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

[kcowan]

I know several households that have mid-8 figure staches. They invest on property. They drive high-end cars. They fly first class. They gift nice homes to their kids. They selectively use staff.

But they do not pay too much for things. Every transaction is done in isolation.

One of their problems is that, money is not a limiter, so they have infinite choices on every decision. This makes decisions harder.

 

[YVRRocketSurgery]

If all goes to plan (which it never does), combined we might hit 8 figures in 30 years in our 70's which is of course isn't the equivalent of hitting 8 figures today and at a younger age.

We'd need way less than 8 figures to do pretty much all we'd want to do in retirement.
So, investment-wise, I'd want to diversify our investments more widely maybe with an investment/recreational property (Vancouver property is so expensive), some gold, etc. while holding more cash on hand and conservative investments.
On the otherhand, I might put some money towards some interesting investments with potential.
I cannot see us buying or investing in a business like a restaurant or something like that unless it's for fun and pretty low effort.

Would you change how you spend?
Business class for longer flights would be nice to limit one of the more potentially fatiguing aspects of travel for us.
More gifting and donations of course.
I might consider buying a luxury car.

 

[gcgang]

New underwear everyday! Semper ubi, sub ubi.

 

[Totoro]

A few things:

• Move to a stand-alone dwelling. More green and quiet.
• Buy a small business in NZ (fast track residency).
• As long as I am doing what I am doing now: hire a driver for commute.
• Upgrade the car one or two notches. BMW 5 series for example.
• Hire a cleaning lady, once every three weeks.
• Fund the current business more from my own pocket.
• Set aside up to 1M for my sister to live off.
• Hire a tax lawyer.
• Stop flying economy, maybe.

That's roughly it, although I might lack imagination.

 

[traineeinvestor]

I'd remind myself that it's Sunday, think about all the lottery winners, sports stars, etc etc who made it and lost it and resolve not to do anything for at least six months.

I might think about updating my will and, if I lived somewhere that imposed estate duty, think about estate planning.

 

[imokurok]

The movie Fool’s Gold; that yacht life. (That’s assuming 10 figures could sustain it.) But, current savings and investments stay as is, just in case. My DW would be amazed, making it all the more enjoyable.
It’s fun to dream.

 

[donheff]

I expect that I would increase charitable giving and start transferring the annual max to the kids. Like the OP I am not about to hit 8 figures but we are doing well enough to have a very low withdrawal rate. I expect a major correction sometime in the next few years. After that and as I hit my late seventies I will consider doing some transfers if things go well. I would also consider sequestering a portion of the portfolio and letting the kids decide if they want to change the AA on it.

 

[Trawler]

With $10 MILLION I would declare I won the game and Game over!!! Hire a good tax lawyer and accountant and secure the income. Then figure how to spend all that income and pray that I would live to spend some of the income. Would also gift some to charity and fund some education for our grand nieces and nephews.

 

[thumbs]

I would upgrade my gym membership from the $10 a month to the premium $20 a month one. Then start dreaming of 9 figures...

 

[Koogie]

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.

See, I think I would do the opposite. I would keep the amount I already have to fund a comfortable ER (or just a tad more) and I would put all the rest to work aggressively in the market. Then, worst case scenario, I lose all the new money and keep the retirement I had already planned on.

Best case scenario ? I kick that bum Branson off his island and live happily ever after...

 

[Danmar]

See, I think I would do the opposite. I would keep the amount I already have to fund a comfortable ER (or just a tad more) and I would put all the rest to work aggressively in the market. Then, worst case scenario, I lose all the new money and keep the retirement I had already planned on.

Best case scenario ? I kick that bum Branson off his island and live happily ever after...

The old “take less risk because I don’t need to” versus “ take more risk because I can afford to” debate. The approach will depend on your risk appetite, age, any legacy objectives, personality. I can see both sides of the issue.

 

[6miths]

The old “take less risk because I don’t need to” versus “ take more risk because I can afford to” debate. The approach will depend on your risk appetite, age, any legacy objectives, personality. I can see both sides of the issue.

I'd be on the 'take more risk' side although I can't say that I see investing in the total stock market with a 60 year or longer time horizon as exactly taking more risk. With a more than adequate nest egg and four children this is what we have been doing since it became apparent that we were set and it was time to consider the bigger picture. I think Bill Bernstein's advice is good for the money that you are relying on but I feel that funds beyond that should be invested with children/legacy in mind.

 

[omni550]

New underwear everyday!

This reminds of an article I'd read years ago in the NYT. All I recall was the mention of a laundry/dry cleaner catering to the uber-wealthy in NYC who shaved the socks of his clients to remove any 'pills' and restore the socks to brand-new condition.

omni

 

[W2R]

New underwear everyday!

When I read this, I couldn't help figuring out what the yearly cost of this would be. Honestly it wouldn't be that much! I doubt I would do it, but gosh, what an incredibly cool idea.

 

[97guns]

Why would you even invest if you had an 8 figure net worth, 10 mil in a cd at .01% is $100k a year

 

[W2R]

Why would you even invest if you had an 8 figure net worth, 10 mil in a cd at .01% is $100k a year

Also if you suddenly had an 8 figure net worth, I thought you might spend a little and change your username to 98guns.

 

[omni550]

New underwear everyday! Semper ubi, sub ubi.

When I read this, I couldn't help figuring out what the yearly cost of this would be. Honestly it wouldn't be that much! I doubt I would do it, but gosh, what an incredibly cool idea.

And now you could set up Amazon to deliver them on a schedule (to avoid storing large quantities).

If you're Prime, you could get a pair delivered free every day.

omni

 

[W2R]

And now you could set up Amazon to deliver them on a schedule (to avoid storing large quantities).

If you're Prime, you could get a pair delivered free every day.

omni

Sounds great! And for less than $1K/year, too.

 

[Zathras]

Donate more and buy the occasional EV for a friend.

 

[thumbs]

Why would you even invest if you had an 8 figure net worth, 10 mil in a cd at .01% is $100k a year

I will some day retire from working, but I don't think I will ever stop investing. I am only 36, so I may retract that statement one day, but where I stand now, I hope to keep investing for my lifetime.

 

[Danmar]

I'd be on the 'take more risk' side although I can't say that I see investing in the total stock market with a 60 year or longer time horizon as exactly taking more risk. With a more than adequate nest egg and four children this is what we have been doing since it became apparent that we were set and it was time to consider the bigger picture. I think Bill Bernstein's advice is good for the money that you are relying on but I feel that funds beyond that should be invested with children/legacy in mind.

I tend to agree with you, especially if you have a legacy objective. But some people just can’t sleep at night with a lot of equity. Never been a problem for me.

 

[Danmar]

Why would you even invest if you had an 8 figure net worth, 10 mil in a cd at .01% is $100k a year

I think .01% of $10,000,000 is only $1,000 a year?

 

[Car-Guy]

Nothing

 

[RenoJay]

Why would you even invest if you had an 8 figure net worth, 10 mil in a cd at .01% is $100k a year

$100k doesn’t come close to covering it for many people, and why not invest? When you’re wealthy you can afford to ride out ups and downs.

 

[dunkelblau]

Something I'd think about: Enough Already - HumbleDollar
“WHEN YOU’VE WON THE GAME, stop playing with the money you really need.” That’s something my longtime friend and fellow author William Bernstein is fond of saying—and lately it’s been on my mind.

I'd still run it, although after another digit most of it would be outsourced.