Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

news.ycombinator.com

Post reply on HN
Print view View original

281–290 of 531 posts

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

#281

Post by georgeecollins »

zawerf wrote: post #223
freddie_mercury wrote: post #95

Unsurprisingly lots of people have been in similar situations, so there is a Wiki article on one of the Internet's best personal finance and investing websites: "Managing a windfall" https://www.bogleheads.org/wiki/Managing_a_windfall "Do nothing rash. Set aside one year's living expenses[note 2] and place the rest of the windfall into low risk investments (FDIC insured accounts, money market funds, treasury bills) f…

> Unsurprisingly lots of people have been in similar situations According to this article[1], you need $8.4 million to be in the top 1% of net worth so 1 out of 100 HN lurkers can probably also give useful first hand advice! (assuming being rich doesn't make you less likely to visit HN) [1] https://economix.blogs.nytimes.com/2012/01/17/measuring-the-...

That is across all ages and I would guess that few here are seniors. At 35 the top 1% is $2.3m. So many here may be more wealthy than you realize.

https://www.financialsamurai.com/the-top-one-percent-net-wor...

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

#282

Post by zip1234 »

toastermoster wrote: post #228
phkahler wrote: post #152

Earlier quoted context omitted.

>> ...allows the recipient time to put together a team of professional advisers... Yeah, because it takes a TEAM of people getting paid to figure out what to do with money. I could accept one financial advisor though I don't know how to select one, but a team sounds a bit like vultures ;-)

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…

Yes, if they get a commission from what they sell you, they do not have fiduciary.

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

#283

Post by keiferski »

You 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 education. Consider enrolling them in a better school and/or hiring private tutors.

3. What did you want to do as a child? Be an architect? Design video games? Whatever it is, you can now afford it. I highly suggest really taking the time to introspect and figure out what is meaningful to you in life.

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

#285

Post by lukehack »

toastermoster wrote: post #228
phkahler wrote: post #152

Earlier quoted context omitted.

>> ...allows the recipient time to put together a team of professional advisers... Yeah, because it takes a TEAM of people getting paid to figure out what to do with money. I could accept one financial advisor though I don't know how to select one, but a team sounds a bit like vultures ;-)

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.

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

#286

Post by radicalbyte »

You sound similar to my family :) People keep asking us why we're not living in a big house or driving big cars. Why would I, I don't need it?

First, get financial advice. You want to make sure that you've got a pot for your kids and enough set aside that you don't have to work.

Then have a look at what you want to do. What makes you happy? I'm freelancing; this year I worked half a year because I don't need the money. Spent the last week building a "food forest" at our local primary school, it was the most fun I've had in years.

Personally I'd put at least some of my money towards combating climate change; but I see that as an investment in the future of my kids (and hopefully grandchildren). I also would not stop working; I would just work less and on my own terms.

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

#287

Post by StriverGuy »

keiferski wrote: post #283

You 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…

a million dollars will barely buy you an average home in NYC - unless of course you call a 700sft 1 bedroom average.

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

#288

Post by zip1234 »

jeremyjh wrote: post #109
flarco wrote: post #93

Earlier 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.

There are different types of advisers. People often get burned because broker dealers, stockbrokers, and insurance agents do not have fiduciary responsibility (they do not need to act in your best interest). A fee only adviser (with fiduciary responsibility, which will only charge you a fixed fee is a solid choice and worthwhile to keep you out of trouble.

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

#289

Post by maaaats »

edoo wrote: post #277
joshmlewis wrote: post #206

Earlier quoted context omitted.

This is if you just let it sit in an account instead of investing it. The parent comment is saying if you invest it you will be able to take 4% each year and still keep the nest egg in tact.

Wouldn't you need about 4% per year to break even with inflation? Can you safely invest at 7-8%?

You can search for "the 4 percent rule" or "trinity study" if you're curious about more. But basically, stock markets over long time average 7-8%. Subtracting inflation gives you a rule of thumb of 4% that historically would have worked.

Of course, the future might not match. But the studies also use a fixed withdrawal rate throughout. One could further mitigate the risk by having a small side-income some years, reducing spending in down-years etc. Also, how much money one needs post-retirement is often less, for instance if the mortgage is paid down, not housing kids any more etc.

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

#290

Post by readhn »

arcticfox wrote: post #253
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".

3million for 2, so 1.5mil each and thats in 10-15-20 years, so think inflation on top of price appreciation.

i dont know where you live but 1million really does not buy anything extravagant these days in a major city hub. just a regular house/condo.

Post reply on HN