damn, lotta people here know what they would do if they had $8 million apparently
Ask HN: What to do after $8M (all cash, post tax) exit?
391–400 of 531 posts
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#392Just continue your normal life of "average" (as you say).
If all $8m went into your checking account, the first "simple" step you can do is to start breaking up the $8m into different account types at different banks with you and your wife as depositors for FDIC insurance purposes, in case you are not paying attention or ready to do anything immediate with the funds. https://www.fdic.gov/deposit/deposits/
Then after this, your full time job can become just learning how to manage your money which includes self-education first, before hiring anybody. It is not that hard and I'm sure you can do that on an average, not very hardworking 8 hour day, 5 days a week :)
Since you are a tech manager and seem to know "pieces" of your job (coding and business) but not enough to consider yourself a specialist (like a coder or the business guy), use this same mindset to be a manager of a team you can build around how to manage this $8m. In truth, $8m is not a lot of money per se so you may not need a team ... most people will want 1% of that per year to manage it. Your hope is that they are making at least 1% + inflation rate but you would probably do better yourself.
Good luck and congratulations!
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#393Earlier quoted context omitted.
Honestly this is mostly bad advice. The guy should just sit on his hands for a year or two while he processes the idea of having money. Telling somebody who has never made a big financial decisions to start buying millions of dollars worth of financial assets is terrible advice. Unless by "start small" you mean invest a non-material amount, which still leaves the question: what to do with the remaining 99% of the mon…
You should NOT have 8 million in a checking account.
Because FDIC only insures $250K? SIPC only covers $500K somewhere like Schwab[1] - or do you mean because you think it's terrible not be earning something on the $8M? Presumably that's enough for anyone to live out the rest of their life on comfortably...
1: https://www.schwabmoneywise.com/public/moneywise/essentials/...
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#394Do NOT hire a personal wealth manager at the moment. We are at the top of the bubble.
Tax planning is important. A small family office might be a good solution for you to help handle the burdens that come along with this money.
Make sure you google "multi-family office" in your area and then google their name and that they have north of $500m AUM.
Google "[name of family office] AUM" to get that figure.
As it relates to investments, you can either buy good cap-rate multi-family properties or do some hard money lending. Look for an area where you can purchase a multi-family performing property at a 10-cap or higher. These will survive the next downturn well and help you generate asset-backed income that is safe.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#395First, congrats. I think your humility comes through in your comment, which is refreshing.
The nice thing about money is that you can simply put it into an investment or savings and defer the decision about what to do with it. I recommend against pressuring yourself to make a quick decision.
I recommend just finding a new job or taking some time off and thinking about life for a while. Based on the time it has taken people I know to adjust after retirement, I'd give it 6-8 months before you can trust yourself to really know what it's like not to be obligated to work and to have your self worth defined that way.
So you may not want to retire, but I think an 8 month break would be a nice period of time during which to evaluate all of the options.
One thing that I think about is that in many ways my life is about as comfortable and pleasant as it could possibly be, even though I have not had a major exit. In one sense this is a good thing, but many philosophers tell us that struggle is what makes life meaningful.
So you might frame the question thus: Now that you no longer have to worry about basic financial security, what struggles might you choose to undertake that you could not undertake before because of your duties?
It might be a personal struggle (learning, accomplishment) or an inter-personal one... maybe political, maybe athletic or philanthropic.
The biggest thing to watch out for which you may or may not have encountered, is that people will flatter you extensively. While $8M isn't major wealth, it's enough that you will attract flatterers and your ideas will be given much more serious pondering. People will act toward you as though you are more attractive, smarter, and more insightful than you actually are. Beware of this because it is a reality distortion field.
Getting rid of the money quickly to avoid this sort of thing is a mistake, because dealing with it is just an important life skill just like learning to avoid people who are overly negative or mean-spirited.
Good luck to you!
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#396Take a little time out to reflect on life before you do anything with it. The money will still be there in a few weeks/months when you’re ready.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#397Earlier quoted context omitted.
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 tim…
Honestly this is mostly bad advice. The guy should just sit on his hands for a year or two while he processes the idea of having money. Telling somebody who has never made a big financial decisions to start buying millions of dollars worth of financial assets is terrible advice. Unless by "start small" you mean invest a non-material amount, which still leaves the question: what to do with the remaining 99% of the mon…
No, checking/savings account is not fine. They are covered for $100,000 (IIRC) by FDIC if the bank fails. [Edit: $250K.] That is, if the bank goes under when you have $10 million in it, you get back... $259,000.
I mean, it can be OK if you have 40 different accounts in different banks. But that's tedious.
Dump $100K into a bank account (one that does not have a debit card attached to it). As others have said, set aside one year's expenses; I'm going to assume that $100K is in the neighborhood of that. Put the rest into, say, a Vanguard S&P 500 index fund, a Fidelity high-quality corporate bond fund, and somebody else's Treasury fund.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#398Index funds. A money manager will cost 80k year, 1%. Index fund will cost 8k year. Check out vanguard.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#399There are many problems in the world ranging from atrocities to missed opportunities. Is there nothing that bothers you?
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#400Just wanted to say, the throwaway handle you selected is prime, 'throwaway8m'