What would you do with a 25 million windfall?

[investing1012]

What actionable steps would you do with a 25 million windfall? Btw I’ve read the wiki for it and appeeciate the input. Another question is would you continue to work. I dont necessarily love my work but earn pretty decent money (0.5 million per year) and find it satisfying (at times). I did spend 33 years of my life learning the trade to do my work (physician).

[Jags4186]

Backflips

[H-Town]

Invest $25 million with my current allocation.

[Daryl]

$24.5M donation to The John C. Bogle Center for Financial Literacy

[HueyLD]

What would you do with a 25 million windfall? Btw I’ve read the wiki for it and appeeciate the input.

Is this a hypothetical question?

[bloom2708]

60/40 3 fund portfolio at Vanguard.

Up spending to ~750k/year. Figure out how to be happy. Travel. Work on fitness and hobbies. Help family. Give.

[Sandtrap]

What would you do with a 25 million windfall? Btw I’ve read the wiki for it and appreciate the input.

(suggest you edit your original post to include: "What actionable steps would you take if you received a 25 mil windfall". Or it will be locked. Information must be something others can learn from and do something about.)

Very Actionably Post:

0. Tell Nobody.
1. Read "Managing a Windfall" on the wiki.
2. Read "All of the Bogle Wiki, getting started, IPS, etc"
3. Read all the recommended books on the forum.
4. Read "From The Grave" and other estate trust info and establish a revocable trust.
5. Put Umbrella Insurance in place.
6. Pay off all debt. Take on no new debt.
7. Continue employment if I am employed. . . for now.
8. Diversify investments and income streams by doing the following:
. . . . . a) Post my investment portfolio proposition to the forum for review, then act.
. . . . . b) Bogle 3 fund portfolio. Reinvest all dividends and interest for now. DCA or lump sum.
. . . . . c) Research and wisely buy "non leverage" R/E income property, specifically multi unit housing (apartment building).
. . . . .d) Max out 401k, IRA, and other (non tax space) contributions yearly.
9. Consult with a CPA and Tax Attorney to keep tax liabilities to a min.
10. Continue to do portfolio updates and review on the forum to seek guidance from those more knowledgeable and experienced.
11. Tell nobody.
12. Read "Life Code" by Dr. Phil. to avoid personal black swans.
13. Repeat #10 and #11. Repeat. Repeat.

j

[Olemiss540]

URGENT: Is this $25 Million pre-tax or post-tax? My answers change dramatically depending on your response. Thanks in advance,

[Hayden]

I would follow my IPS, in other words, no changes from what I am doing now.

If I inherited that sum and had not spent years reading bogleheads and various books and articles, it would be different.

[Mrxyz]

What would you do with a 25 million windfall? Btw I’ve read the wiki for it and appeeciate the input.

Hi,
You may to format your question with more specifics like why are you asking, what is your background financial status -debts, net worth, life goals, bucket list, etc? Also, would help if you plan to donate some of it and if so, what are your preferred recipients? BTW, highly recommend you give some money to this forum.
If you are asking a hypothetical question about what to do if you win a 25 M lottery then this is, perhaps, the wrong forum.
Wish you all the best either way!

[queso]

2 chicks at onc...oh wait, nevermind. Probably stuff like this:

[MotoTrojan]

Invest $25 million with my current allocation.

This would be an interesting thought for me. My current AA is 100% equity, with a US & Small-value tilt.

Even if half was lost to taxes, and I only lived off a 1% withdrawal rate, I could easily quit my job and let it ride, but I doubt I would do such a thing (keep the AA, I may take a break from work). Given I am 26 years old, I may do something like 70/30, and continue to work while it grows, and occasionally withdraw if I have a big expense (charity, vacation, helping family).

I'd probably pay off the parent's mortgage, but beyond that I wouldn't tell a soul or do any personal charity (giving to individuals).

[DanMahowny]

Buy short term treasuries.

Withdraw 4% per year.

Enjoy life. (doing that now, but with much less $$)

[Cheyenne]

Buy $5 mil in SPIA's (just in case) and try to live longer.

[investing1012]

URGENT: Is this $25 Million pre-tax or post-tax? My answers change dramatically depending on your response. Thanks in advance,

pre-tax.

[Conch55]

Continue to live my retired life but perhaps at a higher level of comfort
Travel more with no reservations, figuratively of course
Give some to livesoft, because he occasionally asks
Not change my IPS other than to plan for a more generous estate
That's about it

[investing1012]

2 chicks at onc...oh wait, nevermind. Probably stuff like this:

This one made me LOL

[Jack FFR1846]

I'd pay a dealer to do the timing belt in our Subaru instead of buying the belt, and associated parts and doing it myself.

I think I'd have some money left over.....

[letsgobobby]

Invest $25 million with my current allocation.

You don't think your need to take risk might have changed with a windfall equal to fifty times your annual salary?

[LiveSimple]

Invest
Travel
Help Charities or Volunteer
See how you can be helpful to the underprivileged

Or Invest and Relax !!!!

[investing1012]

Invest $25 million with my current allocation.

You don't think your need to take risk might have changed with a windfall equal to fifty times your annual salary?

Definitely true as a physician a big risk to me is simply working and having to deal with a malpractice lawsuit.

[DrGoogle2017]

I would definitely spend some. Invest half in the stock market and half in CDs. Worry less, spend more mentality.

[ThePrince]

Backflips

+1

[jebmke]

Give it away.

[DaftInvestor]

I recently came across a $4M house I wouldn't mind buying. I'd probably buy a nicer house and invest the rest with a withdrawl strategy that allows me to comfortably travel/vacation the rest of my life in addition to charitable giving.
For the house - I wouldn't necessarily buy something on the market - and I don't really need a $4M house. I have seen $500K houses in the right areas that have suited my needs (similar to what I own today). I might look for a house that is similar to what I have today that abuts a nice hiking trail and buy it - I don't care if its on the market or not - I'd ring the bell and make an offer:
Ding-dong (doorbell of the house I want to buy that isn't on the market, resident answers).
ME: "Your house is currently valued at $500K - I'll give you $800K - interested?"
HOMEOWNER: "Are you serious? Yes - I'm interested"
ME: "Okay - I will bump the offer up to $850K but you have to be moved out by tomorrow morning so start packing. Provided your out in the morning I'll write you a check".

[inbox788]

URGENT: Is this $25 Million pre-tax or post-tax? My answers change dramatically depending on your response. Thanks in advance,

pre-tax.

Oh, that changes everything. Begin with cutting the cable and getting a prepaid phone.

I'd pay a dealer to do the timing belt in our Subaru instead of buying the belt, and associated parts and doing it myself.

I think I'd have some money left over.....

I'd buy my own garage so I could do it myself and not have to visit the dealer!

Seriously, if you had that much money, you can do whatever the fun you want.

[chicagoan23]

What actionable steps would you do with a 25 million windfall? Btw I’ve read the wiki for it and appeeciate the input. Another question is would you continue to work. I dont necessarily love my work but earn pretty decent money (0.5 million per year) and find it satisfying (at times). I did spend 33 years of my life learning the trade to do my work (physician).

I'd do everything I could to avoid the estate tax taking 40%.

[Golf maniac]

This is post tax, I don’t need retirement income or investments so for me:
1. Donate 20%;
2. Help family members 20%
3. Buy dream home 10%
4. Travel 10% (places I still want to go to)
5. Cars 5% (a few old cars I would like to own)
6. Golf 5% (that’s right, Golf, several courses I still need to play, want to play in all 50 states)
7. Invest in kids 10% (college, businesses,etc.)
8. Invest for fun 20% (micro businesses, entrepreneurs, etc)

[EnjoyIt]

As a physician I would still work but part time. Maybe 2 days a week with 1 week off.

[BrandonBogle]

Invest $25 million with my current allocation.

You don't think your need to take risk might have changed with a windfall equal to fifty times your annual salary?

Definitely true as a physician a big risk to me is simply working and having to deal with a malpractice lawsuit.

While the above is very true, I would almost go with this, at first:

<snip (but all good points)>
7. Continue employment if I am employed. . . for now.
<snip (but also good points)>

Emphasis on "for now" from me. I saw this b/c of a few reasons:
A. Maybe you have some advantages being employed to move some of these funds into more favorable tax treatment (Op later said the funds are pre-tax).
B. Ease into the lifestyle you want with the windfall rather than rush into decisions and spending
C. Find out how much you truly enjoy what you are doing and if things pop up where you think "I'd rather do this or that", then go and do them instead.

[aj76er]

Vanguard tax-managed balanced fund. Live off the dividends+interest. Put my existing 401k into a target date fund with the plan of converting to an annuity later in life or donating to charities (via QCD withdrawals). Put existing Roth into total world stock fund with the plan of donating or passing on to heirs.

Quit working and start traveling, exercising more, sleeping in and cooking more, and more eating out at high end restaurants. At some point, Id probably buy a few residences (condos) in different parts of the country that I liked.

Eventually, I'd have to come up with a plan to give away the extra $$ that goes unused

[randomizer]

Stick to my IPS, start a small business, and ramp up my charitable giving.

[H-Town]

Invest $25 million with my current allocation.

You don't think your need to take risk might have changed with a windfall equal to fifty times your annual salary?

My current allocation is appropriate for my age (in accumulation phase) and my longer goals. I don't like to change it just because I got $25 million windfall. I'd just put $25 million in 70/30 portfolio and let it grow. It might grow to $2 billion when I retire. I'll find great use of it for the community and younger generation.

[5th_Dimension]

Step 1. Buy a Tesla.

Step 2. Drive around in the Tesla trying to decide what to do with the rest of the money.

[John Laurens]

How did it take 33 years to learn your trade (physician)?

If that’s your age, is my snot nosed nephew 60% doctor?

Regards,
John

[hightower]

Pay off my last remaining debt (mortgage, student loans)
Buy a small vacation home in Hawaii (probably Kauai, I'm thinking Hanalei), I would keep it under 1 million for sure. Not going crazy here. I still would want to live below my means. I would rent it out when we're not living in it.
Invest the rest according to my current asset allocation
Quit my job
Do whatever the heck I feel like for the rest of my life

Thanks for the fun thoughts!

[KSOC]

Backflips

First thought was run nekkid down the street.

[investing1012]

How did it take 33 years to learn your trade (physician)?

If that’s your age, is my snot nosed nephew 60% doctor?

Regards,
John

Lol it’s the number of years i went to school

[investing1012]

Step 1. Buy a Tesla.

Step 2. Drive around in the Tesla trying to decide what to do with the rest of the money.

Already own a Tesla (paid off) and love it

[moghopper]

$24.5M donation to The John C. Bogle Center for Financial Literacy

Oddly enough, I was just thinking about changing my name to this.

[Tamarind]

I would:

-set up some more charitable giving
-go ahead and do a $150k reno on my $230k house which will never pay for itself but which would bring me increased enjoyment of the space
-pay off my mortgage and never have debt again
-leave my 9-5 and switch to contract work immediately now I'm not worried about income stability, so I could take more interesting short jobs
-fiancee could stop working overtime
-travel 1 or 2 months out of the year
-work with a personal trainer
-invest according to my AA

It wouldn't take $25M to get me there though. $2M post-tax would do the trick.

[lhl12]

I would contribute the maximum deductible amount either to a newly formed private foundation or to a Donor-Advised Fund. I believe the limit is 20% of AGI but you should confirm this with an accountant.

That will give you the largest possible charitable deduction without having to actually give the money away until you're ready, perhaps many years down the road.

[livesoft]

I'd endow some fellowships at some of the places that I have worked at.

[my2swedes]

Is any of it in a trust that provides creditor protection, or did you inherit it all outside of a trust? What will remain after estate tax?

[itstoomuch]

Seek out other people who have or control >$10<$50 million .

[LiterallyIronic]

1. Retire immediately.
2. See tax advisor.
3. Buy better house and sell current one (for far below market value to a sibling in need).
4. Buy a DeLorean.
5. Sight-see in Europe.

Same things I'd do with a much, much smaller windfall (except #3).

[bearcub]

Get rid of the doughnut in the trunk of my car + buy a real spare tire.

[LadyGeek]

This thread has run its course and is locked (not personal nor actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT

- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.

- It must be actionable. You must be able to do something specific with the replies that will make a difference in your situation.

If you have a specific question, please ask directly and provide sufficient information for members to supply appropriate advice.