My partner and I (early 30s) have won 100k in the lotto and we are not entirely sure what to do with it.
Always the first thought is to pay off any debt, but I feel that maybe investing or holding funds in our offset may allow us to be better off in the future…. also very boring!
Our situation is as follows
150k combined income.
700k+ VAR morgage with offset
CC and loans approx. 60k
50k combined student debt.
What would you do with the 100k?
Hookers my friend
I would say:
10% fun money
10% to give to family/friends if needed
80% pay off debts
Who me?
I would probably give it to my sister for a deposit on a house.
For you…. Pay off your CC and the rest in off set.
150k combined income.
700k+ VAR morgage with offset
WUT!
Here i am looking at a $550k loan with the same income and thinking eff that + $60k in debt.
Yeah, pay down yo debt.
Go big or go home
Seems to be Australia's attitude atm
If you have an extra 50k, I'd "invest" it in 10,000 yourtown home lottery tickets @ $15 each. Usually tickets are capped at 500,000. So that gives you a nice 50 to 1 odds to win a fancy house.
pay ya debt off!
Personally, i will YOLO all into Bitcoin.
How much btc you got?
Not enough.
pay off your debt it fast way to enjoy a better life. or put all black at casino
Pay off your debts (60k cc etc).
Then, invest 40 K in Bitcoin.
You are welcome.
If btc was such a sure thing, paying down that 60k of debt is wasted lambo crypto moon gainz….
(Posted as someone with some crypto)
Surprised no one say to put it all on Black yet.
But seriously CC and personal loan first. The rest in offset account.
Black has been a popular opinion
Déjà vu $100K question OP? Seems like OP stumbles across $100K quite often! Suspicious Aye!
OP asked similar question back in 2020
Good things come in three
Already waiting for the 3rd
Scratch ‘n’ Win Aye!
So what did you do with previous 100k …
We used it to buy the house.
Hasnt really learned anything since then either
Which lotto is this?
No lotto just a bait post as they did something similar before to get ideas what to do with $100k
Hey mate, congrats! That’s amazing.
But I did want to make a comment about how measly 100k feels these days with ridiculous inflation and hyper valued properties in capital cities. I would be over the world if I won 100k, but it really does make you reflect on the value of lottos these days.
Pay off cc, loans, then mortgage. Maybe keep some aside for another chance at lotto. You could be lucky like that guy in the 80s or 90s where they got him to recreate the scratchy winnings and he won again
I would buy a GTR R32
Show us your lotto ticket or it didn't happen
Definitely didn’t happen OP is talking shit
have won 100k in the lotto
Congratulations.
Is that before or after the taxman takes away his cut? Given your choices in poll, like what others have said, pay off the loan with highest interest rates, if there are left overs, pay off as much of the next remaining loan or keep the balance offsetting your mortgage.
Good luck!
tax man doesn't take a cut of a lotto win. Regardless the whole post seems a troll, same sort of post a few years ago, apparently works in a bank with awesome deals on loans but uses a broker to find the best deal etc. nothing more than a troll post.
👌
I’m in agreement with most others, pay off your high level of CC and personal loan debt. Also, how the heck did you get a $700K mortgage with $150K combined income?
They actually gave us approval for just over 1mil (obviously didnt use it)
At the time we had no debt other than HECS and 20% saved as deposit.
mate they probably got the approval awhile ago before the crackdown. I was on low income, single (not even 100k) got approved up to 1mil lol!
That was like 6 years ago
Pay off any debt, put the rest in Super and claim the 25k each personal contribution tax deduction…you'll thank yourselves in 30 years.
God 100K would be a god send right now.
Pay off all Debt (car loan alone would give me a few hundred a fortnight) and offset that super high interest rate would be amazing.
Student loans paid off would net you a far bit a fortnight surely OP.
BRB buying lotto ticket
Combination of paying off mortgage, redrawing and buying shares, AKA debt recycling: https://strongmoneyaustralia.com/debt-recycling-ultimate-gui…
actually, I would pay off the consumer debt, cut cards up and put the remaining 40K in emergency fund link to your mortgage.
Or you can put the money into a kids bank account to teach your kids money lessons…..
You should list out all the debts with amount & interest rates…
My wife and I won 150k a few years back.
Here's what we did:
If you have a tonne in loans though that aren't linked to an asset that can grow (i.e a house), I'd be clearing them as much as possible, OR getting yourself to a point where you can roll them into a new CC with an interest free transfer period, pay it down substantially and then keep some in a rainy day fund etc etc. You could also talk to a financial advisor, like we did.
The only loan we have now is our mortgage.
congrats and wise actions you did :)
obviously we don't know OP's personal circumstance but man they have a lot of bad debt…50k student loan + 60k cc get rid of them asap is what I would do hhaa
Thank you!
Yes- obviously, we don't know their circumstances, but hopefully, they have HECS. I'd clear that 60k cc debt too. Those interest rates would be nauseating for me. Clear the CC, then with the 40k, I'd split it into an ETF, rainy day fund and perhaps a holiday.
Use 90-95% of it to pay down debt. Use the rest to take yourselves on a nice holiday somewhere.
Where is the poll option for Bitcoin?
Where's the poll option for all in on options trading then post results on wallstreetbets?
I saw OP has a very low-interest rate on their loan as they work for a bank
assuming you don't want to put it in super which would be inaccessible until age 60 or so
and don't need to put it in offset as you work for a bank and have a low-interest rate
my next thought is ETFs - I sold an investment property a few years ago and put some cash in super and some in ETFs -
I keep spreadsheets and last I looked at the ETFs I bought a few years ago, as of June 2023 EOFY showed an internal rate of return (IRR - cash I could take out now compared to cash I put in originally, including annual net cashflows along the way) of 19%pa for IVV, 22%pa for FANG, 7% for MOAT, so maybe an average around 16%pa. Previous year returns coming out of the COVID trough were 37%, 35%, -1% so an average of around 24%pa.
I did well from 40 years of investment property with sale prices rising an average of 5-8%pa over decades, and gearing e.g. borrowing 80%, can multiply those returns up to 5x to more like 25-40%. When I borrowed again against existing equity to buy no cash down, my returns were up to 90% first year - but those times have gone and now more stories are about unaffordability and prices falling and people forced to sell, so I'm not recommending property these days - YMMV.
With 100K you could probably afford what OzBargainers rate as a half decent coffee making machine.
Your tolerance for debt is impressive, I would struggle to sleep at night 😳
What Would The Ozb Fam Do?
I’d probably have a good flex about it on OzB
This one made me laugh
I would pay ofr the hecs and cc, and then direct the money being paid into that towards your mortgage.
This is literally my dream right now. $50k to pay off my hecs and car, so i can focus only on my mortgage.
Perfect amount for a high-yield AMG!
If it’s not immediately obvious what you should do in this situation can I respectfully suggest you know very little about finance and should see an adviser.
The only way it could be obvious is if you can see the future. If I could offer this advice to my younger self, the best result by far would be, use it to get the biggest loan possible and buy stocks.
I am assuming they can afford the loans they currently have and they are part of their normal budget. Perhaps they are interest free or fixed interest and there is no benefit to paying them out.
Errr, no. Saying in wrong and then talking about increasing leverage is pretty interesting.
Please edit your text, this makes no sense. And I stand by my assertion that you don't have enough information to be able to state anything is obvious. I've got a very tidy net worth through maintaining high personal debt and investing.
@tonka: Hey, good for you, guy! But there's a reason that financial advisors are accredited.
…but here you are, on the internet, giving financial advice on a situation you say I don't have enough information on to comment, saying that perhaps they could get the biggest loan possible, and buy stocks.
Man you have a big internet penis.
@foursaken: Is your illiteracy real or are you deliberately obtuse to be rude.
Let me help, nowhere did I give that advice, I stated clearly that if I had the benefit of hindsight that that would have yielded the best result. Something that would not be obvious.
And to help you more hindsight means see the past, not the future.
And here you are saying go off and see a financial adviser as if the OP is being ignorant by gathering as much info as they can and should instead go and take the advice of a financial adviser as gospel who are very often just self interested insurance salesmen.
And 'internet penis', really, that's your go to?
Where's the option for double down on the next lotto for 50 million?
Only one thing to do, go to crown put it all on black! (Disclaimer: Don't do this, this is not financial advice!)
What a ridiculous question from the OP
THAT WAS MY 100K! So dam rude!
No, no congrates… I guess 😂
All in on options then post on r/wallstreetbets when you lose it all
Nah but in seriousness pay off the unsecured debts, 60k unsecured debt is insane. Money saved isn't taxable income.
CGT concession is a factor but when you're comparing ~7-12% annual returns to ~17-22% cc debt…
Not financial advice, just what I would personally do
Are you the winner from Eastwood,NSW?
80k towards Mortgage , 10k Holiday , The remaining 10k - Mix of buying something nice for yourself , giving etc.
Where was the "Put it all into some DOG coin" option?
Pay off your debt, and put more money into your investments. don't just think hey i now have x more per week. put it to good use.
Use half of it to pay your bills etc for a while so you can salary sacrifice the maximum amount to your superannuation for a while getting that ahead while you are young and have maximum earnings benefit. You can pick a fund where you can nominate the shares you invest in.
Put 30K into your offset so if you need to at some point you can take a repayment break.
Use 20K as a higher risk investment in Bitcoin or Ether.
Or use it to take some risks with your job security and try for high paying jobs.
Which lotto did you win?
Take guidance from legendary
financial advisorfootballer, George Best: