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Ask HN: What to do after $8M (all cash, post tax) exit?
321–330 of 531 posts
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#322Here's some of the things I did in a similar situation-
- I told work I was cutting back my hours. They had some concerns, so I'd start the conversation early. Currently I'm only working 4 days a week & it makes a huge difference in my life.
- My wife & I picked out "IPO presents" for ourselves. She got a minivan, I got a nice grill. This seemed like a good balance between "don't do anything for a year" & "we worked hard to get here & can afford it".
- if you can find a good fee only financial planner, hire them. We pay ours a ~$200/mo retainer to just talk about money things on our mind. She's been able to make many valuable insights & suggestions as we've been trying to adjust to the changes in our lives & futures.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#323You have a life-changing amount of money. I’d take this opportunity to educate yourself on the possibilities now open to you. 1. Take a million of that and move to a nice European city. You can buy a literal mansion in somewhere like Berlin, Warsaw, Prague, Lisbon, Vienna. Comparatively, a million bucks will get you an average normal house in SF or NYC. 2. Take a million and put it toward your children's future educa…
> You can buy a literal mansion in somewhere like Berlin
this way you will burn your money very quickly - for example, you will pay about 10-12% on top of the real estate price just for legal help and taxes plus you will pay a substantial amount every month (taxes plus regional infrastructure improvements). I would rather rent a very cozy apartment somewhere in the middle of Vienna or Munich.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#324Earlier quoted context omitted.
I agree. A financial guru I've listened to off and on for many years is Clark Howard and he suggests always using a financial advisor that you pay outright with fiduciary responsibility. His favorite recommendation is to talk to someone from the Garrett Planning Network. If you aren't paying upfront you are paying far more in bad investment advice that isn't designed to make you money. Think bad investments that offe…
For those who don't know, a fiduciary is legally obligated to work in your best financial interests, so it's pretty important that your financial advisor is one.
Reinforcing this, someone with constrained by fiduciary duty must make (and be able to show) recommendations/actions based on your best interests when it comes to your money or be liable.
An adviser that is not operating under the duty, can place their best interests above yours legally (and this is expected).
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#325congrats!!!!!
you did not win the lottery but I keep this link [0] handy in case I every get a windfall it has some gems of good advice and caution.
briefly, I wish I had tour problem and if I can fantasize for a minute.... after paying off all loans/debts and doing a month of two of traveling I would probably take classes in physics and writing while trying to find a way to invest it safely with the goal of more or less keeping the money and growing it only safely and not losing it on foolish investments.
lastly I also keep this comment [1] as a reference for general financial advice.
best of luck!
[0] https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the...
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#326Buy something nice for yourself, invest the rest. lottery winners have a high bankruptcy rate. I can't find the interview but there was a great one with a janitor that got a similar amount of money. he bought himself a Rolex then invested. A tiny frivolous but incredibly pragmatic overall.
With that amount, hire someone and then find some hobbies.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#327Earlier quoted context omitted.
You can’t time the market, so either advice is just as wrong/right. Though the stock market will probably be higher 10 years from now.
>> You can’t time the market, What about these 4 guys just before 2008? • Economist A. Gary Shilling warned his newsletter subscribers about a housing bust and wholesale deleveraging of household debt that would hobble the economy for years. • Money manager James Stack also told his clients the housing bubble had burst and that a new bear market was coming—while stocks were hitting all-time highs. • Raghuram Rajan, t…
I did. So what? I have acquired some Google, Amazon, Apple and Nvidia in August 2007 - guess how much times it's higher now?
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#328Earlier quoted context omitted.
Can you elaborate on why you think he should not listen to a personal wealth manager (assuming that's the same as a financial advisor)?
Most of them are simply salesmen, selling high-load products. Incentives are not aligned, but if you can find one is who independent of any particular set of funds and who only earns from a percentage of your earnings, and not from brokerage fees or commissions, then it might be worthwhile but you should still learn about this stuff yourself.
Yup, this is why if you really want to be hands-off with your wealth and put it in the hands of an independent professional, look for FEE BASED financial advisors/wealth planners. Finding one via NAPFA is one's best bet.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#329Retire. You can live off the interest if invested in mostly stable stuff (so I've heard) assuming you don't have a larger tax bill looming. You may read lots of "awesome coder, great bizdev person" stuff online but 95% of the people out there in Tech are just working on someone else's idea/company bringing home pay. You are free from that now. Be bored for a while and your interests will emerge. Take up a hobby, be a…
Retiring is pretty dull at age 43. Maybe work on something you're into but which doesn't necessarily bring in much money. Personally, also having some money, I'm working on startup idea to fix the world etc which currently brings in zero money but is fun. Maybe it'll turn in to something real later, who knows. By the way re investing I recommend mainstream stuff like blue chip stocks, income producing real estate etc…
I "retired" in my mid-20s for about 3 years. I only went back to work when I ran out of money.
Describing complete freedom as "dull" is an insane concept to me. You can work out, read, watch TV, go to coffee shops, cook, or even just sit around all day with no commitments.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#330I occasionally work with someone who is in a similar situation.
He just continued with his career and the associated stress level. The difference is that he drives a fancy car, and will walk away from a bad job.
I also suspect that he takes 2-8 month "funemployed" stints when he wants a vacation.