301–310 of 531 posts
Go travel my friend! And don't put yourself in the position of subscribing to luxury travel either. You'll be burning through money faster than you realize. Besides, trying to live truly locally will yield such 'rich' life experience. Nothing like connecting with other cultures and experiences without the emphasis on the balance within your bank account. Other than that, congrats! That's a nice lump of money and best…
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I see reddit mentioned by multiple people. I think the sub https://www.reddit.com/r/financialindependence/ might also be a nice fit, as it is about how to become financial independent (already achieved by OP) and then what to do after (retire early? how to manage the money? etc)
warning: high value individuals can expect a fair amount of abuse on that subreddit, it's for how to get to FI not how to manage being there
Edit: FIRE = Financial Independence, Retire Early
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…
I disagree on not hiring an adviser. The key is to know what kind of adviser they are. If they are a fee-only adviser with fiduciary responsibility, it is likely exceptionally worthwhile. It sounds like you have a good handle on how to manage your finances, but there is a LOT to know. Minimizing taxes, planning children's' college, etc. Also, the good ones don't charge a flat 1% all the way up. They will charge less…
There's a whole lot of interesting things to do...
Amazing how many people think $8M is enough to retire, or even that you'd want to. Go travel the world with the family for a while. Clear your head and have a good think about the future.
$8M would give you $280k / yr. That's a huge amount of money, and quality of life doesn't increase very much after that.
Also you can be your own boss and work on your projects or hobbies. I think the "financial independence" part is more important than "retirement". Maybe you have a very different idea of "retirement" than me.
Serious question - why not? If because of a lack of time or money, that problem is now solved. You have enough money to retire. You have the resources to sit down and get good at whatever you want. Which means that 43 is not to late to start a hobby.
Just as an example, since moving to Utah a few years ago, I switched my hobbies around, and they built into a whole new way that I spend my non-working time. I take my kids out on 'adventures', going out into the mountains and the desert, taking photos, coming back and painting landscapes based on my photos. I also collect rocks and gems from my trips, make jewelry out of them, and just picked up woodworking and am building furniture with inlays using those same stones.
It is possible that by trying a few new things, you'll also come up with a whole collection of things to do. So I recommend spending time exploring all your options. Get out, do things, explore, and talk to a variety of people. While the feedback you'll get from HN certainly will have merit, this is a very small slice of the world. Ask these questions to a broader audience as well.
Beyond that, divide it up into a low-risk portfolio and investments that can make passive income. Don't let anyone know you have this newfound wealth.
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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)?
https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the... > You will be encouraged to hire an investment manager. Considerable pressure will be applied. Don't. > Investment managers charge fees, usually a percentage of assets. Consider this: If they charge 1% (which is low, I doubt you could find this deal, actually) they have to beat the market by 1% every year just to break even with a general market index fu…
I wouldn't paint the whole industry this way. Some people are simply not good at handling money and paying someone to keep your hands off of it is wise.
For the record, my buddy works with sports/entertainment stars (and including tech founders who exit) that categorically have the worst discipline when it comes to money.
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> 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?
In this case, selling the ponies and do something they like with the money.
Or selling some ponies, and pay someone to take care of the rest and make them reproduce/sell them, so that you can live with the pony-benefits.
It might not be optimal pony-wise, but it definitely makes more sense life-wise.
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this is probably some sort of contra-indicator when average joe off the internet recommends Putting most of your money in the stock market. We must be near the Top of this bull run. This bull market is almost 10 years old. We are overdue for a "breather".
You can’t time the market, so either advice is just as wrong/right. Though the stock market will probably be higher 10 years from now.
What about these 4 guys just before 2008?
• Economist A. Gary Shilling warned his newsletter subscribers about a housing bust and wholesale deleveraging of household debt that would hobble the economy for years.
• Money manager James Stack also told his clients the housing bubble had burst and that a new bear market was coming—while stocks were hitting all-time highs.
• Raghuram Rajan, then chief economist of the International Monetary Fund, said the amount of risk and leverage in the system was much higher than most people thought.
• John Mauldin said a housing bust would lead to a drop in consumer spending, a bear market, and a recession (though at first he thought it would be a mild one), and that credit default swaps (CDSs) posed a systemic risk.
Plenty of folks "predicted" 2000 dot com crash and 2008 crisis. Noone listened though.