Author Topic: "what would you do with a million dollars"  (Read 29781 times)

zephyr911

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Re: "what would you do with a million dollars"
« Reply #50 on: May 12, 2015, 07:13:03 AM »
Might splurge a bit on money for family, both my mom and sister have terrible spending habits and lots of debt.  Gifts, not loans.
Do you picture them changing their ways as a result of such a temporary reprieve?
I know it's family and sometimes compassion just wins out, but this board is full of stories of people diving right back into even worse debt as a result of unexpected windfalls that could have permanently solved their debt problems. It's like "oh look, we can finally have all the other stuff we always wanted!"
In my case, there are three of us (siblings) who care deeply about our mom but have collectively realized she doesn't apply much logic or discipline to her finances and will probably end up insolvent someday (she at least has SS now, just started, but doesn't get enough to even have her own place). The idea of eventually supporting her was one of my motivators in getting my own shit together and setting a course for FI, but the irony is that everything I've learned along the way made it painfully obvious to me that she totally did this to herself and could even derail our plans if we make an open-ended commitment.
It really is a hard call to make. I love the shit out of her, but I don't know where to draw the line.

damize

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Re: "what would you do with a million dollars"
« Reply #51 on: May 12, 2015, 08:47:01 AM »
Might splurge a bit on money for family, both my mom and sister have terrible spending habits and lots of debt.  Gifts, not loans.
Do you picture them changing their ways as a result of such a temporary reprieve

Nope. No such illusions. However, both of them have sacrificed for me in the past, and if the difference for me is between living a simple life or spendypants travel, I'll give them that reprieve.

zephyr911

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Re: "what would you do with a million dollars"
« Reply #52 on: May 12, 2015, 09:07:58 AM »
Nope. No such illusions. However, both of them have sacrificed for me in the past, and if the difference for me is between living a simple life or spendypants travel, I'll give them that reprieve.
Well, with a little luck, someday we'll both have our cake and eat it too.
I just hope I can build my stash up into an exploding volcano of cash in time to bury mom's next crisis, while still punching out of this fascist popsicle stand around 40 and living an altruistic life of goodness toward others.

Sid Hoffman

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Re: "what would you do with a million dollars"
« Reply #53 on: May 12, 2015, 10:20:37 AM »
Don't pay off the mortgage, but put the amount needed to pay off the mortgage in a 0.00001% savings account, because of a mortgage interest deduction?

What is it about the mortgage interest deduction that causes people's brains to shut down?

The worst part is that for so many middle-class families, they're hardly getting any value out of it in the first place.  For a married couple with a $200,000 outstanding balance on their mortgage at 4%, that's only $8000 in mortgage interest per year.  The standard deduction alone for a married couple is $12,600 so unless you have a ton of other itemized deductions, the median family making $53,000/year simply isn't getting much and possibly zero value out of their mortgage interest at tax time.

Hunny156

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Re: "what would you do with a million dollars"
« Reply #54 on: May 12, 2015, 12:14:51 PM »
As I roll my eyes at an impending meeting where I have to play politics (while keeping my middle finger raised under the conference room table), my choices would be:

Pay off the three smaller investment property loans with higher interest rates (approx $160K).
Invest the remainder in VTI/VTSAX.
Work until March, 2016, when my 401K is fully vested, then give notice.
Discuss w/DH what FIRE date he's contemplating, whether it be immediate, or a few months down the line.

Do a Happy Dance!!  :)

Elderwood17

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Re: "what would you do with a million dollars"
« Reply #55 on: May 12, 2015, 03:34:13 PM »
I wouldn't risk anything buying a farm. Seems that every year I hear from friends that own land or work in ag and they are struggling.
Agreed, but the passive rent I get currently on my 160 acres is pretty consistent. We are almost set for a traditional "early" retirement so a windfall being used to get a bigger place wouldn't really be a risk.

Exhale

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Re: "what would you do with a million dollars"
« Reply #56 on: May 15, 2015, 04:16:45 PM »
I really like scenarios like this because they help us realize how many of our indulgences and conveniences are just responses to feeling stressed out and overcommitted. Realizing that if we all woke up tomorrow with enough money to do whatever we want, we'd do things much differently...The next step is to decouple the present pre-FIRE, more stressful, less abundant environment from our ingrained responses (clutching at dumb shit to ease the pain).

+1
« Last Edit: May 15, 2015, 04:23:41 PM by Exhale »

Goldielocks

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Re: "what would you do with a million dollars"
« Reply #57 on: May 16, 2015, 04:57:33 PM »
If I won a Million Dallars

1) Pay the 20% pre payment on my mortgage that is penalty free. This year, and 20% next year
2) Use the $$ to pay my monthly mortgage for the next 4 years until it comes due for renewal.
3) Invest rest in MM fund,  .... then a small business

While I take 2 years figuring out what "lifestyle" business I want to create for myself as my money making "hobby" in retirement.!!  Work until I figure out what that will be, exactly....  then, after that is figured out, if $$ remain...

4) take a Europe vacation (1-2 months) with my family -- using home stay or other low cost / real life experience accomodations.


Mirwen

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Re: "what would you do with a million dollars"
« Reply #58 on: May 16, 2015, 07:57:29 PM »
Pay Taxes: $330k
Pay Student loan: $50k
Move to Oregon (Eugene?): $30k (one year's living plus moving expenses)
Buy 3 rental houses at approximately $100k each: $300k
Buy a townhouse for myself to live in with excellent school district $200k? maybe less

Keep remaining $90K as a cushion and live off of proceeds from rental houses while I return to school for an engineering degree paid with cash.


tofuchampion

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Re: "what would you do with a million dollars"
« Reply #59 on: May 17, 2015, 07:35:45 PM »
1. Pay off debt
2. Buy a house
3. Go back to school (for RN)
4. Buy lots of index funds
5. Live happily ever after

This is pretty much what I'm doing right now anyway; the million would just let me do it a lot faster. I'm paying off debt right now, going to start taking nursing school pre-reqs this fall, and hopefully buying a house next year.

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Re: "what would you do with a million dollars"
« Reply #60 on: May 18, 2015, 03:07:23 AM »
Invest it all, ER, and travel around the US until we decide which city we want to live in.

cerebus

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Re: "what would you do with a million dollars"
« Reply #61 on: May 18, 2015, 04:09:30 AM »
After tax, R8mil.....

I'd buy 4 ~R1m homes, 1 to live and 3 to earn R6k income each so R18k passive income, not enough to ER but it's a good start.
Then I'd use R400k to do a 1-year MA at the University of Cape Town that would increase my salary.
The rest I'd invest in the JSE and give myself 10 years to FIRE.
« Last Edit: May 18, 2015, 04:11:55 AM by cerebus »

fartface

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Re: "what would you do with a million dollars"
« Reply #62 on: May 19, 2015, 06:34:45 PM »
$1,000,000 free and clear today?

I'd retire tomorrow.

I'd put the entire $1M into VTSAX or VDADX, then live off my current nest egg (harvesting long term capital gains) and dividends which is more than enough to pay the bills.

'Meh...maybe I'd work one more year...

highcountry

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Re: "what would you do with a million dollars"
« Reply #63 on: May 19, 2015, 10:26:36 PM »
If I suddenly had a million dollars I would stay in my current underpaid job for years, instead of using it as a stepping stone to better paid but potentially less amazing work.

Squirrel away

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Re: "what would you do with a million dollars"
« Reply #64 on: May 20, 2015, 03:44:31 AM »
$1,000,000 free and clear today?

I'd retire tomorrow.



Same here.:)

Dicey

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Re: "what would you do with a million dollars"
« Reply #65 on: May 20, 2015, 11:16:06 PM »
Here's the value of MMM, ERE, et al: I was never a high wage earner, but I always knew I wanted to retire early and that I wanted to own property despite living in high COLAs my entire working life. I'm 57 now, FIREd, surfing here because I want to, and not clicking on the OP's link because I have $1M. And you know what? There's not much of anything I want to spend it on...

So freaking wierd to think that I would end up in this position. Moral of the story: Keep earning, keep saving, keep living smart and it will most likely happen to you too, even of you don't earn a ton of money. Oh yeah, that figure does not include the value of my real estate. How did this happen?? Can't hardly believe it, but sure do like it.

Edit: I apologize if this post sounds braggy, but no one is more surprised at my state of financial affairs than I am. This MMM shit really works! I'm gobsmacked.
« Last Edit: May 20, 2015, 11:35:34 PM by Diane C »

MountainManMustache

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Re: "what would you do with a million dollars"
« Reply #66 on: May 27, 2015, 10:26:39 AM »
buy eight cords of firewood and pay to have it stacked…the remainder I would place in bank accounts waiting for underpriced foreclosures to snatch up, rehab and flip.

forummm

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Re: "what would you do with a million dollars"
« Reply #67 on: May 27, 2015, 10:30:27 AM »
Say: "I have one million dollars!" <evil laugh>

forummm

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Re: "what would you do with a million dollars"
« Reply #68 on: May 27, 2015, 10:33:23 AM »
If I had one million bucks given to me tax free (on top of what I have now), I'd invest it and continue with my current plans for the next year and see what happens. I'm planning on changing jobs anyway, so I'd see if it was something I wanted and liked to do. If not, I could just quit.

Cezil

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Re: "what would you do with a million dollars"
« Reply #69 on: May 27, 2015, 10:59:22 AM »
I'd pay off my house (and rent it out), invest most of the remainder, and live off some of the income.  I'd travel the world, then buy land somewhere and go off grid.  Put that way, it sounds a bit bland and boring, but inside my head, the dreams are very alive and colorful.

I was also glad to see the Office Space references, as the first thing I thought when I read the title was Peter saying, "I would do nothing."

Pooperman

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Re: "what would you do with a million dollars"
« Reply #70 on: May 27, 2015, 01:07:17 PM »
$1,000,000 free and clear today?

I'd retire tomorrow today.



Same here.:)

FTFYB

cerebus

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Re: "what would you do with a million dollars"
« Reply #71 on: May 28, 2015, 02:27:17 AM »
$1,000,000 free and clear today?

I'd retire tomorrow.



Same here.:)

Actually yeah...this. What am I thinking wanting to continue working am I insane?

zephyr911

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Re: "what would you do with a million dollars"
« Reply #72 on: May 28, 2015, 07:50:31 AM »
I'd pay off my house (and rent it out), invest most of the remainder, and live off some of the income.  I'd travel the world, then buy land somewhere and go off grid.  Put that way, it sounds a bit bland and boring, but inside my head, the dreams are very alive and colorful.
It's as colorful as you make it. Those who look down on such dreams are projecting their own lack of creativity onto your future blank slate.
We do need people like that to keep our investment returns up... but you don't have to be one of them :D

Cookie

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Re: "what would you do with a million dollars"
« Reply #73 on: May 29, 2015, 05:15:55 PM »
If I had 1 million dollars after tax, I would invest it all and travel across the country until I found which state I want to live in. Then I would built an awesome off the grid house that sits on a couple acres in the forest. Then retire and do whatever I want.

SpicyMcHaggus

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Re: "what would you do with a million dollars"
« Reply #74 on: June 01, 2015, 08:22:16 AM »
$7,000 / mo gross income is where I quit working. It's enough to live like a king and still have some left to fix up the house.
I would use the $1MM to generate $7k/month [mostly] passive income. Rentals. Dividend funds. Maybe a business.

Taran Wanderer

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Re: "what would you do with a million dollars"
« Reply #75 on: September 11, 2015, 02:42:32 AM »
Add it to my other million dollars and FIRE.

Since I already have a million, I feel like I should be FIREd now.  But I can't.  And I don't know what goal I would set for myself if I did.  There go the Barenaked Ladies in my head again...  If I had a million dollars................

Butterfingers

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Re: "what would you do with a million dollars"
« Reply #76 on: September 11, 2015, 04:24:15 AM »
I have a (slightly) negative net worth, live in a high cost-of-living country, don't own a house, and have a family of four to feed. Would $1,000,000 get me to FIRE? Fuck yeah.

sheepstache

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Re: "what would you do with a million dollars"
« Reply #77 on: September 11, 2015, 05:17:56 AM »
I know too many people who use the term "interest" and quite seriously mean a money market or vanilla savings account because they have no idea anything else exists to put your money.  Strictly speaking a savings account issues a "dividend."

Huh? Based on what definition? The IRS sure considers it interest.

That's what my credit union calls the interest on my savings and money market accounts.  I should have clarified that the "dividend" term may confuse someone into thinking they're getting some kind of actual return on a simple savings account.

Money market I can see.  But savings?  I've never heard of that - and again, it's not a dividend in any financial or tax sense.

Also, in some time periods you can actually get savings accounts, money markets, and CDs to have "real" returns - that is, returns noticeably better than inflation.  Most of the 80s and 90s, for example: http://www.freeby50.com/2011/08/historical-cd-savings-rates-vs.html

Actually now that Travis mentions it, I remember my credit union calls it a dividend too. Maybe something about making people understand they're "investing" in the credit union because it's member-owned. But yeah, still treated like interest for tax purposes.

Edit: I apologize if this post sounds braggy, but no one is more surprised at my state of financial affairs than I am. This MMM shit really works! I'm gobsmacked.

Ha ha, awesome.

Villanelle

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Re: "what would you do with a million dollars"
« Reply #78 on: September 11, 2015, 06:02:16 AM »
0) Tell almost no one. (I'd probably tell my parents, just because I know nothing would change for them and it would make them happy for me.)
1) Quit school and write, which I'm given serious consideration to doing anyway.
2) Invest it in a few mutual funds.
3) Look for a rental or two to purchase, either purely as rentals or as a some-day home to rent out until that day comes.
4)DH might want a fancy-ish watch
5) Not much else changes, other than maybe our plans for what DH would do after he reaches 20 years in the military.

Money Mouse

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Re: "what would you do with a million dollars"
« Reply #79 on: September 11, 2015, 09:44:19 AM »
Fix up and sell current home, probably about $25k in total costs (house would have little to no equity even after fixing up)

Move to better school district for DD, pay $125k for a 3/2 town home w/basement.

Leaves me with $850k. DH would quit, I'd keep my FT work from home job (5 weeks vacation, 12 sick days, 401k with match, awesome low cost medical). With no debt we could live off of just my income and not touch the $850k. I'd probably work until we had enough to pay for DD's college in full, help MIL in her old age if needed (she has no assets other than her home and is at high risk of future strokes, so we'd like to be in a position where we can help make sure she's in the "nice" nursing home if it comes to that) and have enough 'stache to live comfortably. At most I'd only work until 59.5 (DD would graduate college that same year) but ideally as early as 55 (I'm 39 now), maybe even earlier depending on market returns and other unforeseeable events.

Really, it's the same plan we have now, we just would be able to do it 7 years earlier than planned* with a much bigger 'stache and a better ability to help MIL if it's ever needed.

* Current plan is to fix up home/save up down payment over the next 2 years, move, pay off new home loan in ~4 years, DH works 1 additional year to beef up emergency savings, then he can tell his employer to go fuck themselves. With no debt, we can live off of my income/benefits and I can retire between age 55-59 depending on if we decide to help DD with college costs and to what extent.

AZDude

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Re: "what would you do with a million dollars"
« Reply #80 on: September 11, 2015, 09:55:06 AM »
Surprised it took all the way to infogoon before we got an Office Space reference... I'm a little disappointed in you guys...

Chris22

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Re: "what would you do with a million dollars"
« Reply #81 on: September 11, 2015, 10:04:18 AM »
Pre or post tax?  $1M pretax would almost, maybe pay off the mortgages on both of my houses.  I'd probably do that, even though it isn't that smart.  Wouldn't care. 

Post tax, I'd do the same thing, drop enough in my daughter's college fund to fully fund it, spend 2 weeks in Hawaii and invest the rest. 

Gone Fishing

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Re: "what would you do with a million dollars"
« Reply #82 on: September 11, 2015, 10:05:44 AM »
I would throw it in the stache, so I would have to ask myself what I would do with the extra $40k/yr for the rest of my life.

Give a little more away to non-profits
Give a little to my 86 year old grandmother (no worries about her getting too accustomed to it!)
Take a few more/fancier vacations
Make a few modest improvements to the house out of cash flow
Sad to say, but I would probably eat out more and drink fancier beer, too.

It would be interesting to see if we completely adapted to the extra income over time, or if we would hit a "fully satisfied, everything we could possibly want" point before then, given our ER budget does still require a bit of restraint.

pbkmaine

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"what would you do with a million dollars"
« Reply #83 on: September 11, 2015, 10:40:22 AM »
Hmm. I'd have a professional landscaper add some shrubs to the backyard rather than doing it myself. I'd add a shallow little water feature to the pool so that the cats could splash in it and I wouldn't hear the neighbors. I'd give $10,000 each to my stepdaughters, niece and nephews and goddaughters. I'd put $10,000 each into 529s for the 5 grandchildren and the 3 great nieces and nephews. I'd fund a local spay and neuter program for 1 year. And the rest I would tuck away.
« Last Edit: September 11, 2015, 11:07:48 AM by pbkmaine »

ash7962

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Re: "what would you do with a million dollars"
« Reply #84 on: September 11, 2015, 11:05:59 AM »
I'd probably quit my job, buy a used car, and start travelling the country (USA) for a bit staying maybe 6 months in each place.  That way I can scope out the surrounding areas and figure out the area I want to live in.  Then I'd buy 1-5 acres and custom build a small, energy efficient house.  Then anything in my investment accounts left over 700k would go to family and/or charity.

Giro

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Re: "what would you do with a million dollars"
« Reply #85 on: September 11, 2015, 12:12:56 PM »
I'd start some businesses.  I've been wanting to bring some manufacturing back to my poor little town and I think I could manage it, employee a lot of local folks at a decent wage and grow the business.  The employees would hopefully be large consumers of the goods and promote the brand. 

I also need to get my kids a start up going.  They will both be graduating soon and want to open a business. 

I don't need the money for myself.  I've really been thinking of how to improve my little piece of the world and not just focus on myself and my needs/wants. 


nobodyspecial

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Re: "what would you do with a million dollars"
« Reply #86 on: September 11, 2015, 12:24:05 PM »
So basically you would all waste it  ;-)


runningthroughFIRE

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Re: "what would you do with a million dollars"
« Reply #87 on: September 11, 2015, 02:13:36 PM »
I'd take a frivolously lavish vacation for a week or two to Hawaii including hiking, learning to surf, drinking various tropical fruity things, and whatever strikes my fancy while I'm there.  When I get home, I'll laugh at my ridiculousness, sock everything in my portfolio, and go back to my regular life.

I'd do the same regardless of pre- or post-tax.  It would be enough money for me to FIRE either way, but I generally enjoy my working life as-is, so I wouldn't change anything.  Well...maybe buy fancier food more often, or get a more economical car.

Cookie78

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Re: "what would you do with a million dollars"
« Reply #88 on: September 11, 2015, 02:21:26 PM »
I'd quit my job, sell my houses, buy a camper van, go live near my family for a bit, travel more.

Basically I'd continue doing all the things I'm doing, but I'd bump up the FIRE plan to start now, and I wouldn't wait for the houses to sell before I quit work.

sol

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Re: "what would you do with a million dollars"
« Reply #89 on: September 11, 2015, 02:31:30 PM »
I'd ask for a raise.

Jellyfish

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Re: "what would you do with a million dollars"
« Reply #90 on: September 11, 2015, 02:32:34 PM »
I just asked my son what he thought I'd do with a million dollars. He rolled his eyes and said "You'd put it in the bank."  Eh, close enough, kid. Next week I'll explain Vanguard.

MonkeyJenga

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Re: "what would you do with a million dollars"
« Reply #91 on: September 11, 2015, 02:41:34 PM »
Same thing I said when I was a little kid: save it. (I was a wild and crazy kid.)
Then? Quit. Immediately.
Throw a giant "I QUIT" party. You're all invited! We'll ceremoniously burn my one remaining interview outfit.

That's it. I figure the rest can sort itself out.

EricL

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Re: "what would you do with a million dollars"
« Reply #92 on: September 12, 2015, 11:55:24 PM »
Actually the real tragedy of this thread, Office Space wise, is nobody remembers what Samir said he would do with $1 million.

MgoSam

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Re: "what would you do with a million dollars"
« Reply #93 on: September 13, 2015, 10:46:13 AM »
Actually the real tragedy of this thread, Office Space wise, is nobody remembers what Samir said he would do with $1 million.

I do, and agree with him, though I wouldn't hire anyone to manage it, I would just toss it in Vanguard.

clarkevii

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Re: "what would you do with a million dollars"
« Reply #94 on: September 13, 2015, 11:45:01 AM »
I'd ask for a raise.

Best answer here. You are in a stronger position, you might as well use it

TVRodriguez

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Re: "what would you do with a million dollars"
« Reply #95 on: September 13, 2015, 07:03:32 PM »
I'd buy and wear a real green dress.

But not a real green dress, that's cruel.

SwordGuy

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Re: "what would you do with a million dollars"
« Reply #96 on: September 13, 2015, 07:49:08 PM »
Pay Taxes: $330k
Pay Student loan: $50k
Move to Oregon (Eugene?): $30k (one year's living plus moving expenses)
Buy 3 rental houses at approximately $100k each: $300k
Buy a townhouse for myself to live in with excellent school district $200k? maybe less

Keep remaining $90K as a cushion and live off of proceeds from rental houses while I return to school for an engineering degree paid with cash.

$330k in TAXES??? 

How could you owe that much?


MonkeyJenga

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Re: "what would you do with a million dollars"
« Reply #97 on: September 13, 2015, 08:06:51 PM »
Pay Taxes: $330k
Pay Student loan: $50k
Move to Oregon (Eugene?): $30k (one year's living plus moving expenses)
Buy 3 rental houses at approximately $100k each: $300k
Buy a townhouse for myself to live in with excellent school district $200k? maybe less

Keep remaining $90K as a cushion and live off of proceeds from rental houses while I return to school for an engineering degree paid with cash.

$330k in TAXES??? 

How could you owe that much?

Probably from being given a million dollars.

JLee

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Re: "what would you do with a million dollars"
« Reply #98 on: September 14, 2015, 03:20:57 PM »
Pay Taxes: $330k
Pay Student loan: $50k
Move to Oregon (Eugene?): $30k (one year's living plus moving expenses)
Buy 3 rental houses at approximately $100k each: $300k
Buy a townhouse for myself to live in with excellent school district $200k? maybe less

Keep remaining $90K as a cushion and live off of proceeds from rental houses while I return to school for an engineering degree paid with cash.

$330k in TAXES??? 

How could you owe that much?

Probably from being given a million dollars.

lmao. Yup.

I'd dump all of it in Vanguard and continue on with my life. No debts I have are worth paying off instead of investing, so it'd just jumpstart my FI. Actually, I'd technically be there..but I'd probably keep working for another year or two at least.

Skalm

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Re: "what would you do with a million dollars"
« Reply #99 on: September 14, 2015, 05:51:25 PM »
I love playing this game. So... $1,000,000.

1. Pay off all debt ($9k)
2. Quit jobs.
3. Blow a small portion (buy electric bicycle, put a full tune-up on wife's car, take a small trip to my friend in Texas, total of about $5k)
4. Pull $30k out into a bank account to live on for the next year.
5. Invest the rest. With a 4% draw, and a 7% average rate of return, that's... $39,440 per year. Anything over that 4% goes back into investments.
6. With all this extra time, finish school.
7. Do a job I really like and don't worry about the money.