2,000,000. Now what?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
brownsfan2k5
Posts: 29
Joined: Tue Jun 28, 2016 9:33 pm

2,000,000. Now what?

Post by brownsfan2k5 » Fri Apr 26, 2019 2:19 am

12345
Last edited by brownsfan2k5 on Fri Nov 01, 2019 11:36 pm, edited 1 time in total.

User avatar
mrspock
Posts: 585
Joined: Tue Feb 13, 2018 2:49 am
Location: Vulcan

Re: 2,000,000. Now what?

Post by mrspock » Fri Apr 26, 2019 4:07 am

By royalties, I assume you mean rent money? If so, it sounds like you are in good,shape. Though some questions:

1. What are your monthly expenses? Barebones expenses? Comfortable?
2. If I treat your equity as “bonds”, you have a 90/10 “ish” AA which is pretty aggressive, most around here would be 60/40 or 50/50 in retirement. So perhaps verify that AA is appropriate for this next stage of life and your risk tolerance.
3. Is your primary residence paid off?
4. Is your marriage stable? If not, do you have a pre/post-nuptial agreement? Keep in mind, half of the assets may be your partner’s, so keep in mind retirement hinges on a solid marriage. Together you retire now, divided you work longer.
5. How will you find meaning if you retire?
6. Do you plan on having kids? If so, budget for them, as I hear they are pricey.

aristotelian
Posts: 6651
Joined: Wed Jan 11, 2017 8:05 pm

Re: 2,000,000. Now what?

Post by aristotelian » Fri Apr 26, 2019 7:02 am

You have no financial reason to work. If you want to work, do something you love. The problem with financial advising is that you have to work in the industry for several years to get certified.

RobLyons
Posts: 531
Joined: Tue Oct 31, 2017 12:55 pm

Re: 2,000,000. Now what?

Post by RobLyons » Fri Apr 26, 2019 7:36 am

Wow, Congrats!

You must have been investing a ton every year to now have $2M in 9 short years!?

I would work only as much as I wanted to. Sometimes starting a business requires a lot of hours, is that what you want to do?
"Great parenting sets the foundation for a better world"

student
Posts: 4252
Joined: Fri Apr 03, 2015 6:58 am

Re: 2,000,000. Now what?

Post by student » Fri Apr 26, 2019 7:45 am

aristotelian wrote:
Fri Apr 26, 2019 7:02 am
You have no financial reason to work. If you want to work, do something you love. The problem with financial advising is that you have to work in the industry for several years to get certified.
+1.

wrongfunds
Posts: 2105
Joined: Tue Dec 21, 2010 3:55 pm

Re: 2,000,000. Now what?

Post by wrongfunds » Fri Apr 26, 2019 8:01 am

RobLyons wrote:
Fri Apr 26, 2019 7:36 am
Wow, Congrats!

You must have been investing a ton every year to now have $2M in 9 short years!?

I would work only as much as I wanted to. Sometimes starting a business requires a lot of hours, is that what you want to do?
Or may be, just may be, OP started with 1.5M at age 21 ??

bloom2708
Posts: 7085
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: 2,000,000. Now what?

Post by bloom2708 » Fri Apr 26, 2019 8:06 am

$2 million isn't enough to coast for 60 years.

I would head for $3 million.

How long will you receive $9k in royalties? Is this from an app or game or music royalty or modeling? Maybe royalty is a different term than I'm used to.

Congrats, keep plugging away.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

RobLyons
Posts: 531
Joined: Tue Oct 31, 2017 12:55 pm

Re: 2,000,000. Now what?

Post by RobLyons » Fri Apr 26, 2019 8:12 am

wrongfunds wrote:
Fri Apr 26, 2019 8:01 am
RobLyons wrote:
Fri Apr 26, 2019 7:36 am
Wow, Congrats!

You must have been investing a ton every year to now have $2M in 9 short years!?

I would work only as much as I wanted to. Sometimes starting a business requires a lot of hours, is that what you want to do?
Or may be, just may be, OP started with 1.5M at age 21 ??

:oops:
"Great parenting sets the foundation for a better world"

Slacker
Posts: 721
Joined: Thu May 26, 2016 8:40 am

Re: 2,000,000. Now what?

Post by Slacker » Fri Apr 26, 2019 8:32 am

wrongfunds wrote:
Fri Apr 26, 2019 8:01 am
RobLyons wrote:
Fri Apr 26, 2019 7:36 am
Wow, Congrats!

You must have been investing a ton every year to now have $2M in 9 short years!?

I would work only as much as I wanted to. Sometimes starting a business requires a lot of hours, is that what you want to do?
Or may be, just may be, OP started with 1.5M at age 21 ??
Not by their previous posts they didn't.

Slacker
Posts: 721
Joined: Thu May 26, 2016 8:40 am

Re: 2,000,000. Now what?

Post by Slacker » Fri Apr 26, 2019 8:35 am

brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
Hello

I am 30 years old and my wife is 26.

VOO = 1,800,000
Vanguard prime = 120,000
cash = 80,000

Investment rental #1 = $90,000 value/60,000 owed
Investment rental #2 = $90,000 value/60,000 owed
Investment rental #3 = $245,000 value/180,000 owed
Investment rental #4 = $125,000 paid off

We both also receive $4,500 (each or 9,000 total) for royalties

So here are my options:

1. We essentially can live off the dividends from VOO ($30,000) and the royalties ($107000) and live a comfortable life and relax/travel
2. We can live off the royalties and reinvest VOO'S dividends (thus making millions more over long term)
3. We can reinvest both the royalties and dividends and we continue to work
What are your typical expenses? Now include rare large expenses (baby in the future, replacement car, new roof on a rental property) and reassess
How long do you expect to receive royalties?
What is the cashflow after expenses for the rental properties?

User avatar
JupiterJones
Posts: 2815
Joined: Tue Aug 24, 2010 3:25 pm
Location: Nashville, TN

Re: 2,000,000. Now what?

Post by JupiterJones » Fri Apr 26, 2019 8:43 am

bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.
I guess that depends on your coasting speed.
Stay on target...

User avatar
Stinky
Posts: 2801
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: 2,000,000. Now what?

Post by Stinky » Fri Apr 26, 2019 8:43 am

bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
It's a GREAT day to be alive - Travis Tritt

User avatar
Wiggums
Posts: 2354
Joined: Thu Jan 31, 2019 8:02 am

Re: 2,000,000. Now what?

Post by Wiggums » Fri Apr 26, 2019 8:46 am

Stinky wrote:
Fri Apr 26, 2019 8:43 am
bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
I totally agree.

MichCPA
Posts: 851
Joined: Fri Jul 06, 2018 9:06 pm

Re: 2,000,000. Now what?

Post by MichCPA » Fri Apr 26, 2019 8:59 am

Wiggums wrote:
Fri Apr 26, 2019 8:46 am
Stinky wrote:
Fri Apr 26, 2019 8:43 am
bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
I totally agree.
The major issue with just quitting is that your entertainment/travel spending would probably increase substantially. The OP doesn't seem to be in that boat, but has definitely earned the ability to be flexible in basically any way he wants.

mak1277
Posts: 1206
Joined: Fri Jan 09, 2015 4:26 pm

Re: 2,000,000. Now what?

Post by mak1277 » Fri Apr 26, 2019 9:12 am

Whatever you the do, don't get sucked into the hype and make a big bet on the Browns to win the Super Bowl...or even the AFC North...this year. :D

hafjell
Posts: 172
Joined: Tue Nov 10, 2015 8:49 am

Re: 2,000,000. Now what?

Post by hafjell » Fri Apr 26, 2019 9:14 am

brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
We both also receive $4,500 (each or 9,000 total) for royalties
$9,000 per month or per year? Sorry if this is covered and I missed it.

student
Posts: 4252
Joined: Fri Apr 03, 2015 6:58 am

Re: 2,000,000. Now what?

Post by student » Fri Apr 26, 2019 9:28 am

hafjell wrote:
Fri Apr 26, 2019 9:14 am
brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
We both also receive $4,500 (each or 9,000 total) for royalties
$9,000 per month or per year? Sorry if this is covered and I missed it.
I think is per month since OP also stated "the royalties ($107000)" later.

ohai
Posts: 1301
Joined: Wed Dec 27, 2017 2:10 pm

Re: 2,000,000. Now what?

Post by ohai » Fri Apr 26, 2019 9:33 am

With only $2 million, you're still vulnerable to any number of financial disasters. Unless you really can't stand working, you should probably just keep doing what you have been doing.

Nowizard
Posts: 2420
Joined: Tue Oct 23, 2007 5:33 pm

Re: 2,000,000. Now what?

Post by Nowizard » Fri Apr 26, 2019 9:48 am

Retiring at age 30 holds many questions. You might ask yourself if your post is to gain perspective or whether you are investigating possibilities. If you do not have a very strong preference for retiring at age 30 and have essentially mapped out a sustainable plan for what you will do with your time, then to be in your financial state provides a wonderful relief of financial anxiety but does not mean retirement is a logical choice at this point in time.

Tim

User avatar
NYCPete
Posts: 745
Joined: Thu Apr 12, 2007 1:24 pm
Location: New York, NY

Re: 2,000,000. Now what?

Post by NYCPete » Fri Apr 26, 2019 10:01 am

It's really hard to get a good read on your situation. In November 2018, you posted about having $765,000 in VOO.

viewtopic.php?f=1&t=263178&p=4199548#p4199548
brownsfan2k5 wrote:
Mon Nov 05, 2018 1:33 pm
Hello

I have been saving and investing for the last 8 years. I have invested 99% of my money.

Current numbers:

765,000 in VOO

130,000 cash

3 homes valued over $500,000

My question is this: instead of keeping so much cash on hand, what should I do with it?


Thanks!

To get that pot of money to be close to $2MM required more than just growth of the investment. You had to also be contributing massive amounts to VOO. Your income must be sky high to achieve that. I think you'd get better responses if you gave the full context.

Or...this isn't real. I'm extremely skeptical.
To the extent that a fool knows his foolishness, | He may be deemed wise | A fool who considers himself wise | Is indeed a fool. | | Buddha

MrSarcasm
Posts: 25
Joined: Fri Jan 11, 2019 3:37 pm

Re: 2,000,000. Now what?

Post by MrSarcasm » Fri Apr 26, 2019 1:42 pm

NYCPete wrote:
Fri Apr 26, 2019 10:01 am
It's really hard to get a good read on your situation. In November 2018, you posted about having $765,000 in VOO.

viewtopic.php?f=1&t=263178&p=4199548#p4199548
brownsfan2k5 wrote:
Mon Nov 05, 2018 1:33 pm
Hello

I have been saving and investing for the last 8 years. I have invested 99% of my money.

Current numbers:

765,000 in VOO

130,000 cash

3 homes valued over $500,000

My question is this: instead of keeping so much cash on hand, what should I do with it?


Thanks!

To get that pot of money to be close to $2MM required more than just growth of the investment. You had to also be contributing massive amounts to VOO. Your income must be sky high to achieve that. I think you'd get better responses if you gave the full context.

Or...this isn't real. I'm extremely skeptical.
The numbers are actually pretty close, if at that time he had 3 $500,000+ properties, sold those, invested 1 mil in VOO and put the other into different rental properties.

Goal33
Posts: 1097
Joined: Sun Apr 12, 2015 12:30 pm

Re: 2,000,000. Now what?

Post by Goal33 » Fri Apr 26, 2019 1:53 pm

I am confused how royalties went from 9k to 107k over the course of a line or two... need more info
A man with one watch always knows what time it is; a man with two watches is never sure.

deanmoriarty
Posts: 293
Joined: Tue Jan 28, 2014 1:19 am

Re: 2,000,000. Now what?

Post by deanmoriarty » Fri Apr 26, 2019 1:59 pm

Goal33 wrote:
Fri Apr 26, 2019 1:53 pm
I am confused how royalties went from 9k to 107k over the course of a line or two... need more info
That's monthly. 9 * 12 ~= 107.

Thesaints
Posts: 2921
Joined: Tue Jun 20, 2017 12:25 am

Re: 2,000,000. Now what?

Post by Thesaints » Fri Apr 26, 2019 2:02 pm

Goal33 wrote:
Fri Apr 26, 2019 1:53 pm
I am confused how royalties went from 9k to 107k over the course of a line or two... need more info
He quoted monthly royalties (whatever they are) first and the annual amount later.

Agree, the jump in VOO is not market returns, which from Nov 5th has been 6.7%, plus two quarterly dividends.

User avatar
Sandtrap
Posts: 8627
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: 2,000,000. Now what?

Post by Sandtrap » Fri Apr 26, 2019 2:17 pm

3, then 4, then 5, then 6 . . . .

Life. Challenge yourself.. . and in other ways as well.

It's not the numbers.
Wiki Bogleheads Wiki: Everything You Need to Know

Topic Author
brownsfan2k5
Posts: 29
Joined: Tue Jun 28, 2016 9:33 pm

Re: 2,000,000. Now what?

Post by brownsfan2k5 » Fri Apr 26, 2019 2:42 pm

12345
Last edited by brownsfan2k5 on Fri Nov 01, 2019 11:37 pm, edited 1 time in total.

JMC2009
Posts: 4
Joined: Sat Apr 14, 2018 7:32 am

Re: 2,000,000. Now what?

Post by JMC2009 » Fri Apr 26, 2019 2:54 pm

Because fee based advising generally makes you a fiduciary and if your not netting the commissions from the advice its rather risky in terms of income vs. legal exposure.
Last edited by JMC2009 on Fri Apr 26, 2019 2:55 pm, edited 1 time in total.

JBeck
Posts: 147
Joined: Fri Apr 15, 2016 4:54 am

Re: 2,000,000. Now what?

Post by JBeck » Fri Apr 26, 2019 2:54 pm

I would reinvest and do something interesting that paid the bills for a while.
Last edited by JBeck on Fri Apr 26, 2019 2:58 pm, edited 1 time in total.

Thegame14
Posts: 1349
Joined: Mon May 07, 2018 11:53 am

Re: 2,000,000. Now what?

Post by Thegame14 » Fri Apr 26, 2019 2:56 pm

I would keep doing what you are doing, but maybe scale back a little and add more leaisure time in. Plus you want to have health insurance covered. Id prob keep working like you are for another 5 years, then scale back to part time.

What about kids? if wife works, she could SAHM if she desires to do so.

do you enjoy your work?

miamivice
Posts: 2197
Joined: Tue Jun 11, 2013 11:46 am

Re: 2,000,000. Now what?

Post by miamivice » Fri Apr 26, 2019 3:17 pm

The OP claimed to have a net worth of $300,000 in 2016....

then in November 2018 he claimed to have $765,000 in VOO.

Today $1.8 million in VOO.

either he received a large one time payment or did very well with VOO.

deanmoriarty
Posts: 293
Joined: Tue Jan 28, 2014 1:19 am

Re: 2,000,000. Now what?

Post by deanmoriarty » Fri Apr 26, 2019 3:29 pm

miamivice wrote:
Fri Apr 26, 2019 3:17 pm
The OP claimed to have a net worth of $300,000 in 2016....

then in November 2018 he claimed to have $765,000 in VOO.

Today $1.8 million in VOO.

either he received a large one time payment or did very well with VOO.
He literally just said a couple posts above that he sold a side business for $1M + a profit share under royalties. It's a typical deal for many small acquisitions, like popular phone apps/games or niche websites.

johnra
Posts: 202
Joined: Sun Dec 28, 2014 12:07 pm

Re: 2,000,000. Now what?

Post by johnra » Fri Apr 26, 2019 10:24 pm

Close your eyes, dream what you really want to do with your life, and then go do it! You have three major assets--time, health, and money. Don't blow it, it may not come your way again.

AlphaLess
Posts: 1895
Joined: Fri Sep 29, 2017 11:38 pm
Location: Kentucky

Re: 2,000,000. Now what?

Post by AlphaLess » Fri Apr 26, 2019 10:29 pm

Stinky wrote:
Fri Apr 26, 2019 8:43 am
bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
What’s not too young to rest on ones laurels.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.

smectym
Posts: 677
Joined: Thu May 26, 2011 5:07 pm

Re: 2,000,000. Now what?

Post by smectym » Fri Apr 26, 2019 11:01 pm

$2M is not enough to retire at 30, and many on this board would agonize about that at age 60.
But $2M PLUS $9,000 a month...yes, you can retire on that. But how secure is the royalty stream?

Smectym

GuyInFL
Posts: 260
Joined: Thu Aug 04, 2016 7:17 pm

Re: 2,000,000. Now what?

Post by GuyInFL » Fri Apr 26, 2019 11:29 pm

I'd consider paying off atleast some of the rentals.

confusedinvestor
Posts: 655
Joined: Thu Mar 15, 2012 11:04 am

Re: 2,000,000. Now what?

Post by confusedinvestor » Fri Apr 26, 2019 11:43 pm

This is not 100% true.

1. You can pass Series 65 exam and open a RIA in couple weeks. You can engage 'RIA in a Box' to get all your state compliance requirements.

2. For CFP, yes, you need 2 years of industry experience. For that you can get a insurance license and just keep it for 2 yrs and CFP board will allow that as your 2 yrs 'industry experience'.
student wrote:
Fri Apr 26, 2019 7:45 am
aristotelian wrote:
Fri Apr 26, 2019 7:02 am
You have no financial reason to work. If you want to work, do something you love. The problem with financial advising is that you have to work in the industry for several years to get certified.
+1.

User avatar
ClevrChico
Posts: 1592
Joined: Tue Apr 03, 2012 8:24 pm

Re: 2,000,000. Now what?

Post by ClevrChico » Fri Apr 26, 2019 11:51 pm

What if there was a global financial crisis II, causing massive losses to your stocks and real estate? What if it happened again AND your royalties went away? Would your < 10% cash portfolio (yikes!) last you long?

Congratulations on your success! You're probably years away from being at the top of your game, with lots of room for even more wealth building if you want. Take a long vacation and think about it some more?
Last edited by ClevrChico on Sat Apr 27, 2019 1:09 am, edited 1 time in total.

FOGU
Posts: 277
Joined: Tue Apr 24, 2018 9:41 pm

Re: 2,000,000. Now what?

Post by FOGU » Sat Apr 27, 2019 12:42 am

Your future is covered.

Now have a lot of babies, work to cover your expenses and in 20ish years you will be golden.

User avatar
Stinky
Posts: 2801
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: 2,000,000. Now what?

Post by Stinky » Sat Apr 27, 2019 4:20 am

AlphaLess wrote:
Fri Apr 26, 2019 10:29 pm
Stinky wrote:
Fri Apr 26, 2019 8:43 am
bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
What’s not too young to rest on ones laurels.
At age 30, OP is barely one-third through his life. He has much more that he can accomplish over the next 60 years, whether it be in his current pursuits or something entirely new.

In maybe 10 or 15 years, OP could reassess what he's doing and see if he wants to "rest on his laurels". He may choose to push on; he may choose to pause. If he pushes on, he could periodically reassess as time goes on.

But age 30 is just too young.
It's a GREAT day to be alive - Travis Tritt

User avatar
Watty
Posts: 18010
Joined: Wed Oct 10, 2007 3:55 pm

Re: 2,000,000. Now what?

Post by Watty » Sat Apr 27, 2019 6:13 am

One thing to take into account of in your plans is how long the royolaties are likely to last and I did not see any mention of that.
brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
Would you retire and travel? Would you keep reinvesting to make millions more down the road? Or would you keep working?
All the above. You do not need to just pick one of them.

If you plan on having kids that will also impact your plans and it would be easier and less expensive to travel some before you have the kids.

You are obviously doing VERY well but you need to be careful. There are lots of athletes, actors, musicians, heirs and heiresses, and lottery winners that had 10 or 100 times what you have and still ran into financial problems.

One way or the other plan on still working or running a business since you will be in bind if (when ?) the royalaties stop.

One thing I would be wary of though is the real estate that you have. They are likely all in the same geographic area which may not be very diversified. Having four properties is also sort of a gray area since they can be a lot of work but it is not enough to hire your own staff to manage it for you.

Under the current rules you need to have ten years work history of paying into Medicare to qualify for it when you are 65 and you may not have that yet. The required income is pretty minimal but when you get a chance be sure to pick up any needed medicare credits.
brownsfan2k5 wrote:
Fri Apr 26, 2019 2:42 pm
Anyway, why hasn't anyone stated a fee based advising franchise? It seems like a no brainer, as most people would prefer to pay for genuine advise and not be sold "insurance packages".
I have not used them but The Garrett Planning network is frequently mentioned when someone needs fee only financial advice.

https://garrettplanningnetwork.com/

I am not sure if DFA advisors are fee only or not.

https://us.dimensional.com/

A big challenge with being an ethical fee only financial advisor is that for most people once your get past, "Invest in low cost index funds and rebalanced periodically." it is hard to earn a living addressing other other financial questions. People like tax CPAs and estate planning lawyers are in a different job nitche.

(Just FYI, "fee only" is much different than "fee based" since a "fee based" advisor can both charge you a fee and take commissions. )
brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
What are your thoughts?
In the early 1900's there was an infamous and legendary stock investor named Jesse Livermore that made and lost multiple fortunes before the stock market was regulated. He is hardly a role model but one thing that he did do right was when he was riding high he put money into a protected trust that he could not access. He did this because he knew that might screw things up. That way when things went badly and he went bust his family could live on that since his creditors could not touch the trust.

It might make sense to do something like this and put maybe $250K into some sort of trust to protect you from yourself so that you have a safety net to fall back on.
brownsfan2k5 wrote:
Fri Apr 26, 2019 2:19 am
I have been investing heavily into VOO(mostly) since I was 21 years old, and will soon be reaching $2,000,000. I am very excited, but undecided on how to proceed.
It is time to diversify some. The mortgages on your rental properties are in essence a negative bond so you in effect have an asset allocation of over 100% stocks and a negative bond asset allocation.

Markets are near an all time high so you have been doing great but you are unlikely to ever get a windfall like that again.

At the very least I would start having the dividends invested into a bonds to head towards a more conventional portfolio. You mentioned wanting to be a financial advisor and no financial advisor would recommend such a high stock asset allocation.

The Vanguard lifestrategy funds would not be tax efficient enough for you but you can look at them to see what asset allocation they use as a guideline.

https://investor.vanguard.com/mutual-fu ... estrategy/#/
Last edited by Watty on Sat Apr 27, 2019 6:22 am, edited 1 time in total.

student
Posts: 4252
Joined: Fri Apr 03, 2015 6:58 am

Re: 2,000,000. Now what?

Post by student » Sat Apr 27, 2019 6:18 am

confusedinvestor wrote:
Fri Apr 26, 2019 11:43 pm
This is not 100% true.

1. You can pass Series 65 exam and open a RIA in couple weeks. You can engage 'RIA in a Box' to get all your state compliance requirements.

2. For CFP, yes, you need 2 years of industry experience. For that you can get a insurance license and just keep it for 2 yrs and CFP board will allow that as your 2 yrs 'industry experience'.
student wrote:
Fri Apr 26, 2019 7:45 am
aristotelian wrote:
Fri Apr 26, 2019 7:02 am
You have no financial reason to work. If you want to work, do something you love. The problem with financial advising is that you have to work in the industry for several years to get certified.
+1.
You are right.

Bacchus01
Posts: 3182
Joined: Mon Dec 24, 2012 9:35 pm

Re: 2,000,000. Now what?

Post by Bacchus01 » Sat Apr 27, 2019 6:48 am

Stinky wrote:
Sat Apr 27, 2019 4:20 am
AlphaLess wrote:
Fri Apr 26, 2019 10:29 pm
Stinky wrote:
Fri Apr 26, 2019 8:43 am
bloom2708 wrote:
Fri Apr 26, 2019 8:06 am
$2 million isn't enough to coast for 60 years.

I would head for $3 million.
+1

Age 30 is too young to rest on your laurels. I’d keep working and saving.

However, you have enough money to give you some freedom and flexibility. There’s no reason for you to work in a job that you don’t like.
What’s not too young to rest on ones laurels.
At age 30, OP is barely one-third through his life. He has much more that he can accomplish over the next 60 years, whether it be in his current pursuits or something entirely new.

In maybe 10 or 15 years, OP could reassess what he's doing and see if he wants to "rest on his laurels". He may choose to push on; he may choose to pause. If he pushes on, he could periodically reassess as time goes on.

But age 30 is just too young.

No, it’s not. He doesn’t owe anything to anyone that he has to accomplish anything more.

snowox
Posts: 306
Joined: Wed Nov 08, 2017 9:17 am

Re: 2,000,000. Now what?

Post by snowox » Sat Apr 27, 2019 7:05 am

If your getting 9k a month in Royalties per month have 2 million in the bank and 4 Rentals The only question I would have is how long do you get the royalties for? If 5 or 10 years than retirement is a no brainier in my book BUT I'd forget the Financial Adviser route and stick with what you already know somehow. I would assume you signed some kinda of non-compete when you sold but the knowledge you must have in your industry there must be something else you can do for like 20-25 hours a week again depending on your length of time of get those Royalties.

Topic Author
brownsfan2k5
Posts: 29
Joined: Tue Jun 28, 2016 9:33 pm

Re: 2,000,000. Now what?

Post by brownsfan2k5 » Sat Apr 27, 2019 7:06 pm

12345
Last edited by brownsfan2k5 on Fri Nov 01, 2019 11:38 pm, edited 1 time in total.

dmk395
Posts: 88
Joined: Sat Dec 30, 2017 9:13 am

Re: 2,000,000. Now what?

Post by dmk395 » Sun Apr 28, 2019 7:28 am

You're doing great. I'm going to approach this differently and say this. Protect what you have first! Get high liability insurances on vehicles and an umbrella policy.

staythecourse
Posts: 6993
Joined: Mon Jan 03, 2011 9:40 am

Re: 2,000,000. Now what?

Post by staythecourse » Sun Apr 28, 2019 8:03 am

brownsfan2k5 wrote:
Fri Apr 26, 2019 2:42 pm
All

Thanks for the feedback! I post on this forum because honestly, I can't confide in too many others. A lot of people tend to be haters, but you all are awesome!

Yes, not to get into too may details, but I did sell a service that netted me 1M (I am also entitled to $9000 a month in royalties from this deal). I also bought a 4th rental, thus adding to the 500,000 overall real estate portfolio. No I am not lying, as what would that benefit me?

I have always been frugal and entrepreneurial (started selling candy bars for $5 a bar at lunch in middle school) and my father instilled a good work ethic in me (he too invested in rentals).

NO I started with $1,200 at age 21, and really started pumping 10,000+ every month at 23. I have been lucky and found some amazing individual companies along the way (refer to my old posts).

Anyway, why hasn't anyone stated a fee based advising franchise? It seems like a no brainer, as most people would prefer to pay for genuine advise and not be sold "insurance packages".

I think I'm leaning towards getting license and trying to start small, and hopefully turn this into a great business as well. Boglehead style investing is clearly the best and someone needs to get the word out.
Good for you. If you worked so hard you whole life it would be a mistake and NOT challenge yourself (not for money, but for something constructive to do). Find whatever that you are interested in start doing your next project as much or as little as you want.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

Post Reply