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Ask HN: What to do after $8M (all cash, post tax) exit?
191–200 of 531 posts
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#192Put most of it in the stock market. Set aside some cash and use it to improve your everyday life whenever you feel like it. For example, don't fly Economy class if it's crowded and uncomfortable. Spend your holidays in a nice place, better hotel. Eat at better restaurants. But a safer (larger?) car. Do NOT hire a wealth manager or go to some private banking advisors.
this is probably some sort of contra-indicator when average joe off the internet recommends Putting most of your money in the stock market. We must be near the Top of this bull run. This bull market is almost 10 years old. We are overdue for a "breather".
Haven’t you been paying attention? We’ve been breathing for the past two months. My tech stocks have lost over $120k of value since September highs, in just two months.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#193Earlier quoted context omitted.
> My advice is do nothing with it, and start reading books about finance, investing, and money management. I see where you are coming from, but if you step back for a second, this just sounds bizarre. OP now has more money than they need or ever have had, and instead of relaxing and finally caring about something other than money, you suggest they actually start caring more about money.
This is nuts. They should just take time to pursue things that actually interest them and continue living as they were. The only way you'd spend all this money is if you started doing crazy things like buying speed boats and other such nonsense.
A fool and his money are soon parted, and whilst OP does not sound like a fool, he came to this forum for help so he would not act foolish.
To wit, this is probably the wrong forum if people are going to respond as you did, Sir, so he is probably better off over on Bogleheads.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#194In windfall cases, people tend to change their lives - which ultimately is for the worse. Several people have said the right thing: do nothing.
Keep working, but now spend time thinking about you and yours - rather than your career and the struggle. Invest the money temporarily in fixed-income returning vehicles; we're talking about TBills/Bonds/GICs (depends on your country). Remember, if you're post-tax, sitting on $8M, then an extremely conservative 2% means you're looking at $160K for the year you're learning and thinking. Yes, this isn't a good return, or even long-term. But you're ensuring that your money starts to work for you, while you work on it - all without having any pressure whatsoever.
You absolutely should not make long-term decisions when you're in a short-term state.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#195Earlier quoted context omitted.
> My advice is do nothing with it, and start reading books about finance, investing, and money management. I see where you are coming from, but if you step back for a second, this just sounds bizarre. OP now has more money than they need or ever have had, and instead of relaxing and finally caring about something other than money, you suggest they actually start caring more about money.
This is nuts. They should just take time to pursue things that actually interest them and continue living as they were. The only way you'd spend all this money is if you started doing crazy things like buying speed boats and other such nonsense.
with a wise investment strategy, the guy can spend about $300k per year without losing money in the long term. that's a lot of money, but it's not so much that you can't easily overspend if you're not careful and/or start "seeing green". if his kids end up going to top schools for college, that'll be ~$150k per year right there.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#196Help me create nothing at all: https://www.patreon.com/mrtno
Now serious answer: I don't know if it has been translated into English (I don't think so) but two famous French sociologist worked on what happens when normal people win huge prizes at the lotto (for a review, in French: https://journals.openedition.org/lectures/1140)
Many commenters here suggesting not change your lifestyle, and I think they are right. But it won't be possible. Your world is going to change anyway. You are entering a world with many unwritten rules, and it takes time to adapt. Learning the rules will create for sure some malaise.
You can just step into the world of the "rich" without making some faux pas. A new socialization will be necessary. At the same time, you just won't be able to lead a "normal" life as before. Learning how to manage this fortune will likely take your time for a bit.
My advice: don't be hard on yourself if you do something wrong. It will happen for sure.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#197Go travel my friend! And don't put yourself in the position of subscribing to luxury travel either. You'll be burning through money faster than you realize.
Besides, trying to live truly locally will yield such 'rich' life experience. Nothing like connecting with other cultures and experiences without the emphasis on the balance within your bank account.
Other than that, congrats! That's a nice lump of money and best of luck to you and your family.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#198First of all, the taxes are probably not all paid on it. Some shares have been withheld (perhaps at 28%) when the actual figure is going to be higher (if ordinary income) or lower (if capital gains). You will need to find out next year when you actually file what the figure will be and be prepared to cut your state and Uncle Sam a fair-sized check. Second, there may be a lockup period where you can't actually access…
I don't see how not having access to the funds applies or that the stock price might have volatility since he said the money was in his bank account already.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#199Put most of it in the stock market. Set aside some cash and use it to improve your everyday life whenever you feel like it. For example, don't fly Economy class if it's crowded and uncomfortable. Spend your holidays in a nice place, better hotel. Eat at better restaurants. But a safer (larger?) car. Do NOT hire a wealth manager or go to some private banking advisors.
this is probably some sort of contra-indicator when average joe off the internet recommends Putting most of your money in the stock market. We must be near the Top of this bull run. This bull market is almost 10 years old. We are overdue for a "breather".
What If You Only Invested at Market Peaks http://awealthofcommonsense.com/worlds-worst-market-timer
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#200HN founder Paul Graham has some fantastic advice[1] on how to avoid losing your fortune:
When we sold our startup in 1998 I suddenly got a lot of money. I now had to think about something I hadn't had to think about before: how not to lose it. I knew it was possible to go from rich to poor, just as it was possible to go from poor to rich. But while I'd spent a lot of the past several years studying the paths from poor to rich, I knew practically nothing about the paths from rich to poor. Now, in order to avoid them, I had to learn where they were.
So I started to pay attention to how fortunes are lost. If you'd asked me as a kid how rich people became poor, I'd have said by spending all their money. That's how it happens in books and movies, because that's the colorful way to do it. But in fact the way most fortunes are lost is not through excessive expenditure, but through bad investments.
Be careful with anything other than the most ultra-conservative investment if you're putting millions into it.