Comments on: How Do You Handle Large Amounts of Money? http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/ Got Money? Milk the most from it... Tue, 27 Jul 2010 10:48:00 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: Jenn http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/comment-page-1/#comment-2639 Jenn Tue, 13 Oct 2009 20:01:30 +0000 http://milkyourmoney.com/?p=499#comment-2639 Deposit it in a high interest savings account and pack a suitcase. Rent a house/villa with your significant other (I'd prefer somewhere looking over an ocean) and with a great bottle of wine, daydream, think, discuss, make lists, revise lists etc about both your crazy dreams and your sensible ideas. Other than the trip, there are no purchases or investment decisions made for at least the month. WHEN you win a lottery is as important as how much you win. A win at age 45 (my case) comes at a time in life when you're already a well on the road to saving for your kids education, paying off the mortgage, and preparing to finance your retirement. A huge cash windfall just speeds it along and makes everything reeeeally comfortable a whole lot sooner. We're absolutely not the type to run out and buy a Ferrari. We'd stay in the same house, replace our cars slightly sooner than the usual 10yrs we normally wait, and travel more. We'd just pay off the remainder of our mortgage now instead of in 8.5yrs and switch to seasonal or PT jobs we love but don't "need". We have no consumer debt or car loans (always buy used and pay cash). With no mortgage,we could live quite comfortably day to day on $50k/yr. (5% interest on $1M) and not even touch the principal. I'd hope to live off the interest only until about age 50 and then begin skimming a little more than the interest off every year to fund a lot more travel and help the kids fund their first home purchases (but not so much that they get a completely free ride). Ideally we'd spend all we wanted on travel, and still have a nice chunk left to leave to the kids to ease there lives. If we make it to 85-95, the kids will be in their 50's and we could help them take early retirement too. Nope, we wouldn't go crazy, but it would sure make things easy. For me, winning a pile of cash would buy me the time to slow down and just enjoy what I already have. Deposit it in a high interest savings account and pack a suitcase. Rent a house/villa with your significant other (I’d prefer somewhere looking over an ocean) and with a great bottle of wine, daydream, think, discuss, make lists, revise lists etc about both your crazy dreams and your sensible ideas. Other than the trip, there are no purchases or investment decisions made for at least the month.

WHEN you win a lottery is as important as how much you win. A win at age 45 (my case) comes at a time in life when you’re already a well on the road to saving for your kids education, paying off the mortgage, and preparing to finance your retirement. A huge cash windfall just speeds it along and makes everything reeeeally comfortable a whole lot sooner. We’re absolutely not the type to run out and buy a Ferrari. We’d stay in the same house, replace our cars slightly sooner than the usual 10yrs we normally wait, and travel more. We’d just pay off the remainder of our mortgage now instead of in 8.5yrs and switch to seasonal or PT jobs we love but don’t “need”. We have no consumer debt or car loans (always buy used and pay cash). With no mortgage,we could live quite comfortably day to day on $50k/yr. (5% interest on $1M) and not even touch the principal. I’d hope to live off the interest only until about age 50 and then begin skimming a little more than the interest off every year to fund a lot more travel and help the kids fund their first home purchases (but not so much that they get a completely free ride). Ideally we’d spend all we wanted on travel, and still have a nice chunk left to leave to the kids to ease there lives. If we make it to 85-95, the kids will be in their 50’s and we could help them take early retirement too.

Nope, we wouldn’t go crazy, but it would sure make things easy. For me, winning a pile of cash would buy me the time to slow down and just enjoy what I already have.

]]> By: Blake http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/comment-page-1/#comment-1385 Blake Mon, 29 Dec 2008 14:18:34 +0000 http://milkyourmoney.com/?p=499#comment-1385 I completely agree with the steps you outline. Another solid piece of advice would be to be wary of predators who make their living giving "financial advice" to naive people who happen to have money up the wazzoo. It absolutely blows me away every time I see an ex-boxer or old TV star filing for bankruptcy. I guess a fool and his money normally are parted, even when he is showering in it... I like Elias' advice as well. Take 5% and be crazy. Depending on how fortunate your windfall is, that's still a crap-ton of money! You can't completely neglect the urge to splurge in this case; might as well embrace it to an extent. Thanks a ton for the link man ;). I completely agree with the steps you outline. Another solid piece of advice would be to be wary of predators who make their living giving “financial advice” to naive people who happen to have money up the wazzoo.

It absolutely blows me away every time I see an ex-boxer or old TV star filing for bankruptcy. I guess a fool and his money normally are parted, even when he is showering in it…

I like Elias’ advice as well. Take 5% and be crazy. Depending on how fortunate your windfall is, that’s still a crap-ton of money! You can’t completely neglect the urge to splurge in this case; might as well embrace it to an extent.

Thanks a ton for the link man ;) .

]]> By: Elias @ FInancePuzzle http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/comment-page-1/#comment-1375 Elias @ FInancePuzzle Sat, 20 Dec 2008 05:18:08 +0000 http://milkyourmoney.com/?p=499#comment-1375 If I won a large amount of money, I would take around 5% of it and complete some reckless spending...Buy a new sportscar, new vacation house, etc...Just so I can get that out of my system...The remainging 95% would be self managed. If I won a large amount of money, I would take around 5% of it and complete some reckless spending…Buy a new sportscar, new vacation house, etc…Just so I can get that out of my system…The remainging 95% would be self managed.

]]> By: Ben http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/comment-page-1/#comment-1372 Ben Fri, 19 Dec 2008 13:40:58 +0000 http://milkyourmoney.com/?p=499#comment-1372 I know! Isn't it weird how we long to be out of debt and yet its so natural for everyone to be in debt? I know! Isn’t it weird how we long to be out of debt and yet its so natural for everyone to be in debt?

]]> By: tiffanie http://milkyourmoney.com/2008/12/18/how-do-you-handle-large-amounts-of-money/comment-page-1/#comment-1369 tiffanie Fri, 19 Dec 2008 07:07:17 +0000 http://milkyourmoney.com/?p=499#comment-1369 i'd like to think i would be responsible with a large sum of money, but it's hard to say since i've never been in that position. depending on the amount, i'd definitely get out of debt first and then work on investing options. that in and of itself would be a huge stress off my back. we can all dream... :) i’d like to think i would be responsible with a large sum of money, but it’s hard to say since i’ve never been in that position. depending on the amount, i’d definitely get out of debt first and then work on investing options. that in and of itself would be a huge stress off my back. we can all dream… :)

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