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Old 12-27-2016, 11:12 PM   #81
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I would invest it mainly in investments like TIPS, I-bonds and CD ladders.
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Old 12-28-2016, 01:55 AM   #82
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I think it depends on whether I'd won it or earned it. If I had won it I would probably:

- Spend 50-60k doing various upgrades around the house.
- Spend 70-80k on a nice motor (Range Rover).
- Give a couple of hundred to family.
- Book a world cruise.
- Invest the rest mostly in high risk but high upside.

If i had earned it then 50:50 in bonds and equities ;-)
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Old 12-28-2016, 04:54 AM   #83
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I always said that if I won the lottery the one thing I'd get is a private jet. Go anywhere, anytime with no hassles.

$1M won't do that but it would buy into a nice fractional.
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Old 12-28-2016, 06:10 AM   #84
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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?
I'm splurging.

this is an easy one for me. Beach house. Doesn't have to be huge but no more than a block away from the beach. I would say 35% on the house itself and the rest save for upkeep and maintenance
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Old 12-28-2016, 06:14 AM   #85
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I always said that if I won the lottery the one thing I'd get is a private jet. Go anywhere, anytime with no hassles.

$1M won't do that but it would buy into a nice fractional.
Fractional jet? Ah, that would be a lot nicer than waiting at the airport terminal even if you fly first-class. But is $1M enough?

Out of curiosity, I looked into it. A smallest fractional share from NetJet is 1/16th of a small jet, which allows you up to 50 hours of flight time per year. Here are the costs:

* Acquisition Fee: $550,000
* Maintenance Fee: $115,200/year, no matter how many hours you use
* Flight Fee: $1,950/hour, or $97,500/year max for 50 hours

I don't think $1M is enough, as you would run out of money after just a few years. See: http://www.forbestravelguide.com/par...t-with-netjets.

One can go cheaper, and buy a Marquis Jet Card that lets you prepay 25 hrs of flight. Cost: $119,900 or $5K/hr roughly, but you can have multiple passengers (seat arrangement unknown). And there are additional surcharges for fuel, and insurance, etc... You have to use the card in 1 year.
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Old 12-28-2016, 09:37 AM   #86
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At 4% SWR, you'd be able to spend a little more than an extra $100/day. Doesn't sound as exciting as ONE. MILLION. DOLLARS!
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Old 12-28-2016, 10:23 AM   #87
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And if you try to live on the 2% S&P dividend, that's only another $50/day.

Still, if you save over enough days, you have enough to do something. Lemme see how many days I would need in order to do a business-class seat upgrade...
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Old 12-28-2016, 11:40 AM   #88
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Spend half on hookers and blow, $100,000 to a mix of charities, then waste the rest on half stocks and half bonds. I'd like to up my bond holdings a bit.

Sounds good!
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Old 12-28-2016, 01:02 PM   #89
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It's funny how people respond to this thread, where the OP was asking about how to invest $1M in cash in this stock/bond climate. Many just want to spend a big portion, if not all of it, instead of investing it.

Could that be due to repressed desires of the ERs?
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Old 12-28-2016, 01:06 PM   #90
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............Could that be due to repressed desires of the ERs?
Sometimes a cigar is just a cigar.
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Old 12-28-2016, 01:12 PM   #91
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It's funny how people respond to this thread, where the OP was asking about how to invest $1M in cash in this stock/bond climate. Many just want to spend a big portion, if not all of it, instead of investing it.

Could that be due to repressed desires of the ERs?
Did you see my post? I strategically invested 90% of the windfall.
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Old 12-28-2016, 01:26 PM   #92
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This could be interesting.
If you suddenly found yourself with a million of cash that was not invested in bonds or stocks, what would you do with it given the current stock/bond market.
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It's funny how people respond to this thread, where the OP was asking about how to invest $1M in cash in this stock/bond climate. Many just want to spend a big portion, if not all of it, instead of investing it.

Could that be due to repressed desires of the ERs?
If you reread the OP, he said nothing about having to invest it. His question was: "What would you do with it?".

Your mental model and mine are different.
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Old 12-28-2016, 01:32 PM   #93
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I would not do anything different with the money if I received it all in one day or piled it up from annual savings from earned income over a longer period of time.
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Old 12-28-2016, 01:42 PM   #94
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Many just want to spend a big portion, if not all of it, instead of investing it.

Could that be due to repressed desires of the ERs?
I was wondering this too. A little surprised at these repressed desires. Mostly I hear things like "I don't spend that much, but very happy and wouldn't know what to spend more on". To be fair there were quite a few who just invested it.
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Old 12-28-2016, 01:50 PM   #95
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I was wondering this too. A little surprised at these repressed desires. Mostly I hear things like "I don't spend that much, but very happy and wouldn't know what to spend more on". To be fair there were quite a few who just invested it.
My "repressed desire" was to buy a vacation home (I didn't specify where, but it could have been a Paris apartment) and travel there in style (first class). So why didn't I just fulfil that desire before ER? Because it would have taken at least a decade of work to accumulate the necessary funds, by which time I might be too burnt out to enjoy it. Another word for "repressed desires" is "choices". This was a want, not a need.
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Old 12-28-2016, 01:53 PM   #96
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My "repressed desire" was to buy a vacation home (I didn't specify where, but it could have been a Paris apartment) and travel there in style (first class). So why didn't I just fulfil that desire before ER? Because it would have taken at least a decade of work to accumulate the necessary funds, by which time I might be too burnt out to enjoy it. Another word for "repressed desires" is "choices". This was a want, not a need.
Got it. "Repressed desires" was someone else's term, perhaps not the best choice of words.
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Old 12-28-2016, 02:03 PM   #97
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I don't think it is "repressed desires" so much as "I'm fine with what I already have, so with this windfall I don't have a need to invest it all".
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Old 12-28-2016, 02:11 PM   #98
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This could be interesting.
If you suddenly found yourself with a million of cash that was not invested in bonds or stocks, what would you do with it given the current stock/bond market.
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If you reread the OP, he said nothing about having to invest it. His question was: "What would you do with it?".

Your mental model and mine are different.
I observed that he asked in the forum "Stock Picking and Market Strategy".

If he asked in the "Life after FIRE" forum, then his intention might be more about indulgences.
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Old 12-28-2016, 02:15 PM   #99
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I think I have enough invested. So, if I truly received an unexpected $1M windfall, I'd figure out how to spend it over the next 10 years. Gifting would probably figure largely into the scheme.
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Old 12-28-2016, 02:16 PM   #100
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I observed that he asked in the forum "Stock Picking and Market Strategy".

If he asked in the "Life after FIRE" forum, then his intention might be more about indulgences.
I didn't even notice what forum it was in, because I was looking at the portal view. In any case, I think stocks are overpriced right now and bonds are not looking good, so any spare cash is staying in cash and if I had a windfall tomorrow I would not be dumping it in the markets.
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