What would you do if your assets grew to 8 figures?

audreyh1 said:
What would you do if (or did you do when) your assets grew to 8 figures?

Would you change how you invest?

Would you change how you spend?

Other changes you can think of?

This is a hypothetical question, BTW, in spite of some folks thinking otherwise!!!
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First I would establish a family foundation for charitable giving, seeding it with $1M - pushing me back down in the sidewalk with the other 7 figure folks. The 8 figure folks walk on an elevated surface (!!).

I would travel more, and hire more help to see to my comfort (no more taking out the garbage every Sunday night). Changing where I live would happen, when I was ready for a different style of life. Style of life also means changes in friendships, and I'm not so sure I want to give up the ones I currently have.

Investments? Yes far more conservatively - 70% bonds, 30% stocks.

- Rita
 
I'm selfish - so here's what I do.

Air travel would be business/first class. Can't justify the expense now... but if I had 8 digits (left of the decimal point) I think I'd be able to justify it.

Install the uber app on the kids phones so on days I don't feel like driving them to/from school and activities I could text them to take an uber.

Upgrade my health insurance... For budget reasons I'm on a HDHP w/HSA... I would spring for a better plan that has less OOP costs. This would take away some of my budget anxiety that we'll hit the Max OOP .... again.... (One of these years I'll have an affordable medical year.)

On a less selfish level -
- More to the charities I currently give to.

As for investing... My 60/40 asset allocation does just fine... no need to change that up.
 
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imoldernu said:
Wake up depressed.
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:LOL: I'm assuming that's because you'd be stressed about how to deal with the sudden windfall and not because your NW fell from 9 to 8 figures?

As for me, I'd travel more, flying first-class everywhere and staying in much nicer hotels without fretting over the costs. Also, I'd buy more expensive wine, probably even some $50-$100 bottles. And give more to charity and buy better gifts for my friends and relatives. I should actually be doing some of this already, given what FIRECalc tells me, but it's pretty hard to change long ingrained spending habits.
 
If my portfolio hit 8 figures I would be mad at myself because it would mean I worked too long and/or spent too little after retiring. Now I would have to increase spending significantly. I wouldn't change my investments.
 
I would hire staff.
 
My dream would be to live in the perfect climate in a nice home with a good view. Not a very large house, just big enough to accommodate occasional guests with upscale finishes on a decent sized lot. Maybe two homes - a summer mountain home and a winter beach home (e.g., I like cool weather) since it is hard to find one location with great weather year round.
 
Buy a new Corvette. Sell all the other iron.

Get a "summer away from here" second home.

Hire a full daytime caretaker/maid for DW.

Have a little plastic surgery done in certain spots to keep up my youthful appearance. :cool:

Set up some trust funds for a few needy family members.

Consult with Robbie on "blowing more dough" as needed.:D
 
Eight figures isn’t far away for us, but DW never thinks we have enough, especially since in so much of what we have the government will have it’s hand out.
 
I would invest in a gentlemen's entertainment establishment. I have always been a fan of the arts, especially dance, and this would help my philanthropic side.
 
I think, for most people it would depend on whether this happened gradually over time or suddenly, how much they had prior to this “event”. and their stage in life. I don’t think there is anything “magical” about $10,000,000. Perhaps I would ask the question a little differently. If your assets were increased by a factor of 10 immediately, what would you do differently in the context of your stage in life.

It does take a while to get comfortable with increased wealth and is much easier if it happens over many years. Just speaking hypothetically of course, but I would give a lot more away, likely through a family foundation, upgrade a couple of homes, maybe get a big boat. Probably hire a “Family CFO” to look after it all. Probably a more conservative AA.

In the end though, unless it actually happens to you, you don’t really know what you would do.
 
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I probably would not change much - though I'd stop concerning myself with health insurance!
 
Senator said:
I would invest in a gentlemen's entertainment establishment. I have always been a fan of the arts, especially dance, and this would help my philanthropic side.
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Set it up as a 501c3 so donation to help support unwed mothers on Tuesday afternoons can be written off as a charitable contribution.
 
Like others, I’d slowly go to a more conservative AA in keeping with the “when you’ve won the game, why keep playing” line of thinking. I might up our spending, but not much if at all. If I’d wanted to spend more, I wouldn’t have retired early.
 
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I would try to do things differently before it got to that point. I keep careful enough track to be ahead of this curve. I would spend more and share more.
 
I'd exchange money for time, to the limited extent that is possible.
 
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