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I would think $40k yearly extra income would be a major boon for anyone. A million may not buy what it used to but it's still a lot of money. Just try to get a million when you only have 50k. It's not easy. Or hasn't been for most people I know. I would buy a small home in Italy, to use as a base for European vacations and let family use to visit. And retire 2 years early . And help a lot of homeless pets.
This is a great forum to post this question due to its activity, sage wisdom among posters and the fact that some here who are retired may be on a fixed income.
What would you do if you came upon $1 million in a lump-sum either from an unexpected inheritance or winning the lottery?
Be specific; thanks.
I am already retired and living comfortably so investing for retirement is not my main goal.
Expensive new car. Some top line cruises. Live in a very expensive, full service retirement facility. Hired help for daily living chores (cooking, cleaning, laundry, errands, etc.). Help some family members. Charity donations. A few hundred thousand in a few select Mutual Funds for future use.
I would think $40k yearly extra income would be a major boon for anyone. A million may not buy what it used to but it's still a lot of money. Just try to get a million when you only have 50k. It's not easy. Or hasn't been for most people I know. I would buy a small home in Italy, to use as a base for European vacations and let family use to visit. And retire 2 years early . And help a lot of homeless pets.
It all depends on what that extra 40k is on top of. In fact considering most ameriicans can't come up with 10k that hypothetical million may be the whole deal.
So my comment was based on just that . While the million is nice it still can fall way short of changing a thing depending on ones cost of living and situation.
I can say in our case another million would change little in our life except for a few more trips a year and possibly more left for heirs.
While a million sounds like a lot if it is going to be used to support you and you have little what that million represents is nothing special in many areas.
Here it represents rent and medical / long term care insurance.
Don't forget if your income is low enough that insurance is all given to you or subsidized. Many get subsidized housing too so that million may bring you nothing you didn't have before only now you get to pay for it.
It is an almost awkward amount of money. If you change your lifestyle because of it, you are likely to blow through it. If you don't, it is likely to still be sitting there for your heirs. That's one reason I chose starting or buying a business as my answer; I suspect that one or more of my kids will have a bumpy road in the job market (I started late and they are in high school and college now) and I would rather employ them than just hand them money. If I don't adjust my retirement plans, I don't need it and if I do adjust then it might not last long enough. Better to stay the course for me and use it to help future generations (though I would likely semi-retire sooner than I plan to retire now and work in the business I bought for a few years).
1) Invest $500k
2) With the remaining $500k start a foundation intended to comprehensively improve the lives of companion animals- from providing free in-home training to keep "problem" dogs in their home in order to reduce shelter populations, providing incentives to attract progressive trainers, bring in reputable speakers to speak to children in public schools, rural areas, shelter workers, and the general public, and last but not least, buy a small country property to begin a rescue where senior dogs can live out their lives in comfort.
Context: I live in a state that has an appalling record of animal cruelty, puppy mills, and an enormous amount of public ignorance on what constitutes responsible animal ownership.
It can and will be done. At least #2.
Last edited by twelvepaw; 08-13-2015 at 07:41 AM..
Well I suppose those of us who post questions like this should first make sure they have their own answers.
Just catching up with the amazing number of replies representing so many different perspectives and also noting a common one.
To be honest, I don't have a detailed answer to my own question so my short answer, as of now, is that I would keep on doing what I'm currently doing. I wouldn't invest in a business because I already have one and am more focused on an exit strategy. I possible would purchase additional rental properties but then again I'm not sure because I'm at a point in my life where having less "financial clutter" sound appealing.
So it would have to be invested where it would add to the current pot that would then be used to be used in a manner consistent with my current standard of living and wealth exit strategies.
It is an almost awkward amount of money. If you change your lifestyle because of it, you are likely to blow through it. If you don't, it is likely to still be sitting there for your heirs. That's one reason I chose starting or buying a business as my answer; I suspect that one or more of my kids will have a bumpy road in the job market (I started late and they are in high school and college now) and I would rather employ them than just hand them money. If I don't adjust my retirement plans, I don't need it and if I do adjust then it might not last long enough. Better to stay the course for me and use it to help future generations (though I would likely semi-retire sooner than I plan to retire now and work in the business I bought for a few years).
I think there are a lot of advantages of owning a business, of course it's not for everyone and having a family run business has it's own set of issues. But, I always think it's cool when one comes across a well run family run business.
I live in a big city and at least here it seems most of the family run places are owned by people that weren't born here. I'm not saying that in a negative way , but immigrants to this country are more entrepreneurial than native born from everything i've read and it seems they are able to see opportunities in a different way.
I would think $40k yearly extra income would be a major boon for anyone. A million may not buy what it used to but it's still a lot of money. Just try to get a million when you only have 50k. It's not easy. Or hasn't been for most people I know. I would buy a small home in Italy, to use as a base for European vacations and let family use to visit. And retire 2 years early . And help a lot of homeless pets.
Yeah true. I always think it's ridiculous when people say stuff like 'a million" doesn't buy what it used to. Or $100,000 a year salary doesn't go as far as it used to. Yes, of course with inflation,etc that is true..but it's still way way more than most people will ever have.
Thinking I'd buy a nice lake house to retire to and a new pontoon boat to go with it. I've always wanted to do a Mediterranean cruise, would give about 10k to various animal charities, and then invest the rest.
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