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Writer's Block: It's payday!
Nov. 15th, 2011 03:39 pm[Error: unknown template qotd]
First, I'd write two checks and pay off my remaining debts. Call it $990,000 left after this, rounding down to the next lowest $5,000 to simplify things. Rounding the remaining to nearest $5,000 as well.
$15,000 into checking as pure indulgence money.
$10,000 for a nice laptop and a nice desktop computer system.
$10,000 budgeted for car work. Take it to the shop and say, "If it even looks funny, fix it." I've got a good shop that hasn't burned me in the past, your mileage might very.
$10,000 and pay next years rent lump sum (Good management at the apartment, so I'm willing to do a year. But I would ask if I could get a discount for paying a year in advance.)
That leaves... $945,000. This all gets split into two investments. One timed to become available in time to pay taxes (You do realize if someone hands you a check for $1,000,000 you will have to pay taxes on it, right?) and the other locked up for at least a year. In that year I can start reviewing financial advisors, but my goal for the remaining money would be simple: Invest it, and only ever touch a portion the the interest. Let's say after taxes, fees, etc, there's $400,000 left. 3% pulled out a year, split over twelve months would be $1,000 per month. Hopefully the investment portfolio makes better than 3%, which means that monthly payment will go up over time.
Oh, and sorry as yet hypothetical children. In the also hypothetical event that I was given a million dollars out of the blue, you would not inherit it when I die. Depending on their ages a trust fund to pay for insurance and assist with education and a moderate lump sum, but the majority would get turned over to some form of charitable trust. Indeed, once you hit a certain level of assets accumulating more seems rather meaningless (would I really be happier with $200,000,000 than I would be with $10,000,000?). So if I did well enough said charitable trust could exist before I died rather than waiting.
First, I'd write two checks and pay off my remaining debts. Call it $990,000 left after this, rounding down to the next lowest $5,000 to simplify things. Rounding the remaining to nearest $5,000 as well.
$15,000 into checking as pure indulgence money.
$10,000 for a nice laptop and a nice desktop computer system.
$10,000 budgeted for car work. Take it to the shop and say, "If it even looks funny, fix it." I've got a good shop that hasn't burned me in the past, your mileage might very.
$10,000 and pay next years rent lump sum (Good management at the apartment, so I'm willing to do a year. But I would ask if I could get a discount for paying a year in advance.)
That leaves... $945,000. This all gets split into two investments. One timed to become available in time to pay taxes (You do realize if someone hands you a check for $1,000,000 you will have to pay taxes on it, right?) and the other locked up for at least a year. In that year I can start reviewing financial advisors, but my goal for the remaining money would be simple: Invest it, and only ever touch a portion the the interest. Let's say after taxes, fees, etc, there's $400,000 left. 3% pulled out a year, split over twelve months would be $1,000 per month. Hopefully the investment portfolio makes better than 3%, which means that monthly payment will go up over time.
Oh, and sorry as yet hypothetical children. In the also hypothetical event that I was given a million dollars out of the blue, you would not inherit it when I die. Depending on their ages a trust fund to pay for insurance and assist with education and a moderate lump sum, but the majority would get turned over to some form of charitable trust. Indeed, once you hit a certain level of assets accumulating more seems rather meaningless (would I really be happier with $200,000,000 than I would be with $10,000,000?). So if I did well enough said charitable trust could exist before I died rather than waiting.
