Poll: What would you do with the money

Discussion in 'Fibromyalgia Main Forum' started by atiledsner, Dec 18, 2005.

  1. atiledsner

    atiledsner New Member

    Resently I sold my family's estate.It should be final this week.I am unable to work,but do not get disability yet.I have been turned down once and turned it over to an attorney.If I do get disability it will be less than three hundred a month.I have no insurance at this time.I financed some land a few years ago and get a small payment amonth from that.I will get enough to pay off my house and have a little left over.I really need a newer vehicle or lots of work done on my 1996 toyota.Now my delimma is that if I pay off my house since I can't work and have no income I can't borrow any money even against my house because I have to prove some income to be able to do that.I just signed divorce papers a few weeks ago,got nothing out of that.So what would you do pay off house or keep enough money to invest in somethimg to make more money and a living for myself.It's a gamble I know.I pray that God will direct my path,remember me in your prayers.
  2. sdown

    sdown New Member

    I would put some down on the house but keep some in an emergency savings account. Can you get a roommate or tenant? Ive thought of it myself for in the future if our finances get worse. If you put all the money on the house like you say you will have very little leftover to pay for a car and other expenses. You definitely want to have money you can access every month to pay your bills. I went to see my bank and asked them for a future retirement forecast. They offered this advice for free. Can you ask your bank for some sound advice? I know someone who was ready to retire and she went to 2 different Financial Consultants and they gave her 2 totally different answers. So be cautious everyone will give you different advice. You dont want to have to start borrowing money if you didnt leave yourself enough money because you paid off your house. Put some money in a savings account and then an RRSP account and some to pay your house. Make sure its the type of RRSP account that is not locked in so you can access the money if you need to. Thats what I did and it worked out well. Thats just my advice. Good luck and take care.
    [This Message was Edited on 12/18/2005]
  3. PVLady

    PVLady New Member

    Just a thought - on buying cars. Many dealers now sell excellent "pre-owned" cars with warranties.

    You save a ton of money on these cars and they look almost as good as new.
  4. jaltair

    jaltair New Member

    Reapply for disability. It will be another 10 years before you are elligble for SS (according to your profile). While you are reapplying I would recommend that you:

    1. Think about downsizing to a smaller place. You could possibly sell your home and use the money from the estate to help pay for a new home.

    2. You would possibly have enough money to purchase a modest new car for transportation.

    3. You said that you signed divorce papers but received nothing? Depending on how long you were married and if your ex is a reliable worker, it would seem that you could get something to help you with other monthly expenses to help supplement the $300 per month.

    4. If you can't get anything from your ex to help you out, the $300 could go a ways if you have your home free and clear and a new car for transportation.

    I think I'd feel more secure by doing the above if I were in your situation. At my age of 59, I don't like to gamble and want security.

    Good luck with how you work this all out.

    Jeannette
  5. matthewson

    matthewson New Member

    I wouldn't pay the house off either. And I would invest the money in CD's or something safe where you can't lose the principle and it pays some interest. That way, you would have it in an emergency to make mortgage payments. If you pay the house off, you will not have anything for back-up. Go online and look at money sites. The pros will tell you NOT to pay off your house. Keep the money for emergencies.

    As for the car. I wouldn't buy a new one. Too much depreciation when you drive it off the lot! Look for a good reliable used vehicle with as low a mileage as you can afford. Look on consumer report sites and find the car brand with the best rating for reliability. You need to have good reliable transportation, but don't have to have new. My husband and I have always bought used and we have always done really well financially as opposed to my brother who always bought new. New cars every few years will break you! Remember, don't invest a lot of money in something that will depreciate. That is our motto! My husband would also joke, "If it don't have rust, it's not for us!" LOL, but I draw the line on rusty old cars! Won't have a rust bucket!

    Please do a lot of research and make the right decisions for you. It is very important that you do the right thing for your best interests.

    Take care, Sally
  6. poodlemommy

    poodlemommy New Member

    I was in the same boat as you a year ago. I had to take some of my money from the law suit and buy my husband out of the house. I paid off the house. I figure you make more money selling the house down the road than you would investing it. My house has gone up $100,000 in the 7 years Ive been in it. Its only going to keep going up. So if I ever get tight enough I can sell and downsize to generate more income. I opted for a new car too. Mine was 1998 toyota too. I gave it to my step daughter and bought a 2005 toyota. I too live on government disability. The ace in the hole for me was that I also went after my work disability and won a buy out so that helped alot. I too was eligable to retire in March 2006 so I took that option too. Im going to be able to get buy but its not easy running a house all by yourself with health problems. I just put my back out really bad shovelling snow. I cant do anything around the house right now because of the pain. So its a burden on ways other than financial . I just cant get over how similar our storys are. Even the type and year of car . Any how my 2 cents worth is to pay off the house. Any money you would make investing would get eaten up in interest on the morgage. Good luck
    hugs poodlemum
  7. Bailey-smom

    Bailey-smom New Member

    There are good points to everything that you have thought about – the only thing now is to weed through them.

    The only thing I am going to say is that I am awfully glad we have our home paid for and I do not have a car payment right now. I do not drive a “pretty” car, 1999 Pontiac Grand Prix but if I decide to quite my job I will not have to ever worry about loosing my house and I have a car that looks good and gets me to where I need to be. I also have a bit of cushion in the bank that I could have used to buy a different vehicle but it feels good to know that the money is there.

    You really should give this some thought – the advice on-line about not paying for your house was probably given to the average person that works and is not staring disability in the face - you should be thinking about stability at this time.

    Find someone you trust to discuss this with. Someone suggested to talk to someone at your bank – that may be good. A good person will run through your whole situation and ask you questions so they can give you sound advice.

    I do wish you luck:)

    Kelly