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You Only Live Once
Old 04-23-2015, 04:22 PM   #1
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You Only Live Once

If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.
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Old 04-23-2015, 04:33 PM   #2
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We`re sorta in that demographic and are closest to #4 spending <4% a year. But we separated out a good portion of our portfolio into a "fun money" bucket that can be spent according to #2 and #3, IE if we spend it all, it won't impact our SWR.

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Old 04-23-2015, 04:36 PM   #3
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Old 04-23-2015, 04:37 PM   #4
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Old 04-23-2015, 04:38 PM   #5
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Quote:
Originally Posted by RetireAge50 View Post
If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.

LOL probably go for number 2.

My husband died at a very early age, 53. that is my greatest regret that we didn't do so many things because we were always so worried about living to 90

Now I force myself not to do that. this year I've got 4 vacations planned with various loved ones.
cruise with my sons
Montreal jazz festival with my sister
Charleston sc to research my family history
walt Disney world for a 10 day family reunion.

Now I'm not much of a "thing" person. I'll probably make one more large purchase in my life but when I go to my casket people will definitely be saying
"man we didn't think that girl would stay still long enough to be buried"
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Old 04-23-2015, 04:46 PM   #6
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I'm more or less that demographic. 4.
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Old 04-23-2015, 04:46 PM   #7
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#3. We are spending more now because I know as we age we will naturally want to do less as I have seen with others.
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Old 04-23-2015, 04:53 PM   #8
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#4 with occasional deviation towards #3.
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Old 04-23-2015, 04:54 PM   #9
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I'd just keep spending the same amount as I normally spend right now, because that's what I am used to and I am happy at this level of spending.

I'm not sure which number that corresponds with. Maybe it's #1 unless that means spending a higher amount that doesn't change from year to year.
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Old 04-23-2015, 04:56 PM   #10
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#6 Make a money bed.
Attached Images
File Type: jpeg moneybed.jpeg (11.3 KB, 529 views)
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Old 04-23-2015, 05:00 PM   #11
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I think I would end up spending under a million on a woodland compound with acreage and after that have very low expenses, sticking with a 3% draw on the balance of the funds.
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Old 04-23-2015, 05:03 PM   #12
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Between 1 and 4. Not quite a million splurge but some, then hold it to sustainable levels.
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Old 04-23-2015, 05:03 PM   #13
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Disagree

You only twice, forget the money!

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Old 04-23-2015, 05:21 PM   #14
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I would do a downsized #2.

I wouldn't set aside 1/4 of the 4M... but I'd carve out a chunk to cover expensive bucket list items... maybe 3-400k. I think 3.6M is more than enough to live comfortably going forward. Especially since I'm not in the 4M demographic now... so this would be a big expansion of my budget. LOL.
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Old 04-23-2015, 05:26 PM   #15
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Somewhere between 2 and 3 for me. I'd likely allocate an allowance for fun money in the yearly budget.
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Old 04-23-2015, 05:34 PM   #16
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5: Another plan aka "my plan":
Invest it in equity ETFs VTI, VXUS, VWO, VIG, SCHD and spend dividend yield.

I think I would be looking at about 90-95k income growing at 7-8% a year with 0% in federal taxes.
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Old 04-23-2015, 05:54 PM   #17
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I would spend $3mil and use the remaining $1mil to buy cloud storage for an i-Brain (coming in 2055 to an Apple store near you!) so I could live forever.
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Old 04-23-2015, 07:06 PM   #18
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2.5 (mostly#3 but with a touch of #2)
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Old 04-23-2015, 07:13 PM   #19
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I would probably do a downsized version of #2 (two new vehicles, winter condo, new boat and a few other toys which would total $300k at most) and then #3.
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Old 04-23-2015, 07:31 PM   #20
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I'd go with #2 and spend a $1M on a home in California. Hum, wait I could do this now, yet I am not looking to buy. So I'd probably be boring and pick #4.
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