Personally, I would buy a business that does about 250k-300K in yearly profits. A business I can run with a small team as needed. Now I am generating a 25-30% yearly return (yes, I am working on the business too and not totally passive but there are businesses like these you can spend may be 15-20 hours a week).
Ask HN: What would you do with $1M?
21–30 of 55 posts
Re: Ask HN: What would you do with $1M?
#22Most likely I'd have to give half to the IRS, then could barely afford a condo not too far from the city and and a used electric car with the rest. Or, since that seems barely worth it I'd seek out a financial advisor to invest it for me, then continue to rent and maintain my old car with slightly less worry about my future.
Re: Ask HN: What would you do with $1M?
#23I would hire some students, mentor them, and we would build all of the open source projects that I want to build (that I'm already slowly working on/planning out on my own).
100% on the same lines, get some interesting research done finally!
Re: Ask HN: What would you do with $1M?
#24[deleted]
Re: Ask HN: What would you do with $1M?
#25500k in safe indexes. 200k for stock picking. 200k for well-considered bets/gambles. 100k emergency in a 5% HYSA.
Unless you're a certified misanthrope, you won't need 'fuck-you' money for life. Why are you saying 'fuck-you' to so many people to begin with ? Most people only need enough 'fuck you' money, to say fuck you to those who exploit them under threat of retaliation. You don't need that much money to do that.
I'm assuming you're a decent person. Then yeah, at $200k gambling money, you can start living like you have fuck you money, and your relationships are likelier to improve than degrade. You won't have ulterior motives, you will have time for those you love and a stress-free person is more pleasant to be around. Sometimes you're your own gamble. So, set aside part of the $200k to take a break or start a startup. A fresh mind is a productive mind. Having bootstrap funding allows you to protect more equity in future funding rounds. The possibilities are endless !
Yes, one day, your fuck you money may run out. But the world doesn't end. You can always re-enter the work force. If anything, this time you'll have better relationships, fewer regrets and anwered what-ifs.
Fuck you money can be seen 2 ways. It's either the ability to find time to pursure what you want, now freed from the rat race. Or, it is the ability to do nothing, now that the rat race expects nothing off you. The former will pays off in dividends, either monetarily or spiritually. The latter leads to lethargy, cognitive decline and an early demise.
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edit: I think someone with kids is unlikely to ask this kind of question. So my response is phrased towards someone without such responsibilities.
Re: Ask HN: What would you do with $1M?
#26Stocks are the smart option, but I'd heavily consider a 5% Treasury for the $50,000/year guaranteed.
5% treasuries mean you lose money to inflation. It’s $50k/yr today but in many years it isn’t worth that. Broad market stocks are much more reliable if you want income forever.
Re: Ask HN: What would you do with $1M?
#27Stocks are the smart option, but I'd heavily consider a 5% Treasury for the $50,000/year guaranteed.
You'd only want to do that if you give up your job/income and need all of the income from the capital, right?
Re: Ask HN: What would you do with $1M?
#28Personally, I would buy a business that does about 250k-300K in yearly profits. A business I can run with a small team as needed. Now I am generating a 25-30% yearly return (yes, I am working on the business too and not totally passive but there are businesses like these you can spend may be 15-20 hours a week).
What kind of business? Sounds like you'd be spending the entire $1M on it?
Re: Ask HN: What would you do with $1M?
#29Most likely I'd have to give half to the IRS, then could barely afford a condo not too far from the city and and a used electric car with the rest. Or, since that seems barely worth it I'd seek out a financial advisor to invest it for me, then continue to rent and maintain my old car with slightly less worry about my future.
No tax burden. Assuming your balance is $1M free and clear.
Re: Ask HN: What would you do with $1M?
#30Personally, I would buy a business that does about 250k-300K in yearly profits. A business I can run with a small team as needed. Now I am generating a 25-30% yearly return (yes, I am working on the business too and not totally passive but there are businesses like these you can spend may be 15-20 hours a week).
What kind of business? Sounds like you'd be spending the entire $1M on it?
Yea. I usually pay 2.5x-4x of profit multiple and mostly for small software businesses.