Sounds like you're in a state of shock. Understand that you don't need to decide anything now. Don't make any irreversible decisions yet. For now, why not take a year out, spend time with your family?
Ask HN: What to do after $8M (all cash, post tax) exit?
21–30 of 531 posts
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#22Dont take any decision for 6 months to 1 yr,continue working as if you have little money. Dont retire or tell anyone. Let the money as is
For 1 yr decide on what to do next --> it can be anything which you like
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#23You should not retire, but quit working. If you worked 9-5 you ll realize how much time was wasted in daily routines. What are your interests? Would you be interested to devote time to studying something (a phd maybe? you re not that old :) ). Why are you freaking out? money is a tool, it gives freedom of time and the ability to say FU to some thing, think of it like a tool not as a goal in itself.
Yeah, you should probably invest most of it responsibly. Don't buy yachts.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#24Put it all in Bitcoin.
worst advice ever
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#25There's some bad stuff coming down the pike in a few decades so use your good fortune to prepare yourself and our family.
Buy a bolthole somewhere that will have a good microclimate/rainfall even as things hot up. You don't need to go all prepper but build some kind of house there and start your integration into the local community, it will be good to have friends. Plant some shade trees. Get some solar, water tanks, etc. Go over capacity so that you can help out others.
Spend time with your kids, that's one thing you can never get back. Travel - slowly and considerately - by yacht, not be jet. Learn about the world first hand. Help them become adaptable and resilient, they're going to need it.
Who knows what the world of work will hold, so think of the money as having to not just see you out but also one or two generation after you. Then it won't look like quite so much, and you'll be able to make wise choices.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#26First, I would put my money somewhere safe, with close to zero risk until you figure out what to do. Depending on your living cost around 1% guaranteed return should be enough to not work again for quita a while, possibly for ever (that means you do not have any pressure on your finances ever again if you don't change you lifestyle). Put some money aside for your kids (education, base capital for a house one day,...).
Educate yourself on investment and then find someone to manage your money, in Germany I would go maybe even for some rich-peoples bank and invest with the lowest risk portfolio possible.
In zhe meantime, enjoy life and your complete freedom. I know it is hard, but now you can do whatever you want and you have the time to figure it out, too. Go back to college if that's your thing. Tutor students from troubled families or not so well off backgrounds (you think about donating, so I assume you have a social sense). Or do some consulting on the side. I would suggest to not brcome idle, that breeds boredom which doesn't go well along with $ 8M.
Or go a long vacation with your family, visit the world. That is if your wife and kids can come along with you.
In general, be patient, stay cool and take your time to figure things out. Be conservative with the money.
And finally, congrats to your near complete freedom you and your family have now!
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#27If you do go for wealth management I’ve heard good things about https://www.hightoweradvisors.com
I forget the exact benefit but it was something about independent analysis and not being the consultant and the provider at the same time.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#28You're free. Don't take up another job unless you want that. If you want to slouch on your couch, go for it. Want to learn how to sail? You can do that. Want to teach kids how to code? You can do that.
Don't put the money into the stock market -- we've been going on a bull run for 10+ years.
You've got plenty of cash to wait out a next crash.. it's not going to take another 5 years before a next recession hits.
But realistically you'll at some point want to reinvest most of that money into passive, safe(r) investments so that you can book a x% annual return and live off capital gains. (Fun fact; capital gains are taxed lower than income)
Feel free to put some (i.e. $500k to $1m) aside for higher risk investments if you feel like you wouldn't mind the money disappearing or going 50x.
Also: DO NOT JUST GIVE IT TO A BANK -- best way to pay a ton of fees and end up with no (or worse, negative) returns.
Also: (but this is me) I would give back to a cause you care about. Maybe something local where you know the money will have a big impact? Those donations are often also tax deductible (so might as well).
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#29Don't buy expensive stuff, including houses and other properties. Maintenance cost a fortune and it takes an eternity to sell them if you want to cash out.
Don't lend money to people. Give money to people to help them if you want, but don't expect them to pay it back.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#30If it was me I'd take whatever your current annual post-tax household income is, multiply by 22 (to get you to 65), and put it in the bank. This is the money you'd have made between now and retirement - treat it as a salary, paying yourself out monthly, and contribute to a pension as you would have if you'd been working.
Doesn't really matter what you do with the rest of your money, but I think hiring a personal wealth manager is pointless - you have enough, you don't need to grow it.