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Old 12-27-2016, 03:30 PM   #41
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I would invest it first, the same way I am doing now.

Then, I would see what an additional $35K/year can get me. I may go for business-class seats now.
I'd crank up the thermostat to 68° all winter.
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Old 12-27-2016, 03:30 PM   #42
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Invest same as the rest of the portfolio. Increase spending from outset of retirement.)
Mostly this, but I'd also keep some out to party with, maybe ~$200k. Spend $25k on camera gear, give $80 - $100k to younger sister who, while not living in poverty, doesn't have much extra either.

And I like W2R's idea of the $100 bill for tips at the restaurants. Our eating out would probably increase a lot. Housecleaning service, DW would go nutso buying stuff for the grandnieces and grandnephews. Lots of options to think about. I'll give it more thought when it happens.
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Old 12-27-2016, 03:34 PM   #43
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I'd crank up the thermostat to 68° all winter.
I leave the thermostat at my high-country home at 45F year-round, whether I am there or not. 68°? Nah, I like it cold. It helps me burn calories, so that I can stay lean and mean.
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Old 12-27-2016, 03:39 PM   #44
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I'm assuming this is not taxable.

First I'd put 10% into a charitable fund and direct charitable donations from that fund over time.

Next, since DW is a pastor and we don't own our home, I'd probably put around $250K into a balanced investment fund (40/60 or 50/50, give or take) to set aside for a retirement home purchase in the future.

That would leave maybe $650K. I would invest about $500K of that into stodgy, reliable dividend stocks and reinvest dividends. We are in the 15% bracket so dividends and LTCG currently have 0% tax. I would not invest in bonds in a taxable account; if I needed more bond investment I would do so in my 401Ks and IRAs, and move stock investments to taxable accounts as appropriate. We have enough earned income that we could contribute to TIRAs, DW's 403B and my TSP to stay in the 15% bracket if we needed to. in order to make sure LTCGs and dividends remained untaxed.

The other $150K I would slowly burn as play money -- for vacations and travel primarily. We'd probably eat out more and tip very generously. And I'd use some of that over the years if I needed to make moves to keep taxes lower and stay on the right side of cliffs in the tax code as need be.
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Old 12-27-2016, 03:56 PM   #45
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I interpret the question as dealing with an EXTRA million on top of whatever resources one already has.

What I want most desperately from retirement is free time, not toys or travel or luxuries. So for me, such a windfall would instantly shave the remaining years off my glide path and I would want to retire right away.

I suspect DW would lobby to accelerate a few upgrades to the Mdlerth estate. It would not surprise me if she put a big dent in that pile, shaving an extra year back onto the glide path.

But I love her!
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Old 12-27-2016, 03:57 PM   #46
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I would figure out how to donate or help others with 25% of it. I have enjoyed opportunities to gift others. For the big tipping at restaurants mentioned by others, I have done this and it is great, I enjoy the reaction (even when they have the potential to get me in trouble with DW ).

I would then allocate 20% for "fun money", and invest the remaining 55% in 40% dividend focused broad stock fund/ETF/60% total bond market fund/ETF.
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Old 12-27-2016, 04:36 PM   #47
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I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?
Well, the thread is in the stock picking and market strategy forum....

For fun stuff with a bonus $1 mil, we're flying first class, starting early and taking our dog.
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Old 12-27-2016, 04:44 PM   #48
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110k towards a used Audi R8, 90k addition to Cash, 500k to current plan which is a mix of equity funds - and then 300k to my hobby account trading leveraged ETF's in Gold and Oil - it's was working great but I stopped in order to focus on work! But I do look forward to going back to that in ER...
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Old 12-27-2016, 05:02 PM   #49
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A little apartment in Paris after setting aside a bit for business class tickets too and from.
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Old 12-27-2016, 05:42 PM   #50
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I'm getting close to this in reality as my 96 year old father is getting pretty frail and is worth ~2.5M. Yeah, I know, never count on an inheritance but . . .

Anyway, 100K will go into a savings account to pay for about 10 years of vacation upgrades. The rest will go into my current AA of 60/40.
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Old 12-27-2016, 05:53 PM   #51
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I'd crank up the thermostat to 68° all winter.
That's a good one. I would love to turn the thermostat up to 68 from time to time.
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Old 12-27-2016, 05:56 PM   #52
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Retire immediately. Roof my house. Roof my convertible. Buy a scamp (camper), a big truck and hit the road!
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Old 12-27-2016, 06:00 PM   #53
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I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?
What splurge?

I am always envious of posters who said that they only lived off their stock dividends. With the S&P currently paying 2%, I would need a whole lot more than an additional $1M to be able to maintain my current expenses with 2% WR.

The only way I would indulge is to allow myself to draw 3.5%/year off that extra $1M. Surely, I can upgrade a few things in life with that extra $35K, and that's all I need. Maybe not even that much.
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Old 12-27-2016, 06:00 PM   #54
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Ohhh you meant investment wise. With my current portfolio very heavy in stocks I would prob buy a jumbo cd or a cd ladder with 1/2 the mil and let the rest trickle into the stock market. And yes, I would pay off my house for the peace of mind.
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Old 12-27-2016, 06:01 PM   #55
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Buy an SPIA with the $1 mil. At my current age it would pay $5144/mo for life. That + SS + investment income and I'm living pretty large.

Actually I just said this for the shock factor. I might buy a much smaller SPIA, buy a nicer SUV, allocate a little for travel and invest the rest.
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Old 12-27-2016, 06:05 PM   #56
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Buy a Cessna 172, fund 529's for our grandchildren,donate some to worthy charities, share some with our 4 sons, and do silly things with the rest.
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Old 12-27-2016, 06:07 PM   #57
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I'd buy a 20 acre or so ranch in the Hill Country of Texas with a barn and horse corral and move there. Then, some day when the time is right, just give it all to my daughter. If there was any money left after the ranch purchase, I would by a new horse trailer, some tack, and a new truck.
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Old 12-27-2016, 06:20 PM   #58
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Maybe buy or rent a little hut next to a good private snorkel beach. Live happily ever after. Might do this regardless.
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Old 12-27-2016, 06:27 PM   #59
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Maybe you only need two coconut trees, and not a whole hut.



Hey look! Someone managed to do with just one coconut tree.

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Old 12-27-2016, 06:38 PM   #60
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How about this hut?



Well, that might take too much work. Maybe this one. I don't see plumbing for toilet and running water though.

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