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Old 06-04-2015, 03:09 AM   #41
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50% in a bond fund. 50% on lottery tickets in hope of really raking in the money.
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Old 06-04-2015, 06:03 AM   #42
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50% on lottery tickets in hope of really raking in the money.
If I was that much of a gambler I'd put all on red in Las Vegas. The chance is much better than in a lottery.
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Old 06-04-2015, 06:15 AM   #43
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If I was that much of a gambler I'd put all on red in Las Vegas.
What, are you nuts?

Black, not red...
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Old 06-04-2015, 06:48 AM   #44
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"How would you invest/live on 24m?"

The investing is easy: same as what I am doing now. Instead of buying/selling a few 100s shares at a time, I will be doing in the 1000's.

The living part is what takes a bit of thinking. I was recently in Anacortes, and saw that 1/2 of the boats there were for sale. I know nothing about boats, but would not mind spending some of that money to learn more.

Between $1/2M to $1M would get me a more than passable boat. Perhaps after cruising it up to Alaska and back and surviving the trip, I might decide boating is not for me. But without trying, how would I know?
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Old 06-04-2015, 10:02 AM   #45
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$20 million would generate maybe $600,000 -$800,000 per year pre tax. Once the investing decisions are made, and I agree it really isn't much different than investing $1million, the real issue is how to spend/gift it every year. Make a multi year budget to allocate to the things that are important to you.
It really isn't that difficult to spend that kind of money, but it does take a while to adjust to your new wealth level. Go slow don't make any big commitments for a while.
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Old 06-04-2015, 10:56 AM   #46
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50% in a bond fund. 50% on lottery tickets in hope of really raking in the money.
How do you think OP got his windfall to start with? So, you suggest invest his lottery winnings right back into another lottery. Double down!

Probably been done before.
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Old 06-04-2015, 11:35 AM   #47
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How do you think OP got his windfall to start with? So, you suggest invest his lottery winnings right back into another lottery. Double down!

Probably been done before.
It has happened a few times.
Joan Ginther tops many multiple winners in lottery history
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Old 06-04-2015, 11:45 AM   #48
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I recommend against buying (or improving) a house worth more than 80% of the sale price in your housing market. The reason is that when you go to sell (as eventually you will) potential buyers will be few and far between. The other is the 'lifestyle' issue, better to be seen as comfortable than rich.
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Old 06-04-2015, 11:50 AM   #49
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... It really isn't that difficult to spend that kind of money, but it does take a while to adjust to your new wealth level...
When I see the amount of "real" wealth that some people have, I agree that it is not at all difficult to spend any amount of money. Why, there are mansions that cost more than that $24M.

But same as most people here who made it to ER on their hard earned and saved pennies, I think I would still be LBYM. Hence, I mentioned that I would try boating with a gently used boat in the $1/2-1M range to test the water so to speak. That would be the same as me right now spending 1/10 that amount for a toy; it would not be financially ruinous if it did not work out.

Ah, spending is not really that hard. But as I never have a chance to get that kind of money as I do not play the lottery, I do not spend time daydreaming about such windfall.
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Old 06-04-2015, 02:38 PM   #50
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Originally Posted by MuirWannabe View Post
How do you think OP got his windfall to start with? So, you suggest invest his lottery winnings right back into another lottery. Double down!

Probably been done before.
Yes since OP did not reply I went for the amusing option. But since it has probably been done before let me adjust my suggestion:

50% in a bond fund. 50% shared between our forum members with more than 10 posts this year. That would induce some goodwill and possibly even better suggestions from us. So win-win of a different kind.
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Old 06-04-2015, 02:59 PM   #51
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Thanks guys. Been busy dealing with a basement flood. I'll try to answer the questions without the longest multi-quote in internet forum history. It goes without saying but, a big thank you to everyone who gave me advice..

- why so much in bonds? I'm a nervous nelly. If I can hit 2.5% net with a 50/50 portfolio- and i believe that is reasonable (do you?)- that's way more than I can see myself ever wanting or needing. I can adjust down the road if the predictions that bonds are long term losers proves closer and closer to true.

-dividend etf- You hit a sour spot here. I debated going that route for a long time. I might still. You make fair points, all of which I considered. And am still considering. I'm talking about low cost index funds here, so I think it might be six one half dozen the other. Naive? Thanks.

- gift taxes. I am giving most of my money away through what my guy calls "lightning-trusts." This avoids gift tax entirely.

- Suggestions of monthly stipend to parents vs lump sum- I will be giving them a monthly stipend on top of the lump sum (via said trust), I just didn't mention it in the OP. The lump sum is for debts. The stipend amount over 14k annually will "count" towards the gift tax penalty, the lump sum, per cpa (I'm getting second opinions on this to make sure as we speak) will not.

- "Charity to parents." heh. Punishment accepted. Terrible choice of words.

- 2 mill home. I probably won't buy anything that expensive. I just want to know that I could, and be reasonable in doing so. I will say though that the areas I am considering settling down (seattle and boulder), 2 mill doesn't buy a mansion or anything close. The problem I'm finding is that frankly, most young people w/ money want a condo. I don't. So the picking for housing in that range is mostly about making huge compromises for someone like me. Such as 300-500k in "kid amenities" that I don't want or need. First world problems.

- Am I trolling? I'm not. But for the sake of solidarity, you can assume I am and nothing about the thread will change from the advice-givers perspective. Either way it's the same intellectual exercise from your POV. Agree?

- estate attorneys, cpa's, and liability coverage- got it down. Probably overspent. Oh well. Like I said, I'm a nervous nelly.

- No, I did not win a lottery. heh.

- detailed planning. I'm comfortable with fee-based advisors. I know that I will miss out on many "can't lose exotics," (I say that half-sarcastic and half totally serious) but I don't think I'll screw up majorly, either. The biggest way I can screw up as I see it, is with tax planning. I've hired several people with several different hats to help me with this (all fee-based). I'm under no delusion that I'm bulletproof, but I feel I know enough to do this on my own so long as I don't complicate things unnecessarily. I'm happy with a 2.5% return with the knowledge that maybe 3.3% was obtainable if only I hired a team of guys I don't really know/trust. I'm at peace with this.

- why a bond fund instead of CD ladder? Ronstar, if you have time I'd love to hear you elaborate on this opinion. Thank you.

If I missed anything please let me know. Thanks again for this resource.
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Old 06-04-2015, 03:52 PM   #52
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Hmmm, very interesting.
If you're a bit nervous then I would suggest also buying a small working farm in a remote area with a long growing season and hire someone to operate it for you. That way if the SHTF and money doesn't count anymore you will be way ahead of the game.
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Old 06-04-2015, 03:52 PM   #53
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.....

- why a bond fund instead of CD ladder? Ronstar, if you have time I'd love to hear you elaborate on this opinion. Thank you.

If I missed anything please let me know. Thanks again for this resource.
IMO, interest rates can only go up. I know - people have been saying this for quite some time and it hasn't happened yet. But it will and the bond fund will most likely get stung.

I like your plan, but as a windfall that is almost immediately invested, it is not dollar cost averaging. The cd ladder in effect gives you at least a little dollar cost averaging to your overall portfolio. I'm not necessarily suggesting keeping the cd ladder going forever. Evaluate your plan yearly and tweak it to meet your needs.

The cd ladder will provide you with an income stream that will not be subject to equity market fluctuations. So you won't have to worry about selling something at a loss to generate income. And there's enough in your portfolio to generate a generous income with the cd's.

I may be looking at this through the eyes of a 60 year old instead of a 30 year old, but I would sacrifice the little more income that the bond fund provides for the security that the cd's provide.
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Old 06-04-2015, 04:34 PM   #54
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Thanks a bunch.
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Old 06-04-2015, 04:45 PM   #55
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I'm also beginning to doubt that the OP is legit. That was/is their one and only post.
That was my original thought when I read the OP.
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Old 06-04-2015, 05:40 PM   #56
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- Am I trolling? I'm not. But for the sake of solidarity, you can assume I am and nothing about the thread will change from the advice-givers perspective. Either way it's the same intellectual exercise from your POV. Agree?
That's a great response (seriously). When it comes to anonymous internet forums, that seems like an absolute truth to me. Take it for what it is, try to learn and/or have fun, or move on.


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Thanks guys. Been busy dealing with a basement flood.
You should pay someone to do that!

You seem to have it under control, as far as investing, I honestly think it is no different than most of us, except your case is even simpler. You can afford to keep it simple. Just don't do anything stupid - diversify, and you will be more than fine.



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Do you have the knowledge and experience to manage a 24M$ portfolio?
I know I wouldn't. Interview a few FA's and pick one you feel will work in your best interest. They can help you in many different ways and have access to investments you won't as an individual. And let your FA worry about your portfolio on a daily basis while you enjoy your life!
Congrats.
I would manage $24 million much like I would manage $1 million, which is no big deal. Why pay a FA $125-250K for essentially sitting on his/her thumbs ?
Very much agree with frayne. An FA could probably be the biggest risk your portfolio could experience. Just pick a 'conservative' AA (or any AA, it won't really matter), spread it across a range of mutual funds/ETFs and call it a day. There is no reason for you to 'worry about your portfolio on a daily basis' - forget about it, live off the divs, and tap some principal if want (within reason, but the OP sounds reasonable).

-ERD50
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Old 06-04-2015, 05:56 PM   #57
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What, are you nuts?

Black, not red...
I thought about putting $60k on one blackjack hand. It was the money I didn't expect to get (a loan that someone paid me back - 50% of what he borrowed). If I win, it's like I got the full amount of loan back. If I lose, hell, I wasn't expecting to get back any of the loan anyway. Then, a saner part of me ruled the idea out.
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Old 06-04-2015, 06:39 PM   #58
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Stick it all in 100% vanguard total world. Try real hard to spend 400k per year until i die. Dead serious.


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I agree. Simplicity is elegant. See if 50% VTI 50% VXUS is cheaper.

Buy and hold and do not rebalance. Just set it and forget it! If you can do that you will be richer and richer at pretty nice pace.

To spice it up I would put 10% into VIG and 10% into SCHD.

With that kind of money you don't need Bonds or CD ladders . But you still need plan and discipline.
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Old 06-04-2015, 07:10 PM   #59
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By the way that give you about 500k of dividend growing faster then inflation.

That means more and more money every year. Looks like 5-7% annual raise.

IMO anybody with portfolio over 5 million can easily do same thing One can live nicely on 100k as well
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Old 06-04-2015, 07:14 PM   #60
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If I was that much of a gambler I'd put all on red in Las Vegas. The chance is much better than in a lottery.
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What, are you nuts?

Black, not red...
You guys may be better off sticking with stocks and bonds or this might happen to you too.

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