Tomorrow, my wife and I are to sell a rental condo. After paying the realtor fees and the mortgage we should clear about $50k. We have $22k in student loans and a $13k auto loan. We also have a twenty-six years on the mortgage for our primary residence. I'm about forty years old and hope to work at my current job until retirement. In addition to my wife and myself, our family includes two small children. The impact of climate change on their lives is one concern.
We live in Georgia, where increased temperatures, frequency of tornadoes, and number of dry days are all projected. It seems nice to have land in the North to move to after retirement and for our descendants to use if they want to. Well, maybe not the North, I'm not sure this southern guy could handle the cold, but perhaps West Virginia or something.
Please give me your opinion on what we should do with the money we'll be getting. I'm describing three options I've considered, below, but am open to any possibilities.
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Pay off student loans and car. Buy a solar electric system for our house.
<> Pros:
(a) According to my calculations, we could double our investment in twenty years (that's assuming we can take the full 30% tax credit for the system, if not then payback takes longer)
(b) The power in our state comes primarily from burning coal --- solar would enable us to be part of the solution, instead of part of the problem
(c) No debt (other than house)
<> Cons:
(a) We don't usually have to pay when filing tax returns, so I don't know that the federal tax credit would help us much, though this year we'll have the capital gains tax on the condo but that should not be as big as 30% of the price of the solar system
(b) Little money for smaller improvements around the house
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Pay off one student loan and either the car or the other loan. Buy land up north.
<> Pros:
(a) More hospitable climate for progeny
<> Cons:
(a) There goes all our investment capability
(b) Still making monthly payments on either car or a student loan
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Pay of student loans and car. Invest approximately $10k of the remaining money
<> Pros:
(a) Maximum financial flexibility (still have capital on hand)
(b) No debt (other than house)
(c) Could pay for various home improvements etc.
<> Cons:
(a) Still burning coal for our power
(b) I don't know anything about investing money
Thanks for reading this far! Please share with me any thoughts you have, since I'm in the data-gathering phase of this plan.
PS --- I'm also posting this in /r/investing because (a) I'm not sure which sub is more appropriate, and (b) I know little about using reddit.
Submitted October 23, 2017 at 01:44PM by raequin http://ift.tt/2y0jWgd
