Investing A Windfall When You're Already OK for FIRE

[swakyaby]

Quote:

Originally Posted by RxMan Be one of those people that leaves a $500 tip at a local diner or restaurant. That seems like it would be a really fun thing to do.

This reminds me of a memory quoted from a young couple shopping for an engagement ring at a jewelry store. The young man was returning to duty in Afghanistan and they wanted to quickly marry before he left. They initially admired a beautiful ring but it was beyond their finances, so they chose a much more modest ring. As they were getting ready to pay for the engagement ring, the shop owner pushed the original ring towards them. "But we already decided we can't afford that one," the young lady said. The store owner replied that the ring was paid in full by the young man who overheard their story and had said, "Put it on my tab," and quickly left.

The store owner said the benefactor was the actor Paul Walker, of the Fast & Furious movie franchise. The couple was dumbfounded. I don't know if it was a true story, but it put a warm spot in my heart.

I did received a windfall of an amount equal to 20% of my investable nest egg this year. Not quite as much as the OP, but still significant to me. I have decided to increase my cash holdings so that a bear market would have little effect on my spending for at least 5-7 years, increase my yearly spending, and increase charitable donations. Surprise donations would be fun.

[davebarnes]

100% straight into FXAIX.
No more business class. First-class.

[Oakster]

Quote:

Originally Posted by Vincenzo Corleone So, your finances are in great shape, your home is paid off, you have no other debt, etc., etc., etc. You feel confident that you can RE. Now imagine you've received a windfall that nearly doubles your net worth. Also imagine you have no interest in leaving anyone anything upon your death. I'd like to hear your opinion about how you'd invest the windfall. 100% stocks? Play it super conservative? Invest it like you've invested your money up until receiving the windfall?

I have only read the OP, and have not gone through the thread yet. I think I would invest it all, or most of my investible assets in mutual funds looking for 10% - 11% gains. If you lose half of it in a down turn, you still have more than enough to FIRE based on the post. I would still run with a 3 year CD ladder or something similar to avoid withdrawing living expenses during a down time. The more you have, the more you can just let it ride and be just fine, even in a downturn. Now I will go back and read the other responses and see how bad I will get toasted.

[jjuneau]

I would go to the Charity Navigator web site https://www.charitynavigator.org, and start searching for the best places to give.

We have been blessed with a modest amount above what we need. I am having a joyous time sharing, but I am very careful about checking out the organizations I give to. My favorites are various Christian ministries and veterans groups. The Gary Sinise Foundation, the USO, and Paws for Purple Hearts are all good.

Mercy Ships, The Salvation Army, and Samaritan's Purse do an amazing job of helping in disaster areas and caring for families and children in need all over the world. We have local groups that serve seniors, children, those recovering from abuse or addiction, and ladies/couples facing crisis pregnancies.

It is a real joy to be able to serve others even though I cannot be there in person or don't have the skills to help.

[Global Wizzo]

You could buy a Yacht or plane. Either one can totally eliminate any extra you have. Just kidding. Invest conservatively and use it to enjoy life.

[roenie64]

I would invest some the same as I usually do, donate some and then have a blast on something that I couldn't afford before- maybe an amazing vacation (or several!), buy a dream car, upgrade my home (or move to a better house). Or if you are not mentally ready to retire, use the money to open a business that you love and quick your current job. All depends on what you want to do.

[FANOFJESUS]

Quote:

Originally Posted by Vincenzo Corleone So, your finances are in great shape, your home is paid off, you have no other debt, etc., etc., etc. You feel confident that you can RE. Now imagine you've received a windfall that nearly doubles your net worth. Also imagine you have no interest in leaving anyone anything upon your death. I'd like to hear your opinion about how you'd invest the windfall. 100% stocks? Play it super conservative? Invest it like you've invested your money up until receiving the windfall?

That would be a problem for me. I only can spend so much. I might go 100% stocks or my AA. I would just leave it to my church when I pass away.

[segfault]

Hard to say until it actually happens. In theory, invest according to my existing allocations and plan on having a consummately higher standard of living.

[indiajust]

Anything above my lifetime nut is headed for donations. I would start with my current AA and make sure all is well. And then invest the rest for a rapid spend down over remaining lifespan. Might consider putting it all in a charitable trust with a planned donation glide path and the exit plan assured. That way it truly is a completely separate asset from rest of life.