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Ask HN: What to do after $8M (all cash, post tax) exit?

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Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#41

Post by kmlx »

charlesdm wrote: post #28

You'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 r…

interesting comment.

since the bear market started, wouldn’t this be a good time to buy at bargain prices?

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#42

Post by dagw »

lucasmullens wrote: post #38
hguhghuff wrote: post #34

Put in in a range of safe investments and live a quiet life. You’re not rich, your very well off, it’ll last till your death in great comfort if you are careful. Don’t start giving it away or spending it.

Having $8M isn't rich to you? That's a lot of money, you probably should give at least some of it away to charity.

It's "rich" in the sense that if you're smart and a bit frugal about it you'll never have to work again. It's not "rich" in the sense of never having to worry about money again. Really rich people will spend $8M adding a new garage to their summer house.

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#45

Post by WalterBright »

It may feel like infinite money, but can be burned through at terrifying speed. This happens to a lot of people who suddenly get money.

My advice is do nothing with it, and start reading books about finance, investing, and money management. Then start gradually investing it as you learn the ropes.

Hire a good CPA to help you with taxes.

Buy liability insurance, because you're now a target for jackpot lawsuits.

Don't listen to advice from the internet, your friends, family, any personal wealth manager, or anyone who wants you to invest in their business.

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#46

Post by askaboutit »

If this was to happen to me. I would buy stock in long term, low yield investments. Very long term investments with small payments. Similar to a superannuation program or large industry fund. I would take small amount and take a break, somewhere I always wanted. Take the whole family. Replace both cars (if they were needed) to extend their warranties for 7+ years. Place some money aside for college fees for the children (if that’s your things). Keep $100,000 as a “sickness” backup for insurance or even Cancer or some similar expensive cost (if it does cost a lot where you live).

At the end you’ll end up getting back your $8,000,000 but you’ll be getting it 10-20 years when you want to retire and do sweet nothing. Right now your brain still wants to produce and provide. So I doubt you will want to quit working. Maybe you can take a pay cut and do a job you always wanted?

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#47

Post by charlesdm »

kmlx wrote: post #41
charlesdm wrote: post #28

You'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 r…

interesting comment. since the bear market started, wouldn’t this be a good time to buy at bargain prices?

Give it a month or two to confirm the bear market started. If the bear market has truly started it has plenty of room to fall.

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#49

Post by tzmudzin »

kmlx wrote: post #41
charlesdm wrote: post #28

You'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 r…

interesting comment. since the bear market started, wouldn’t this be a good time to buy at bargain prices?

Bargain prices are at the crash. Beginning of the bear market is by definition the time when prices will continue to decline.

(I'm leaving it up to you to decide if it's a short-term correction, beginning of bear streak or anything else)

Re: Ask HN: What to do after $8M (all cash, post tax) exit?

#50

Post by fsloth »

Congratulations! But you don't need to do anything, do you? 8 million is not a terribly large fortune - although way more than most will see in their lifetime. If you live 50 years, you can use 100 000 of that per year, and still have something left over after a few surprise expenses. That's still middle class existence - except for the burning need to be employed.
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