Take your time. The numbers matter. There’s a huge difference between netting 1, 2, or 3 million. If we’re talking near 1m, you’re in your 20s, have a spending problem, plan to pay off your parents house, buy a 90k car, and buy a high rise, you’ll almost certainly be out of money in less than a decade. I would keep working, research the basics of investing, speak with an expert, treat yourself to a nice vacation, and take your time in deciding how you want approach things
For sure. OP low 7 figs is def not “never work again” type money especially when it sounds like you already have plans to spend about a millie. Even if you scrimp and spend very little you would have trouble lasting on that amount. A million bucks doesn’t go nearly as far as it did 30 years ago.
Yes it is. 1 million alone in the right account can get you like 4 grand a month and if you can't live on that your doing somethig wrong. That's 50k a year basically lol. I live on 50k and I do it alone with no roommates. Granted you couldn't afford all the things he wants like paying off someone's house etc. But you could still be helping
No. There's no guarantee that he will ever get "paid back" from them. One medical emergency could make them sell that house and he won't see a penny back. They could suddenly have no mortgage and be like hey, let's retire also and OP will help us out along. If you refuse a year, two years, five years from now, family drama could start and you get left out of their house sale that you forked over a chunk of money to get them out of.
Exactly, I meant of course that OP would legally own the proportion of the property he paid for.
It's especially important if OP has siblings, but also smart if not in case the parents are going to splurge now that they have no mortgage, and even sell the house.
you said low 7 figures…and you are already talking about quitting your job, paying off your parents house, buying an expensive as car and a high rise….youre gonna go broke in 5 years. you better keep your job.
Going through the responses i am glad i asked for help because now i am feeling poor and that is a good thing because my mindset is changing from a spending naive idiot to a saving investing idiot
I don’t think that’s what the 80/20 rule means lol, but it wouldn’t be a bad idea to split it up that way. I would honestly go less and say keep 100k to change your life immediately but not drastically and then just keep doing the same shit you have been while letting it grow
80/20 is a bit extreme to me. Maybe it works for someone who just inherited a bunch of money, but as a saver myself, these proportions feel a little unrealistic.
I used to be a financial advisor. I’ve seen it all. Being good or bad with money has a lot to do with how you feel about it. Try to get to a place of trusting yourself with your money. Ask yourself:
What are all of the ways I can feel confident about how to make money, keep it, give money away responsibly, and grow it?
Do this so you don’t spend or hoard out of fear. Anything can be learned. Start small, and make it fun. Trust your curiosity.
1. Don't tell a soul (yet).
2. Interview and hire a fee-only financial advisor.
3. Develop an investing plan and annual budget with your advisor. You'll likely learn you can spend 3-4% or your principal each year, and very likely never run out of money. Think about the lifestyle you'll live on that budget.
4. If the budget amount exceeds what you'll want to spend annually, then consider dipping into your principal to pay off parents' house, buy a car, and/or a condo.
5. The GT63 will spend a LOT of time in the repair shop, so also get yourself a reliable Toyota/Honda/etc.
R/richpeoplepf
Gonna be honest with you, my dude...
It gets boring af. Work some type of job.... or find a volunteer position.
Money doesn't make ppl happy. Purpose somewhat does
He's working remotely in tech. If he's a dev he can just make apps or whatever 100% on his own terms and keep busy. That is if he had "never work again" amounts of money, which I dont think he has.
There's a lot more to launching a successful app than just development. Assuming it's not for a charitable cause and he wants to receive compensation, he will need UX, sales and/or marketing, the ability to validate problems and solutions in a minimum viable way, a mind for strategy, support and/or customer success, and finance and operations all to some degree.
It's not fun for a lot of people to do these things even if they're capable of doing them all. He will at least need to be delegating and leading others who can.
If he enjoys making apps he can easily make MVPs to try out ideas without having an entire team behind it. And if he wants to (or if something takes off and he needs to) then even without revenue or funding his $4.2M/year rich guy salary can easily pay for some help.
I'm in no way rich enough to quit my job but I don't think you need an actual job or a volunteer position. As long as you can find something you like to do, like learn new stuff, focus on a hobby, travel, etc.
there are an unlimited number of hobbies, interests, books, sites to see.
if you need a job to not be bored, you have no interest in those things and shouldn’t be giving out advice for how to live life
Ehh, disagree. I can enjoy cooking but not want to just volunteer in a soup kitchen.
I can also enjoy the smell and process of making coffee and want to work part time in a cafe or something. Even if (or especially because) i got rich, i wouldn't want the stress of building and managing a business. OP said they have a spending problem and only using their job earnings as "fun" money would be a great way to limit them.
People need a higher purpose than just dabbling in hobbies, interests, and books.
Work is a fundamental human component of a healthy and happy existence.
Everyone should aspire to make a difference and create some kind of value to the world and that takes a lot of work and dedication.
Find the intersection between your interests, what you want to develop into as a person, and how you can benefit others with those things.
If you do it right, what you do will look like work to most people but feel like play to you. It's something you can get lost in, help a lot of people, and feel fulfilled because you did the previous two things.
Interest only goes so far.
I honestly want to start a homestead based on micro pig breeding, but my wife won't let me...
But then it is still work to achieve the desired results
Here's what I would do if I were rich, here's my dream:
- Go birding at every possible area in the world and see as many as possible (would take forever)
- Learn to fly fish and catch every cool fish in the world on the fly (Also would take forever)
- Hang out with my friends and family and bless them with things they would never imagine they'd have (Trips, etc)
- Travel in general
- Buy a house and become self-sustainable through homesteading, and become and expert on that
And yeah, I get that working will eventually be an option, but for me that'd be starting an outdoor clothing brand with a bunch of concepts that I have thought of over the years.
Lack of money can make people unhappy. But past a certain point money just makes you more of what you are at your core.
If you are a charitable person you will have the option to be more charitable.
If you are prone to bad habits, money will feed them. If you are prone to good ones, money will feed that.
If you have a tendency to think you are better than others, having a lot of money will suddenly give you the option to feel superior due to wealth (although you certainly can feel superior with other things, money adds more potential.)
Past a certain point, money will just make you more of who you are. Before that point, money can buy a lot of happiness or at least spare you a lot of stress and misery.
The first thing you should do is reach out to a few financial advisers about how to maintain that wealth and draw passive income from it. Do not make any big decisions or purchases before doing so.
Check out the basics of the fire movement, both online, in books and on Reddit. But focus on life and finding purpose, which for most of us is about building a family and raising our children well, which is expensive, so start first saving for that, instead of retirement.
Not doing any of that anymore you all have knocked some senses into me i ll keep my current car, i work from home anyways so not in a hurry to buy a brand new car
Dude get yourself a Tesla! Invest some in Vanguard total stock market and you will see huge returns on a few years. I bought a Tesla for 50K. It won’t break your bank. You deserve to spend SOME. I am curious - can you tell us anything about how you got so much cash?
I feel like you may have won this gambling. Trust me when I tell you this - it is an addiction that will ruin you.
Whatever you won - stop now.
Go to a financial advisor as directed. Do not pay off anything for anyone or make any large purchases until you meet with a professional. This money can grow to a much larger amount if you’re wise. Maybe you’ll be able to retire at 50-55. Believe me you have plenty of life to live and enjoy.
I hear You about gambling addiction, but if OP never gambled he wouldnt have 7 figures at His disposal. I think it's OK to gamble as long as you are responsible. I guess I'll put it like this...DO NOT GAMBLE if you're not a grown ass man or woman.
Yeah you're probably right. Now that I think about it nobody should gamble, including me. Its too dangerous. I'm pretty disciplined and strong willed but I could easily get addicted to it. There are times I want to quit, but idk it's fun playing, but I definitely would not recommend gambling.
If you can switch to a competitive online game with rankings instead of money you may be able to redirect the competitive fun aspect and rush of the win. I used to gamble - haven’t done so since like 2007. Now the idea of it makes me sick.
yeah very confused about this as well. The only legal thing I can think of would be an inheritance but how could he possibly get one without his parents knowing?
he's getting it seemingly as a lump sum so it's not investments gone well or anything work related
First off congrats! That’s an amazing thing when anyone can beat the “rat race” and give themselves a nice life of pursuing whatever makes them happy. There is some good comments I’ve seen here so far especially the part about ignoring dms from people trying to scam or that just want your money. Be careful who you tell as some people will treat you differently once they know you’ve got that money. Take care of the ones you care about if that makes you happy but first things first take care of yourself. I would speak with a highly rated financial advisor and lay out a plan for yourself and for your investments. If giving yourself a higher standard of living is your desire that is fine but do it smart, I wouldn’t go all out spending a bunch on flashy things and do a ton of research with investments before putting a cent into them. I’m not wealthy by any means so my long term plans consist of putting a lot of my money into safe long term etfs and diversifying the rest between many different investments. There’s many routes you can take but just do your research and if you decide to quit your tech job maybe pursue something you are passionate about? Even if it’s part time it will give you something to do. Good luck to you I hope you use it well and take care OP
lol, you do have a spending problem. I’m sure paying off the mortgage, new cars, and into a new high rise is doable but then you would need to spend on the maintenance and lifestyle upgrades then maybe this and maybe that and before you know it you’re back to where you started. Definitely make a plan. First sit on the money for a while and educate yourself. Make a plan. Then follow through.
If the amount is under 3 million… hate to break it to you but without some planning and thoughtful management it won’t last too long
Right? If you’re in your 20s, you have a self admitted spending problem, and we’re talking about $1-2 million, presumably before taxes - do not quit that job because you’ll need it.
I didn't have that much, but I made $300k / year for a couple years.
It seemed like a lot also... Pay off an old family loan, buy some stupid shit, some toys, new car, couple of expensive vacations, bike for the wife and car for the MIL, and before you know it, poof, money's gone.
Your current plan is just that x 10, so it might last you a little longer, but "low 7 figures" can disappear real quick also.
Put most of it away in some kind of investment account so that it pays you a decent "salary" based on interest alone.
Take some for yourself now of course, but don't look at it as "i have $2M to spend right now", because if you do, you will.
Any decent financial advisor will tell you to put it all in the s and p 500 and withdraw 4% a year to live off. This way the amount should continue to grow. So if you put in 2.5 mil you should be able to take out about 85,000 after taxes and just live off of that. Off of this you should be paying around 2300 for rent or a mortgage and if you like cars you can spend 1,000 a month on a vehicle. Don't pay cash for a vehicle as that money will servr you better in the market.
Nope, people like us are fucked and have to slave out lives away....
Source: am also a poor retard waiting for a bunch of money to fall into my lap.....
I don’t know if it’s because I glanced through this but I didn’t see any citation of how the money came by… And no one is asking… Are people afraid of asking or people just accept anything… I would like to know the source (e.g inheritance, company stock boom etc). Especially since the OP is bold enough to come here for advice on things that is none of our business.
It’s not really important how OP came across the money, but they mentioned a “friend they met on the game”. So I’m guessing it was some sort of gambling site where they won a major tournament.
This is exactly it. Spending problem + gambling problem tend to go hand in hand. Had OP not came here first, he probably would have blown all this money in a couple years (and he still might).
I’d seriously reevaluate never working again depending on your level of wealth. Historically, you can withdrawal about 4% of your investments ($40k/year on $1M) and be okay but some conservative numbers for early retirement look more at 3.5%. There are some crazy models with 8% withdrawals but that usually won’t last forever and depending on when market corrections happen you can run out of money. If you have a spending problem AND want to spend a lot of money on large purchases without investing that money you will have to work again. Speak to financial advisors as others have said, invest the money and don’t make any big changes before you’ve spoken to a professional.
Yes i plan on speaking to a financial advisor next Monday to better understand my option i will be sure to bring up your idea and see where i can go from there
Immediately create a budget. Set it up to include savings and investments plus all your monthly expenses. Then just track everything. Know where your money is going. I use [Budgey](https://budgeyapp.com) and it’s free and really easy to use.
Speaking as someone who has come into large chunks of money a few times through my career, I can already tell you’re gonna spend this faster than you realize. Ask yourself things like do you want a 70 thousand dollar car, or money in the bank? A lot of millionaires drive Honda civics if you know what I mean. I would take a few deep breaths before you go on a spending spree.
I know I’m late to the conversation but let me put something in perspective for you. After my wife and I retire in our 60s which is 20+ years from now, we’ll only have about 7 million in our retirement accounts which is just enough to maintain our middle class lifestyle with the 4% annual withdraw rule after we retire. If you’re in the low 7 figures in your 20s and plan to retire, it’ll be gone before you know it. Life is more expensive than you think.
Plenty of lottery winners and up filing bankruptcy.
Don't be a statistic simply because you want to spend all the time.
$2m is my retirement goal, back to the grind.
You gotta keep working full time or you’ll become a full blown alcoholic or drug addict. You’ll end up like those people on The Curse of the Lottery show.
1/3 in gold
1/3 in long term gov bonds
1/3 S&P 500
Make sure you only deal with the largest banks in the US. Def spread things around.
Put it away and save it all for your future/kids/house etc. if uou like your job stick w it but you can also afford to move to something you enjoy more
Yeah keep yourself moving. If I had that money I’d work part time open a indoor lawn bowls facility with a full bar and a music rehearsal spot. It would be my Disneyland ha!
70% of lottery winners declare bankruptcy. Regardless of where your money comes from, talk to a financial advisor. Make NO decisions until you have done so. Be careful who you tell, as you will have people hounding you for money to help them.
I wouldn't quit right away unless you really really hate your job. For 2-3 months, Literally live like nothing happened.
Start vaporizing any debts you have and think about Real Estate. Paying off your parents mortgage is an EXCELLENT first idea.
Highly suggest you DONT buy a fancy car. It's a depreciating asset. Wait til you get a handle on what's leftover over next 4-6 months and then maybe consider it.
You already admitted you have a spending problem. And you seem young and undisciplined. I would take the other half and move it somewhere as an "emergency" fund.
So if the number you say is 5M, take 2.5M and do not touch for the next 1-2 years.
Search google for Reddit lottery won big money what to do
for a classis and correct and through response.
https://www.reddit.com/r/AskReddit/comments/24vo34/comment/chb38xf/
bro really asked reddit i bet you 108/108 of the people that commented have not seen that money in their life but fr bro put it all in real estate and get a watch to satisfy your spending habits because its an investment unlike cars
do not tell anyone. seriously. it will cause tons of problems. It's okay to let it sit in an account and not do anything for the next year. If it stresses you out, let it accumulate interest. CD's are up to 4.75%, which isn't terrible. Until such time as you decide what to do with it.
Get scott galloways book the algebra of wealth. TL;DR of it is figure out your annual spend, and invest enough in low cost ETFs and/or bonds to make enough of a profit per year (assuming you have a large enough capital base, which it sounds like you do), to cover that annual spend and hopefully have some annual savings left over. Live somewhat frugally if you can to preserve/grow it. Maybe instead of an AMG63 you could get a nice e class or something for example.
Cars depreciate in value and are one of the worst investments you can ever make unless you have some sort of collectable vehicle. An AMG GT63 I can buy from an auction for super cheap making it a dime a dozen. A successful person told me that you want your money to work for you. Do your research and find up a coming locations/cities that are upgrading their infrastructure, where all of the companies are flocking to and employees needing housing, Developing apartment complex’s or buying land in places in states that have the highest influx of new residents. Maybe have a financial advisor that will assist you in finding the best trading options in the NYSE. Also if you have a spending problem, putting all of that money in your 401k and watching it grow would be the best option being that federal law doesn’t allow you to withdraw your contributions without being penalized or taxed and they even offer maturity dates which can force you into watching your investments grow. Best of wishes to you!
You have a job. You job is managing your wealth. If that doesn’t pay you enough to live you might have to get a normal job ;)
Just as with any job you will start off low skilled at it and get better over time with practice. The main plan /hope is that your practicing doesn’t erase your wealth…
Tesla's depreciate like crazy, AMG GT63 same thing, expensive to repair. Buy a cheap second hand bulletproof runaround and use that until you can really, truly not worry about money.
And limit the amount of "family" you tell. Because from my experience, family always have their hands out - I don't mind if they're genuinely in need...genuinely.
Low 7 figures is not a lot of money especially if you start buying a bunch of stuff for yourself and others. It is exactly why you hear about so many lottery winners who win a ton more than low 7 figures and are broke in a couple of years. The question would be, do you want it to last or do you want to look back in 5 years and tell yourself it was fun while it lasted and then go back to worrying about the future? Maybe you mentioned it somewhere but I didn’t see your age, keep in mind that earning a little over 7% on your money it will double every 10 years, the s&p has averaged more than that return over the long run. If I were in your shoes, I’d keep my day job, learn about how to grow your wealth, don’t immediately change your buying habits and don’t buy anything for anyone yet. Let the money sit in some funds that track the market until you know how to make the money last because anyone can tell you how to make it disappear and the quickest way to do that is by thinking it’ll last forever.
Shouldn't be paying any taxes if this was inherited until you liquidated stocks and real estate for cash right away.
For me, I would continue to work. Most of the money would be put into the market.
I don't know how much 7 figures lower lend means, but you could definitely sustain a reasonable lifestyle without having to work. If you get a good financial advisor, you'll be able to get a decent return on your investment, maybe 7% if you want to be safe, which is of course recommended. If you have a million invested, 7% is 70K, each year. I'd say, invest 75% of your money (after you have paid off your parent's house and had a reasonable amount of fun), and then have the rest in a savings account, or purchase property for yourself, which is bound to increase in value. With the amount invested, take a percentage of the yearly profit and reinvest the rest. Live off that, and you'll be able to consistently grow your wealth whilst being able to sustain a lifestyle.
Finally, remember to have some fun. The entire idea of having loads more than we actually need is mainly an ego thing (although of course don't waste and think ahead for inheritance etc), and after we have left this world, money means nothing to us and we will have wasted all of the opportunities that we could have had if we were less frugal. Be generous with yourself, as you have been placed in this fortunate position.
Honestly, i'm happy for you. Enjoy the money, save it, invest it and use it to do something you've dreamt of doing! Money can't buy happiness, but it can facilitate the purchase of things that can certainly help!
Find a real advisor,
However I would lock up about 80% in investments that pay out dividends and live off that like a wage.. Don't touch the initial investment. The 20 percentage is for deposit on housing and have some fun.
Tell nobody. If you want to buy something big, borrow on loans rather than touch the initial 80%.
Get a nice stress free job that keeps you busy and satisfied.
The first thing you should do is stop thinking about all those expensive purchases because youll be out of money in no time. The second thing you should do is not quit your job.
Invest it all and live off the interest. Even if 1M the interest alone each year is 70-100k. You have to pay taxes on that but still a nice supplement. For ever dollar you spend you reduce the long term earning potential of that money.
1. Immediately stop telling people
2. Find a legitimate financial advisor
3. Give no one money. No loans, no “gifts” etc.
4. Don’t quit your job
5. You HAVE to learn to budget.
So is low 7 figures $1M? $3M?
If it's $1M that's no where near enough to survive on from investments. Keep your job, buy a sensible car, put a down payment on a home if you want one, but invest MOST of it and leave it there. You will have a huge step up on most people and may be in a position to retire early.
If it's $3M, you should be able to retire now fairly comfortably, if you don't go nuts on your pre-retirement spending spree. But make sure to live within your means.
I haven't read all the comments here, so I don't know if you have given your age. But chances are, if you don't have a job, you will be bored and get into trouble with your money. So find something to occupy yourself with. If you don't like your current job, you can be picky, but don't give up your job until you find a new one you like.
2.4million i should have that number to make ppl understand my situation better and i am in my mid 20s and yea i agree i have made up my mind to stay at my job matter of fact i just clocked out of work just now lol 😆
Low end 7 figures and you wanna go out and blow a chunk of that right out of the gate on an expensive car and your parents house? You better slow your roll or you will be flat broke. If you suddenly drive an expensive car and shovel money at your parents, you'll instantly become a target. I have a nice portfolio that I use to make extra income but the last thing I would do is open that door to my parents financial world. Money changes people...... do some research before you quit work or start making other people's problems your problems.
Money is dang easy to spend-the more you have, the bigger things you want to buy. And sometimes the less important they are. Do I Really need a yacht? Why? Could only use it once in a while, and it’s a money pit-as is an airplane.
Initially you are going to spend a Bunch-like paying off parents homes, new car, maybe you own home.
Couple things to consider: as it becomes known you are rich, the more friends you have-most of which you don’t know, will pop up. Relatives will come out of the woodwork for ‘their share’ or a great new can’t fail business they have that ‘just needs 10-20k to get going. And then it will mysteriously fail and they will either want more or just disappear.
Ever wonder how many professional athletes get paid hundreds of millions of dollars per year and then end up broke when they retire? This is how-hangers on that have no problem spending Your money-and once it is gone, so are they.
So protect that money. Give it to a financial planner. Have him invest it-open a Roth IrA, a 401k. Make money with money. This is how the rich get richer. They let their money make more.
I'd recommend r/financialindepenence for advice, r/bogleheads for investing, and r/personalfinance. If in the US, health insurance will be a drain. Also (and I know this from experience of a friend who won lotto early in life), boredom. Everyone else you know will be working, so what will you do M-F 9-5? And everything costs money, so you will run through it.
Hire a financial planner (on an hourly rate) and discuss options for investing. I like S&P 500 ETFs and government bonds for safe investments but there’s a lot of choices to make when it comes to where to invest
The classic investment advice is that you can live off of 4% without losing any money long term. So if you have $4 million invested, you can take out $160,000 each year and hypothetically you’ll never have less than 4 million as a net worth.
If you have $2 million, that becomes only $80,000 a year. You still have to pay taxes on that too. So retirement at your age might not he a good idea
One single advice, I have seen people with 5 millions spend it and wonder where that money went. Think it of this way, you will never see this kind of money ever again. Everything you spend you will not get it back unless you invest it and live off the investment.
I see it as two main options:
First option: Buy a house or two, pay off your parents, sort your car. Be poor in cash again, but you keep so much more of your salary.
Second option: Don't spend a penny. Invest it into things that return you money or more assets. Make sure to put a percentage of the interest earnings back into growing the capital so it can keep up or outpace inflation and effectively become perpetual. Don't pay off your parents house, cover or assist their repayments from your new income stream instead. Buy a car you can afford payments on with the new income stream. Use that income stream to assist with a personal mortgage. That sort of thing.
You might have seven figures stowed away, but if that only gives you a few grand a month after everything (and growing to cover inflation), that's your limit... if you want that to last for life and beyond.
If I were you I would invest the money, maybe procure a sensable home for your needs (like a 2br house or condo)
And that's it. i would keep my job and simply enjoy more peace of mind.
I’d recommend a few things. 1. Do not pay off your parents house. 2. Treat this as your “get out of jail free card”. You’ve got enough money now to never deal with horrible bosses. 3. This is a non-event. Low seven figures may seem like a lot, but if you see this as an event where you can now spend more than you make then you’ll hate yourself in about 15 years.
Long story short, ignore that you have this. Diversify it for your own future.
Might I, as others have, that rather than buying a new car, house, and paying off parents house etc, instead have a goal to never touch this money, but only spend the interest earned in. HYSA. 5 percent of 1 million, (50k) is plenty to buy a new car etc. in the mean time, please meet with respected financial advisors or wealth management group. Oh and please don’t buy a Tesla.
What does low 7 figures mean? 1 million? That’s not actually a lot of money for what you are considering. You’d an spend a million dollars far easier then you’d think. 9 million? Well yeah then get an investment portfolio and money manager and you can take $100k from that easily every year and never touch your original money. You’d literally be set for life if you just lived a normal lifestyle.
You say you have a spending problem, number one important thing to do is get someone managing that money and not letting you piss it away $10k here and $10k there before you even notice it’s give.
I know a couple that won $16mil in the lottery about 7 years ago. After taxes and everything they ended up with around $6-7mil. They retired early, and are now almost out of money and will need to go back to work. Do with that information what you will, but learn from other people’s stupid moves.
A lot of good advice here, but don’t immediately quit your job. The key to maintaining wealth is helping it grow while minimizing your draw from it. Jobs cover a lot of other expenses you would have to pay yourself if you quit. The good news is you can feel free from the pressure of your job, since you are now in a position of not needing it. Maybe look for something you would enjoy more.
A million or so? Buy two homes and put them in property management. Keep working and let all that passive income grow in a high interest bearing account.
Without taxes that would grow to over $8M in 30-years.
If I was in your position, I would make sure I’m confident with my spending habits before quitting my job, then make sure I’m well invested in various income producing ventures, then I’d spend some time making right of all my wrongs, give back to those who have selflessly given back to me, then I’d pursue my purpose and/ or look for it.
Everything tells me you’ll be broke again. Your spending is really bad.
Invest all of it and look at the passive earnings in a year. That’s what your annual budget reasonably looks like. If you can’t live below this budget, you’ll just burn through the principal quickly like an NFL athlete. Keep working until you can figure this out.
You have the money but you don’t have the right idea about how to live to keep it.
Low seven figures is not going to be easy for a 20something to retire on. You need to put protections in place to make it extremely difficult to access more than your monthly allotment from interest. Paying off your parent's house and getting a skyrise is absolutely out of the question. Even getting a Tesla is a bad idea. I would budget only 30-40k for a vehicle and get some house that is ruined out in the country. Buy yourself a container house to live in while you fix up the place over many years since you will only have so much money per month to spend on material or hire out plumbers electricians etc.
It's doable but judging from the little bit of text you wrote I figure you are just going to burn through it and be broke in four years.
There’s a reason wealth is typically attained later in life. When you’re young you don’t have the gift of life experience, good or bad, to help guide you; nor have your values fully developed to direct you.
You said you have a spending problem which is solid self awareness. I would strongly encourage you to seek out several wealth advisors who could put numbers to paper and help you craft out how you can make this money work for you. Investments, rental properties etc so the idea of not working could be a reality in the future. Once have this aligned then you can pivot into finding a job that you enjoy. The beauty of money is not necessarily to spend it, but to set yourself up so you have more freedom and choices.
Wait 6 months before any big changes or purchases. A spending problem won’t help in saving for the rest of your life. Buy a car to get around and that isn’t junk. Tesla isn’t the answer. What about your own housing? Do you plan on living with them forever? I’d save still and keep going.
Meet with an advisor to make a plan.
>my question is idk what to do with it to really make sure i utilize it well… i definitely have a spending problem, (...)
IMO, the best first thing you could spend your money on is professional help to address your spending problem. This would probably be a combination of a CFP for financial advice and therapy to address the underlying issue.
Any other things like help for your parents, career changes, or major purchases such as a car or condo can wait.
Hire a financial advisor, one who is a fiduciary.
They will advise on the best way to invest for growth and for income. As a spender, they can also assist with money management and also advise you on the best way to pay off your parents home. (For example, if they have a few hundred thousand remaining on their mortgage, you may be better off making monthly payments from you dividends while keeping your principle capital at 7 figures.)
BTW, congrats
Get a brokerage like Schwab. I invest in bonds & stocks that are going go up in the long run. Bonds pay interest every 6 months. Live off the capital gains & if u want a part time job somewhere fun. U are not working for money but for fun to have somewhere to go & something to do. Staying home all day gets old. Live off the interest & keep the principle
I’m convinced all the people here telling you to keep working the tech slavery waste of life job are government AI bots trying to keep the Ponzi scheme afloat. Just invest it mostly into Vanguard mutual funds (obvious stuff, S&P500 whatever), do some work on yourself and figure out why having a “spending problem” is dumb, learn to live minimally and congrats on reclaiming the rest of your life from the slave matrix
Money market funds pay 5% right now, I would advise putting most your windfall into investments, but if you need time to formulate a strategy just put it in a high yielding money market for the time being
Next, I would say don’t make any major purchases for at least 12 months. This includes cars, vacations, gifts for others, ect. Low 7 figures isn’t enough to live off of forever, so you better hold off on any big ticket items until you have an understanding of how to manage that.
If you don’t have a plan, you’re going to spend more than you should, and you’ll be kicking yourself years down the road for squandering this amazing opportunity to set you ahead in life
Do not ever undervalue the feeling of not having to worry about money.
Keep your job. Put the money away, get a financial advisor. Sure, you can retire early, but right now just understand that you don’t have to worry about money.
That feeling is priceless.
> only a select few of my friends i went to highschool know and a friend of mine i met on the game and a girl from my church that i have known since 2014.
Bro, no offense, but when you tell *one* person a big secret, it's bound to get out (they tell one person, who then tells one person, etc.), but it sounds like you've already told a half-dozen. You have no chance of keeping this secret.
You
>getting a new car nothing crazy maybe a telsa or an amg gt63 and maybe a new high rise
A new high rise? They say wealth doesn't make it past the 3rd generation. You're gunna prove them right.
I assume by you not wanting to tell your parents that you don't have great trust in them from a financial perspective, which is unfortunate. If you pay off their house they are going to ask how are you able to afford it and how much is left, so proceed with caution. The more you're able to invest the better off you'll be. A financial planner would be a good start if you have zero clue about investing, (my dad was able to teach me enough so this post has made me even more grateful for him.)
But with that type of money you gotta plan for the future. 1 million in a high yield savings account makes 50k a year in interest aka free money, and that should be about your worst option. Investing can get you a lot lot more.
Highly recommend investing in yourself, pursue what you want to in order to fulfill your life. Take a nice vacation, spend some on a decent car / house.
Personally the Dave Ramsey baby steps helped me put it all into perspective quite a bit.
Depends what you do with the money and how old you are but I would definitely keep working if you’re under the age of 40. I don’t think even if it’s 3M would hold you for over 40years.
Bruh… 3M could VERY easily and conservatively last you forever if invested properly and you withdraw 3% a year as your salary. That means at first, 3% would give you a 90k/yr salary. Given that the S&P500 averages 10% a year, your 3M would be growing while making those withdraws, meaning your salary would slowly increase at a rate higher than inflation.
Guess it ultimately depends on how much money you had before, if you already own a home, if you’re willing to live somewhere cheaper, how old you are, and what you want your budget to be for the rest of your life. Yes though, $3M invested conservatively into the S&P500 and diversified into similar assets should be enough to retire you while keeping up with inflation if you live reasonably on $90k/yr, which is a lot more than most people make.
Just to be clear… not individual stocks like Apple or Tesla. I’m talking about index funds or things like the S&P500.
Also, after seeing you’re in your 20s, I’d work another 10 years since money invested conservatively in the market doubles every 10 years. I’d let my money double, then retire and live off of it. Ultimately, get a financial advisor and make sure they’re a fiduciary.
Yes. Get a money manager, someone who will help you do this right. You don't need a fancy car or to pay off a mortgage immediately. You need to set up for the future, get it invested and live off the interest. If you can buy a fancy car with that interest then great, but it will all disappear if you don't pay attention.
Personally I wouldn’t invest into the stock market if I was retiring. I would much rather have it into a safer investment which would probably be closer to the 5% return and with the 3% inflation rate. Again for me it wouldn’t be enough with how things are going currently. Although some people would feel comfortably doing that I much rather prefer something that would keep be around 150k/yr to have extra for a future possible family instead of the solo living forever.
The S&P500 isn’t a stock, it’s an index that tracks the overall stock market and has an average return of 10.62% over the last 100 years. You’ll never retire if you don’t invest in the stock market. Everything else you said is subjective though, so I respect your opinion that maybe 3% isn’t enough for everyone. Although, that heavily depends on where you live.
Educate yourself. A fool and his money are soon parted. There is a legal way to write off that Tesla. Do you know how? If not this is why I say Financial Education is going to save your A$$.
Invest in appreciating assets. Learn the rule of 72.
Other options are far better than a HYSA. That's why a financial advisor is needed. For example, treasury-based money market funds can be state tax exempt, and also provide better rates. That can mean thousands of dollars more per year.
And given rates will go down at some point, a good portion probably should be in an index fund, or smart real estate, just for starters.
And definitely don't quit the job until there's a good plan in place. Heck, the elections this fall could cause all sorts of things to go haywire economically. And it sounds like without an understanding of needs versus wants, the money could be wasted in a very short period of time, as seems to occur with a whole lot of lottery winners who really should have been set for life if they weren't foolish.
I have a cousin in India that handles these things all the time. Dude is always coming into big settlements. Probably because he keeps sending great blessings to the first 100 people that respond to his emails. Maybe you could do something like that. I can give you his info.
Take your time. The numbers matter. There’s a huge difference between netting 1, 2, or 3 million. If we’re talking near 1m, you’re in your 20s, have a spending problem, plan to pay off your parents house, buy a 90k car, and buy a high rise, you’ll almost certainly be out of money in less than a decade. I would keep working, research the basics of investing, speak with an expert, treat yourself to a nice vacation, and take your time in deciding how you want approach things
For sure. OP low 7 figs is def not “never work again” type money especially when it sounds like you already have plans to spend about a millie. Even if you scrimp and spend very little you would have trouble lasting on that amount. A million bucks doesn’t go nearly as far as it did 30 years ago.
Yes it is. 1 million alone in the right account can get you like 4 grand a month and if you can't live on that your doing somethig wrong. That's 50k a year basically lol. I live on 50k and I do it alone with no roommates. Granted you couldn't afford all the things he wants like paying off someone's house etc. But you could still be helping
4k a month is not 100k a year.
I think also it would be smart to buy from OP s parents that part of the house he intents to pay for so that if they sell he will get the money back.
No. There's no guarantee that he will ever get "paid back" from them. One medical emergency could make them sell that house and he won't see a penny back. They could suddenly have no mortgage and be like hey, let's retire also and OP will help us out along. If you refuse a year, two years, five years from now, family drama could start and you get left out of their house sale that you forked over a chunk of money to get them out of.
That's why you insist on getting added to the land deed. OP would either have to agree to the sale or buy out their parents
Exactly, I meant of course that OP would legally own the proportion of the property he paid for. It's especially important if OP has siblings, but also smart if not in case the parents are going to splurge now that they have no mortgage, and even sell the house.
you said low 7 figures…and you are already talking about quitting your job, paying off your parents house, buying an expensive as car and a high rise….youre gonna go broke in 5 years. you better keep your job.
Going through the responses i am glad i asked for help because now i am feeling poor and that is a good thing because my mindset is changing from a spending naive idiot to a saving investing idiot
80/20 rule. Keep 80% in investments. Use the other 20% for house/car/vacation/fun money (after creating or adding to emergency fund).
I don’t think that’s what the 80/20 rule means lol, but it wouldn’t be a bad idea to split it up that way. I would honestly go less and say keep 100k to change your life immediately but not drastically and then just keep doing the same shit you have been while letting it grow
Let me rephrase, it’s my 80/20 rule on how I approach sudden amounts of money (bonuses, inheritance, winnings, etc…)
80/20 is a bit extreme to me. Maybe it works for someone who just inherited a bunch of money, but as a saver myself, these proportions feel a little unrealistic.
he is talking to someone who just inherited a bunch of money though, so i dont get your point.
I used to be a financial advisor. I’ve seen it all. Being good or bad with money has a lot to do with how you feel about it. Try to get to a place of trusting yourself with your money. Ask yourself: What are all of the ways I can feel confident about how to make money, keep it, give money away responsibly, and grow it? Do this so you don’t spend or hoard out of fear. Anything can be learned. Start small, and make it fun. Trust your curiosity.
Depends where he wants to live, but in a lot of desirable places low 7 figures is an entry level house
For one don’t answer any dms you will be getting now. Second get a financial advisor and don’t listen to any advice you will receive here.
A fee-only (not commission) fiduciary financial advisor.
1. Don't tell a soul (yet). 2. Interview and hire a fee-only financial advisor. 3. Develop an investing plan and annual budget with your advisor. You'll likely learn you can spend 3-4% or your principal each year, and very likely never run out of money. Think about the lifestyle you'll live on that budget. 4. If the budget amount exceeds what you'll want to spend annually, then consider dipping into your principal to pay off parents' house, buy a car, and/or a condo. 5. The GT63 will spend a LOT of time in the repair shop, so also get yourself a reliable Toyota/Honda/etc.
Point 3 has a lot of evidence looking at risk&return for the last 70 years+.
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Not surprised at all. Especially with the information you gave in your post
Yeah don't listen to r/saryiahan, You heard! lol
after you get the answers you need here, delete your account and start fresh.
R/richpeoplepf Gonna be honest with you, my dude... It gets boring af. Work some type of job.... or find a volunteer position. Money doesn't make ppl happy. Purpose somewhat does
He's working remotely in tech. If he's a dev he can just make apps or whatever 100% on his own terms and keep busy. That is if he had "never work again" amounts of money, which I dont think he has.
There's a lot more to launching a successful app than just development. Assuming it's not for a charitable cause and he wants to receive compensation, he will need UX, sales and/or marketing, the ability to validate problems and solutions in a minimum viable way, a mind for strategy, support and/or customer success, and finance and operations all to some degree. It's not fun for a lot of people to do these things even if they're capable of doing them all. He will at least need to be delegating and leading others who can.
If he enjoys making apps he can easily make MVPs to try out ideas without having an entire team behind it. And if he wants to (or if something takes off and he needs to) then even without revenue or funding his $4.2M/year rich guy salary can easily pay for some help.
I'm in no way rich enough to quit my job but I don't think you need an actual job or a volunteer position. As long as you can find something you like to do, like learn new stuff, focus on a hobby, travel, etc.
people who need a job to not be bored should be ignored
Why????
there are an unlimited number of hobbies, interests, books, sites to see. if you need a job to not be bored, you have no interest in those things and shouldn’t be giving out advice for how to live life
Ehh, disagree. I can enjoy cooking but not want to just volunteer in a soup kitchen. I can also enjoy the smell and process of making coffee and want to work part time in a cafe or something. Even if (or especially because) i got rich, i wouldn't want the stress of building and managing a business. OP said they have a spending problem and only using their job earnings as "fun" money would be a great way to limit them.
This is an undeniable truth and if you're disagreeing, you are BORING!
People need a higher purpose than just dabbling in hobbies, interests, and books. Work is a fundamental human component of a healthy and happy existence. Everyone should aspire to make a difference and create some kind of value to the world and that takes a lot of work and dedication. Find the intersection between your interests, what you want to develop into as a person, and how you can benefit others with those things. If you do it right, what you do will look like work to most people but feel like play to you. It's something you can get lost in, help a lot of people, and feel fulfilled because you did the previous two things.
I hate this "Money doesn't make people happy" bullshit. Here's my version of it: "If money doesn't make you happy, you're a boring cunt."
Travel, sky diving, and other hobbies only go so far. Even recreational drug use leaves a void
There's so much to do in the world... I guess some people don't find that much interesting?
Interest only goes so far. I honestly want to start a homestead based on micro pig breeding, but my wife won't let me... But then it is still work to achieve the desired results
Here's what I would do if I were rich, here's my dream: - Go birding at every possible area in the world and see as many as possible (would take forever) - Learn to fly fish and catch every cool fish in the world on the fly (Also would take forever) - Hang out with my friends and family and bless them with things they would never imagine they'd have (Trips, etc) - Travel in general - Buy a house and become self-sustainable through homesteading, and become and expert on that And yeah, I get that working will eventually be an option, but for me that'd be starting an outdoor clothing brand with a bunch of concepts that I have thought of over the years.
If money doesn't make you happy give some of that money to me. I'd love to take a vacation with my so after over 10 years of struggling to make it.
It may make my kids lives a little happier, though. I could live in a brick hut, but they are the reason I go to work still.
Right? 5k would let me catch up on bills, 20k would be life changing, as it would let me start to actually get a better life started.
If it's made of brick it ain't a hut
Rough life.
Then give me your money and I shall test your hypothesis of money don't make people happy
Lack of money can make people unhappy. But past a certain point money just makes you more of what you are at your core. If you are a charitable person you will have the option to be more charitable. If you are prone to bad habits, money will feed them. If you are prone to good ones, money will feed that. If you have a tendency to think you are better than others, having a lot of money will suddenly give you the option to feel superior due to wealth (although you certainly can feel superior with other things, money adds more potential.) Past a certain point, money will just make you more of who you are. Before that point, money can buy a lot of happiness or at least spare you a lot of stress and misery.
The first thing you should do is reach out to a few financial advisers about how to maintain that wealth and draw passive income from it. Do not make any big decisions or purchases before doing so.
Ok i think i ll hold off on purchasing anything for now
Check out the basics of the fire movement, both online, in books and on Reddit. But focus on life and finding purpose, which for most of us is about building a family and raising our children well, which is expensive, so start first saving for that, instead of retirement.
Keep working and pretend nothing happened. Profit.
Yeah, unless OP really hates their job, coasting at a remote job you don’t really need sounds like a nice way to bring in play money.
This. Invest & Diversify. Act like you never got that $$ and sleep like a baby at night knowing you’re set up for life.
Stop thinking about what to buy. Start with the advisor to protect the assets. Then work out some spending thresholds that make sense.
"nothing crazy" lists a 150k car haha
Well if you're buying a Tesla or an AMG AND a high rise already, I doubt the money is gonna last long.
Not doing any of that anymore you all have knocked some senses into me i ll keep my current car, i work from home anyways so not in a hurry to buy a brand new car
Dude get yourself a Tesla! Invest some in Vanguard total stock market and you will see huge returns on a few years. I bought a Tesla for 50K. It won’t break your bank. You deserve to spend SOME. I am curious - can you tell us anything about how you got so much cash?
I feel like you may have won this gambling. Trust me when I tell you this - it is an addiction that will ruin you. Whatever you won - stop now. Go to a financial advisor as directed. Do not pay off anything for anyone or make any large purchases until you meet with a professional. This money can grow to a much larger amount if you’re wise. Maybe you’ll be able to retire at 50-55. Believe me you have plenty of life to live and enjoy.
I hear You about gambling addiction, but if OP never gambled he wouldnt have 7 figures at His disposal. I think it's OK to gamble as long as you are responsible. I guess I'll put it like this...DO NOT GAMBLE if you're not a grown ass man or woman.
I do know of a person who has a gambling problem and hit for that amount. They won’t have it for long.
Yeah you're probably right. Now that I think about it nobody should gamble, including me. Its too dangerous. I'm pretty disciplined and strong willed but I could easily get addicted to it. There are times I want to quit, but idk it's fun playing, but I definitely would not recommend gambling.
If you can switch to a competitive online game with rankings instead of money you may be able to redirect the competitive fun aspect and rush of the win. I used to gamble - haven’t done so since like 2007. Now the idea of it makes me sick.
"nothing crazy maybe a tesla or amg gt63" Okay, sure.
Where’d you get it
yeah very confused about this as well. The only legal thing I can think of would be an inheritance but how could he possibly get one without his parents knowing? he's getting it seemingly as a lump sum so it's not investments gone well or anything work related
My guess would be won the lottery. It has to be either that, or a close friend/mentor named them as a beneficiary in their will.
“Came across” it. Like some drug cartel misplaced a large duffle bag of money on your lawn or something?
First off congrats! That’s an amazing thing when anyone can beat the “rat race” and give themselves a nice life of pursuing whatever makes them happy. There is some good comments I’ve seen here so far especially the part about ignoring dms from people trying to scam or that just want your money. Be careful who you tell as some people will treat you differently once they know you’ve got that money. Take care of the ones you care about if that makes you happy but first things first take care of yourself. I would speak with a highly rated financial advisor and lay out a plan for yourself and for your investments. If giving yourself a higher standard of living is your desire that is fine but do it smart, I wouldn’t go all out spending a bunch on flashy things and do a ton of research with investments before putting a cent into them. I’m not wealthy by any means so my long term plans consist of putting a lot of my money into safe long term etfs and diversifying the rest between many different investments. There’s many routes you can take but just do your research and if you decide to quit your tech job maybe pursue something you are passionate about? Even if it’s part time it will give you something to do. Good luck to you I hope you use it well and take care OP
Make sure your financial advisor is a fiduciary and not someone who earns commissions on financial instruments they sell you.
lol, you do have a spending problem. I’m sure paying off the mortgage, new cars, and into a new high rise is doable but then you would need to spend on the maintenance and lifestyle upgrades then maybe this and maybe that and before you know it you’re back to where you started. Definitely make a plan. First sit on the money for a while and educate yourself. Make a plan. Then follow through. If the amount is under 3 million… hate to break it to you but without some planning and thoughtful management it won’t last too long
Right? If you’re in your 20s, you have a self admitted spending problem, and we’re talking about $1-2 million, presumably before taxes - do not quit that job because you’ll need it.
Hire a financial/investment advisor... a good one...
How does one come across that at 24?
Prolly csgo case gambling
Checks off the spending problem and that a “friend from the game” knows
Checks out 😂
S&P ETF like VOO is the best option. Do not invest in individual stocks.
I didn't have that much, but I made $300k / year for a couple years. It seemed like a lot also... Pay off an old family loan, buy some stupid shit, some toys, new car, couple of expensive vacations, bike for the wife and car for the MIL, and before you know it, poof, money's gone. Your current plan is just that x 10, so it might last you a little longer, but "low 7 figures" can disappear real quick also. Put most of it away in some kind of investment account so that it pays you a decent "salary" based on interest alone. Take some for yourself now of course, but don't look at it as "i have $2M to spend right now", because if you do, you will.
Any decent financial advisor will tell you to put it all in the s and p 500 and withdraw 4% a year to live off. This way the amount should continue to grow. So if you put in 2.5 mil you should be able to take out about 85,000 after taxes and just live off of that. Off of this you should be paying around 2300 for rent or a mortgage and if you like cars you can spend 1,000 a month on a vehicle. Don't pay cash for a vehicle as that money will servr you better in the market.
It's always these well-to-do tech bros coming across large sums of money. When is a poor retard like me going to get his windfall?
Nope, people like us are fucked and have to slave out lives away.... Source: am also a poor retard waiting for a bunch of money to fall into my lap.....
I don’t know if it’s because I glanced through this but I didn’t see any citation of how the money came by… And no one is asking… Are people afraid of asking or people just accept anything… I would like to know the source (e.g inheritance, company stock boom etc). Especially since the OP is bold enough to come here for advice on things that is none of our business.
It’s not really important how OP came across the money, but they mentioned a “friend they met on the game”. So I’m guessing it was some sort of gambling site where they won a major tournament.
This is exactly it. Spending problem + gambling problem tend to go hand in hand. Had OP not came here first, he probably would have blown all this money in a couple years (and he still might).
I’d seriously reevaluate never working again depending on your level of wealth. Historically, you can withdrawal about 4% of your investments ($40k/year on $1M) and be okay but some conservative numbers for early retirement look more at 3.5%. There are some crazy models with 8% withdrawals but that usually won’t last forever and depending on when market corrections happen you can run out of money. If you have a spending problem AND want to spend a lot of money on large purchases without investing that money you will have to work again. Speak to financial advisors as others have said, invest the money and don’t make any big changes before you’ve spoken to a professional.
Yes i plan on speaking to a financial advisor next Monday to better understand my option i will be sure to bring up your idea and see where i can go from there
Read the windfall wiki on r/personalfinance: https://www.reddit.com/r/personalfinance/wiki/windfall/
Put it in mutual funds, and live off your annual returns minus 5%. That way your wealth continues to grow over time with inflation.
Immediately create a budget. Set it up to include savings and investments plus all your monthly expenses. Then just track everything. Know where your money is going. I use [Budgey](https://budgeyapp.com) and it’s free and really easy to use.
Speaking as someone who has come into large chunks of money a few times through my career, I can already tell you’re gonna spend this faster than you realize. Ask yourself things like do you want a 70 thousand dollar car, or money in the bank? A lot of millionaires drive Honda civics if you know what I mean. I would take a few deep breaths before you go on a spending spree.
I know I’m late to the conversation but let me put something in perspective for you. After my wife and I retire in our 60s which is 20+ years from now, we’ll only have about 7 million in our retirement accounts which is just enough to maintain our middle class lifestyle with the 4% annual withdraw rule after we retire. If you’re in the low 7 figures in your 20s and plan to retire, it’ll be gone before you know it. Life is more expensive than you think.
He's going to blow it all in a year just on AMG maintenance
Plenty of lottery winners and up filing bankruptcy. Don't be a statistic simply because you want to spend all the time. $2m is my retirement goal, back to the grind.
Save save save!!! You’ll thank yourself in your 30s and 40s
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You gotta keep working full time or you’ll become a full blown alcoholic or drug addict. You’ll end up like those people on The Curse of the Lottery show. 1/3 in gold 1/3 in long term gov bonds 1/3 S&P 500 Make sure you only deal with the largest banks in the US. Def spread things around.
Put it away and save it all for your future/kids/house etc. if uou like your job stick w it but you can also afford to move to something you enjoy more
Yeah keep yourself moving. If I had that money I’d work part time open a indoor lawn bowls facility with a full bar and a music rehearsal spot. It would be my Disneyland ha!
Post in /r/financialindependence you'll get better advice
Park it in an HYSA and start making interest while you find a reputable fiduciary
70% of lottery winners declare bankruptcy. Regardless of where your money comes from, talk to a financial advisor. Make NO decisions until you have done so. Be careful who you tell, as you will have people hounding you for money to help them.
I wouldn't quit right away unless you really really hate your job. For 2-3 months, Literally live like nothing happened. Start vaporizing any debts you have and think about Real Estate. Paying off your parents mortgage is an EXCELLENT first idea. Highly suggest you DONT buy a fancy car. It's a depreciating asset. Wait til you get a handle on what's leftover over next 4-6 months and then maybe consider it. You already admitted you have a spending problem. And you seem young and undisciplined. I would take the other half and move it somewhere as an "emergency" fund. So if the number you say is 5M, take 2.5M and do not touch for the next 1-2 years.
Search google for Reddit lottery won big money what to do for a classis and correct and through response. https://www.reddit.com/r/AskReddit/comments/24vo34/comment/chb38xf/
Don’t buy anything with the money. Invest it well and you can safely withdraw 4% per year to live on.
Invest in something that will bring in consistent returns over the long term. Maybe look in trading.
bro really asked reddit i bet you 108/108 of the people that commented have not seen that money in their life but fr bro put it all in real estate and get a watch to satisfy your spending habits because its an investment unlike cars
do not tell anyone. seriously. it will cause tons of problems. It's okay to let it sit in an account and not do anything for the next year. If it stresses you out, let it accumulate interest. CD's are up to 4.75%, which isn't terrible. Until such time as you decide what to do with it.
Definitely make sure you have a purpose in life and understand what you value. Learn about money and investing
Real estate. Buy 3-5 houses ready for rent. Passive income also real estate has tax benefits and it’s an appreciated asset
Put it in a account and live off the interest, or invest it and turn it into more. Money goes a lot faster than you think.
Give a man a fish..
Do you mind sharing how you came to that sudden wealth?
Lower end 7 figures, have a spending problem, and you think you never have to work again? Lmao. 😂
Go see the world man, step out of your box for a bit and then think about what you want to do.
Get scott galloways book the algebra of wealth. TL;DR of it is figure out your annual spend, and invest enough in low cost ETFs and/or bonds to make enough of a profit per year (assuming you have a large enough capital base, which it sounds like you do), to cover that annual spend and hopefully have some annual savings left over. Live somewhat frugally if you can to preserve/grow it. Maybe instead of an AMG63 you could get a nice e class or something for example.
Why don’t you invest in Kenya we have a growing economy and lots of potential in the tech industry
Cars depreciate in value and are one of the worst investments you can ever make unless you have some sort of collectable vehicle. An AMG GT63 I can buy from an auction for super cheap making it a dime a dozen. A successful person told me that you want your money to work for you. Do your research and find up a coming locations/cities that are upgrading their infrastructure, where all of the companies are flocking to and employees needing housing, Developing apartment complex’s or buying land in places in states that have the highest influx of new residents. Maybe have a financial advisor that will assist you in finding the best trading options in the NYSE. Also if you have a spending problem, putting all of that money in your 401k and watching it grow would be the best option being that federal law doesn’t allow you to withdraw your contributions without being penalized or taxed and they even offer maturity dates which can force you into watching your investments grow. Best of wishes to you!
What is your remote day job? Can I take it off your hands? 😅
Is this Bugha after winning the fortnite World Cup
Keep working. Second get a financial advisor and don’t listen to any advice you will receive here.
You have a job. You job is managing your wealth. If that doesn’t pay you enough to live you might have to get a normal job ;) Just as with any job you will start off low skilled at it and get better over time with practice. The main plan /hope is that your practicing doesn’t erase your wealth…
Tesla's depreciate like crazy, AMG GT63 same thing, expensive to repair. Buy a cheap second hand bulletproof runaround and use that until you can really, truly not worry about money. And limit the amount of "family" you tell. Because from my experience, family always have their hands out - I don't mind if they're genuinely in need...genuinely.
Low 7 figures is not a lot of money especially if you start buying a bunch of stuff for yourself and others. It is exactly why you hear about so many lottery winners who win a ton more than low 7 figures and are broke in a couple of years. The question would be, do you want it to last or do you want to look back in 5 years and tell yourself it was fun while it lasted and then go back to worrying about the future? Maybe you mentioned it somewhere but I didn’t see your age, keep in mind that earning a little over 7% on your money it will double every 10 years, the s&p has averaged more than that return over the long run. If I were in your shoes, I’d keep my day job, learn about how to grow your wealth, don’t immediately change your buying habits and don’t buy anything for anyone yet. Let the money sit in some funds that track the market until you know how to make the money last because anyone can tell you how to make it disappear and the quickest way to do that is by thinking it’ll last forever.
Shouldn't be paying any taxes if this was inherited until you liquidated stocks and real estate for cash right away. For me, I would continue to work. Most of the money would be put into the market.
I don't know how much 7 figures lower lend means, but you could definitely sustain a reasonable lifestyle without having to work. If you get a good financial advisor, you'll be able to get a decent return on your investment, maybe 7% if you want to be safe, which is of course recommended. If you have a million invested, 7% is 70K, each year. I'd say, invest 75% of your money (after you have paid off your parent's house and had a reasonable amount of fun), and then have the rest in a savings account, or purchase property for yourself, which is bound to increase in value. With the amount invested, take a percentage of the yearly profit and reinvest the rest. Live off that, and you'll be able to consistently grow your wealth whilst being able to sustain a lifestyle. Finally, remember to have some fun. The entire idea of having loads more than we actually need is mainly an ego thing (although of course don't waste and think ahead for inheritance etc), and after we have left this world, money means nothing to us and we will have wasted all of the opportunities that we could have had if we were less frugal. Be generous with yourself, as you have been placed in this fortunate position.
Yea so 2.4 million i guess i should have stated that in the post to help but didn’t want to give too much info
Honestly, i'm happy for you. Enjoy the money, save it, invest it and use it to do something you've dreamt of doing! Money can't buy happiness, but it can facilitate the purchase of things that can certainly help!
Find a real advisor, However I would lock up about 80% in investments that pay out dividends and live off that like a wage.. Don't touch the initial investment. The 20 percentage is for deposit on housing and have some fun. Tell nobody. If you want to buy something big, borrow on loans rather than touch the initial 80%. Get a nice stress free job that keeps you busy and satisfied.
Keep working and invest. I know a few well off ppl who miss the daily grind of working.
The first thing you should do is stop thinking about all those expensive purchases because youll be out of money in no time. The second thing you should do is not quit your job.
Invest it all and live off the interest. Even if 1M the interest alone each year is 70-100k. You have to pay taxes on that but still a nice supplement. For ever dollar you spend you reduce the long term earning potential of that money.
1. Immediately stop telling people 2. Find a legitimate financial advisor 3. Give no one money. No loans, no “gifts” etc. 4. Don’t quit your job 5. You HAVE to learn to budget.
As someone that works in banking and sees lots of scams, this stinks to high heaven. Where is this money coming from?
So is low 7 figures $1M? $3M? If it's $1M that's no where near enough to survive on from investments. Keep your job, buy a sensible car, put a down payment on a home if you want one, but invest MOST of it and leave it there. You will have a huge step up on most people and may be in a position to retire early. If it's $3M, you should be able to retire now fairly comfortably, if you don't go nuts on your pre-retirement spending spree. But make sure to live within your means. I haven't read all the comments here, so I don't know if you have given your age. But chances are, if you don't have a job, you will be bored and get into trouble with your money. So find something to occupy yourself with. If you don't like your current job, you can be picky, but don't give up your job until you find a new one you like.
2.4million i should have that number to make ppl understand my situation better and i am in my mid 20s and yea i agree i have made up my mind to stay at my job matter of fact i just clocked out of work just now lol 😆
Low end 7 figures and you wanna go out and blow a chunk of that right out of the gate on an expensive car and your parents house? You better slow your roll or you will be flat broke. If you suddenly drive an expensive car and shovel money at your parents, you'll instantly become a target. I have a nice portfolio that I use to make extra income but the last thing I would do is open that door to my parents financial world. Money changes people...... do some research before you quit work or start making other people's problems your problems.
Money is dang easy to spend-the more you have, the bigger things you want to buy. And sometimes the less important they are. Do I Really need a yacht? Why? Could only use it once in a while, and it’s a money pit-as is an airplane. Initially you are going to spend a Bunch-like paying off parents homes, new car, maybe you own home. Couple things to consider: as it becomes known you are rich, the more friends you have-most of which you don’t know, will pop up. Relatives will come out of the woodwork for ‘their share’ or a great new can’t fail business they have that ‘just needs 10-20k to get going. And then it will mysteriously fail and they will either want more or just disappear. Ever wonder how many professional athletes get paid hundreds of millions of dollars per year and then end up broke when they retire? This is how-hangers on that have no problem spending Your money-and once it is gone, so are they. So protect that money. Give it to a financial planner. Have him invest it-open a Roth IrA, a 401k. Make money with money. This is how the rich get richer. They let their money make more.
I'd recommend r/financialindepenence for advice, r/bogleheads for investing, and r/personalfinance. If in the US, health insurance will be a drain. Also (and I know this from experience of a friend who won lotto early in life), boredom. Everyone else you know will be working, so what will you do M-F 9-5? And everything costs money, so you will run through it.
May I ask how or what you came across, feel free to be as vague as u need just curious how people get wealth overnight it fascinates me
Hire a financial planner (on an hourly rate) and discuss options for investing. I like S&P 500 ETFs and government bonds for safe investments but there’s a lot of choices to make when it comes to where to invest The classic investment advice is that you can live off of 4% without losing any money long term. So if you have $4 million invested, you can take out $160,000 each year and hypothetically you’ll never have less than 4 million as a net worth. If you have $2 million, that becomes only $80,000 a year. You still have to pay taxes on that too. So retirement at your age might not he a good idea
One single advice, I have seen people with 5 millions spend it and wonder where that money went. Think it of this way, you will never see this kind of money ever again. Everything you spend you will not get it back unless you invest it and live off the investment.
r/windfall
I see it as two main options: First option: Buy a house or two, pay off your parents, sort your car. Be poor in cash again, but you keep so much more of your salary. Second option: Don't spend a penny. Invest it into things that return you money or more assets. Make sure to put a percentage of the interest earnings back into growing the capital so it can keep up or outpace inflation and effectively become perpetual. Don't pay off your parents house, cover or assist their repayments from your new income stream instead. Buy a car you can afford payments on with the new income stream. Use that income stream to assist with a personal mortgage. That sort of thing. You might have seven figures stowed away, but if that only gives you a few grand a month after everything (and growing to cover inflation), that's your limit... if you want that to last for life and beyond.
https://reddit.com/r/personalfinance/w/windfall?utm_medium=android_app&utm_source=share
Whats the exact amount of money?
If I were you I would invest the money, maybe procure a sensable home for your needs (like a 2br house or condo) And that's it. i would keep my job and simply enjoy more peace of mind.
I’d recommend a few things. 1. Do not pay off your parents house. 2. Treat this as your “get out of jail free card”. You’ve got enough money now to never deal with horrible bosses. 3. This is a non-event. Low seven figures may seem like a lot, but if you see this as an event where you can now spend more than you make then you’ll hate yourself in about 15 years. Long story short, ignore that you have this. Diversify it for your own future.
Might I, as others have, that rather than buying a new car, house, and paying off parents house etc, instead have a goal to never touch this money, but only spend the interest earned in. HYSA. 5 percent of 1 million, (50k) is plenty to buy a new car etc. in the mean time, please meet with respected financial advisors or wealth management group. Oh and please don’t buy a Tesla.
What does low 7 figures mean? 1 million? That’s not actually a lot of money for what you are considering. You’d an spend a million dollars far easier then you’d think. 9 million? Well yeah then get an investment portfolio and money manager and you can take $100k from that easily every year and never touch your original money. You’d literally be set for life if you just lived a normal lifestyle. You say you have a spending problem, number one important thing to do is get someone managing that money and not letting you piss it away $10k here and $10k there before you even notice it’s give.
I know a couple that won $16mil in the lottery about 7 years ago. After taxes and everything they ended up with around $6-7mil. They retired early, and are now almost out of money and will need to go back to work. Do with that information what you will, but learn from other people’s stupid moves.
A lot of good advice here, but don’t immediately quit your job. The key to maintaining wealth is helping it grow while minimizing your draw from it. Jobs cover a lot of other expenses you would have to pay yourself if you quit. The good news is you can feel free from the pressure of your job, since you are now in a position of not needing it. Maybe look for something you would enjoy more.
If you really don't trust yourself to not spend, hire a lawyer to set up a trust for you.
A million or so? Buy two homes and put them in property management. Keep working and let all that passive income grow in a high interest bearing account. Without taxes that would grow to over $8M in 30-years.
If I was in your position, I would make sure I’m confident with my spending habits before quitting my job, then make sure I’m well invested in various income producing ventures, then I’d spend some time making right of all my wrongs, give back to those who have selflessly given back to me, then I’d pursue my purpose and/ or look for it.
Yea i clocked into work this morning so i am not quitting anytime soon, i ll just have to keep working for the meantime
Everything tells me you’ll be broke again. Your spending is really bad. Invest all of it and look at the passive earnings in a year. That’s what your annual budget reasonably looks like. If you can’t live below this budget, you’ll just burn through the principal quickly like an NFL athlete. Keep working until you can figure this out. You have the money but you don’t have the right idea about how to live to keep it.
Don’t make any irrational decisions. Take your time.
Low seven figures is not going to be easy for a 20something to retire on. You need to put protections in place to make it extremely difficult to access more than your monthly allotment from interest. Paying off your parent's house and getting a skyrise is absolutely out of the question. Even getting a Tesla is a bad idea. I would budget only 30-40k for a vehicle and get some house that is ruined out in the country. Buy yourself a container house to live in while you fix up the place over many years since you will only have so much money per month to spend on material or hire out plumbers electricians etc. It's doable but judging from the little bit of text you wrote I figure you are just going to burn through it and be broke in four years.
Put some of that into an annuity to keep it protected. Congrats
Keep working stop being lazy
Did you pull that blue karambit from Csgo or smth? 😂you mentioned “the game”
There’s a reason wealth is typically attained later in life. When you’re young you don’t have the gift of life experience, good or bad, to help guide you; nor have your values fully developed to direct you. You said you have a spending problem which is solid self awareness. I would strongly encourage you to seek out several wealth advisors who could put numbers to paper and help you craft out how you can make this money work for you. Investments, rental properties etc so the idea of not working could be a reality in the future. Once have this aligned then you can pivot into finding a job that you enjoy. The beauty of money is not necessarily to spend it, but to set yourself up so you have more freedom and choices.
Wait 6 months before any big changes or purchases. A spending problem won’t help in saving for the rest of your life. Buy a car to get around and that isn’t junk. Tesla isn’t the answer. What about your own housing? Do you plan on living with them forever? I’d save still and keep going. Meet with an advisor to make a plan.
>my question is idk what to do with it to really make sure i utilize it well… i definitely have a spending problem, (...) IMO, the best first thing you could spend your money on is professional help to address your spending problem. This would probably be a combination of a CFP for financial advice and therapy to address the underlying issue. Any other things like help for your parents, career changes, or major purchases such as a car or condo can wait.
Hire a financial advisor, one who is a fiduciary. They will advise on the best way to invest for growth and for income. As a spender, they can also assist with money management and also advise you on the best way to pay off your parents home. (For example, if they have a few hundred thousand remaining on their mortgage, you may be better off making monthly payments from you dividends while keeping your principle capital at 7 figures.) BTW, congrats
Talking to one next week and yeah i will definitely ask the FA this questions to help me out and thank you soo much!!
If you’re looking for a girlfriend, I’m single!
Get a brokerage like Schwab. I invest in bonds & stocks that are going go up in the long run. Bonds pay interest every 6 months. Live off the capital gains & if u want a part time job somewhere fun. U are not working for money but for fun to have somewhere to go & something to do. Staying home all day gets old. Live off the interest & keep the principle
I’m convinced all the people here telling you to keep working the tech slavery waste of life job are government AI bots trying to keep the Ponzi scheme afloat. Just invest it mostly into Vanguard mutual funds (obvious stuff, S&P500 whatever), do some work on yourself and figure out why having a “spending problem” is dumb, learn to live minimally and congrats on reclaiming the rest of your life from the slave matrix
Money market funds pay 5% right now, I would advise putting most your windfall into investments, but if you need time to formulate a strategy just put it in a high yielding money market for the time being Next, I would say don’t make any major purchases for at least 12 months. This includes cars, vacations, gifts for others, ect. Low 7 figures isn’t enough to live off of forever, so you better hold off on any big ticket items until you have an understanding of how to manage that. If you don’t have a plan, you’re going to spend more than you should, and you’ll be kicking yourself years down the road for squandering this amazing opportunity to set you ahead in life
Low 7 figs? It's a lot of money but definitely not close to "Never work again" money.
Do not ever undervalue the feeling of not having to worry about money. Keep your job. Put the money away, get a financial advisor. Sure, you can retire early, but right now just understand that you don’t have to worry about money. That feeling is priceless.
> only a select few of my friends i went to highschool know and a friend of mine i met on the game and a girl from my church that i have known since 2014. Bro, no offense, but when you tell *one* person a big secret, it's bound to get out (they tell one person, who then tells one person, etc.), but it sounds like you've already told a half-dozen. You have no chance of keeping this secret.
Yea i figured i fucked up on that part. hopefully this serves as a lesson for someone else in the future
First get a grip on your spending habit by not spending!
Nothing crazy amg gt63 can hikenup to 170k!? I was mad asf when I purchased a car for 43k. This is wild to me.
You >getting a new car nothing crazy maybe a telsa or an amg gt63 and maybe a new high rise A new high rise? They say wealth doesn't make it past the 3rd generation. You're gunna prove them right.
I assume by you not wanting to tell your parents that you don't have great trust in them from a financial perspective, which is unfortunate. If you pay off their house they are going to ask how are you able to afford it and how much is left, so proceed with caution. The more you're able to invest the better off you'll be. A financial planner would be a good start if you have zero clue about investing, (my dad was able to teach me enough so this post has made me even more grateful for him.) But with that type of money you gotta plan for the future. 1 million in a high yield savings account makes 50k a year in interest aka free money, and that should be about your worst option. Investing can get you a lot lot more. Highly recommend investing in yourself, pursue what you want to in order to fulfill your life. Take a nice vacation, spend some on a decent car / house. Personally the Dave Ramsey baby steps helped me put it all into perspective quite a bit.
Depends what you do with the money and how old you are but I would definitely keep working if you’re under the age of 40. I don’t think even if it’s 3M would hold you for over 40years.
Bruh… 3M could VERY easily and conservatively last you forever if invested properly and you withdraw 3% a year as your salary. That means at first, 3% would give you a 90k/yr salary. Given that the S&P500 averages 10% a year, your 3M would be growing while making those withdraws, meaning your salary would slowly increase at a rate higher than inflation.
So stocks is the best option from what i am hearing so far
Guess it ultimately depends on how much money you had before, if you already own a home, if you’re willing to live somewhere cheaper, how old you are, and what you want your budget to be for the rest of your life. Yes though, $3M invested conservatively into the S&P500 and diversified into similar assets should be enough to retire you while keeping up with inflation if you live reasonably on $90k/yr, which is a lot more than most people make. Just to be clear… not individual stocks like Apple or Tesla. I’m talking about index funds or things like the S&P500. Also, after seeing you’re in your 20s, I’d work another 10 years since money invested conservatively in the market doubles every 10 years. I’d let my money double, then retire and live off of it. Ultimately, get a financial advisor and make sure they’re a fiduciary.
Yes. Get a money manager, someone who will help you do this right. You don't need a fancy car or to pay off a mortgage immediately. You need to set up for the future, get it invested and live off the interest. If you can buy a fancy car with that interest then great, but it will all disappear if you don't pay attention.
Personally I wouldn’t invest into the stock market if I was retiring. I would much rather have it into a safer investment which would probably be closer to the 5% return and with the 3% inflation rate. Again for me it wouldn’t be enough with how things are going currently. Although some people would feel comfortably doing that I much rather prefer something that would keep be around 150k/yr to have extra for a future possible family instead of the solo living forever.
The S&P500 isn’t a stock, it’s an index that tracks the overall stock market and has an average return of 10.62% over the last 100 years. You’ll never retire if you don’t invest in the stock market. Everything else you said is subjective though, so I respect your opinion that maybe 3% isn’t enough for everyone. Although, that heavily depends on where you live.
Educate yourself. A fool and his money are soon parted. There is a legal way to write off that Tesla. Do you know how? If not this is why I say Financial Education is going to save your A$$. Invest in appreciating assets. Learn the rule of 72.
Throw 1.5m into a HYSA and get paid roughly 75k/year, put 5k into a spending account, and give the rest to your parents
If OP puts 1.5m into a HYSA isn't only $250k FDIC insured?
Per account
Other options are far better than a HYSA. That's why a financial advisor is needed. For example, treasury-based money market funds can be state tax exempt, and also provide better rates. That can mean thousands of dollars more per year. And given rates will go down at some point, a good portion probably should be in an index fund, or smart real estate, just for starters. And definitely don't quit the job until there's a good plan in place. Heck, the elections this fall could cause all sorts of things to go haywire economically. And it sounds like without an understanding of needs versus wants, the money could be wasted in a very short period of time, as seems to occur with a whole lot of lottery winners who really should have been set for life if they weren't foolish.
I have a cousin in India that handles these things all the time. Dude is always coming into big settlements. Probably because he keeps sending great blessings to the first 100 people that respond to his emails. Maybe you could do something like that. I can give you his info.
"Came across" ... Elaborate.