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Fund/invest it in the dozen or so projects that dwell on my mind.
For example, the dental bill for one cat last week was $500+ dollars. Okay, I can afford that....but down the road I am thinking of having goats or chickens or both and a heeler dog to say nothing about the barn cats that I will probably "inherit". What do I need to do to fund that project?
If it was 5mil after taxes, I would take 1 million, buy a house (500-800k), 2 new cars (100k), and whatever else I'd want (30k)
Then I'd talk to a professional. I may consult a professional first, but the heart wants what the heart wants.
If it were solely up to me I'd do the following; however I don't know all of the tax implications and other things...that's why I'd need someone to advise me on what was best.
Then invest the other 4 million +. How, I don't know. Probably a large percentage in something conservative, and a smaller amount in more aggressive stuff.
If I could average a return of around 5%, that's about 200k a year. WAY more than we'd live on. Our only expenses would be insurance and taxes. Obviously food and utilities, cable. Honestly it wouldn't be that much in monthly expenses if there were no rent or car payments. Somewhere around $30000-50000 a year and that's being generous. Reinvest what we don't live off of (150k a year) and we'd be more than set.
Once I knew we were set and could stop working, and had a budget to live on, then I'd do some traveling and charity.
After taxes? The first thing I would do is pay off the mortgage, and our last bit of car/student loans. So that would be about 100K. And I would like to rather quickly throw about 50K into various animal rescues in my area that I'm already involved with. But other than that, I would have to think about what to do with the rest. (which would be 4.85 million) I'd like us to be able to stop working, but I'd want to figure out how best to make that happen. ie. how much of it do we need to save and where should we save it, etc.
1. Fully funding my kids 529 plan ($300k in total)
2. Set aside money for Roth IRA ($220k in total)
3. Invest in Index funds ($2 mils in total)
4. Invest in Bonds funds ($1.1 mil in total)
5. Angel investing ($480k in total)
6. Charity ($500k)
7. Living expense ($150k)
8. Traveling expense ($250k)
Once I knew we were set and could stop working, and had a budget to live on, then I'd do some traveling and charity.
Great plan, but with a $1 million dollar house to take care of and taxes, utilities, personal expenses, car replacement costs and everything else, you are not going to be doing a lot of travel or charity. Check out the incomes taxes on that $200k income without any mortgage or other deductions. See what you have left to spend. Then don't forget that income level puts you into the wealthy category that Democratic politicians want to target for higher taxes.
If you have kids to raise and college to pay for, you're screwed again.
Now if you are talking about getting $5 million before taxes, you can plan on continuing to work.
1. Fully funding my kids 529 plan ($300k in total)
2. Set aside money for Roth IRA ($220k in total)
3. Invest in Index funds ($2 mils in total)
4. Invest in Bonds funds ($1.1 mil in total)
5. Angel investing ($480k in total)
6. Charity ($500k)
7. Living expense ($150k)
8. Traveling expense ($250k)
That adds up to an even $5 mil, but what do you travel or even live after the first year?
That adds up to an even $5 mil, but what do you travel or even live after the first year?
Hi there,
I don't intend to spend all living & travelling expense all within the 1st year. It's money that set aside to accomplish that objective. I'd probably use it as I see fit, little by little.
Also, the investment (index, stock, bonds, angels) I listed should provide a solid 4-5% fixed income annual return to continue supporting living expense.
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