Put it in index funds. Do NOT hire anyone to manage your money. You and your family can live off the interest and then provide your children with college tuition. You can donate some now or even more when you pass away due to interest. I would retire and tell no one why, make a plausible "I'm working on a business idea" excuse. Tell no one. Don't tell your kids. Figure out how to tell your wife and don't let your partner or kids "scope creep." Live comfortably.
Ask HN: What to do after $8M (all cash, post tax) exit?
511–520 of 531 posts
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#512Earlier quoted context omitted.
If you make rash decisions based on your perception of opportunity costs at that kind of sum, it's a good first step for losing it all. I'm also surprised by the attitude of 5% gain is easy and guaranteed. It's not. Neither treasurey funds nor real estate yield anywhere near 5% and we are many years in a bull market. Expecting 5% yearly ROI in the market over the next decade is optimistic.
not opportunity cost, real dollar loss to inflation. the opportunity cost is even greater. also I don't know why you are talking to me about 5%. $250k is not 5% of $8mm.
Yea you're right. I dunno why I added the 5% part here, it's something I saw across other comments.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#513Earlier 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…
when you have $8mm, sitting on your hands for a year costs you ~$250,000.
What would it have cost you if you dumped your windfall into an index fund in July 2018? Answer — you would have lost money and get the shaft when you’re forced to sell to lay taxes, etc.
Prudence and dollar cost averaging are your friends. People who stay rich are conservative with cash.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#514you can donate some of it to me if you want to make a poor guy happy.
TR740003200000000027641746
thank you :(
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#515Earlier quoted context omitted.
> we are many years in a bull market I agree. Having most of his capital in the stock market or real estate is a great opportunity to lose money in the next 5-10 years. Holding cash and investing it when the market is down is a good idea. Buffet currently does that because Berkshire thinks [1] that most of the stocks are overvalued (he waits for the next crash to buy them when they're cheap). Other assets which are s…
$SPY has lots of room to go. This bull market is just starting to simmer until the market tells us otherwise. Further to that, for many, me excluded, time in the market is better than time in the market. If you can afford to just leave all your money in the market, overtime, statistically, it has been proven to get better returns when we recover. Suppose OP drops $8M into the market and it dips to $150, it will likel…
Most people lack the emotional capability to hold stocks that are losing value.
If inflation goes up he can use his money to allocate the most valuable asset. I just don't think it's generally a good idea to invest while the market is deep into a bull market. It's better to put 1/5th or 1/4th into this bullish market and wait on the sidelines for the market correction (crash). If you buy after a crash, it's definitely a better bargain. Finding other options for your cash (e.g. houses that are expected to rise in value) to avoid losing 2% to inflation is certainly a good idea. I would also consider the risk that OP had no contact with the stock market before and that the emotional toll you get when you see that -15% in your portfolio can be overwhelming. Most people lose their money because they realize their losses in the wrong moment (and vice versa - some people lose their money because they don't cut their losses early enough). Definitely no hassle-free money in the stock market.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#516you can donate some of it to me if you want to make a poor guy happy. TR740003200000000027641746 thank you :(
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#517Earlier quoted context omitted.
> we are many years in a bull market I agree. Having most of his capital in the stock market or real estate is a great opportunity to lose money in the next 5-10 years. Holding cash and investing it when the market is down is a good idea. Buffet currently does that because Berkshire thinks [1] that most of the stocks are overvalued (he waits for the next crash to buy them when they're cheap). Other assets which are s…
$SPY has lots of room to go. This bull market is just starting to simmer until the market tells us otherwise. Further to that, for many, me excluded, time in the market is better than time in the market. If you can afford to just leave all your money in the market, overtime, statistically, it has been proven to get better returns when we recover. Suppose OP drops $8M into the market and it dips to $150, it will likel…
I think you meant time in the market is better than timing the market. However your advice rings true.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#518Spend $8M to not have an average life.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#519Spend time with your kids. You'll never get another chance.
Gosh came here for this advice and can't believe how far down the page it is.
Re: Ask HN: What to do after $8M (all cash, post tax) exit?
#520Invest:
- some in crypto
- some in a few angel rounds
- put some aside as the stock market will crash and you'll be able to buy most stuff at 80% (or more) discount