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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?

#451

Post by jasonhong »

jasonhong wrote: post #415

I recently went through a major liquidity event myself a few months ago (Wombat Security Technologies). Here are some things my wife and I have done: - Get a financial advisor. Make sure that they have fiduciary responsibility, that their job is to help you, rather than just fees. Talk to several different ones and find one that you're comfortable with. Note that you will eventually have to spend a fair amount of tim…

Following up on my own comment, a lot of folks are saying, don't get a financial advisor. My wife and I discussed this quite a bit, and I was also lucky to be able to ask a lot of questions to my brother, who previously did a lot of work in hedge funds and has managed his own portfolio for decades.

It's a perfectly fine strategy to manage things yourself, as long as you diversify. Be sure to get things that are non-correlated with the market, and diversify over time.

The thing that a lot of people are missing in their "don't get a financial advisor" advice is access. Access to hedge funds, access to some investment vehicles designed to hedge your bets, access to early stage funding of companies. These are things that you would not get easy access to without a good financial advisor.

Again, you can do perfectly fine managing things yourself, so it's basically a judgement call here.

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

#452

Post by paulcole »

tthrowawayy wrote: post #444
pixl97 wrote: post #423

Earlier quoted context omitted.

You didn't retire, you just quit working until you went broke.

That's exactly what retiring is, only with the hope you die before your funds run out.

Ideally you die with $0 left. As the philosopher Karl Pilkington once said, "The only reason you need money is in case you don't die today."

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

#453

Post by hnaccy »

Majestic121 wrote: post #315
hnaccy wrote: post #56

Earlier quoted context omitted.

>It's "rich" in the sense that if you're smart and a bit frugal about it you'll never have to work again If does nothing but spend money he can spend $150k every year until he dies. Not exactly frugal.

150k$ a year is rich in Vietnam maybe, but if you plan to stay in the west, you'd be upper middle class at most

$150k net for 50+ years is upper middle class at most in America? Jeez some people are in a bubble.

Reminder this is assuming he completely stops working and does basically nothing with the money except match inflation.

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

#454

Post by paulcole »

pixl97 wrote: post #423
paulcole wrote: post #329

Earlier quoted context omitted.

I "retired" in my mid-20s for about 3 years. I only went back to work when I ran out of money. Describing complete freedom as "dull" is an insane concept to me. You can work out, read, watch TV, go to coffee shops, cook, or even just sit around all day with no commitments.

You didn't retire, you just quit working until you went broke.

How does that differ from your definition of retirement?

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

#455

Post by gboone »

nathan_f77 wrote: post #187
gboone wrote: post #73

I'm like you, without the $8M and have an additional kid. I'm also a financial advisor with a tech startup. It's just money. Money doesn't do anything, so don't love it. However, your responsibilities with it just rose far beyond what you were prepared to handle. Take your time and find a professional. If you want to learn to do it yourself, find a professional who will teach you. The job produced the money, but ther…

I think this is good advice for a lot of people, maybe including the OP. Sadly, some people will never be prepared to "unplug from the Matrix". They wouldn't be able to handle the unlimited freedom and time without turning to vices. Especially if they've had their soul crushed by 20 years of a career and responsibilities, and they've forgotten all of their hobbies and interests. I'm not being sarcastic, I think this…

Yep, different people/situations should get different advice.

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

#456

Post by gboone »

blacksmith_tb wrote: post #393
cortesoft wrote: post #374

Earlier quoted context omitted.

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/...

FDIC is not just a dollar limit, but also per bank. Someone can have CDs from multiple banks, all in one account. Millions of FDIC insured money is easy these days.

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

#458

Post by AnimalMuppet »

lucasmullens wrote: post #38
hguhghuff wrote: post #34

Put in in a range of safe investments and live a quiet life. You’re not rich, your very well off, it’ll last till your death in great comfort if you are careful. Don’t start giving it away or spending it.

Having $8M isn't rich to you? That's a lot of money, you probably should give at least some of it away to charity.

I think it was the founder of Maxim (don't remember his name, and can't point you to a link) who categorized various levels of "rich". Below $20 million (assets, not income) he classified as "the well-to-do poor". Yeah, maybe his perspective is skewed. Still, there are people who seriously suggest that $8 million doesn't make you "rich".

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

#460

Post by meesterdude »

First off, congrats!

Lots of great advice in this thread that is impossible to beat. But $8M means you can do whatever you want: including nothing. You can do absolutely nothing. Or! change your life. It's up to your personality and how you view money and time. You don't HAVE to work anymore... or you could go work at something that excites you. Or travel the world.

But whatever you do, use it to do some good in this world. Even if that's just being a great father to your kids.

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