Thread: Lump Sum Advice
View Single Post
Old 09-02-2015, 08:04 PM
Admirals ClubCaptains Club Member Admiral's Club Member
Join Date: Apr 2007
Posts: 1,350

No advice on how to minimize the tax - that's for a tax attorney and/or advisor.

BUT... I strongly advise you to pay the taxes - whatever they are - immediately, i.e. do not wait until the end of the year.

I've been in your shoes - made a big lump sum, got a tax estimate, segregated that amount and thought I'd get all smart and cute and "invest" it to make a return off the six figure amount I owed Uncle Sam.

A few issues with that: 1) I didn't make that much off the money, 2) It was a "thing" hanging over my head all year - a debt I owed, and 3) Having that "extra" six figures in my control led me to feel - however irrationally - richer than I actually was, which I learned can be a dangerous thing.

I would have been MUCH better off paying it and being done with it.
nicecast is offline