If I had a million dollars . . .

[Nords]

There is a danger in upgrading one's lifestyle excessively and losing oneself in the process.

Beyond that I think it'd be more of a burden.

I think that once there's enough money to stop worrying, then any further dollars have no value. Paradoxically I feel an onerous stewardship obligation of optimizing the use of those worthless dollars.

You would think that if you had an extra $25K and wanted a pickup truck then you should sort through Craigslist, take a candidate to a mechanic, and buy it. Done. Next project? Sell it or throw it away when the floormats get dirty, because you bought it with dollars that had no real value to begin with.

But no-- we obsess over those worthless dollars to optimize their value at picking out exactly the best truck for that price. Or maybe chipping in a little more for a "better" truck. And then we optimize the quality & lifespan of that truck even though we could just go buy another one.

And maybe the worrying never stops because there's always the specter of "But what if I'm wrong and I really NEED that money someday?"

I'd pitchfork the green waste onto the next generation, but I fret about affluenza & entitlement. I've seen that among a few shipmates in my generation and I don't want to create another one. The problem is that I don't really know how to avoid creating one-- other than to give them enough money to suffer from its effects and learn to cope with it while hopefully not becoming addicted. Sorta like "teaching" your kids not to be alcoholics by making them drink enough to puke their way through a hangover. I don't want to get into how I chose that analogy.

I'd shovel the green waste into a 529 for the college fund of the third generation, but intellectually I know that growing up with "Grandpa's saving for you to go to MIT" is not exactly the same as having scholarship skin in the game.

So for now the best options seem to be annual charitable donations and, waaaaaay down the road, perhaps endowing a college scholarship program.

I enjoy surfing at White Plains Beach on the last Wednesday morning and the first Saturday of the month. Those are the days when AccesSurf sets up their equipment and their beach-mat track down to the shorebreak for disabled surfers. Some of them are kids with mental and/or physical issues and some of them are adults in wheelchairs. I'm amazed at the variety of floating objects that are put in the water, and I'm even more impressed by the people who are using the equipment and those who are helping them. I have no desire to join the volunteer crowd (it's hard, hot, sweaty work), but I enjoy watching it take place while thinking "Hey, I helped pay for that!"

We donate to a food bank and a homeless shelter, too, but watching their programs in action doesn't exactly deliver the same sort of psychic kick.

 

[Danmar]

i hear what you are saying about not needing or wanting any more. This subject has been done here a few times. if I were to be true to form this is where I would say you aren't being creative enough, or that you aren't giving yourself enough credit for using the money wisely, or that I wouldn't have any trouble spending more. Maybe someone else will take this minority point of view this time.

 

[Andre1969]

I'm sure there comes a point when, financially, enough is enough. Personally, I don't know where that point would be for me. I'm happy with what I've got right now. But I'd be happier with $1M more. Happier still with another $1M on top of that. At some point, an extra $1M wouldn't have much meaning, but I don't know where that threshold is. Guess I'll find out when, and if, I get there!

 

[Danmar]

I'm sure there comes a point when, financially, enough is enough. Personally, I don't know where that point would be for me. I'm happy with what I've got right now. But I'd be happier with $1M more. Happier still with another $1M on top of that. At some point, an extra $1M wouldn't have much meaning, but I don't know where that threshold is. Guess I'll find out when, and if, I get there!

Sounds like a reasonable approach. I wonder though if you would actually get to that satisfied point? Depends on your personality I think. Seems like Nords is there. Probably a good place to be.

 

[packrat44]

I dunno. It's pretty scary to read about what happens to some people when they come into money. Seems like they go on a wild spending spree and blow it all on fast cars or whatever. I think that is pretty sad.

In Charlie Sheen's case exchange "fast cars" with "fast women".

 

[Alan]

If I had an extra $1M then I think I would add $900k to my LTC insurance pot and then stop adding to it. I would then have an extra $6k/year by not adding to the LTC account plus an extra $4k/year to spend on ourselves from the remaining $100k, which means we can increase our annual discretionary spending by $10k/year.

Business Class for long haul flights is high up on the list of luxury items as we get older Can't really think of much else at this time.

 

[Danmar]

@ W2R Yes I have often thought of your point re lottery winners "blowing it all" and this is indeed sad. For me the
sad part is not that they spent their money on fast cars or whatever, but that they spent too much and ran out. If they had used a 4% SWR it wouldn't matter to me what they spent it on or how much they spent. So to me it comes back to prudence. Ie if you can afford it and you enjoy whatever it is you are spending it on great. If not you are being foolish and wasteful.

 

[Bimmerbill]

Hmmm, I'd probably hide it until the divorce is over.
Then put it in the bank and continue working for a while. Maybe I would enjoy working knowing that there was no pressure and I could walk at any time.
Having that $ in the bank would probably make me even more blunt and outspoken, so I'd probably get fired!
I'll give it a try tho! Send the 1 mil now!

 

[Andre1969]

I dunno. It's pretty scary to read about what happens to some people when they come into money. Seems like they go on a wild spending spree and blow it all on fast cars or whatever. I think that is pretty sad.

In Charlie Sheen's case exchange "fast cars" with "fast women".

I think the key is that, if you ramp up your lifestyle as you become wealthier, just make sure to factor in all the extra and recurring costs, not just the purchase price.

For instance, about 2 1/2 years ago, I looked at a model home that's about a mile from my house. I have no idea what it would have sold for at that time, but it was assessed for about $1,162,000 back in 2008. At the time, no way in hell could I have afforded to even think about getting into that house (not that I'd want to, anyway). Well, for 2011, it was re-assessed for $701,000.

Also, in that timeframe, my net worth has roughly doubled. My income has gone up about 10%, and I'm due for another increase at the beginning of September, although I have no idea how much it will be.

Now, just 2 1/2 years later, if I wanted that model home, or an equivalent, I could get into it if I really wanted it bad enough. However, the property taxes on the sucker are about $18,000 per year! I'm sure utilities would be a lot more than my much more modest home. It probably has an HOA fee. And my furniture would look downright trashy in that home, so it would need to be replaced.

So, once you factor in everything, a house like that model home, which was pretentiously named the "Tara", would wipe me out. My net worth would have went with the wind!

 

[RunningBum]

Business Class for long haul flights is high up on the list of luxury items as we get older Can't really think of much else at this time.

Flying first or business class would be high on my list too. It seems so wasteful, but I hate air travel enough that I would do it.

If I was uber rich I could have my own jet or a share of NetJets, but I have a hard time justifying how big of a carbon footprint that has, unless the wealth brought so much attention that I'd really want to avoid commercial flights.

I wouldn't mind upgrading hotels either, maybe staying in suites, but I tend not to spend that much time in the room so that's not such a big deal.

Accumulating more stuff just means having to maintain it, or hiring someone to maintain it and then having to deal with them. I don't hire a house cleaner now, not because I can't afford it, but because I don't like having someone in my house.

 

[Rustward]

Somebody did a documentary called "A Reversal of Fortune" (I believe) in which the producers planted $100,000 in cash in a dumpster of a homeless person's (Ted Rodrigue) regular dumpster route. Long story short, he blew it all pretty fast (except for having some badly needed dental work done). He was interviewed and said he thought it was so much money that it would last forever.

Can't find a link to a video, but here are a couple of related links:
YouTube - ‪What happens when a Homeless person is given $100,000? from Reversal of Fortune‬‏

http://en.wikipedia.org/wiki/Reversal_of_Fortune_(2005_film)

 

[Alan]

Flying first or business class would be high on my list too. It seems so wasteful, but I hate air travel enough that I would do it.

We have lots of relatives in England and Australia and as I get older it gets harder to make those long trips. I flew Business Class enough when I was working to know how much better it is. Since we make those long haul flights less than once a year, if I felt we could afford it, it is definitely a luxury I would splash out on.

 

[Danmar]

Yes I agree business/first class is a necessary luxury. We sometimes "choke" on the price though. This is where our frequent flier points come in handy. Doing the far east next month this way. Did Italy in May. Best possible use of credit card reward points, IMHO.

 

[Moemg]

If I suddenly came into another million I would upgrade my travelling . I 'd stay longer and just go for the gusto .

 

[devans0]

" All day long, I'd diedl diddle day....

 

[traineeinvestor]

An extra million would change "maybe retiring in early 2012" to "definitely retiring in early 2012".

Some of the money would probably get spent on refurbishing our home earlier than planned and additional travel. I can't think of anything else I would want to spend the money on so I would add most of it to the general pot and, if our finances still looked good a year or two into retirement, increase what we give to charities.

 

[SteveR]

A $1MM windfall would not be a life-changer but would be welcome and used wisely. I have many pet projects (charitable) that would come to fruition with some decent funding. We would pay off the mortgage early and be done with it and help out some family members that are disabled etc. Otherwise, it would be icing on the cake....nice and sweet but not the only thing.

I guess I take a somewhat different view of "extra" $$ than some here...I would use it to do stuff I can't do now. Salting it away or giving it down a generation or two is not important to me. I would rather be around to see what good it can do rather than think about what might be after I am dead. Giving $$ to kids and grandkids for other than real health issues seems counter productive to their learning how to deal with life as it will be from now on in this country.

Yes, 1st class or Business Class would be nice on longer trips and with our health issues that would be almost a requirement. Better hotels...not so much...we don't use all they offer anyway so why waste $$ on that. We would rather spend it on staying longer and doing more of what ever.

 

[Moscyn]

I'll put 60% of it in safe investments for peace of mind. 30% would be spent on experiences with family members like a vacation together with a splash of luxury we would have begrudge ourselves. 10% would be spent on some not too expensive purchases which DH and I still do not allow ourselves like a new golf driver for me.

 

[obgyn65]

Hello Purron - Yes I considered setting up a charitable organization, but I do not have the time to run it. So instead, I pay for used RVs and my trips to Central America myself...

Ever considered setting up a charitible organization to do this?

 

[obgyn65]

Hello Gary - how can I "open it up" to others ? In this economy, I do not expect much help. So I am the one who provides the funding. What worries me is that thousands of patients in Central America will have no treatment for their infections or vitamins for their children when I cannot go there any longer. I am 46 now, and may be able to help these patients for another 10 - 15 years maximum. Only 3 people (RNs) so far have volunteered to give one week of their time per year free... for which I am grateful and which is better than nothing. Please kindly let me know if you have better ideas. Thank you.

GREAT idea, Purron. Obgyn, there's no reason you have to do this by yourself. Open it up to others and you may find you can multiply your results far beyond what you could do with another million.

 

[kaudrey]

I would definitely retire earlier. Not right now (I'm 41), but maybe at 50 instead of waiting until my MRA at 57 (being a Fed, health care bennies are a factor). I would give a chunk to charities I already support. I'd give some to my sister for her kids' college funds.

I'd do some things now that are longer term plans (finish the basement in our cabin, for one).

We would also travel more, and fly first class as well! We love to travel, and have many places on our wish list. May not change the way we travel too much, I don't need super fancy hotels, but flying first class would definitely be one adjustment I'd make.

 

[rescueme]

Hello Gary - how can I "open it up" to others ? In this economy, I do not expect much help. So I am the one who provides the funding. What worries me is that thousands of patients in Central America will have no treatment for their infections or vitamins for their children when I cannot go there any longer. I am 46 now, and may be able to help these patients for another 10 - 15 years maximum. Only 3 people (RNs) so far have volunteered to give one week of their time per year free... for which I am grateful and which is better than nothing. Please kindly let me know if you have better ideas. Thank you.

Here's a local charity (you may know the names involved) already doing these "missions", but in another part of the world:

http://andretti.com/old/index2.php?option=com_content&do_pdf=1&id=49

 

[Automatika]

" All day long, I'd diedl diddle day....

After immediately leaving my current employer I would also diedl diddle day, though probably not full time.

 

[WB52]

With a windfall, extra $1mm I would immediately jump a grade and move from the Class of 2012 to join the Class of 2011.

My planned FIRE has been a monetary target...(when I reach "my number"). $1mm would certainly push me (us with DW and DD) over the top. I don't think another $1mm would make much difference. But the difference between W*rking vs RE. Wow! Now that would be sweet.

 

[Jay_Gatsby]

Not quite sure what I would do. Probably spend a little on a few toys/trinkets I've been admiring for several months. Might stop working for a while, then again, maybe not.

Additional money, even $1MM, won't likely change an ingrained personality. If you're somewhat risk averse (like me), it won't suddenly make me take on substantial risk.