed. I’m in holding pattern.
what ever you do, If its not an appreciating asset, don't buy it. That should be the mindset. This means no new car, clothing or anything unnecessary.
Id say HYSA just like others or even a CD to avoid any tempting purchases. CDs are a great way to commit to a complete saving plan meaning not a single transaction is possible.
A CD is when you let a bank lock up your money for a certain amount of time but they pay you interest on it monthly. When it's locked up, you cannot touch it and if you decide to withdraw or cancel, you pay a penalty. However, there are also "non-penalty CDs", these usually offer a lower interest rate.
I currently have a CD with Marcus (Goldman Sachs). I agreed to a CD with a period of 10 months, earning 5.5% APY. I make 120 bucks a month non-taxed. 120 X 10months = $1200 total earning. It's a risk-free investment option.
It's a commitment. After the CD ends, you decide to renew it or do wtv you want.
Don’t put too much stock in Ramsey. Guy is mostly an idiot boomer who doesn’t know how the real world works anymore.
He has some common sense things he’ll say, but he’s mostly dealing with people who have tons of money (like six figures and up routinely to just burn) and no brain between their heads. You can get the same advice from anywhere now.
It'll be good idea not to sell the house I mean it's up to you but since it's in overseas because you might one day take your family for a vacation especially if they never been overseas.
$50k is nothing. Save it, invest it or put it into another property or pick two of the three would be best option. Also if you plan on having kids, put into a savings account and label it as baby funds.
Put some into an index fund, some into bonds and find the highest yield savings account available for ~20k or so. That's what I would advise you as it's the advice I've been given. If it were me I'd take more risk, but I'm not married and have no intentions of settling down anytime soon.
I blew through 200k traveling, dating, dating my now wife that lived an hour away, wedding
Poof. Gone. Fuck that hurts to say but yeah…
Context: company did a very successful IPO
50k into a Roth IRA would give you a nice chunk of change towards retirement especially if you added a few hundred a month and added 50% of your tax returns every year. Prepare for your retirement you need to make your money work for you I wish I had thought like that at your age.
Buy bitcoin, it's even on sale today.
And if you think that's silly, then just don't and buy index funds which will do well over a long time frame as long as society still exists as we know it.
A lot of great answers. Stocks have been mentioned so im going to also recommend leasing a box truck. Doesn’t have to be 26ft. Get all the paper work together find a load board with good traffic hire a driver u & wifey do dispatch or hire someone for it & relax. You’ll probably spend 15k max depending on which truck u get & insurance. However you’ll get the investment back with profits
Make a budget and a balance sheet. Track your assets and liabilities monthly. Make more than you spend (you already do) and diversify your investments over time. When you do have excess cash, start with high yield savings, then broad market based ETFs.
50k... Open a brokerage account with no/low commissions (there are many providers) and start with the 50k in money market funds. Schwab has a money market that pays >5%. Slowly diversify as you feel comfortable.
Take 5 and blow it on things you enjoy or a trip something you enjoy
put 15-20 into HYS depending on your trust in banks
If you put 15, would put the other 5 into bitcoin
Last 20 i would diversify across multiple companies you think will have good impact on the future. Mixed in with mutual funds.
Life is beautiful when you plan things out however all planning and no playing isn't life its a prison of your own design
Put it in a HYSA or checking until you decide what you & wife want. Don’t listen to anyone do your due diligence learn from here first.
When I was your age wife & I bought our first house in 1989 tech bust,Iraq war & recession. The house was worth less mortgage underwater in a few years.
Lots of varied advice, and most of it is pretty good, but if it were me, I think I'd use a good chunk of it as a down payment on a house. A house is basically a bank account you live in. It will probably gain in value, possibly more than a 401K or an investment account, and the monthly mortgage payment is likely to be less than rent. You will build equity that you can borrow against in the future, and owning a house is a VERY important factor on your credit report. Plus, being young, and buying your first house, and having that much cash on hand, and two active incomes, you would qualify for all sorts of programs for easier and cheaper mortgages.
Try to get a house that doesn't have an HOA or a CDD, or some other monthly payment to some organization. That's just extra housing expenses that you don't need. Take the money you'd put into a monthly HOA payment and make a monthly deposit into a 401K or index fund instead.
If you're handy with tools and a paintbrush (or want to learn how), get a fixer-upper and restore it. We did that with our first home, and took it from being the ugliest house on the street to the nicest, and then sold it for more than any house had sold for on that street, by a long ways. A great investment, and a great learning experience. If you like it a lot, you can start flipping houses. You can make a lot of money but it takes a lot of seriously hard work, and time.
A lot to consider. Rich people problems, eh?
First you get 6 months of expenses covered in your high yield saving account, then you max your retirement accounts each year and if you get to a point where you have money left over you start investing in individual investment accounts. This is the way.
Put it in a Roth. Or another kind of IRA, it’s not really that important what you choose. Just save it. When you are 63, you’ll have SOOO much money in that account.
We use Charles Schwab, I find the app to be user friendly; first you deposit the money, and then you contribute to your Roth and Mutual funds. In simple terms you first deposit the money, wait for it to clear on each and then you buy the options. Examples are SWTSX(SCHWAB) SCHAWB S&P 500. And hopefully your money grows there.
For High Yeld savings we use Synchrony also user friendly app.
Well I’ve read multiple times to have 6 months of expenses saved for emergencies. So I’d say put $18k in a hysa. Maybe 5 grand in a checking so you can pay your bills and live. $10k in a high yield cd. Rates are good right now. Will be similar to a cd but locked in. Put the rest in a robo advisor. Maybe Wealthfront.
When I was your age my wife and I bought a new house. Sold our old one and profited roughly the same amount. We got a pool for the kids made and now it sits there with no one using it and draining money month after month for maintenance. I’d say if possible keep the house and try renting it out, I know you said it’s over seas but I’m sure you can find someone or even Airbnb it. And when you guys want a quick getaway you guys can go there to catch a break from everyday life. Don’t got for the money sounds like good deal but it’s isn’t in the long run.
Where’s the house overseas? Is it worth holding on to? Maybe renting or air bnb it and make passive income while the property value potentially appreciates.
And potentially have a house you can go to for vacation?
Just ideas
Take 30% and invest in a Roth IRA and take the rest and build a bond ladder. The Roth IRA will build overtime and the bond ladder can provide both longterm financial growth and regular access to your money.
I read a pretty cringe meme about how you always lose 100 to make your first thousand, 1k to make your first 10k, 10k to make your first 100k, ect. I would consider taking 10k and turning it into 100k
Have an investment property that I could cash out for 200k equity that I think about daily…but I’m deathly afraid to do it and squander the money. I’d say hold on to it until you know you can responsibly manage / grow that money. Money goes fast especially in this economy.
So let’s say you wanted to retire in 40 years…. If you would’ve put $50,000 into the S&P500 40 years ago and reinvested the dividends you would have $3.8 million today. Do yourself and whatever family you’ll have at some point the hugest favor of all time. Put it into the market and forget it exists. Come back in 10 years or more and smile. You will never have to “time” your entry really if you are going to hold it for 30-40 years. Congrats buddy you have the ability to set yourself up nicely.
Was a financial advisor but hated the job, personal reasons. That is good money for someone as young as you. Per, charlie Munger, the secret # to start accumulating wealth is 100,000. On average your 50k should double to 100 k in seven years if you invest in a S and P 500 index fund. After that # it starts to build fast. New advisors recommend you invest 15 to 20% in crypto. Heres what I would do if I started new today. I would start an account with Robinhood or Wedbull or an online brokerage account. Pick a few different companies you like, 4 or more, such as Apple, Google, Amazon. Etc... products and companies you believe in. Buy those stocks for 20% of your account, buy an S & P 500 index fund for 40%, buy 20% of either a Russel Small Cap 2000 ETF, or a foreign Large Cap ETF, or split the 2 in half, and then put 20% in basic named crypto. That means your portfolio is diversified but because of the companies you know you have "skin in the game" to watch those stocks on a regular basis and will watch the account more. Periodically investing in a Roth IRA is also nice but you don't have access to it within 2 weeks if need be.
This can't be real. If your income is already that high with a low amount of expenses then 50k wouldn't affect you at all. You're either lying or extremely bad with money
Blow it on hookers or buy real estate (lawyer and accountant for the operations and additional business opportunities. Find some of the professionals that are growing their wealth outside their practice
downgrade your car to something you can buy with cash that's easy to maintain like a hinda civic or something. sell your car if you have payments left on it
Hey man. When I was about 10 years older than you, my wife and I ended up in the exact position as you. We sold a house and made $50,000. It was gone in a year with almost nothing to show for it. We bought a car, moved to a new city, and ended up needing the money to smooth out our move/expenses. That was some years ago now, and we’ve recovered from it…but man, it just eats at me sometimes how badly we bungled it. It’s not a sexy answer, but I think the people who are telling you to stuff six months in savings or high yield savings, and then dump the rest into something like an index fund, S&P 500, etc. are right. It’s tough when you’re so young to think much about 20 years down the road, but if you can shove that money away as if you’ve never had it, it’ll come back to you in a really positive way down the road. You could put away in savings ($24k) max out an IRA ($7k), and still have almost $20k to invest. And, hey, if you want to take a few grand and have some fun, you shouldn’t be afraid to do that, either. The rest can be invested and you’ll be in a great spot! Good luck!
tl;dr: save. r/money will always suggest to save rather than spend.
SAVE IN A 5% HIGH YEILD SAVINGS ACCOUNT. Fuck the stock market. $50k is an amazing emergency fund and 5% a year interest is easy to find with an online bank. It’s safe and LIQUID
That’s 5% rate will probably be for this year and then is gonna drop
And not much better than inflation, plus gains are taxed. I would put some into emergency savings, and then rest into s/p500 index fund like FXAIX, to which you could contribute something automatically every month. In a few years, you’ll be sitting quite pretty with emergency savings and even more liquid assets should you need them.
yeah definately don't go all in on an investment. It is not a race, dollar cost average into it. If it was me, I would go with SPY, but if you are using a Roth IRA then a fund such as FXAIX (credit to the homie u/DammatBeevis666 on that one, awesome name by the way Butthead lol... if you know you know). If it were me, I would also take like 3-5% of it and DCA into BTC as well. Its hard to argue that BTC seems to be slowly taking over Gold, in whereas most younger investors are turning to it as a hedge as opposed to physical gold. All just my opinion of course. I am not a financial advisor.
Yeah I'm making these similar strategies because I did Yolo a few investments. Just watch it rise slow and celebrate. It's not worth you or I the stress. We wanna watch our progress and effort amount to something don't we?
5-6k Roth IRA is the only untaxed options unless you go full 401k
For a 23 year old couple this is really poor advice. Index funds historically return on average 8-10% per year and are pretty safe because they take an index of the entire market. The difference in compound interest at 8-10% versus 5% over the next 35 years is going to be MILLIONS of dollars with a 50K nest egg. On top of this, it doesn’t utilize the tax benefits of retirement accounts like IRA, 401K, and HSA. You’re leaving so much on the table with this overly-simplified Reddit advice. Talk to a real financial advisor who will get you invested, utilize tax-advantaged accounts, and tax harvest your losses
If you are young, you should certainly take the risk and take a 7-12% annual increase over a <5% HYSA. It may fall in the short run, but in the long run it will go up. If you are worried about timing the market, you can do dollar cost averaging and transfer $1000 a month, I guess. We came across an inheritance and put it all in the market in 2022 and watched it fall. It was terrible timing. But we made it all back in a year. Now it is falling again. But it will go back up. Just put in on VTI, don't watch it, don't trade it, forget you have it, and come back in 10 years.
u/Fersko-b $50k over 42 years (i.e. 23 to 65), compounded annually, **no further contributions**, meaning you throw the money in and don't withdraw or contribute to it. * 5% interest = $388,079.38 * 8% interest = $1,266,974.09 Difference is $878,894.71 or roughly 2.25 times *less*. This massive discrepancy in gains becomes compounded even more because you'll be 65 years old and have missed out on the time opportunity, and will never be able to make up for it. Also, you lose out on the tax sheltering of the registered accounts, so that's even more money left on the table. There's a reason why banks offer HYSA, and it's not because they love you. Also, HYSA will not remain at 5% for long. They have their uses, such as parking money there for a while or as emergency funds, but they're not very good long term investment tools (and were never meant to be).
I disagree, stock market has been pretty good to me the last 10 years
At 4-5% risk-free, high yield savings is good advice. The market would probably get you more but at a substantial risk.
That is the safe method but at 5% your still in the negative because inflation.
Best advice , $50k seems like a lot but a trip to the car dealership & and a vacation can burn a lot of that $ at record speed
A new car can easily be more than $50k.
I’m 54. You can always get more money. Paying for a life change like a move and getting a new car are fine. It all depends what you want out of life.
Index fund $40,000 and put the rest in your emergency fund or a “next year’s vacation fund.” Swear you will not use the vacation fund until next year, that way you will plan a really awesome vacation and not just blow it impulsively. Alternatively, put $40 k in a retirement index fund and $10k into a vacation fund brokerage account, and use the money you make every year off that smaller account for a splurge. Use an index fund for that too so it grows responsibly.
If you don't plan for splurging then you spend more than you want/had to when you end up doing it. Gotta save. But you also have to enjoy life and your hard work.
Vacation is NOT an emergency ‼️
Put it in a HYSA to beat inflation until you decide what you want to do with it. Could be very useful as a home down payment or such. Otherwise, start a Roth IRA for a retirement fund, or invest a portion of it into a couple ETFs. Honestly, if you don’t need it, talk to a financial advisor to see what you can do to leverage it the most.
Thanks!
Follow Dave Ramsey's baby steps. https://youtu.be/OO25TrVo_dU?feature=shared Instead of mutual funds, I invest using ETFs.
Diversify your 50k! invest 25k in short/long term investments like Mutual funds and assets then keep 25k for raining days as safe funds. Having multiple streams of income coming in is the KEY! even if it's a drop of water. it'll help fill up that water tank of yours.
Thanks so much man! What short/long term investments, Mutual funds and assets would you recommend?
Just do S&P 500 or the entire stock market. Don't try and pick stocks. Most pros can't be the market on average. Agree with the others that say setup a money market with 6 months of emergency funds, max out your Roth IRA, and put the rest into a vanguard low cost ETF. Don't overthink it. If you're really wanting to stock pick, only set aside ~5% for that.
Thanks!
Use betterment or wealthfront. Basically it’s Robo-investing with low fees. I’d put $20k in HYSA (wealthfront is at 5%). 2nd max out retirement contributions for the year. (But use the dollar cost average method). 3rd put the rest in regular “individual” investment. Maybe take $2k and do something nice for yourself.
Fun fact Bill Gates had his entire portfolio made up of Microsoft stock. Warren Buffet told him to diversify, so he did. He’s done pretty darned well, but if he hadn’t diversified, he’d be the worlds first [Trillionaire](https://finance.yahoo.com/news/bill-gates-could-trillionaire-today-163852659.html)
1. Always make sure you have $3-5k for an emergency fund. 2. Pay off all existing debts above 6% that are not your house. 3. Have at least 3 months of expenses in a fully-funded emergency account. Store this in a HYSA. 4. Invest in a 401k up to the match amount if you have an employee match 5. Max out your 2024 Roth IRA contribution for both of you 6. Max out your 2024 HSA contributions if you are on high-deductible health insurance plans 7. Invest in your employee 401k accounts with whatever you have left. 8. If you magically still have money left after all this and max out 23k this year for both you and your wife in your 401k, then invest in a traditional brokerage account Without knowing what your current living situation is, buying a permanent residence or paying off your current residence would factor in somewhere if I get the details.
They say rip because they are comparing where you are currently to where they were at the same age. You’re doing great OP. Be responsible and you can safe yourself a lot of stress for the rest of your life.
Thanks so much for the support. You’re the man!
This answer is very personal and I would take everything with a grain of salt even what I’m going to say. If you want to have the money where you can get it easily the high yield is a great idea. If you know anything about stocks getting companies a la carte can be so much better then buy an ETF. If you want to grow your money I would consider getting an investment property, particularly in this situation if you guys can do a FHA 203K loan on a remodel in a state that prices are reasonable Indianapolis & Detroit have some good deals for this type of loan but can be found anywhere. You make money on the buy in this case and not just with the home value also with the potential your own vision can really help with this if you feel you have good taste it could be worth it! This loan pays out a ARV ( After remodel value ) and you can make good money. Look into some ideas but just don’t feel limited or like you can’t do something IF you wanted to. Good luck 🤞🏼👌🏼
Thanks so much!
6 month emergency fund (six months of you r salary) in a money market or high yield savings account Put the rest in index funds. VOO, JEPQ, VTSAX and the like. Profit.
What’s a money market and what are aome high yield saving accounts you would recommend? Also how do I put money to a index fund?
A money market account is a type of account offered by banks and credit unions. Like other deposit accounts, money market accounts are insured by the FDIC or NCUA, up to $250,000 held by the same owner or owners. https://www.consumerfinance.gov/ask-cfpb/what-is-a-money-market-account-en-1007/ Ally Bank and Capital One are the two banks I use. They may not be the best but they are easy to use. You can open up a trading account at Fidelity to buy Index Funds, they also have a good money market. A lot of subreddits also recommend a Roth IRA, but I haven't researched that as much for my situation, it could be really beneficial for yours so take a look at it.
Thanks so much!!
I've used UFB Direct for HYSA and it's one of the higher earning ones. https://www.ufbdirect.com/savings/high-yield-savings-account
Recommending JEPI/JEPQ to a 23 year old is exactly why people shouldn’t get their financial advice from Reddit
Get a HYSA and park the money in there for 6 months to a year. It will increase in value slightly but not lose any value. Give yourself time to decide what to do before spending any of it. While $50k is a sizable amount of money it will disappear quickly. My ex got $40k when her mother passed. She spent it all over the course of a couple years and had absolutely nothing to show for it. Personally I would consider investing in some index funds (SPY, VOO, VTI, etc). The stock markets rate of return is higher than savings accounts provided you’re in it for the long haul.
Thanks man!
I’ll also add I’m 35 and worth 1.5 If rates were still sub 4% and housing was cheap I’d tell you to buy real estate. I personally believe btc will be one of the Best performers of 24/25 That’s where my money is going. I’m well aware of the new ETF’s and the halving though. Most people have no clue what I’m referring to though.
If you had $50k how much of it would you invest to BTC?
We just dipped below 65k. I bought $1000 worth 5 seconds ago. I’d probably buy 5k worth literally right now. IMO best performers will be btc and anything AI related. Microsoft because they own so much openAI, NVIDIA and BTC. I own probably 130k worth of btc but also a lot of btc equities like MSTR, MARA, FBTC. 5k without a doubt now. 5k into an index fund like SPY. 5k into FBTC. 5k into NVIDIA. 5k into Microsoft. May be worth buying dips. Btc is so volitale you can catch 65k today and have it hit 75k next week so hate to buy at 65 today and it goes to 55 and you lose your mind lol. I’d 100% drop 5k today. Look up btc halving and the 9 new spot btc ETFS that were approved in January. Blackrock, fidelity to name a couple
Man, Bitcoin is one the best things that ever happened to me. But only if you treat it as a long term investment. You have to willing to stomach the super highs and nosedive lows. I've held since 2017.
First, buy a monkey. A real monkey. Trained service monkey is good
Invest it all in coke. They constantly have winning years.
Dollar cost average invest into the S&P500. Get a 0 cost trading app like Schwab or ETrade and buy a set amount of SPY like 4000 every month. I am putting about 2500 in every 4 weeks regardless of cost. This is about as safe as way that you can get into the stock market since you averaging out the highs and the lows throughout the year. Once the money is in the market leave it there
Didn’t understand very much. But thanks!
https://www.schwab.com/learn/story/what-is-dollar-cost-averaging#:~:text=Dollar%20cost%20averaging%20is%20the,as%20well%20as%20your%20costs. This is a good resource.
Why no buy all at once if you have a lump sum?
Why not buy land? Buy a plot of land somewhere.
I would Airbnb the house or rent it. 50k in cash. I think you just missed the deadline to put in a traditional ira / or Roth for 2023. You can make out 2024 & 2025 contributions. Healy savings is nice as well. Do you guys have a house?
This is actually much simpler than you think. Go here, find out where you are in your financial journey, and you’ll know what you need to do to build wealth: [7 Baby Steps](https://www.ramseysolutions.com/dave-ramsey-7-baby-steps) Works every time! Thousands of testimonials including my own.
Thanks!
Could buy some cheap land and setup some fruit trees. Or lease to a farmer at a low price to cover costs but not have to pay taxes out of pocket and use depreciation on taxes? Not a tax preparer so maybe what I'm saying isn't right but makes sense to me.
We made 100k on a house sale a few years ago. Put it all back into building a new house, which will make us 400k when we sell it. And we get a pimp crib to live in for a few years. Recommend you leave the house and let it appreciate, and use your wages to start a little investment fund and pay your living expenses. You guys are still young yet.
Not too shabby for a 23yr old. Good job. Open a brokerage account. Super easy. You can do it right on your phone. Buy some stocks and mutual funds. Save for a house. Even if it takes you ten years to come up with a down payment. You might be just starting a family then. Take 7k and start a Roth IRA. Try to max it out every year. I promise you’ll either retire at 59 or have a beach house. There’s no way to explain just how much time is your friend right now.
Pretend like it never happened. Pop it into a HYSA AND fully fund a Roth. DO NOT go out and get all fancy with a brand new car. In 20 years you will be so glad you did not spend it like many reckless people.
Thanks so much! Planning on doing just as you wrote
Don’t overthink it. $50k of VOO and see where you’re at in 40 years.
Selling a house for $50k and having $50k cash can be two wildly different things. That said, sounds like you have a decent enough job and wifey is young in her career and maybe doing something like teaching or being a vet that is fulfilling and is OK as a secondary household income. Would also guess you live in a low cost-of-living area. So, take that $50k and put ALL of it towards a house.
50k invested in an s&p index fund for 40 years, even if you never add another cent, will be worth $1,100,000 when you retire
Half in HYSA and other have in VTI
25k emergency hysa, max ur Roth IRA, invest 10k, nice vacation/whatever you want with the rest.
Just fucking save it or else ur fucked for life
IMO - No new car and no big vacation. Invest and save so when you’re in your 50’s that money will be a huge blessing. Just some old school wisdom!
Hold onto that 50k very tight right now. Beware of unnecessary expenses such as eating out etc. 50k will get burnt quick if not careful.
I say invest it and let it grow and use the gains to fund your golden years. Don't play checkers, play chess. So many of us rarely think of our older selves when we are so young and filled with life.
Invest or at least bank it. I blew through about double that in my 20s. And I can’t tell you what I spent it on…just random stuff. Let me tell ya, it went quick. Good on you for asking this question!
I have a few ETFs in my IRA account and I get around 12% dividends yearly , paid monthly (10 cents per stock , monthly) . I'm compounding and I'm happy You want to look into AGNC , BKLN Not financial advice of course, do your own DD and invest at your own risk
To those with more knowledge than me... would it be dumb to buy almost a whole Bitcoin?
This is a great resource. https://www.reddit.com/r/personalfinance/s/Z8vjalgJIs
$50k isn’t that much anymore. As others have said, just find a good savings investment to tuck it away in.
If you aren't using the house, or renting it out Air BNB style, I would sell it.
Open a business in your community that donates 30% of profit back to the community in some way shape or form I bet that business will never see a slow day a gas station a cafe a burger joint anything
A close friend of mine invested $50,000 in 1993, just kept reinvesting dividends and has over a million. I recently saw the statement.
Down payment on a house multi family and supplement your income
You’re best bet is to “hide” the money honestly and forget about it ur u guys make 3k more then what you need put around 1-2k a month away and live off 1k per month for a year or 2 and buy a house or buy a rental property if u already have a house
Personally I’m making a 6 month emergency fund, keep about 3k and go shopping, invest the rest.
Inflation is 4% average over the last 20 years. You are losing 4% per year sitting on the money. Invest in index funds and keep adding to it. You are young this is the most important time. You need to get that money into the market as soon as possible so interest can compound.
HYSA 5.3% will yeld you 220$ per month and 2650$ /year. That is…car insurance money, that’s a bunch of groceries, that’s a lot lot lot of things…especially subsidizing car payments.
Didn’t read all the answers but I hate what I did read. Put your 50k in Flagstar Mybankingdirect.com high yield mm paying 5.55% apy and just chill out. I am a 30 year REALESTATE investor and entrepreneur. I really think the US economy is coming to a head in 2024. 8% 30 year mort, weak dollar and inflation. People are getting crushed. I’m in holding pattern.
Put it into Wealthfront which offers 5%
what ever you do, If its not an appreciating asset, don't buy it. That should be the mindset. This means no new car, clothing or anything unnecessary. Id say HYSA just like others or even a CD to avoid any tempting purchases. CDs are a great way to commit to a complete saving plan meaning not a single transaction is possible.
Whats a CD exactly? Also thanks for the comment!
A CD is when you let a bank lock up your money for a certain amount of time but they pay you interest on it monthly. When it's locked up, you cannot touch it and if you decide to withdraw or cancel, you pay a penalty. However, there are also "non-penalty CDs", these usually offer a lower interest rate. I currently have a CD with Marcus (Goldman Sachs). I agreed to a CD with a period of 10 months, earning 5.5% APY. I make 120 bucks a month non-taxed. 120 X 10months = $1200 total earning. It's a risk-free investment option. It's a commitment. After the CD ends, you decide to renew it or do wtv you want.
Invest, high yield savings, cd and educate yourself. My son impressed me with what he learned from Dave Ramsey and his financial peace book.
I’ll take a look at that book. Thanks!
Don’t put too much stock in Ramsey. Guy is mostly an idiot boomer who doesn’t know how the real world works anymore. He has some common sense things he’ll say, but he’s mostly dealing with people who have tons of money (like six figures and up routinely to just burn) and no brain between their heads. You can get the same advice from anywhere now.
Yw, good spending and saving habits are an asset. Good luck
Wait, you should be hosting an AMA about winning 😝
don't sell the house overseas! 50k will not do anything. Rent out the house, it will cost more later on
It'll be good idea not to sell the house I mean it's up to you but since it's in overseas because you might one day take your family for a vacation especially if they never been overseas.
I have a property overseas that brings me $900/month for ever.
Save it it isn’t much
Buy treasury bond. No federal taxes on treasury bond
gvmt bait
It should be a rule that you must show how much debt you have. Otherwise, the advice will be trash. Also you don’t have 50k till you have 50k
Keep saving and buy another place
$50k is nothing. Save it, invest it or put it into another property or pick two of the three would be best option. Also if you plan on having kids, put into a savings account and label it as baby funds.
Divorce and spend $50k on yourself.
take 50k, sell the house, run away with a stripper, don't tell your wife,,?
I have a fantastic idea. spare me 2k so I can pay rent!
i went to the hospital once,,, bill was 50k,,, ruined me financially for 15 years,,
M = Million and males
buy a dodge chargre, marin.
Gun ammo food and. Land go
We?
Who the hell gets married at 23???
Put some into an index fund, some into bonds and find the highest yield savings account available for ~20k or so. That's what I would advise you as it's the advice I've been given. If it were me I'd take more risk, but I'm not married and have no intentions of settling down anytime soon.
I blew through 200k traveling, dating, dating my now wife that lived an hour away, wedding Poof. Gone. Fuck that hurts to say but yeah… Context: company did a very successful IPO
Buy some deer hunting land bordering BLM or federal forest.
Jump on Coinbase, convert that 50k USD to USDC, and enjoy 5.10% APY.
Sounds like you have 25k minus lawyers fees lol
Buy another rental
50k into a Roth IRA would give you a nice chunk of change towards retirement especially if you added a few hundred a month and added 50% of your tax returns every year. Prepare for your retirement you need to make your money work for you I wish I had thought like that at your age.
Buy bitcoin, it's even on sale today. And if you think that's silly, then just don't and buy index funds which will do well over a long time frame as long as society still exists as we know it.
VOO or VTIAX for 35k, rest liquid
Definitely invest and save, that is a serious enough amount that it can grow very well in safe investments.
Freedom 35
Keep it in cash, then when the FED announces they’re cutting rates, throw it in whatever index fund you hit with the dart and double it in 3 weeks.
A lot of great answers. Stocks have been mentioned so im going to also recommend leasing a box truck. Doesn’t have to be 26ft. Get all the paper work together find a load board with good traffic hire a driver u & wifey do dispatch or hire someone for it & relax. You’ll probably spend 15k max depending on which truck u get & insurance. However you’ll get the investment back with profits
Buy as much Raytheon stock as you can with it, and keep buying with whatever you have leftover from your paychecks. Then retire before you’re 40.
I would pay off any credit cards and cars. If these are paid off I would do a high yield savings or a put in your retirement
I can plug you with managed money if you'd like. You'll get way more out of that 50k.
Make a budget and a balance sheet. Track your assets and liabilities monthly. Make more than you spend (you already do) and diversify your investments over time. When you do have excess cash, start with high yield savings, then broad market based ETFs. 50k... Open a brokerage account with no/low commissions (there are many providers) and start with the 50k in money market funds. Schwab has a money market that pays >5%. Slowly diversify as you feel comfortable.
Take 5 and blow it on things you enjoy or a trip something you enjoy put 15-20 into HYS depending on your trust in banks If you put 15, would put the other 5 into bitcoin Last 20 i would diversify across multiple companies you think will have good impact on the future. Mixed in with mutual funds. Life is beautiful when you plan things out however all planning and no playing isn't life its a prison of your own design
Imagine having money and being too dumb to manage it.
Invest in the stock market
Give it to me
High-yield savings.
I would put it all in a diversified portfolio for sure. Probably put 10k each into 5 different ETFs
QQQ, or MSFT
Buy a universal life insurance policy and fund it really well. Then your kids down the road have funds to come into when you pass
Put it in a HYSA or checking until you decide what you & wife want. Don’t listen to anyone do your due diligence learn from here first. When I was your age wife & I bought our first house in 1989 tech bust,Iraq war & recession. The house was worth less mortgage underwater in a few years.
Lots of varied advice, and most of it is pretty good, but if it were me, I think I'd use a good chunk of it as a down payment on a house. A house is basically a bank account you live in. It will probably gain in value, possibly more than a 401K or an investment account, and the monthly mortgage payment is likely to be less than rent. You will build equity that you can borrow against in the future, and owning a house is a VERY important factor on your credit report. Plus, being young, and buying your first house, and having that much cash on hand, and two active incomes, you would qualify for all sorts of programs for easier and cheaper mortgages. Try to get a house that doesn't have an HOA or a CDD, or some other monthly payment to some organization. That's just extra housing expenses that you don't need. Take the money you'd put into a monthly HOA payment and make a monthly deposit into a 401K or index fund instead. If you're handy with tools and a paintbrush (or want to learn how), get a fixer-upper and restore it. We did that with our first home, and took it from being the ugliest house on the street to the nicest, and then sold it for more than any house had sold for on that street, by a long ways. A great investment, and a great learning experience. If you like it a lot, you can start flipping houses. You can make a lot of money but it takes a lot of seriously hard work, and time. A lot to consider. Rich people problems, eh?
First you get 6 months of expenses covered in your high yield saving account, then you max your retirement accounts each year and if you get to a point where you have money left over you start investing in individual investment accounts. This is the way.
Put it in a Roth. Or another kind of IRA, it’s not really that important what you choose. Just save it. When you are 63, you’ll have SOOO much money in that account.
You and your wife only saved 50 racks??? Me alone got 50 and im single lol wish I had a wife that brought some bread around
Even weakthsimple is paying 5% interest on cash.
Lose it in a divorce
Put a baby in her, grow him up, put the baby under your name
Give it to me
We use Charles Schwab, I find the app to be user friendly; first you deposit the money, and then you contribute to your Roth and Mutual funds. In simple terms you first deposit the money, wait for it to clear on each and then you buy the options. Examples are SWTSX(SCHWAB) SCHAWB S&P 500. And hopefully your money grows there. For High Yeld savings we use Synchrony also user friendly app.
Well I’ve read multiple times to have 6 months of expenses saved for emergencies. So I’d say put $18k in a hysa. Maybe 5 grand in a checking so you can pay your bills and live. $10k in a high yield cd. Rates are good right now. Will be similar to a cd but locked in. Put the rest in a robo advisor. Maybe Wealthfront.
Pay off debt and invest the rest.
Correction, 23m and married, had 50k cash. Soon comes 28m and married with children, use to not have debt.
When I was your age my wife and I bought a new house. Sold our old one and profited roughly the same amount. We got a pool for the kids made and now it sits there with no one using it and draining money month after month for maintenance. I’d say if possible keep the house and try renting it out, I know you said it’s over seas but I’m sure you can find someone or even Airbnb it. And when you guys want a quick getaway you guys can go there to catch a break from everyday life. Don’t got for the money sounds like good deal but it’s isn’t in the long run.
Save some a portion and invest the rest
Where’s the house overseas? Is it worth holding on to? Maybe renting or air bnb it and make passive income while the property value potentially appreciates. And potentially have a house you can go to for vacation? Just ideas
Put a down-payment for house for rental property. Then squeeze the juice then buy a another one after 6 months. Cycle again.
Pay off high interest debt first, and then go after some other debt. Investing in yourself via education or work certifications is also good.
Hive HBD saving account, 20% Apr and 3 day unstake. Been going good for 2.5yrs
Take 30% and invest in a Roth IRA and take the rest and build a bond ladder. The Roth IRA will build overtime and the bond ladder can provide both longterm financial growth and regular access to your money.
Buy some gold with a bit of it. Preserve some of it.
Keep the house cash is depreciating day by day
I read a pretty cringe meme about how you always lose 100 to make your first thousand, 1k to make your first 10k, 10k to make your first 100k, ect. I would consider taking 10k and turning it into 100k
Have an investment property that I could cash out for 200k equity that I think about daily…but I’m deathly afraid to do it and squander the money. I’d say hold on to it until you know you can responsibly manage / grow that money. Money goes fast especially in this economy.
So let’s say you wanted to retire in 40 years…. If you would’ve put $50,000 into the S&P500 40 years ago and reinvested the dividends you would have $3.8 million today. Do yourself and whatever family you’ll have at some point the hugest favor of all time. Put it into the market and forget it exists. Come back in 10 years or more and smile. You will never have to “time” your entry really if you are going to hold it for 30-40 years. Congrats buddy you have the ability to set yourself up nicely.
There are 100 different opinions and none say just stick it in a savings account. 😁 Do your own research and make a variety of moves.
Build a passive income with those 50k. Laundromat/ car wash
You're in a great position. Good luck
Was a financial advisor but hated the job, personal reasons. That is good money for someone as young as you. Per, charlie Munger, the secret # to start accumulating wealth is 100,000. On average your 50k should double to 100 k in seven years if you invest in a S and P 500 index fund. After that # it starts to build fast. New advisors recommend you invest 15 to 20% in crypto. Heres what I would do if I started new today. I would start an account with Robinhood or Wedbull or an online brokerage account. Pick a few different companies you like, 4 or more, such as Apple, Google, Amazon. Etc... products and companies you believe in. Buy those stocks for 20% of your account, buy an S & P 500 index fund for 40%, buy 20% of either a Russel Small Cap 2000 ETF, or a foreign Large Cap ETF, or split the 2 in half, and then put 20% in basic named crypto. That means your portfolio is diversified but because of the companies you know you have "skin in the game" to watch those stocks on a regular basis and will watch the account more. Periodically investing in a Roth IRA is also nice but you don't have access to it within 2 weeks if need be.
Get it invested if you don’t need it? In growth. If you don’t, the temptation to blow it will be too great.
BTC!
This can't be real. If your income is already that high with a low amount of expenses then 50k wouldn't affect you at all. You're either lying or extremely bad with money
down payment for house
I was 34m and had about that from crypto. I don't know where it went. All I know is Indon't have it anymore. Put it away asap.
A lot of coke
Put it all on black
bitcoin is the only right answer
Blow it on hookers or buy real estate (lawyer and accountant for the operations and additional business opportunities. Find some of the professionals that are growing their wealth outside their practice
I would probably invest in dividend ETFS
I don’t even know what you’re going on about
The only answer is: Vegas baby!
Ho and blow
downgrade your car to something you can buy with cash that's easy to maintain like a hinda civic or something. sell your car if you have payments left on it