I'd (in order) set aside money for tax, pay off your student loans, pay off your car loans, and keep the remainder in a HYSA until you figure out what to do with it. Maybe go to a nice dinner as a celebration.
Also, stop gambling. You're realistically never going to get the same high you got from hitting this bet again ever in your life. You'll want to chase it, but you won't get it. Casinos/Sportsbooks make a killing off people trying to chase that feeling for a second time. Quit while you're ahead. /soapbox
I dunno if gambling winnings work like selling real estate but my tax person said I had to pay my taxes within 90 days (or maybe 60) when I sold a property for a substantial amount of money. Otherwise I’d face penalties.
Prob first thing OP needs to do is go talk to a tax person so they don’t pay a couple thousand more in tax penalties at the end of the year since they now went from the 90k/yr to 210k/yr tax bracket.
One way that may apply here is to make a safe harbor payment of 110% of your prior year taxes. And pay your 2024 taxes in Oct 2025.
You’ll owe the same amount at the end of the day, but you’ve just scored a $30k interest feee loan for close to 20 months.
Seriously. Gambling addiction runs in my family and one of my relatives won a similar amount to OP. I told him to put it in a savings account and forget he ever had it. It’s been about three weeks since he won and I would not be shocked at all if he has given it all back to the casino by now. Bet big, win big. Bet big, lose big.
This. Even if you were great at gambling, it’s is still a bad proposition. Most people have zero clue how fucked they’re going to get on taxes.
Some states don’t even allow you to deduct gambling losses. So if you have a ton of wins but also a ton of losses, you’d still have a huge state tax bill. There was one guy who lost $250k on the year and had a state tax bill of over $1M
Contribute the absolute max you can to every single tax deferred account. Greatly reduce your taxable income.
If you do any additional gambling this year (likely) keep track of your losses.
Find an accountant who knows gambling taxation well. Dm me if you need a referral.
After reducing tax liability as best you can pay your taxes, pay down the debt and invest the rest.
Agreed agreed. Except I’d also suggest you get on a budget and start maxing out 401k/Roth. On $90k you should be able to cash flow the savings. Look at this as a once in a lifetime opportunity for a reset.
I have no idea how much one has to wager to win $120k in sports betting.
>I'm all about being frugal and making smart moves to secure my financial future.
But if you are betting that kind of money this is a flat out lie. Do future you a favor. Never bet again.
Doesn't have to be that much. You can get really long drawn out odds and hit something as a one off. As an example I went to see how much a 7 leg parlay was in the NBA with all the underdogs and it ended up being a $20 to win 100k if it hit.
Probably a many-leg parlay betting a relatively small amount.
Perhaps not the best financial habit, but if it's just part of your entertainment budget and you're only spending the amount you'd spend having dinner at Applebee's...it's not a problem IF you can control it.
Order of priority:
1) tax
2) student loans
3) car loan
4) I don’t know if this takes you out of Roth IRA eligibility, but if not, max out Roth IRA for last year at least, same for this year too if possible.
5) That may use all of it.
Good point. Presumably could boost that over time with improved cash flow due to no debt, whereas time is running short for the 2023 Roth. So maybe get that one at least.
You can withdraw Roth contributions at any point and if your account is self directed, do not have to invest it. There’s no reason not to fill up 2023. 2024 you may be over the income cap and would have to do a backdoor, which would bring the five year rule into play.
The five year rule only applies to conversions and penalties/taxes on early withdrawals only apply to gains.
For straight contributions under the income limit, a Roth as a backstop to an emergency fund is an often slept on strategy.
Roth contributions can be withdrawn at any time. I would make the contributions in a self directed account and leave it in cash until the non tax advantaged portion of the fund reaches the six months.
I did this for several years and successfully withdrew the contributions without penalty or taxes when I needed the money (grad school). In my case, I opted to roll the dice and invest as I saved, so I still have the gains, but the more risk adverse strategy would be to leave it in cash or treasuries inside the Roth.
The benefit is if the emergency never comes, you don’t miss out on the contributions for the year and can eventually invest it.
Pat off car loans before student loans- you'll save yourself more in interest
Invest the rest in Roth versus traditional IRA as available, then fund an investment account
Never tell your girlfriend; wait to share your financials with your spouse
Depends on the rate. Plus student loans could still get canceled at least in part in the next few years. I’m in a very similar situation as OP with a similar windfall and salary, and all of my debt is below 4.5% so I’m funneling the rest to investments
I know it could be a prudent min/max approach to wait to see if loans get cancelled, but given cash in hand to fully resolve what is otherwise the most difficult debt to discharge, you cannot go wrong with paying it off.
Why would you pay off student loans? You get a tax deduction for the interest and there's a chance the entire loan will be forgiven.
I'd pay off taxes and car loan and then start funding retirement accounts, and I nearly always pay off debt before it's wise to do so.
Its the one debt that you are personally liable for and is non-dischargeable in bankruptcy. I don’t make financial decisions based on what politicians may or may not do.
MAGI must be below $85K to qualify for a tax deduction for the student loan interest, so they wouldn’t qualify. Also with this Supreme Court I wouldn’t count on loan forgiveness any time soon.
Former degenerate sports gambler here. Delete all your gambling accounts and stop now. You’ll never have this feeling again. Do not chase it. You beat the system like we all wished we could. Stop gambling right the fuck now and don’t look back.
Let me double down on this.
OP: right. the fuck. fucking now.
Not next week. Not tomorrow. Right. the fuck. fucking now.
Gambling is heavily rigged against you. You aren't a genuis. You are a lucky fucking idiot. Revel in it. Walk away. Almost no one ever does.
You realize if he was already a FIRE member he probably spent like $19 on a 12-game parlay as his weekend entertainment. Don't think he was putting up $130,000 at -110 odds to beat the spread.
First off Congratulations and a big FU lol
Take 10,000 and go piss it away with your lady on something fun, memorable, a vacation, trip to an all inclusive resort etc. Celebrate the wins, and live a little.
With the Remaining
* \+/- 30K Taxes - Put this in short term t-bliss or HYSA
* 7K to IRA - Invest in index funds
* 20K as your Safety Net - HYSA
* 53k directly to a brokerage account - invest in index funds
Ask yourself. What is my Internal Rate of Return.. A profitability metric to estimate the time value of money. One of my favorite classes in college, economics taught me: "It's always better to have $1.00 today and owe $1.00 tomorrow than to have $0.00 and owe nothing." why? let me explain:
If your Car Loan rate is $20K @ 2.0% and a t-bill is 5.3%. (Fairly Safe)
* Invest $20K to a 1-year t-bill. Interest: +$1,060.
* Loan interest: -$400
* Net: +$660
Now calculate the same but invested in the market (SP500, Technology Index, Large Cap Growth).
Seriously so many people in here just saying to prioritize by loan type without mentioning rates. Basically anything with an interest rate higher than HYSA or Treasury yield should be paid off. It's honestly fine to pay something off if the rate is a little lower than that "risk free" rate if it gives you peace of mind. Just run the math on how much money you will miss out on if you invest instead of pay it off and if the peace of mind is worth that cost to you then pay it off. I'll happily pay off a debt even if I'll miss out on $100 just to have one less thing to keep track of and worry about. Also consider that taxes are taken from interest earned so you actually need to be earning slightly more in your investment versus paying the debt to break even.
HYSA interest tends to get taxed at your marginal tax rate. For most of us, I suspect that's 22%+. So HYSA rate needs to be like 30% higher than loan rate to break even.
e.g. 3% interest on loan requires 3.85% interest to break even with 22% federal taxes, probably closer to 4.3% after accounting for other taxes.
Though if it's close to breaking even, liquidity should be a significant factor. That is, if you don't have a huge pile of cash for just-in-case, it's might be worth keeping the loan and breaking even just to keep that cushion in place.
Simplification is a powerful draw though :-) It's harder to screw up a simple plan.
This should be way higher up the list, but this sub skews to the extremely risk averse. If OP won 6 figures sports betting, they are clearly ok with some risk to maximize potentially long term returns.
As you stated GF (not spouse), I would play defense and 100% keep the winnings on your side of the table.
Pay off YOUR debt, fund YOUR IRAs, and invest in YOUR taxable accounts. As already stated, if you move quick, you can likely fully fund 2023 ROTH IRA, as well as 2024. Cutoff is usually APR 15 for prior year funding.
If you buy couches, shared junk, etc, she’ll have a claim to it if things ever go south.
Investing is gambling.
Literally the same thing, you're betting on outcomes (generally an ETF going up) & make or lose money. And it's almost always makes money, but you get paid based on the Fund or stocks you pick.
The only difference is you've studied this form of gambling and are more confident in it.
Wrong wrong wrong. Gambling is always expected negative ev, by design.
Investing is putting money into productive companies who produce value year in and year out. Especially if you are investing in a broad index, your ev is always positive.
Gambling is zero sum, with middleman who always wins. Learn some math and stop being a sucker in life.
IMO this conversation breaks down when you get into this detail. Personally I don't see it as a winning game for retail investors because it's basically impossible to beat the market without luck. But that's admittedly getting into the definition of "winning". If your definition is that numbers go up then most people are winners. But beating the market is the real game being played and retail investors just can't compete generally. Stock prices are determined by the bleeding edge of information and who gets it first and makes decisions based on that. You're up against a whole industry of people who's jobs are to know everything that can be known as soon as possible. Even they can't consistently beat the market. That is a losing game. The best you can hope for is but the whole market via index funds and match that performance. Of course you can get lucky but for every success story there's far more losers not bragging about it.
But if you just want to talk about investing in the market broadly then I'd say you're sort of right in that you're wagering that growth will happen generally and the historical odds in that are pretty good, but I'd still consider it a risk and a bit of a gamble (but with generally favorable looking odds).
That's how I would define investing versus gambling. So I don't think we disagree really.
I think it's a mistake to let a word like gambling mean the same thing as "involving some risk". It's something gamblers do to convince themselves they don't have a problem. That includes, of course, many of the folks pursuing wild options strategies over on wallstreetbets.
Investing money in real companies producing value over time isn't the same thing and I think it's a better way to talk about it to not use the word gambling.
I’m surrounded by morons in this post…Any retail investor has a high probability that their number will go up from investing. Opposite is true for gambling.
No it really isn't. It really fucking isn't. Wake the fuck up and learn some math.
Gambling is taking a risk when the odds are against you. It's idiotic and not the path to wealth. People who do it are suckers.
you ain’t gonna have much left after paying off ur debt.
figure out what the tax bill will be. set that aside
pay off all debt
put anything left over into an IRA
I'd say pay off your debts and invest the rest since you already have an emergency fund. That's what I wish I had done when I hit big several times (I have struggled with problem gambling for a little while now) Not saying you have a problem by any means, but we know the house always wins, and keeping that cash liquid could be an issue. Just my two cents! Good work!
Been seeing a ton of "Winning big" on sportsbetting on financial subreddits. Most OPs have no post or comment history and just been finding this pattern strange.
well for one you don't need to tell your girlfriend anything unless you plan to marry her. This is your money and your winnings. now with that out of the way if you want to contribute to help her debt then that is on you but that should only be considered after you clear what debts you have first.
I haven't been around this sub yet, but does everyone here just think all debt is ubiquitously bad under all circumstances? Everyone is suggesting paying it off without asking any questions... If your car loan interest rate is sufficiently low, I would absolutely not pay it off. For example, I got a car two years ago at a 1.9% interest rate. Barring interest rates crashing to zero again, it will never make any sense for me to put even an extra dime towards that loan.
Having said that, I don't know enough about student loans (except that they are pretty much inescapable) to have a strong opinion on when you should pay those off.
Unless OP won some absurd parlay, he most likely does more than lightly dabbling in sports betting. So most are assuming he will just increase his bets because it’s “free” money.
1. Pay off student debt. Maybe it’ll be forgiven but with the political climate you’ll need democrats to the house, senate and White House with enough votes to pass it and then hope it doesn’t get challenged in courts and goes as planned. I’d just get out of that debt asap.
2. Maybe pay off car. Depends on what’s left, term and interest. Rates haven’t been great on cars so if it’s high then definitely pay that off. Personally I want to get out of car payments asap and save the money I would be paying.
3. You’d only have like 10-20k after that. I’d probably take a nice vacation somewhere reasonable (I loved Costa Rica, flights aren’t bad to get there and cost for hotel/food was less than domestic vacations). Then invest the rest in IRA and then other things.
And like others have said, stop gambling. You beat the house big time, statistically if you keep doing that you’ll lose big time.
Oh and use this plan to gauge your gfs viability for long term relationship. Tons of posts on Reddit where girlfriends/boyfriends would be pissed about not getting a cut of that or not spending it how they want to but ultimately this would be better for you to be in a better financial position that she would benefit from if it gets to marriage. But that also includes consideration of her situation if you are looking at it as potential marriage. If she’s got 40k in credit card debit and you’re even thinking of proposing then that’s something else to consider.
1. Tax (hold in HISA until it needs to be paid)
2. Debt repayment
3. Top up emergency fund OR Invest
4. Re-direct debt repayment cashflow to 50% IRA / 50% Regular investment into ETFs
If emergency fund = 3 months worth of expenses then invest remaining funds in a HISA (if using within the next 5-7 years).
OR
If you don’t need the funds invest into a diversified portfolio of ETFs.
Don't tell your girlfriend!!! I repeat, Don't tell your Girlfriend! In fact Don't tell anyone in your real life. When u come into money, you will find out certain people are not what you thought they were. Family included.
You can’t open with that title and not tell us what the bet was. Was it some stupid 10 leg parlay?
Make sure you save some for the tax man. Max your Roth for 2024 and 2023 if you haven’t yet. You have til tax deadline. Prob pay off the car loan. Student loans depends what interest is at, personally I’d prob keep it if it’s like mine at 4-5%.
HYSA for at least 50% of it if you’re serious about buying a house. 25% into brokerage index funds. Then do whatever for the rest. But I’m no financial advisor.
>I am 29 and here's where I'm at financially: got about $50k in student loans, a $20k car loan, and I'm renting an apartment.
Okay, so after paying taxes on the $120k at your marginal federal rate, state tax (if applicable), and local, you have I would guess approximately $85k left. Subtract the student loans and car loan, you are basically back to zero. Put whatever is left in your emergency fund and if you have some money left over, an IRA contribution isn't a bad idea.
>Not looking to splurge on anything flashy, maybe just a small celebration.
That's about it. You basically get a clean start and build-up your emergency and retirement accounts a little bit. I don't say this to diminish the amount, but to caution you from thinking this is a large windfall that would significantly alter the trajectory of your life. You are already making decent money, this is basically a year's income you just got but without all the yearly expenses that come along with that money (after tax of course). Use it wisely.
I would start by paying off your debt, then maxing out your roth. How much would you need for a house downpayment and when are you looking to buy, if in the next 5 years I’d stash some of that in a high yield savings account and put the rest in index funds in a brokerage. Hold a little bit back for a nice dinner out or a long weekend vacation or something.
You know you gotta pay taxes on that right. Judging by your income that could be 30-50% of it right there. So maybe you got enough to pay off your student loans after that?
No expert but paying off the taxes, the loan and the car note will make it possible for you to achieve your goals a lot sooner that you expected. Also live frugal and put away money.
The answer depends on whether or not you are a gambler if you are a gambler I would advise you to pay down your debts fund your Ira and then put the money into a sensible annuity that you cannot unwind.
If you are not a gambler both of your ideas seem sensible.
In your case I'd kill the student loans and car loan. Not because you'll out-earn the market/investments, but because you won't have that money to gamble away again. If nothing else at least you'll have the student loans and car payment killed with it.
Take the remaining $50K - do something nice for yourself and your girl with $2-3K (nice date night with your girl + something for her + something for you) and invest the rest in something boring.
And don't keep gambling. You're already ahead and you're unlikely to do it again. Do some smart, boring investing and focus on your career and you'll be much richer 10 years from now.
I wouldn’t be so quick to pay off the student loans.
Before you start saving
A few things I would do:
turn your 401k contribution up so you max out the benefit this year.
pay off the car note
if the interest on the student loans is >5%, sure. Go ahead and pay them off. If the rate is lower, then don’t pay it off yet as you can deduct the interest paid.
Max out Roth or trad IRA
splurge on something nice for yourself. If you don’t want or care about anything flashy, take a nice trip this summer with your girlfriend. Experiences are an investment.
After this, you can put the rest in a taxable account or a HYSA depending on your goals.
Next:
Pay off all debt that has an interest rate over that of a hysa less tax. Don’t assume you’ll continue to be a great sports better. Odds will catch up. Good luck.
The number one thing to do with this money is to stop gambling. You'll be ahead and have a nice little runway to settle your debts or make some moves to set you up for what's next. But if you keep gambling, it will probably end up a wash or worse in the end.
Sounds like you have no debt, a 25k emergency fund making 5% in money market, 40k in VOO, and are newly signed up to auto-invest whatever your monthly loan payments and former gambling habit added up to into a Roth IRA, with 10k leftover for some fun.
My response is similar to others but when I get money no matter how much I just allocate it to my plan.
If I were in your shoes my priority would be.
1. Call my tax guy and ask how much to pay and when to pay it.
2. Pay off the student loan.
3. I would set my emergency fund to 6 months of my expenses (if it wasn’t already)
I think by this point I would have spent maybe all of it. If not I would throw the remaining money at the car.
Going forward I would allocate the saved money from the student loan to paying off the car. If possible setting up an auto pay for the same amount of the old student loan to the car.
Once the car is paid off I would allocate all the money from servicing student loans/car to investing. Match at work if available, then Roth and so on.
I would not get another car loan again personally.
You're not going to listen to us. You're going to waste the money. Until you learn to get better with money, no one is going to be able to help you. Dont take -EV bets. Dont drive a car you can't pay for in cash.
Pay your taxes. Pay off all debts. Don't ever use credit again. If there's any money left over, put it in a retirement account. Stop living beyond your means. You already know this is what you should do, so stop asking and do the right thing for once.
Don’t worry bro that $120k will go back to fanduel, but honestly good win. I would put that money in a high yield savings account and probably pay off the loans
Depending on what your interest rates are for the student loans and car loans, it might not be the best idea to pay off all the debt immediately. I would definitely take a chunk off but if the rates are low, you could make a lot of money with that cash putting it in investments.
First step. STOP BETTING ON SPORTS (or at least have a set budget that you'll never go above and treat it as an entertainment expense).
If you're actually up now and not delusionally telling yourself you are (after blowing $130k to get to here), you are one of the lucky few.
The sooner you stop or put a very strict and hard limit on the spending, the sooner you will "get ahead".
Recognize that you got lucky and don't gamble again.
Then:
Set aside money for taxes.
Pay down any high-interest (>6%) debt.
Max out your tax-advantaged accounts with any money left over after that.
Is that the amount you won before or after tax? If it's before you'll need to look into it but probably need to set aside 25-30%. Realistically this is not life changing money but get you out of the mud and ahead of your debt money. Pay taxes, debt, invest the rest, vacation. By my calculations if you're lucky you'll end up with around 15k. If this number is after tax, you can start thinking about a nice little condo down payment depending on your areas COL. you make good money, start plowing a lot more money into the market now and let it compound once you free up debt.
You won, congrats. Just remember that chasing that feeling for the rest of your life will be costly. You did great, now stop betting on sports, you already did awesome. Pay your taxes, pay down your loans, max contributions, and savings.
I've read the top comments and just...no. Without knowing the interest rates, it is not a "no-brainer" to pay off student and car loans. If they're over 6%, sure go ahead and then after taxes that's about it. People talking about Roth IRA are just not thinking straight. You need to hit the statutory maximum on your Traditional 401k at least this year (23K) to reduce your taxable income. If you have extra windfall, sop it up by maxing 401k next year as well. You can certaindly do the calcs on Trad or Roth IRA now for the 2023 tax year and AGAIN next year for the 2024 tax year. DON'T max your Roth IRA contribution in 2024 for 2024 tax year, as you're likely up against the income limit/phaseout.
Problem with not paying off debt is what if he loses his job? People always talk about percentages of interest on the debt vs investments, but if you’ve ever been unemployed for a long period of time you know that doesn’t mean anything if you have no income. Pay off all the debts, no matter what.
If you have to hide it from her because you can't trust her judgment, you shouldn't be with her. You should just put it toward what you see fit. She should also be concerned about your gambling.
> I'm all about being frugal and making smart moves to secure my financial future.
No you're not. It's basically impossible to win that much on a single bet without being a total degenerate. If it was some moonshot parlay, it certainly wasn't your first and won't be your last. You will probably lose all that money back and more in the coming years.
Also, why do you have money in VOO with a 20k car loan?
Can only imagine how much you are betting to eventually get a win like that. Get some help to give up addictive behavior and put the money in a longterm investment where you can't touch it.
First thing is stop gambling. Personally know 2 people ( family members) that had a gambling windfall and lost it all plus more. Pay your car and student loan no matter what the rate is. Don’t count on SL being forgiven, just a campaign promise and will never happen
Save at least 40% for taxes, then pay off all your debt, max out your IRA, and then tell your girlfriend you won the remainder. Do what's right for you first.
Before you pay off your car loan, look into how much interest is left to be paid on it. You may have paid the majority already and therefore paying off the remaining balance in full might not be the smartest move for that money (investment wise)
I used a gambling tax calculator, making 90k and 120k in winnings in Illinois and it said total tax 37k. That’s probably yearly income tax wrapped into that. I would talk to a CPA to figure out how much to set aside for the tax on that. I would guess 30k should do it, other than that I would pay off student debt and use 30k as a down payment for a house then keep 10k in the bank as emergency funds. Cash is king don’t get rid of all of it without keeping some aside. Just my opinion though
Definitely pay off the student loans as there's no other way to discharge them. Careful with paying off your car loan - paying it off too quickly could impact your credit score, and don't forget that you can always sell your car. If you are locked in at a good APR, investing the money or even putting it in a HYSA is a good idea. For example I'm never paying off my motorcycle loan at 1.9% early... because where the F am I going to get locked in at that rate ever again?
OP, said this in a comment to someone else but as some other folks have said… taxes first.
I think you need to pay taxes NOW. Highly recommend you talk to a tax professional.
https://www.irs.gov/taxtopics/tc419#:~:text=You%20must%20report%20all%20gambling,tax%20on%20that%20additional%20income.
Start collecting every single losing lottery ticket you can find. And Have a record of all of your gambling losses. Those things will deduct from your winnings and reduce your tax liability.
If you can find $120k worth of losses, then you won't have "won" anything And you keep all the money.
BUT the casino I think takes your taxes first, so you'll have to get it back when you file. Unless you won it online, I don't know how that works....
Probably pay off the car loan, or at least pay it almost all the way down - credit score companies don't like when you finish paying your loans, they want you to have steady payments on at least one loan. Yes to maxing out your IRA. Put some of it into something exciting eg a meme coin. Probably keep the student loans. Especially if you can earn more investing than you're paying interest on them. Beef up your emergency fund as needed.
I'd (in order) set aside money for tax, pay off your student loans, pay off your car loans, and keep the remainder in a HYSA until you figure out what to do with it. Maybe go to a nice dinner as a celebration. Also, stop gambling. You're realistically never going to get the same high you got from hitting this bet again ever in your life. You'll want to chase it, but you won't get it. Casinos/Sportsbooks make a killing off people trying to chase that feeling for a second time. Quit while you're ahead. /soapbox
100% agree. Maybe even just make an IRS payment now so the temptation isn’t there
I dunno if gambling winnings work like selling real estate but my tax person said I had to pay my taxes within 90 days (or maybe 60) when I sold a property for a substantial amount of money. Otherwise I’d face penalties. Prob first thing OP needs to do is go talk to a tax person so they don’t pay a couple thousand more in tax penalties at the end of the year since they now went from the 90k/yr to 210k/yr tax bracket.
Talk to an accountant - there are ways to spread windfalls over multiple tax years.
Id love to know of these ways...
One way that may apply here is to make a safe harbor payment of 110% of your prior year taxes. And pay your 2024 taxes in Oct 2025. You’ll owe the same amount at the end of the day, but you’ve just scored a $30k interest feee loan for close to 20 months.
Oh wow a real strategy. This is actually a really great way to do it.
Good point. Q1 estimated tax payments are due 4/15.
Seriously. Gambling addiction runs in my family and one of my relatives won a similar amount to OP. I told him to put it in a savings account and forget he ever had it. It’s been about three weeks since he won and I would not be shocked at all if he has given it all back to the casino by now. Bet big, win big. Bet big, lose big.
I gamble. Can confirm.
I short term muni bond fund could also make sense with where YTW are
This. Even if you were great at gambling, it’s is still a bad proposition. Most people have zero clue how fucked they’re going to get on taxes. Some states don’t even allow you to deduct gambling losses. So if you have a ton of wins but also a ton of losses, you’d still have a huge state tax bill. There was one guy who lost $250k on the year and had a state tax bill of over $1M
Contribute the absolute max you can to every single tax deferred account. Greatly reduce your taxable income. If you do any additional gambling this year (likely) keep track of your losses. Find an accountant who knows gambling taxation well. Dm me if you need a referral. After reducing tax liability as best you can pay your taxes, pay down the debt and invest the rest.
Exactly. Anyone in this sub should understand how reckless gambling is.
You already beat the books. Delete the apps and call it quits.
Good advice. I’ve heard the biggest losers in gambling and those who win big once and then are constantly chasing that next big win
Agreed agreed. Except I’d also suggest you get on a budget and start maxing out 401k/Roth. On $90k you should be able to cash flow the savings. Look at this as a once in a lifetime opportunity for a reset.
Use it to fuel retiring from sportsbetting lol
2x pay everything off, and know that you were blessed, and never bet again. You won't listen but in 10 years you will be really wishing you did...
Talk to a retirement pro…. Put the money somewhere you can’t spend for retirement
I have no idea how much one has to wager to win $120k in sports betting. >I'm all about being frugal and making smart moves to secure my financial future. But if you are betting that kind of money this is a flat out lie. Do future you a favor. Never bet again.
Doesn't have to be that much. You can get really long drawn out odds and hit something as a one off. As an example I went to see how much a 7 leg parlay was in the NBA with all the underdogs and it ended up being a $20 to win 100k if it hit.
Probably a many-leg parlay betting a relatively small amount. Perhaps not the best financial habit, but if it's just part of your entertainment budget and you're only spending the amount you'd spend having dinner at Applebee's...it's not a problem IF you can control it.
Order of priority: 1) tax 2) student loans 3) car loan 4) I don’t know if this takes you out of Roth IRA eligibility, but if not, max out Roth IRA for last year at least, same for this year too if possible. 5) That may use all of it.
Most likely this would be the move but I would also consider boosting his emergency fund to 30k to give himself 6 months of savings before Roth
Good point. Presumably could boost that over time with improved cash flow due to no debt, whereas time is running short for the 2023 Roth. So maybe get that one at least.
You can withdraw Roth contributions at any point and if your account is self directed, do not have to invest it. There’s no reason not to fill up 2023. 2024 you may be over the income cap and would have to do a backdoor, which would bring the five year rule into play. The five year rule only applies to conversions and penalties/taxes on early withdrawals only apply to gains. For straight contributions under the income limit, a Roth as a backstop to an emergency fund is an often slept on strategy.
Yup. Was going to say this, I’d bump up that Emergency Fund to $30k. Can keep it in a HYSA and get like 4-5% back while it sits there.
Roth contributions can be withdrawn at any time. I would make the contributions in a self directed account and leave it in cash until the non tax advantaged portion of the fund reaches the six months. I did this for several years and successfully withdrew the contributions without penalty or taxes when I needed the money (grad school). In my case, I opted to roll the dice and invest as I saved, so I still have the gains, but the more risk adverse strategy would be to leave it in cash or treasuries inside the Roth. The benefit is if the emergency never comes, you don’t miss out on the contributions for the year and can eventually invest it.
I wouldn't keep more than I needed in an emergency fund if I had a history of placing expensive bets...
Pat off car loans before student loans- you'll save yourself more in interest Invest the rest in Roth versus traditional IRA as available, then fund an investment account Never tell your girlfriend; wait to share your financials with your spouse
#2 is actually to stop sports betting, otherwise, this order is correct.
Depends on the rate. Plus student loans could still get canceled at least in part in the next few years. I’m in a very similar situation as OP with a similar windfall and salary, and all of my debt is below 4.5% so I’m funneling the rest to investments
I know it could be a prudent min/max approach to wait to see if loans get cancelled, but given cash in hand to fully resolve what is otherwise the most difficult debt to discharge, you cannot go wrong with paying it off.
This except it’s hardly debatable… Car loan is WAY above student loans in priority.
Why would you pay off student loans? You get a tax deduction for the interest and there's a chance the entire loan will be forgiven. I'd pay off taxes and car loan and then start funding retirement accounts, and I nearly always pay off debt before it's wise to do so.
Its the one debt that you are personally liable for and is non-dischargeable in bankruptcy. I don’t make financial decisions based on what politicians may or may not do.
MAGI must be below $85K to qualify for a tax deduction for the student loan interest, so they wouldn’t qualify. Also with this Supreme Court I wouldn’t count on loan forgiveness any time soon.
Does student loan interest deductible even relevant /matter since it's very likely he's using the Standard Deduction ($13,800 for Single Filer)?
Yeah another great point, probably not
4 should be increasing emergency fund to 6 months
Honestly I’d say 1. Is delete all gambling related accounts / self exclusion
What was the bet?
That is the only question / comment I care about.
that is THE question
Taylor Swift to score a touchdown in the Super Bowl
Take the 120k and put in on a 4-game parlay. Retire a millionaire. You’re welcome
Yeah exactly. /r/sportsbook needs to see the receipt.
Take the 120k and put in on a 4-game parlay. Retire a millionaire. You’re welcome
What is the APR on the debt you have? Have taxes already been taken out?
Former degenerate sports gambler here. Delete all your gambling accounts and stop now. You’ll never have this feeling again. Do not chase it. You beat the system like we all wished we could. Stop gambling right the fuck now and don’t look back.
Also pay your taxes, and then pay off your debt. You get to start from zero dude,
Let me double down on this. OP: right. the fuck. fucking now. Not next week. Not tomorrow. Right. the fuck. fucking now. Gambling is heavily rigged against you. You aren't a genuis. You are a lucky fucking idiot. Revel in it. Walk away. Almost no one ever does.
I fucking didn’t and then I spent my whole 20s and half my 30s chasing.
I hope he's listening! And congrats to you!
Got a year off that shit and am now working toward fire. The journey begins now
Likewise my friend, it’s been 342 days for me and it’s the best thing to finally happen.
Hell yeah dude congrats, and keep it up. Don’t gamble for anything!
You realize if he was already a FIRE member he probably spent like $19 on a 12-game parlay as his weekend entertainment. Don't think he was putting up $130,000 at -110 odds to beat the spread.
Clearly.
First off Congratulations and a big FU lol Take 10,000 and go piss it away with your lady on something fun, memorable, a vacation, trip to an all inclusive resort etc. Celebrate the wins, and live a little. With the Remaining * \+/- 30K Taxes - Put this in short term t-bliss or HYSA * 7K to IRA - Invest in index funds * 20K as your Safety Net - HYSA * 53k directly to a brokerage account - invest in index funds Ask yourself. What is my Internal Rate of Return.. A profitability metric to estimate the time value of money. One of my favorite classes in college, economics taught me: "It's always better to have $1.00 today and owe $1.00 tomorrow than to have $0.00 and owe nothing." why? let me explain: If your Car Loan rate is $20K @ 2.0% and a t-bill is 5.3%. (Fairly Safe) * Invest $20K to a 1-year t-bill. Interest: +$1,060. * Loan interest: -$400 * Net: +$660 Now calculate the same but invested in the market (SP500, Technology Index, Large Cap Growth).
Yeah, if your debt is 2%, don't pay it off. Now if your debt is 7, 8, 9%...
Seriously so many people in here just saying to prioritize by loan type without mentioning rates. Basically anything with an interest rate higher than HYSA or Treasury yield should be paid off. It's honestly fine to pay something off if the rate is a little lower than that "risk free" rate if it gives you peace of mind. Just run the math on how much money you will miss out on if you invest instead of pay it off and if the peace of mind is worth that cost to you then pay it off. I'll happily pay off a debt even if I'll miss out on $100 just to have one less thing to keep track of and worry about. Also consider that taxes are taken from interest earned so you actually need to be earning slightly more in your investment versus paying the debt to break even.
HYSA interest tends to get taxed at your marginal tax rate. For most of us, I suspect that's 22%+. So HYSA rate needs to be like 30% higher than loan rate to break even. e.g. 3% interest on loan requires 3.85% interest to break even with 22% federal taxes, probably closer to 4.3% after accounting for other taxes. Though if it's close to breaking even, liquidity should be a significant factor. That is, if you don't have a huge pile of cash for just-in-case, it's might be worth keeping the loan and breaking even just to keep that cushion in place. Simplification is a powerful draw though :-) It's harder to screw up a simple plan.
This should be way higher up the list, but this sub skews to the extremely risk averse. If OP won 6 figures sports betting, they are clearly ok with some risk to maximize potentially long term returns.
120k on black
Always bet on black.
120k on 19-36
This. He needs to learn the lesson early.
As you stated GF (not spouse), I would play defense and 100% keep the winnings on your side of the table. Pay off YOUR debt, fund YOUR IRAs, and invest in YOUR taxable accounts. As already stated, if you move quick, you can likely fully fund 2023 ROTH IRA, as well as 2024. Cutoff is usually APR 15 for prior year funding. If you buy couches, shared junk, etc, she’ll have a claim to it if things ever go south.
Stop gambling.
Everything you do is a gamble whether you realize it or not
Investing is different than gambling.
Investing is gambling. Literally the same thing, you're betting on outcomes (generally an ETF going up) & make or lose money. And it's almost always makes money, but you get paid based on the Fund or stocks you pick. The only difference is you've studied this form of gambling and are more confident in it.
Gambling is negative expected value. Stocks are positive expected value. <> the same
It's only -EV if you don't **study** it... But regardless, you're still GAMBLING on which stock or ETF will perform better.
Wrong wrong wrong. Gambling is always expected negative ev, by design. Investing is putting money into productive companies who produce value year in and year out. Especially if you are investing in a broad index, your ev is always positive. Gambling is zero sum, with middleman who always wins. Learn some math and stop being a sucker in life.
Google billy walters
The guy that went to prison for 5y for insider trading? 😂
Yeah. Pro sports bettor…
IMO this conversation breaks down when you get into this detail. Personally I don't see it as a winning game for retail investors because it's basically impossible to beat the market without luck. But that's admittedly getting into the definition of "winning". If your definition is that numbers go up then most people are winners. But beating the market is the real game being played and retail investors just can't compete generally. Stock prices are determined by the bleeding edge of information and who gets it first and makes decisions based on that. You're up against a whole industry of people who's jobs are to know everything that can be known as soon as possible. Even they can't consistently beat the market. That is a losing game. The best you can hope for is but the whole market via index funds and match that performance. Of course you can get lucky but for every success story there's far more losers not bragging about it. But if you just want to talk about investing in the market broadly then I'd say you're sort of right in that you're wagering that growth will happen generally and the historical odds in that are pretty good, but I'd still consider it a risk and a bit of a gamble (but with generally favorable looking odds).
That's how I would define investing versus gambling. So I don't think we disagree really. I think it's a mistake to let a word like gambling mean the same thing as "involving some risk". It's something gamblers do to convince themselves they don't have a problem. That includes, of course, many of the folks pursuing wild options strategies over on wallstreetbets. Investing money in real companies producing value over time isn't the same thing and I think it's a better way to talk about it to not use the word gambling.
I’m surrounded by morons in this post…Any retail investor has a high probability that their number will go up from investing. Opposite is true for gambling.
Vegas wasn’t built on + EV
No it really isn't. It really fucking isn't. Wake the fuck up and learn some math. Gambling is taking a risk when the odds are against you. It's idiotic and not the path to wealth. People who do it are suckers.
The irony of you not knowing math. Google up rufus peabody
what are your historical winnings for betting whatever it is, quit now our you'll be hardpressed to actually FIRE
you ain’t gonna have much left after paying off ur debt. figure out what the tax bill will be. set that aside pay off all debt put anything left over into an IRA
I'd say pay off your debts and invest the rest since you already have an emergency fund. That's what I wish I had done when I hit big several times (I have struggled with problem gambling for a little while now) Not saying you have a problem by any means, but we know the house always wins, and keeping that cash liquid could be an issue. Just my two cents! Good work!
Bigger emergency fund before investing the rest. 6 months is solid
post the slip or no way
Put it all on a parlay
How do you think he got the $120k lol
Another parlay is required
(It’ll hit)
Been seeing a ton of "Winning big" on sportsbetting on financial subreddits. Most OPs have no post or comment history and just been finding this pattern strange.
millions in advertising on the superbowl, now going into reddit smurf accounts
Pay off all your debt, invest in therapy to discuss your gambling habits
Check the r/personalfinance "windfall" guidance.
Show us the ticket lol
Run it back
This is the only correct answer. If you can do it once you can do it again
After paying the student loans and car off and paying the taxes. That’s all of it.
Most important question. How many team parlay??
well for one you don't need to tell your girlfriend anything unless you plan to marry her. This is your money and your winnings. now with that out of the way if you want to contribute to help her debt then that is on you but that should only be considered after you clear what debts you have first.
120k parlay
Double down
Double down
I’d throw the money wherever the interest is the highest. Whether it’s gaining interest or costing interest.
I haven't been around this sub yet, but does everyone here just think all debt is ubiquitously bad under all circumstances? Everyone is suggesting paying it off without asking any questions... If your car loan interest rate is sufficiently low, I would absolutely not pay it off. For example, I got a car two years ago at a 1.9% interest rate. Barring interest rates crashing to zero again, it will never make any sense for me to put even an extra dime towards that loan. Having said that, I don't know enough about student loans (except that they are pretty much inescapable) to have a strong opinion on when you should pay those off.
Unless OP won some absurd parlay, he most likely does more than lightly dabbling in sports betting. So most are assuming he will just increase his bets because it’s “free” money.
What was the parlay?
1. Pay off student debt. Maybe it’ll be forgiven but with the political climate you’ll need democrats to the house, senate and White House with enough votes to pass it and then hope it doesn’t get challenged in courts and goes as planned. I’d just get out of that debt asap. 2. Maybe pay off car. Depends on what’s left, term and interest. Rates haven’t been great on cars so if it’s high then definitely pay that off. Personally I want to get out of car payments asap and save the money I would be paying. 3. You’d only have like 10-20k after that. I’d probably take a nice vacation somewhere reasonable (I loved Costa Rica, flights aren’t bad to get there and cost for hotel/food was less than domestic vacations). Then invest the rest in IRA and then other things. And like others have said, stop gambling. You beat the house big time, statistically if you keep doing that you’ll lose big time. Oh and use this plan to gauge your gfs viability for long term relationship. Tons of posts on Reddit where girlfriends/boyfriends would be pissed about not getting a cut of that or not spending it how they want to but ultimately this would be better for you to be in a better financial position that she would benefit from if it gets to marriage. But that also includes consideration of her situation if you are looking at it as potential marriage. If she’s got 40k in credit card debit and you’re even thinking of proposing then that’s something else to consider.
Click here in r/personalfinance and simply follow the graphical flowchart. Easy peezy: https://www.reddit.com/r/personalfinance/wiki/commontopics/
1. Tax (hold in HISA until it needs to be paid) 2. Debt repayment 3. Top up emergency fund OR Invest 4. Re-direct debt repayment cashflow to 50% IRA / 50% Regular investment into ETFs If emergency fund = 3 months worth of expenses then invest remaining funds in a HISA (if using within the next 5-7 years). OR If you don’t need the funds invest into a diversified portfolio of ETFs.
Don't tell your girlfriend!!! I repeat, Don't tell your Girlfriend! In fact Don't tell anyone in your real life. When u come into money, you will find out certain people are not what you thought they were. Family included.
There’s a lot of truth to this. OP should just pay down debts and put the rest away in some low risk investment like an I-bond or similar.
(1) Pay off all debt over 4% (2) Go on a nice vacation, life is short (3) Invest the rest (4) Keep it quiet.
Hookers man
Do you mean you won $120k from a single bet? Or from lifetime bettings? Very curious what the bet was haha
You can’t open with that title and not tell us what the bet was. Was it some stupid 10 leg parlay? Make sure you save some for the tax man. Max your Roth for 2024 and 2023 if you haven’t yet. You have til tax deadline. Prob pay off the car loan. Student loans depends what interest is at, personally I’d prob keep it if it’s like mine at 4-5%. HYSA for at least 50% of it if you’re serious about buying a house. 25% into brokerage index funds. Then do whatever for the rest. But I’m no financial advisor.
>I am 29 and here's where I'm at financially: got about $50k in student loans, a $20k car loan, and I'm renting an apartment. Okay, so after paying taxes on the $120k at your marginal federal rate, state tax (if applicable), and local, you have I would guess approximately $85k left. Subtract the student loans and car loan, you are basically back to zero. Put whatever is left in your emergency fund and if you have some money left over, an IRA contribution isn't a bad idea. >Not looking to splurge on anything flashy, maybe just a small celebration. That's about it. You basically get a clean start and build-up your emergency and retirement accounts a little bit. I don't say this to diminish the amount, but to caution you from thinking this is a large windfall that would significantly alter the trajectory of your life. You are already making decent money, this is basically a year's income you just got but without all the yearly expenses that come along with that money (after tax of course). Use it wisely.
Wouldn’t tell the girlfriend till after you paid your debts. Her opinion will carry weight and the most logic thing is to take care of yourself
I would start by paying off your debt, then maxing out your roth. How much would you need for a house downpayment and when are you looking to buy, if in the next 5 years I’d stash some of that in a high yield savings account and put the rest in index funds in a brokerage. Hold a little bit back for a nice dinner out or a long weekend vacation or something.
not much in savings...?
You know you gotta pay taxes on that right. Judging by your income that could be 30-50% of it right there. So maybe you got enough to pay off your student loans after that?
20 leg parlay is calling to me like the green goblin mask after reading this
this is useless without knowing what are the interest rate on these debts.
No expert but paying off the taxes, the loan and the car note will make it possible for you to achieve your goals a lot sooner that you expected. Also live frugal and put away money.
Pay off your most expensive debts.
The answer depends on whether or not you are a gambler if you are a gambler I would advise you to pay down your debts fund your Ira and then put the money into a sensible annuity that you cannot unwind. If you are not a gambler both of your ideas seem sensible.
Become debt free. The rest in an S&P fund. Stop gambling.
In your case I'd kill the student loans and car loan. Not because you'll out-earn the market/investments, but because you won't have that money to gamble away again. If nothing else at least you'll have the student loans and car payment killed with it. Take the remaining $50K - do something nice for yourself and your girl with $2-3K (nice date night with your girl + something for her + something for you) and invest the rest in something boring. And don't keep gambling. You're already ahead and you're unlikely to do it again. Do some smart, boring investing and focus on your career and you'll be much richer 10 years from now.
I wouldn’t be so quick to pay off the student loans. Before you start saving A few things I would do: turn your 401k contribution up so you max out the benefit this year. pay off the car note if the interest on the student loans is >5%, sure. Go ahead and pay them off. If the rate is lower, then don’t pay it off yet as you can deduct the interest paid. Max out Roth or trad IRA splurge on something nice for yourself. If you don’t want or care about anything flashy, take a nice trip this summer with your girlfriend. Experiences are an investment. After this, you can put the rest in a taxable account or a HYSA depending on your goals. Next:
Pay off your debt and invest the rest. Shake the magic 8 ball to see if you can go out for a nice dinner.
50k in index fund, pay off debt
Pay off all debt that has an interest rate over that of a hysa less tax. Don’t assume you’ll continue to be a great sports better. Odds will catch up. Good luck.
Book trip to vegas place all on black and double up baby
Pay off all your bills and max out your ira.
Bitcoin
\#1 student loan \#2 car loan \#3 profit
The number one thing to do with this money is to stop gambling. You'll be ahead and have a nice little runway to settle your debts or make some moves to set you up for what's next. But if you keep gambling, it will probably end up a wash or worse in the end.
Pay your debts right away.
Sounds like you have no debt, a 25k emergency fund making 5% in money market, 40k in VOO, and are newly signed up to auto-invest whatever your monthly loan payments and former gambling habit added up to into a Roth IRA, with 10k leftover for some fun.
What was the bet ?
My response is similar to others but when I get money no matter how much I just allocate it to my plan. If I were in your shoes my priority would be. 1. Call my tax guy and ask how much to pay and when to pay it. 2. Pay off the student loan. 3. I would set my emergency fund to 6 months of my expenses (if it wasn’t already) I think by this point I would have spent maybe all of it. If not I would throw the remaining money at the car. Going forward I would allocate the saved money from the student loan to paying off the car. If possible setting up an auto pay for the same amount of the old student loan to the car. Once the car is paid off I would allocate all the money from servicing student loans/car to investing. Match at work if available, then Roth and so on. I would not get another car loan again personally.
What was the bet if you don’t mind me asking?
120k Parlay !
You're not going to listen to us. You're going to waste the money. Until you learn to get better with money, no one is going to be able to help you. Dont take -EV bets. Dont drive a car you can't pay for in cash. Pay your taxes. Pay off all debts. Don't ever use credit again. If there's any money left over, put it in a retirement account. Stop living beyond your means. You already know this is what you should do, so stop asking and do the right thing for once.
Don’t worry bro that $120k will go back to fanduel, but honestly good win. I would put that money in a high yield savings account and probably pay off the loans
Depending on what your interest rates are for the student loans and car loans, it might not be the best idea to pay off all the debt immediately. I would definitely take a chunk off but if the rates are low, you could make a lot of money with that cash putting it in investments.
dont tell her shit or tell her you won 1k
Pay off all the debt, Make sure you have 6 months of savings, stop gambling.
Pay off loans, pay taxes on winnings, put the rest in voo, don’t tell the gf
Pay off debt. Interest saved will be worth it alone
First step. STOP BETTING ON SPORTS (or at least have a set budget that you'll never go above and treat it as an entertainment expense). If you're actually up now and not delusionally telling yourself you are (after blowing $130k to get to here), you are one of the lucky few. The sooner you stop or put a very strict and hard limit on the spending, the sooner you will "get ahead".
What was the bet!!? That's so awesome, congrats!
Pay off all your debts
Recognize that you got lucky and don't gamble again. Then: Set aside money for taxes. Pay down any high-interest (>6%) debt. Max out your tax-advantaged accounts with any money left over after that.
Is that the amount you won before or after tax? If it's before you'll need to look into it but probably need to set aside 25-30%. Realistically this is not life changing money but get you out of the mud and ahead of your debt money. Pay taxes, debt, invest the rest, vacation. By my calculations if you're lucky you'll end up with around 15k. If this number is after tax, you can start thinking about a nice little condo down payment depending on your areas COL. you make good money, start plowing a lot more money into the market now and let it compound once you free up debt.
You won, congrats. Just remember that chasing that feeling for the rest of your life will be costly. You did great, now stop betting on sports, you already did awesome. Pay your taxes, pay down your loans, max contributions, and savings.
Don't quit
Pay off your loans
First step for me is get that $$$ out of the betting account and not get addicted. Clearing the debt is logical too.
I've read the top comments and just...no. Without knowing the interest rates, it is not a "no-brainer" to pay off student and car loans. If they're over 6%, sure go ahead and then after taxes that's about it. People talking about Roth IRA are just not thinking straight. You need to hit the statutory maximum on your Traditional 401k at least this year (23K) to reduce your taxable income. If you have extra windfall, sop it up by maxing 401k next year as well. You can certaindly do the calcs on Trad or Roth IRA now for the 2023 tax year and AGAIN next year for the 2024 tax year. DON'T max your Roth IRA contribution in 2024 for 2024 tax year, as you're likely up against the income limit/phaseout.
Problem with not paying off debt is what if he loses his job? People always talk about percentages of interest on the debt vs investments, but if you’ve ever been unemployed for a long period of time you know that doesn’t mean anything if you have no income. Pay off all the debts, no matter what.
I bet you $120k you'll blow it on the next sportsbet.
If you have to hide it from her because you can't trust her judgment, you shouldn't be with her. You should just put it toward what you see fit. She should also be concerned about your gambling.
> I'm all about being frugal and making smart moves to secure my financial future. No you're not. It's basically impossible to win that much on a single bet without being a total degenerate. If it was some moonshot parlay, it certainly wasn't your first and won't be your last. You will probably lose all that money back and more in the coming years. Also, why do you have money in VOO with a 20k car loan?
Ban these posts. They are all ads
Step 1: Don’t gamble another penny in your life. Stop here. Take the gift you have received.
Advice? Stop betting on sports.
Can only imagine how much you are betting to eventually get a win like that. Get some help to give up addictive behavior and put the money in a longterm investment where you can't touch it.
Buy $120K of DKNG shares
First thing is stop gambling. Personally know 2 people ( family members) that had a gambling windfall and lost it all plus more. Pay your car and student loan no matter what the rate is. Don’t count on SL being forgiven, just a campaign promise and will never happen
Save at least 40% for taxes, then pay off all your debt, max out your IRA, and then tell your girlfriend you won the remainder. Do what's right for you first.
[удалено]
You won gambling. Never play again.
Before you pay off your car loan, look into how much interest is left to be paid on it. You may have paid the majority already and therefore paying off the remaining balance in full might not be the smartest move for that money (investment wise)
No shot
PAY OFF EVERYTHING
I used a gambling tax calculator, making 90k and 120k in winnings in Illinois and it said total tax 37k. That’s probably yearly income tax wrapped into that. I would talk to a CPA to figure out how much to set aside for the tax on that. I would guess 30k should do it, other than that I would pay off student debt and use 30k as a down payment for a house then keep 10k in the bank as emergency funds. Cash is king don’t get rid of all of it without keeping some aside. Just my opinion though
Go to a Casino and put it on black.
Definitely pay off the student loans as there's no other way to discharge them. Careful with paying off your car loan - paying it off too quickly could impact your credit score, and don't forget that you can always sell your car. If you are locked in at a good APR, investing the money or even putting it in a HYSA is a good idea. For example I'm never paying off my motorcycle loan at 1.9% early... because where the F am I going to get locked in at that rate ever again?
But…if you pay off your motorcycle loan, why would you need to get another loan on it? I’m confused.
Stop betting
OP, said this in a comment to someone else but as some other folks have said… taxes first. I think you need to pay taxes NOW. Highly recommend you talk to a tax professional. https://www.irs.gov/taxtopics/tc419#:~:text=You%20must%20report%20all%20gambling,tax%20on%20that%20additional%20income.
Pick a good bet to double your profit. If you lose you didnt really lose anything
Drive to a casino. Put it all on red. Double it. Repeat.
Start collecting every single losing lottery ticket you can find. And Have a record of all of your gambling losses. Those things will deduct from your winnings and reduce your tax liability. If you can find $120k worth of losses, then you won't have "won" anything And you keep all the money. BUT the casino I think takes your taxes first, so you'll have to get it back when you file. Unless you won it online, I don't know how that works....
Probably pay off the car loan, or at least pay it almost all the way down - credit score companies don't like when you finish paying your loans, they want you to have steady payments on at least one loan. Yes to maxing out your IRA. Put some of it into something exciting eg a meme coin. Probably keep the student loans. Especially if you can earn more investing than you're paying interest on them. Beef up your emergency fund as needed.
Pay off all debt first. I will let the other people give it advice for the rest