[USER]

I Won 50 k on a lotto Scratch off and after tax it will be less but I’m wondering what I should do with it?

I have 250 k in home equity, Small pension of 700 at 65 so far.

I am Age 40m.

I owe 100 k on mortgage at 600.00 a month payment.
Own my cars.

2 credit cards with 500 balances.

My dream is to have a paid off home on a piece of land like a manufactured home in the hills similar to off grid living and then having a clean slate to Stock pile for retirement.

Should I stay put and keep house or sell within 12 months.

[Jodi]

Congratulations to you! First, I would pay the credit cards and set aside a good sized emergency fund so you never again have to carry a balance and pay interest.

Paying down mortgage depends on your interest rate.

If it is below 5.15% I would leave that loan as it is and invest half of the windfall in a broad market index (yes they are falling but will rebound).

Even with these steps there should be a bit left to put in a high yield savings (5%+) or dividend paying Mutual fund like SPAXX or similar.

[Robert]

Kill the credit card debt first. Then set aside a small amount in an emergency fund.

Then take a few grand and have some fun.

And then dump the remainder in a taxable or non-taxable brokerage account – whatever- and dump it into a fund that mimics the S&P 500.

And then forget about it until you are 65 or 70. You’ll (probably) thank me at that time.

[Heather]

Pay off credit cards. Start an IRA for yourself. Max it out this year and put the rest in a HYSA while you take a few months to make your next move.

You’ll want to keep a good chuck in a HYSA for an emergency fund.

The rest will likely go in a taxable brokerage.

Pull out the max each year for the ira.

If the interest rate is under 4%, I wouldn’t worry about the house at all.

If you weren’t planning on selling before this money then you definitely shouldn’t sell now.

This isn’t enough to do what you’re hoping for and set yourself up for retirement.

[Liz]

I wouldn’t do anything too rash. It’s great to have that money but I’d probably pay off the credit cards and think carefully.

Do the math.

It’s generally not the best idea to do something in the heat of excitement.

[Barbara]

Pay off the $1000 credit card balances first, then put the rest as a PRINCIPLE payment on the mortgage.

No better feeling than owning you home outright.

[Author]

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