US$10,000 Spend dilema.

[lorihmatthews]

Originally Posted by surfergirljen

Oh boo! That's way too practical for this forum! LOL!

I know, I am no fun whatsoever.

But seriously -- why not take the money and just withdraw the interest to buy the desired items? That way you keep your $10K AND you get to purchase the items! And the money keeps coming in to buy more stuff!

Kind of like the goose that lays the golden eggs, KWIM?

[LV-PRADAfanatic]

rolex and bag..

[k*d]

It pays to be careful with one's money, but with interest rates being what they are, the OP would have to wait many, many years to collect enough interest to buy something substantial like she wants.

If she took the $10,000 and opened a CD account at a rate of 1.99% for 3 years, her APY would amount to only 2% meaning that she would have earned $613.61 in interest, minus applicable taxes. Not really a good yield IMO. Assuming she already has a sizable savings or investment portfolio, she might as well buy a Birkin.

[bagladyseattle]

Although the Kelly is the "it bag", I would get the rolex instead because for the watch, you can wear it everyday. Rolex is more versatile and you have more usage of it. I wear both of my rolexes almost everday. If you already had 1 or 2 rolex, then get the bag. Otherwise, defintely go for the watch.

[Litsa]

$10k on a bag/watch/other material object?? Put the money in the bank. I'm all about nice items but at some point you have to be realistic.

And you can get MUCH better interests rates than 1.99% if you look.

[k*d]

Originally Posted by Litsa

$10k on a bag/watch/other material object?? Put the money in the bank. I'm all about nice items but at some point you have to be realistic. And you can get MUCH better interests rates than 1.99% if you look.

The best savings/money market rate around here is about 3% APY or 3.75% if you commit to a 10-year CD account. Any way you slice it in this economy, that $10,000 is not going to earn you a significant interest. It's most sensible to save that money for emergencies, but that's assuming the OP doesn't already have a sizable rainy day fund.

As for being realistic about how much to spend on luxury items, I think that's all relative. Most PFers have a higher standard of living than most people in the U.S. Either that, or they just have a higher debt to savings ratio. Assuming that the OP falls into the first category, I don't see the harm in a Rolex or Birkin.

[keodi]

Originally Posted by lorihmatthews

I'd put the money into a savings account or other investment account and put the interest aside for purchases. That way you keep your $10K and still get to purchase your dream items!

I agree!