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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?

#251

Post by mcv »

I would suggest to either get an annuity (is that the correct term in English? Dutch "lijfrente" is what I'm talking about), or put it in safe investment and let it pay interest every month. That way you're certain to have a decent income for the rest of your life.

Now you can either retire early and spend more time with your family, or, if you need something else to do, just get another job. Do volunteer work, become an activist for a cause you care about.

Free yourself from the worry and stress that comes with having to work for a living. You can still work, but do it because you want to, or because it's something you care about.

Paying off your mortgage is always a good idea too.

And you don't have to use any of this money. Feel free to be generous with it to others. Give to important causes, or to the homeless near where you live. Or sit on it. You wouldn't be the first person to turn out to have an unused fortune when you die.

Whatever the case, don't freak out about the money. Use it to free yourself from stress; don't make it a new source of stress.

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

#252

Post by pbhjpbhj »

drcongo wrote: post #6

Spend time with your kids. You'll never get another chance.

And avoid spoiling them [the kids]?

Most of the comments about not losing wealth amount to either poor investment or "spoiling" oneself - ie spending excessively on luxuries. But, I imagine it's harder to avoid spending excessively on other people; what does "my parents can just buy me a new one" do to a kids perception of value, how do they develop a sound work ethic, would retired parents in their youth have a negative hold over their ability to perceive themselves as workers (for themselves or others).

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

#253

Post by arcticfox »

readhn wrote: post #171

Realistically 8M (is this after taxes??) is not much money these days. Considering rising health care costs, real estate, college fees (you have 2 kids) this is "nothing". Example: If you want your kids to be college debt/mortgage free when they grow up (dont give them the money now, rather they have that ability when time comes) - you have 2 kids, figure by the time they are adults average starter condo price in a m…

Lol buying your kids $3 million worth of condos seems more than "nothing".

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

#255

Post by thorawy44447 »

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…

Hi,

Some tips from me:

- Take a nice holiday - Don't rush into investing. Take some time to think about what you want to do. - If you invest in stocks, do it in a staged plan. Resist the urge to sell when it's going down, and the urge to buy when it's going up. (I could not resist buying when it went up beginning January this year). Start with small amounts first. Be there for the long run (don't sell/buy all the time). Be prepared that you can go up/down a lot in one day. - Rather invest in index funds then specific stocks - Don't invest everything in one type. Don't just use 1 broker. Stay away from leveraged, turbos, bitcoins, etc... - Be careful about tax impacts on your decisions, depending on where you live - Be careful about private investments. Only invest into something which you understand and have knowledge of and can help and make it possible. Only take market risk, and not the execution risk. (I for instance have not yet done any investments so far) - I put some of my money in hedge funds (Millenium, etc..) through a private bank (additional yearly fee + performance fee).

And: - Think about what you would like to do. For me that's starting a new company (since I already did that before and succeeded). If you like your job, then stay.

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

#256

Post by holdenc »

You've got lots of good advice here, but much of it seems rather boring, and you seem like someone searching for the fire within.

So, here you go:

Step 1) Forget you have any money at all.

Step 2) Withdraw $5000 in cash and buy a plane ticket to Pattaya. Bring only a backpack. Get a room for $15 a night. Budget about $15 a day for food, $10 a day for a motorbike, and perhaps another $20 discretionary. Your total burn rate is $60 day. One more thing -- leave your computer at home. Now that you're a multimillionaire, you can actually afford this.

Step 3) Live your life. Find things that attract you or repulse you, and make decisions around that. Maybe you hate Pattaya! No problem, take the train north to Chiang Mai, or if you feel like a true hippy, try Pai. Keep a journal if you want. Send emails from hostels, and crash there if you need.

You'll return with a new appreciation for yourself, and the world around you, and material things like a shiny new car, or a mcmansion will seem a lot more boring.

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

#257

Post by mimixco »

Yes, yes, and no. Definitely get some (objective) professional money management help. Pick someone the wealthy use like JPMorgan Chase. Take care of your family; buy them houses, cars, and education. Find a charity you care about and don't just give money but get involved. And use some of it to help another startup get started. (I humbly suggest mine, http://mimix.io) But whatever you do, don't retire. How dull would that be? :-) Thanks for sharing your good news.

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

#258

Post by sokoloff »

joshmlewis wrote: post #198
sokoloff wrote: post #144

First of all, the taxes are probably not all paid on it. Some shares have been withheld (perhaps at 28%) when the actual figure is going to be higher (if ordinary income) or lower (if capital gains). You will need to find out next year when you actually file what the figure will be and be prepared to cut your state and Uncle Sam a fair-sized check. Second, there may be a lockup period where you can't actually access…

I don't see how not having access to the funds applies or that the stock price might have volatility since he said the money was in his bank account already.

OP called them both "stocks" and "money" seemingly interchangeably. (I don't recall the title showing "all cash" when I replied but maybe it did.) If it's actually in cash, you're totally right of course. Some people treat vested and released shares as if they were cash and look at the balance (shares times last trade), call it "money", and start making plans based on that.

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

#259

Post by lbriner »

holdenc wrote: post #256

You've got lots of good advice here, but much of it seems rather boring, and you seem like someone searching for the fire within. So, here you go: Step 1) Forget you have any money at all. Step 2) Withdraw $5000 in cash and buy a plane ticket to Pattaya. Bring only a backpack. Get a room for $15 a night. Budget about $15 a day for food, $10 a day for a motorbike, and perhaps another $20 discretionary. Your total burn…

I'm not sure the wife and kids will like this, unless you suggest they go along for the ride?

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

#260

Post by sjclemmy »

kowdermeister wrote: post #133
sjclemmy wrote: post #14

You know what? You don't need to do anything for now. What you need to do over the next few months is answer a single question: "What do I want to do with my life?"

> "What do I want to do with my life?" That's a hard question without the $8M too :)

Indeed it is!

Also to add. If you can't work out the answer to that question then don't feel pressured into trying to force it.

It's ok not be able to answer the question. Life is a search for meaning. Sometimes it comes, sometimes it doesn't. The money in and of itself isn't going to answer the question. And in fact, freedom from the 'toil' required to make ends meet might remove some of the purpose that OP previously felt. But I think when faced with change and upheaval that removes the certainties of life (in this case 'work, eat sleep, repeat') you owe it to yourself to see if you can work out the answer.

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