You’re missing the point. If Wildfire has $10k in debt for a car at 6% and $10k in debt for a house at 7%, he has to do the math. Paying off the car and continuing to pay for the ‘high interest’ house has tax benefits that the reverse does not have.
If he has enough to pay off both, what does it matter?
Pay off debt, then buy a rental property.
Don’t quit the job.
Alternately, you could use the money to start your own business if you have one in mind. It might not be the best idea in the world, but if you’ve always wanted to, now’s your chance.
Agreed.
My motto in handling money is spend strategically - that is, don’t fritter away money on the little things, but don’t be afraid to spend, and spend big if appropriate, on things that will really make a difference in your life.
That might mean fixing up your house if it’s in poor repair, or adding on if it’s always not had enough room. It might mean going back to school to enable a career change if you’re not crazy about your current line of work. Or if you are basically happy with things, then take that trip you’ve always wanted to do but seemed a bit beyond what you could afford.
But yeah, when you get a windfall like that, you should use it in a way that makes a difference, that will improve your life in some tangible way or give you memories that will always stay with you. This is a good time to take stock and think of what you really want out of life, and whether this money can help you get there.
But like the others are saying, don’t quit your job. $170,000 well invested won’t support even a very frugal person indefinitely.
I was totally expecting this to be one of those “I got a badly spelled, grammatically incorrect email from some guy saying I’d won a lottery I’d never entered, in another country.”
Because I got one of those today.
I think you should make a list of all the bad things you ever did to other people, then spend the next few years making amends. Maybe your brother could help.
So maybe 100 grand after taxes? Nice. But enough to quit your job?
Joe
And doesn’t it take a few weeks before you actually see the money? If you quit your job now, what will you live on until the check comes?
For those who said it’s a year’s salary for a middle class income…it’s about 5 year’s salary for me…and I still wouldn’t quit my job right away. And when I said don’t blow it on a car or a house, I of course meant don’t go out and buy a $100,000 car or make a downpayment on a brand new huge house that you won’t be able to afford in three months. Do pay off debts, and buy sensible, reliable transport if you don’t have any.
Should we worry that the OP hasn’t come back in to comment?
How old is the OP anyways? Maybe he’s close enough to retirement that he can quit his job and live in comfort.
If she’s covered in blow.
Huh? You must have some kind of investment savviness that I completely lack, or an extremely low cost of living.
Spend $10,000 on hookers and blow (I’d go with 14 $500 hookers and $3000 worth of blow (if you buy it all in one fell swoop, you can probably get a pretty good deal), $10,000 on traveling, pay off all short term debt, pay down a portion of your mortgage, and invest the rest.
Ah. I see.
Congratulations 
No, don’t quit your job.
Woohoo for you!!!
Me? After paying off any short-term debts (e.g. car loan, not my mortgage), I’d split my after-tax winnings in 4 parts:
1/4 - charity (this includes helping out needy family and friends, not just strangers)
1/4 - completely frivolous stuff (travel, 55" plasma tv’s)
1/4 - invest
1/4 - fixing up the house
Note that I already have a degree and get paid well for what I do. If I was in a dead-end job, I’d direct a lot of the money towards training myself to get a better paying career.
Nah, would you waste time on the internet if you were surrounded by hookers and blow?
But how will everyone know to be jealous of you if you’re not Tweeting about it?
You can Tweet from mobile devices, correct?
Can post to this forum from a mobile device, too, I’d assume. It’s all germane to wasting time on the internet if you were surrounded by hookers and blow.