how would you invest/live on 24m? Details forthcoming

[Gumby]

Quote:

Originally Posted by robnplunder 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.

I believe the best casino bet is actually no pass with maximum allowable odds on the craps table.

[gcgang]

Quote:

Originally Posted by Gumby I believe the best casino bet is actually no pass with maximum allowable odds on the craps table.

Maybe, but as you have to "lay" odds when betting the don't, you won't double your original stake.

Usually what happens when someone goes "all in" in blackjack, is they get a doubling or splitting hand, and end up digging in their pockets for more.


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[stepford]

I don't mean to be too cynical, but in my experience when a young man starts enjoying lots of money, before long a young mate will arrive on the scene - and spending priorities will ...alter. Note that I'm not alleging that said mate will be a gold-digger. Just that having fun, and displaying the resources necessary to continue having fun, tends to pull in persons of the appropriate age/gender - and stuff just happens.

So just start enjoying life, and I guarantee a way to spend whatever you have will manifest itself.

[haha]

Quote:

Originally Posted by NW-Bound "How would you invest/live on 24m?" 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?

Ask those people who are selling all those boats in the Anacortes Marina.

Ha

[packrat44]

Quote:

Originally Posted by austinn - 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.

What is a "lightning trust" and how does it eliminate gift tax?

Can a person directly pay off the debt of the parents without giving the money directly to the parents and not have to count that toward the total lifetime exclusion?

[EastWest Gal]

I googled "lightning trust" and didn't come up with much. Does such a thing exist? A trust doesn't avoid gift tax anyway. And who is the person you call "my guy"? I'm getting skeptical of the premise of this whole thread.


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[2015maybetheyear]

Austinn,

First off, congratulations on your success. I think a lot of us are happy for you and also perhaps feel a little bit of good natured envy. To most of us 24m is unfathomable and almost seems unspendable.

However, you are in your early 30s, single with no children and although Boulder isn't the most expensive location it is certainly a lot more expensive than most of the rest of the US.

I have heard and seen how the wealthy live and I just wanted to also be one of the few so far to sound a note of caution which is that $450k/year after tax is a lot of money but doesn't go nearly as far with a family as some may think.

For instance, most of us would, of course, send our children to public school. However, what if you decide to send your children to private school? If you have 3 kids, tuition, other expenses, expected annual campaign contributions could approach 100k annually alone.

If you wanted to take your family of five to Europe for a couple weeks and fly business class instead of coach on a 10 hr + flight and stay at the Four Seasons instead of Holiday Inn that vacation alone could easily be 75k+.

Now of course most of us would certainly look at flying business and the Four Seasons as profligate spending but certainly I would imagine some would guess if you were worth $24m that's the lifestyle associated with it.

The only point of my post is to say even with $24m which is an awful lot of money there are more limits to the lifestyle than perhaps some would think. I think everyone here knows it's not private plane money but I would think some would have guessed business class is a given.

Regardless you are in a wonderful position and have a great adventure ahead of you: young, single, wealthy, and clearly thoughtful to spend time on a board like this seeking perspectives.

[haha]

People on this thread are either the nicest or the most gullible people in the word.

The whole idea of a rich young person seeking advice from an Internet board is downright crazy, and imo is very unlikely to be what is going on here.

Ha


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[RunningBum]

Eh, what's the harm? Besides, if someone really wants to troll for reactions, there are lots better ways to do it.

[ERD50]

Quote:

Originally Posted by RunningBum Quote: Quote: Originally Posted by haha People on this thread are either the nicest or the most gullible people in the word. The whole idea of a rich young person seeking advice from an Internet board is downright crazy, and imo is very unlikely to be what is going on here. Eh, what's the harm? Besides, if someone really wants to troll for reactions, there are lots better ways to do it.

Agree with RB - even if it is a troll, it still triggers some interesting thought experiments. See my post # 56.

Quote:

Originally Posted by EastWest Gal I googled "lightning trust" and didn't come up with much. Does such a thing exist? A trust doesn't avoid gift tax anyway. And who is the person you call "my guy"? I'm getting skeptical of the premise of this whole thread.

Now that one is raising some red flags. Having a "guy" that can wave away gift taxes through a "lightning trust"? I suspect someone is getting scammed - either the OP by "the guy", or us by the OP. If he starts to offer a sales pitch on how to avoid gift taxes, I think we'll have our answer.

If not, I'd suggest the OP be very, very leery of these "lightning trusts". Back when the Estate tax was much lower, I saw some plans that were being offered, and they sure sounded illegal to me, but the response was that "well, they hadn't been tested in court".... yet.

Careful!

-ERD50

[Taxman59]

I did see one place where it referred to lightening trusts as some sort of Intentionally Defective Trusts. These have up front gift tax consequences, but allow you to pay the tax on the income, effectively transferring that amount to the trust tax free. In the right place, they are great, but it wont help transfer the $24 million by much.

[chris2008]

I would recommend not to tell anybody - not friends nor family - about the total volume nor buy a home that indicates "guy with more money than he he can reasonably spend".
This includes even parents.
Austinn mentioned that they are in debt now and he wants to pay that off.
They would not be the first family to be even deeper in debt some time after such actof kindness.
OTOH their debt might just be a reaonable home mortgage.
But better be careful.

[marko]

Quote:

Originally Posted by ivinsfan Are you the same guy that wanted to hide his money details from his girlfriend?

My thoughts exactly.

While I love and respect the opinions of the members of this forum, I'd be talking to a good accountant/investment advisor and lawyer instead of pinging internet forums for advice.

[Rick_Head]

Quote:

Originally Posted by austinn ................. - No, I did not win a lottery. heh.

Why does the number 419 keep popping into my head?

[marko]

From Wikipedia:

The modern 419 scam became popular during the 1980s. There are many variants of the letters sent. One of these, sent via postal mail, was addressed to a woman's husband, and inquired about his health. It then asked what to do with profits from a $24.6 million investment

[Gumby]

Quote:

Originally Posted by haha People on this thread are either the nicest or the most gullible people in the word.

I vote for nicest.

[Jmo1969]

Buy the lunch with warren buffet. Cost 1.6mm. Take your parents. Win.


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[eta2020]

It makes me think about what would be minimal sum at which I would not care about CD ladders and Bonds and could take unlimited risk of 100% equities with 0% worries and have enough yield to live on....

Certainly 24 Million would do it, but I think at 5 Million you enter that teritory.

[NW-Bound]

Quote:

Originally Posted by eta2020 It makes me think about what would be minimal sum at which I would not care about CD ladders and Bonds and could take unlimited risk of 100% equities with 0% worries and have enough yield to live on.... Certainly 24 Million would do it, but I think at 5 Million you enter that teritory.

It still depends on your lifestyle.

I do not have 5M, but I think I can go 100% equity and live off the S&P yield of 1.95% right now, but cannot have 2 homes, travel expenses, charity donations and gifts to relatives. When I get to SS FRA, I will be in fat city again with SS added to that 1.95%.

But life's too short to be stingy. So, I am spending cap gain, if not principal right now. Me worry?

[eta2020]

Quote:

Originally Posted by NW-Bound It still depends on your lifestyle. I do not have 5M, but I think I can go 100% equity and live off the S&P yield of 1.95% right now, but cannot have 2 homes, travel expenses, charity donations and gifts to relatives. When I get to SS FRA, I will be in fat city again with SS added to that 1.95%. But life's too short to be stingy. So, I am spending cap gain, if not principal right now. Me worry?

Well to maximize all benefits one should just quit at 50....have enough money to last till 70 and then collect 3k plus in SS.

This will work out perfectly for high earners since they do not increase their SS benefits much by working after 50.

So I would say 2 Million will do in this bare bone plan where you leave this world exactly as you entered it....that is with nothing and yet live pretty comfortable life from 50 to maybe 90.