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Re: 5 million at 24
Old 10-28-2005, 04:54 PM   #21
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Re: 5 million at 24

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Mike, figure out what you need to be self-sustaining.
Give the rest to young forum members so they can more quickly reach what you already have.
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Re: 5 million at 24
Old 10-28-2005, 06:54 PM   #22
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Re: 5 million at 24

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Re: 5 million at 24
Old 10-28-2005, 07:36 PM   #23
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Re: 5 million at 24

I'm not going to read all the responses so far.

Here is the simple story from a person who worked from $1.25/hour cleaning bathrooms at a supermarket (they stunk and I was glad to have the job) at the age of 15 to the age of 50 and having a net worth of $1.5m at 51.

If I was 24 years old with $5.5m I wouldn't tell anyone. I would go to Las Vegas or Utah and become friendly with the most buxom (or not) woman I could meet. After that...is life.
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Re: 5 million at 24
Old 10-28-2005, 07:42 PM   #24
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Re: 5 million at 24

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Originally Posted by dex
I'm not going to read all the responses so far.

Here is the simple story from a person who worked from $1.25/hour cleaning bathrooms at a supermarket (they stunk and I was glad to have the job)* at the age of 15 to the age of 50 and having a net worth of $1.5m at 51.

If I was 24 years old with $5.5m I wouldn't tell anyone.* I would go to Las Vegas or Utah and become friendly with* the most buxom (or not) woman I could meet.* After that...is life.
Well dex, without slamming what you would do, I must say I am a little
skepical of the whole 24 yrs. old with 5.5 million $ story. Not saying it has not/
can/not be done. Just doesn't smell quite right to me.

Elvis has left the building................

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Re: 5 million at 24
Old 10-28-2005, 07:59 PM   #25
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Re: 5 million at 24

MRGALT2U
I don't disagree with you. The story is a bit much; these are crazy times - just look at housing prices.

Then again. Remember when you were 24. Just imagine what you would/could do with 5.5m?

Such numbers were never in my mind. I always thought I would have to work until Social Securty kicked in. That is what makes RE so difficult to me.

Maybe this post put things into perspective. It isnt about your age ... it is about how you perceive it - 24 or 42 what is the difference??
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Re: 5 million at 24
Old 10-28-2005, 08:22 PM   #26
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Re: 5 million at 24

CyberMike:

You will be a prime target for brokers, financial planners, lawyers, accountants, and life insurance salesmen who want a piece of the pie, and some will not have your best interests in mind.

Maybe a good fee only financial planner is the way to go.

Also, you might consider structuring your finances and estate plan in a way that provides asset protection. You are a deep pocket now. You don't want to be a deep pocket defendant. Unfortunately, that will require the services of a lawyer.

The old saying used to be "He who has the gold, makes the rules."
Now it is "He who has the gold, pays the plaintiff".




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Re: 5 million at 24
Old 10-28-2005, 08:37 PM   #27
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Re: 5 million at 24

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Originally Posted by MRGALT2U
Well dex, without slamming what you would do, I must say I am a little
skepical of the whole 24 yrs. old with 5.5 million $ story.* Not saying it has not/
can/not be done.* Just doesn't smell quite right to me.
There are still a bunch of tech millionaires being minted today. The space is much narrower than it was during the bubble, but google's valuation is having both a direct and indirect impact on a *lot* of geeks.
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Re: 5 million at 24
Old 10-28-2005, 08:51 PM   #28
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Re: 5 million at 24

uhmm ... instead of investing .. may be it's more lucrative to start a business.
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Re: 5 million at 24
Old 10-28-2005, 09:23 PM   #29
 
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Re: 5 million at 24

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uhmm ... instead of investing .. may be it's more lucrative to start a business.
Except when you read the odds of failures of business
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Re: 5 million at 24
Old 10-28-2005, 09:54 PM   #30
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Re: 5 million at 24

RE: Asset Protection
I've got that area as covered as possible. I've been doing that since the business started and have some very good council regarding asset protection.

I'm not new to having cash, as I've made several hundred thousand the last couple years, but I'm trading the income stream for the lump sum of ~$5.5M, and it will be a much different style of investing.
---
There are some folks here in town that I've talked with before that deal with UHNWIs, one guy has like 100M with them. That is probably the first group of people that I will talk to. After that I guess I will just see what other referrals I can get.
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Re: 5 million at 24
Old 10-29-2005, 05:48 AM   #31
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Re: 5 million at 24

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Originally Posted by Cut-Throat
Except when you read the odds of failures of business
So you fail.............start another one. It takes guts and brains,
especially when the first disaster hits (and it will). Most folks aren't cut out for it but it can be a good road to ER. Worked for me.

JG
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Re: 5 million at 24
Old 10-29-2005, 08:04 AM   #32
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Re: 5 million at 24

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Originally Posted by Spanky
uhmm ... instead of investing .. may be it's more lucrative to start a business.
I'm a big fan of starting your own business, but in the case, I would rather invest it.

You start your own business as this guy did in order to get to this point, but after you get there, there is no point to having a business.

Invest so you never have to work again and start your own hobbies.
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Re: 5 million at 24
Old 10-29-2005, 04:22 PM   #33
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Re: 5 million at 24

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Originally Posted by CybrMike
There are some folks here in town that I've talked with before that deal with UHNWIs, one guy has like 100M with them. That is probably the first group of people that I will talk to. After that I guess I will just see what other referrals I can get.
That's fine, but make sure you check references, pay attention to haw much you are paying, and read up so that you know enough to make sure things are on the up-and-up. If I were you, I would also take $1 or $2MM and just go buy some T-bills or AAA insured short term munis. Tuck it away and forget about it for a year. If things are going well by then, great, depoy it. Otherwise, you have a safety net.
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Re: 5 million at 24
Old 10-29-2005, 05:01 PM   #34
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Re: 5 million at 24

Brew, if you had say $25M, do you think it would change the way you invest?* *Would you be doing hedge funds and private placement, for example?* *Is there anything out there that really has better risk/reward character that suddenly becomes available to you because of the size of your investment?

Has anybody studied whether institutional investments tend to beat the broader market over the long-term, for example?

Edit: interesting study on VC returns here.* *Summary: alpha (returns above expected risk-adjusted returns) is amazingly high, but data is scarce, and you can get similar returns by buying micro-cap NASDAQ stocks.* *And, of course, risk is extremely high.
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Re: 5 million at 24
Old 10-29-2005, 06:31 PM   #35
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Re: 5 million at 24

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Originally Posted by mark
CyberMike:

You will be a prime target for brokers, financial planners, lawyers, accountants, and life insurance salesmen who want a piece of the pie, and some will not have your best interests in mind.
Don't forget real estate developers scam artists.* I watched a 23 year old with a $500,000 inheritance loose it all to a guy who was his "best friend" for the year or two it took* to rip him off.
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Re: 5 million at 24
Old 10-30-2005, 09:39 AM   #36
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Re: 5 million at 24

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Originally Posted by wab
Brew, if you had say $25M, do you think it would change the way you invest?* *
It would for me. With $25 MM I wouldn't need to worry about beating the market or keeping pace with inflation - so why bother. Most of it would get stuck in 4% muni bonds. I wouldn't have too much trouble LBYM on $1 MM per year tax free.
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Re: 5 million at 24
Old 10-30-2005, 10:48 AM   #37
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Re: 5 million at 24

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Originally Posted by . . . Yrs to Go
It would for me.* With $25 MM I wouldn't need to worry about beating the market or keeping pace with inflation - so why bother.* Most of it would get stuck in 4% muni bonds.* *I wouldn't have too much trouble LBYM on $1 MM per year tax free.
Another tax-avoiding rich bastard, eh?* *Swedroe does something similar with his pot.* *Only two asset classes: munis + ScV.* *I assume his muni's throw off enough tax-free income to support his lifestyle, and the ScV will create a monster nest egg for his kids, which they'll get at a stepped-up basis when he croaks.
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Re: 5 million at 24
Old 10-30-2005, 11:14 AM   #38
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Re: 5 million at 24

Quote:
Originally Posted by wab
Brew, if you had say $25M, do you think it would change the way you invest?* *Would you be doing hedge funds and private placement, for example?* *Is there anything out there that really has better risk/reward character that suddenly becomes available to you because of the size of your investment?
It would definately change the way I invest. *Some things become available that weren't before (VC, hedge funds, private placements, life insurance arbitrage, etc.). *Others simply become feasible at high net worth amounts. *For example, with $25MM net worth,I sould commit 1 or 2 MM to help bankroll a community bank start-up. *That wouldn't be too much of my capital to risk in one venture and it would get me (at the least) a seat on the board. *A large portfolio would also make it easier to invest in art and antiques and other illiquid specialty asset classes.
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Re: 5 million at 24
Old 10-30-2005, 11:56 AM   #39
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Re: 5 million at 24

With 25M (and probably even with 5M) I would be sure to have some money in various offshore accounts. Like a little in a Swiss bank, for example. All fully, legally reported.
At 25M, also might have a few houses around the world, and more than one means of getting there in case of political instability or natural or manmade disaster.

Risks per year of such things might be low, but add up over a decades long retirement. Would hate to have my $25M fortune repatriated by my country, especially if my country became the evil aggressor of the planet.

(That would be a concern not just in my country, but most anywhere in the world.)
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Re: 5 million at 24
Old 10-30-2005, 02:29 PM   #40
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Re: 5 million at 24

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Originally Posted by lazyday
With 25M (and probably even with 5M) I would be sure to have some money in various offshore accounts. Like a little in a Swiss bank, for example. All fully, legally reported.
At 25M, also might have a few houses around the world, and more than one means of getting there in case of political instability or natural or manmade disaster.

Risks per year of such things might be low, but add up over a decades long retirement. Would hate to have my $25M fortune repatriated by my country, especially if my country became the evil aggressor of the planet.

(That would be a concern not just in my country, but most anywhere in the world.)
Since everyone puts money in Swiss bank accounts anyway, may as well move there. I think it's nice scenery.
Also, they will probably not become the evil aggressor of the planet.

It seems Saddam left that part out of his calculation for political instability even though he had more than $25 million.
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