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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?

#231

Post by cies »

joncrane wrote: post #179

The thing that concerns me is that "I do not think I have any real hobbies." I suggest continuing to work, but perhaps being pickier about where you work. Perhaps there's a dream job you've always wanted to do that up until now wasn't feasible because it doesn't pay enough, like fireman, park ranger, teacher, musician, etc? The key here is to have an obligation (people depend on you) and social interaction. Also, see…

I felt the same. Hobbies, especially the ones that promote health or fitness (like some cool sports) would be something I'd clearly look out for.

On top of that I'd be very keen to invest in health of both yourself and your family. Dead people do not enjoy wealth, and while the sick sometimes need money to fix themselves up one can argue they do not really enjoy it. Some doctors may help you with a proper preventive plan that involves some recurring tests, I'd certainly invest in that. You may need a few, like: an MD, a holistic doctor and a nutritionist.

Then investigate what it takes to "live healthy" for you. Food (more raw organic produce), exercise/sports (yoga, running, cycling, gym, climbing/bouldering, kite surfing), some spiritual practice (meditation, breathing techniques, some philanthropy). This all can bring a person years of healthy life.

If your are not hung up on the location to live, you may want to explore some over the years. Having 2 places to call your home is well within reach. Then if you are into it, you can build, or remodel a place to your interests: a hobby in itself.

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

#232

Post by charliecat »

tinktank wrote: post #225
charliecat wrote: post #203

Earlier quoted context omitted.

I work in venture and my wife is a consultant.

Damn. How do I get into venture? I'm ecking out a living as a chief architect.

My path is 1% hustle and 99% luck. Given how lucky I've been, and worried about regression to the mean, I play things relatively conservatively :-)

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

#233

Post by infinite8s »

jungler wrote: post #55

Speaking as someone who made a decent pile in cryptocurrency: 1. Don't ride on the stocks forever. You'll feel it as a windfall now, but it's an investment. You invested in the company, and it paid off, so you should probably part ways and start a new chapter, since the company's fortunes can change quickly. Every investment comes with risk and the more you have in one investment, the more you will feel that risk - s…

OP said the $8M hit his account after taxes.

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

#234

Post by CyanLite2 »

I don't suggest the 'do-nothing' route. Time is limited. I'd suggest:

1) Splurge a little bit. Like $100k. Buy that Oculus VR you've been thinking about. Trade in your car to the new Tesla Model 3. Your wife has been eyeing a vacation to Hawaii for a few years now, go do it. Finish off your mancave basement project. Life is great, enjoy the fullness thereof. Don't feel bad about buying your kids a dozen new nerf guns and video game systems.

2) Focus your time now on improving the quality of life for others. You're rich. You've made it. You can live off of 2% interest the rest of your life and so will your wife/kids/grand-children. Now.... what are you going to do about the other 5.8 billion people on this planet who are struggling to make ends meet and are literally a few dollars away from death? Are you going to sit in your high-castle and collect bond coupon payments the rest of your life? Life is too short. What will be the legacy you leave this world? You have to do it now while you're still relatively young and healthy. Just volunteering your time and technology skills can affect the quality of life of thousands of people and their offspring for generations. Trust me, that's more fulfilling than buying a bigger house.

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

#235

Post by jamesb93 »

benburleson wrote: post #140
owaty wrote: post #128

Earlier 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.

Yeah, try to ignore the fact that it's money; imagine it's some other asset the person wants to keep, like 100 ponies. You would definitely suggest reading up on how to successfully keep ponies, right?

Ponies are not a fungible currency that underpins almost all of our day-to-day lives.

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

#236

Post by mysterydip »

There's a lot of good info in here so I won't repeat. I will say congratulations, and the fact your reaction is to freak out instead of party like it's 1999 seems like you're in a good start already. Take some time to read the advice here and do the "right thing" for you.

My only other input would be to take some percent of it and use it for some cause you find worthwhile, whether it be a lump sum anonymous gift or payments over years, or getting involved with your time.

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

#237

Post by sethammons »

dont_burn_it_up wrote: post #219

This is a great thread. Throwaway also. Gonna write some stream-of-consciousness here, because I have to start my work day, but I personally made approx. this amount from an exit, and it has gone very well for me and my family (wife + 3 kids). Some additional fine-tuned advice of what worked for me: (1) don't be afraid to spend money - high hourly rates - for a good accountant and good tax attorney. (2) if I were you…

Re the 1% thing: might be worth it. Lots of people chase returns and pick risky investments. Instead of picking a diversified portfolio of index and/or blue chip stocks and sticking with it, they "play" the market, and almost never beat it. The 1% to a wealth advisor saves you from yourself. Of course, milage will vary

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

#238

Post by pjc50 »

owaty wrote: post #128
WalterBright wrote: post #45

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…

> 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.

It's more like homeownership. It doesn't need to become your life, but you do need to be aware of the risks and start thinking about maintenance.

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

#239

Post by nemacol »

If it were me, I would...

Set aside a large chunk of it in some investment/retirement vehicle to provide funds during retirement or should something dramatic happen in your life that you need the money. A personal safety net / retirement fund. If you or your wife's parents are still around you might consider if they will need help in retirement (I know mine will).

Create two funds for the kids for use if they choose to go to college or whatever. Nothing dramatic, just enough to offer aid and support during that part of life transition.

Set aside a fund and find a local cause to support. Something you and your wife might do together. Don't toss all the money at once. Do a monthly or yearly donation and become involved in making the lives of others better. Not just as a financial supporter but as a real life presence that does real work to make a difference.

Take up woodworking or welding or sculpting or painting or something else that involves making with your hands (or whatever you are physically able to do)

Find a new job and be super picky about what you are doing. Try to find something you will be proud to work on.

Not a complete list by any means. But with a little list like this you will be making a choice to better the lives of your family, community, and yourself. You have the potential to be a positive force of good in the world. You will feel good knowing that you utilized your situation to give back to the community you live in.

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

#240

Post by fsloth »

scarejunba wrote: post #190
saagarjha wrote: post #153

Earlier quoted context omitted.

That’s about enough to fund Sierra Leone’s foreign aid for a couple of millennia.

But that keeps them at where they are now. Imagine making them a Japan. What would that take?

"What would that take?"

The quality of primary education in sub-saharan Africa is abysmal compared to the developed world, Sierra Leone included.

I don't know what else is wrong, but not having an educated population is an obvious hindrance towards japanization.

To fix that, you'd probably need to:

* Create a system for teacher education * Instill a sense of vocational pride in teachers

The most critical part in educational outcomes is often the fact how much the surrounding culture values education. To support the improved infrastructure and operators in primary education an education positive sentiment should be instilled using various public education campaigns, including advertising and using popular media such as TV shows to proactively affect public opinion.

Soap operas (or equivalent popular entertainment) are a really powerful tool to instill cultural shift if you can get all stakeholders to co-operate.

After education is fixed someone should probably invest capital in some industry that can create jobs and wealth. I don't know Sierra Leone so I don't know what that is.

If they have lots of natural resources then a land reform where the ownership is divided among many smallholders often is a great way to distribute and create national wealth. It can also backfire badly if you don't know what you are doing (like in Zimbabwe).

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