What would you do with 15m?

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renditt
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What would you do with 15m?

Post by renditt »

Another thread got me thinking: What would I do if I had 15m?

Maybe something like this...

Build a nice house with a lot of land. Maybe 2m in total.
Get a second home - 500-750k.
Give away 500k - 1m.
Invest 10m half bonds and half stocks, so I can live off dividends and interest without touching principal.
Get a sports car (nothing crazy, something for 100k)
Quit my job, travel extensively and start my own company (more hobby than to actually make money)
cashcrazy
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Post by cashcrazy »

Well, given that past behavior is the best predictor of future behavior, I'd leave it sitting in a money market account essentially becoming less valuable every day. :?

Actually, your list isn't bad except I am not sure about the 2nd home. In the past I thought that some day I may buy a beach house or something to that effect. But, then I started considering how much hassle one home can be and can only imagine what it would be like having a second home in a remote location.
phositadc
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Post by phositadc »

I would put 90% of it (13.5 million) in a reasonable asset allocation, quit my job, and live off a withdrawal rate of 3% per year, which would be $405,000 per year. Maybe I would even reduce that to 2.5% per year ($338,000 per year) to be ultra certain it would never run out.

The other 10% I would put in Vanguard Charitable Foundation and distribute as desired in the coming years.
DSInvestor
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Post by DSInvestor »

I would keep what I need to live comfortably and give the rest away. I don't need much to live comfortably.
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rob
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Post by rob »

Yeah nice issue to dream about vs. the dark cold reality :-/

* Take an immediate "vacation".
* Cash the cheque so I had the $$$ in my hot hands.
* Make the "vacation" permanent
- at will employee so none of this 2 week crap :-).
* 2 x cars - one classic sports car and one very nice regular car.
* Design & build a very nice house (have kids so have to consider location to schools e.t.c. but somewhere in the mountains) - but spend maybe 2-3M depending on location.
* Do a few of the great photography trips kicking around.
* Pick a location each year for family vacations & rent a house for a few months - think this year in Tuscany or Christmas in disney world e.t.c. Rather then giving away some $ to family would fly them to that location for their vacation.
* Invest in my current allocation but crank the stock/bond ratio down to 30-40% stocks since need to take risk just went away.
* Spend some $$ on good estate planning, funding 529 plans e.t.c. to try and reduce future taxes.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
Manbaerpig
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Post by Manbaerpig »

I have no idea, I'd probably keep working until I figured out a plan.
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Opponent Process
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Post by Opponent Process »

I can do 15m in about 2.7s.
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S&L1940
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Post by S&L1940 »

tax free - great - if not, hire some of GE's tax accountants to keep as much as I can

set up trusts for kids and grand kids to get that out of the way

park remainder in conservative (treasuries, total stock US & All World, tips) allocation

stay healthy and live a long happy life - which I am doing now but I do not have the $15MM
Don't it always seem to go * That you don't know what you've got * Till it's gone
golfallday
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Post by golfallday »

34% VTI
33% VXF
33% VEU
minskbelarus47
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15 Mill

Post by minskbelarus47 »

I can tell you are young.

Simplify, simplify, simplify.....

The more things you own, the more they own you.

One house...maybe even rent.........3 car garage.
Rebuild a Mustang/Camarro or get a jeep. Go pick a year....come up with your own design. Get it done.

Rent cabins. Start with the Potomac Appalachian Trail Club. 38 Cabins in and around the Shenandoahs. Cheap to rent.

Buy some property (40-60-100 acres) next to the Appalachian Trail then either do an environmental easement or donate it to one of the Appalachian Trail clubs. Pick a state. If you are out west, do the same.....That will be your legacy (or one of them). Let them build a nice cabin on it for people to rent. Name it after you.....long after you are gone people will still be thanking you......

By the way.....all of the above.....you don't have to win the lottery.....you can do all this with planning...... these are not dreams that can't come true........Rent a cabin this summer. Pick a weekend with no moon....look at the stars.....dream.......
ark
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Post by ark »

$15 million? That's a toughie, because it means that I could afford to buy an apartment in New York as big as my current house in New Jersey.
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norookie
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Post by norookie »

:D i've never understood people giving away money with less than 1 billion or 2 :roll:
" Wealth usually leads to excess " Cicero 55 b.c
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Sheepdog
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Post by Sheepdog »

Set up a foundation.
All that truly matters in the end is that you loved.
staythecourse
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Post by staythecourse »

I would buy this website and name it after me :lol:

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

i would buy this website and name it after staythecourse. :lol:

...either that, or i'd invest the money and use the dividends for a modest lifestyle plus charity.
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Post by White Coat Investor »

I think I'd quit working a the liability would be too much. Usually attorneys stop when they get the whole malpractice limit, but I'd be too afraid they'd keep going if I had $15M.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
staythecourse
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Post by staythecourse »

muddyglass wrote:i would buy this website and name it after staythecourse. :lol:

...either that, or i'd invest the money and use the dividends for a modest lifestyle plus charity.
You too? Staythecourse.org sounds good to me!
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
flowerbuyer
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Post by flowerbuyer »

What would I do? Assuming that is $15 million after taxes, I would share it with family:
Set up $3 million trust, for each of two adult children. Invested following Boglehead guidelines.
Set up a $ 3 million trust for myself. And of that, spend about $6,000 on a pair of diamond solitaire earrings....just because!
Give my brother $1 million.
Set up a small charitable foundation with $5 million, focusing on providing trained caregivers to help families who are providing care for a family member with Alzheimer's or other dementias, and who are unable to afford help.
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Post by linenfort »

I'd probably spend the first large chunk of it on relatives who deserve a piece, and on hiding the big news from relatives who don't. ;-)
What a burden!
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Mister Whale
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Re: 15 Mill

Post by Mister Whale »

minskbelarus47 wrote:Buy some property (40-60-100 acres) next to the Appalachian Trail then either do an environmental easement or donate it to one of the Appalachian Trail clubs. Pick a state. If you are out west, do the same.....That will be your legacy (or one of them). Let them build a nice cabin on it for people to rent. Name it after you.....long after you are gone people will still be thanking you......
I really, really like that idea. Thanks.
" ... advice is most useful and at its best, not when it is telling you what to do, but when it is illuminating aspects of the situation you hadn't thought about." --nisiprius
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Re: What would you do with 15m?

Post by friar1610 »

renditt wrote:Another thread got me thinking: What would I do if I had 15m?

Maybe something like this...

Build a nice house with a lot of land. Maybe 2m in total.
Get a second home - 500-750k.
Give away 500k - 1m.
Invest 10m half bonds and half stocks, so I can live off dividends and interest without touching principal.
Get a sports car (nothing crazy, something for 100k)
Quit my job, travel extensively and start my own company (more hobby than to actually make money)
I might "upgrade" in a few areas, but generally I'm very happy with our retired situation as it is.

- Since we live in Vermont, we might sell our current house and buy one on Lake Champlain. Or move to the Coast of Maine. But in neither case would it be a huge house.
- We'd buy a small condo in Boston or NYC for those times we feel the need to get to the big city.
- We'd probably take a few more vacations, and perhaps spend a bit more time in warmer climates during the winter.
- I'd endow a scholarship at the college I attended. And give a chunk to some other charities.
Friar1610
marco100
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Post by marco100 »

Is that 15 million before or after taxes?
paper200
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Post by paper200 »

Sip martini on various beaches for a year before I decide what to do with the money - so I will invest $1000 a day thinking.
GammaPoint
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Post by GammaPoint »

marco100 wrote:Is that 15 million before or after taxes?
I'd say after. There's not much you can buy with $15M before taxes.
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steadyeddy
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Post by steadyeddy »

GammaPoint wrote:
marco100 wrote:Is that 15 million before or after taxes?
I'd say after. There's not much you can buy with $15M before taxes.
:lol: :lol:
jon-nyc
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Post by jon-nyc »

Me? Take it to vegas and bet it all on black.


Easy come, easy go.
traumamoma
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Post by traumamoma »

Plus one with Jon-nyc. Try and turn it into some REAL money. Peter
Valuethinker
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Re: 15 Mill

Post by Valuethinker »

minskbelarus47 wrote:I can tell you are young.

Simplify, simplify, simplify.....

The more things you own, the more they own you.

One house...maybe even rent.........3 car garage.
Rebuild a Mustang/Camarro or get a jeep. Go pick a year....come up with your own design. Get it done.

Rent cabins. Start with the Potomac Appalachian Trail Club. 38 Cabins in and around the Shenandoahs. Cheap to rent.

Buy some property (40-60-100 acres) next to the Appalachian Trail then either do an environmental easement or donate it to one of the Appalachian Trail clubs. Pick a state. If you are out west, do the same.....That will be your legacy (or one of them). Let them build a nice cabin on it for people to rent. Name it after you.....long after you are gone people will still be thanking you......

By the way.....all of the above.....you don't have to win the lottery.....you can do all this with planning...... these are not dreams that can't come true........Rent a cabin this summer. Pick a weekend with no moon....look at the stars.....dream.......
Oh lordy is this good advice.

Especially 'simplify, simplify, simplify'

and

'the more things you own, the more they own you'.


With $15m you can afford great experiences. eg to travel Business Class everywhere (except long haul to Australia, First is just a ripoff at standard rates)- -BA and other airlines now have beds in Business.

But you need to own ONE house at most, and maybe a small condo someplace interesting (but unless you habitually spend weekends in NYC, it's just as easy to stay in a nice hotel).

You need TWO cars at most-- 4WD for tootling around the farm, and a decent car for other times (Lexus or something). I would avoid flash sports cars, they are a magnet for criminals, traffic cops and it is *very* easy to kill yourself in one (I know at least 3 people who have had serious accidents in their Porsches)-- the car outperforms the skill set of most drivers. So then you buy a 3rd, vintage sports car or something for weekend fun: fine. But that shouldn't cost you more than 20-30k (keeping it on the road will probably cost you 5k+ a year).

On the house, you really don't need more than 4,000-5,000 square feet-- just needs looking after. Unless you have lots of kids. If you frequently have relatives to stay a property with a guest house is a nice idea.

Better a smaller house in a better neighbourhood.

Toys just grow old real fast. Spending money on great experiences (travel, charities, education etc.) is fun. On toys? They are easy to get bored with.

Your biggest issue is security. Kidnapping is rare, but it's not no threat, and of course the risk extends to children at college, nieces, nephews etc. Therefore living low profile is a *very* good thing. There are lots of countries (Ireland was one until recently; Columbia and Mexico of course; Sardinia in Italy etc.) where kidnapping is a serious issue-- there's a reason the kids of Russian rich go to English public (ie private boarding) schools.

And of course you are a target for break ins etc.

Lastly 15m ain't really that much in the land of the rich. Not enough for the private jet, penthouse condo in New York (and having money left over to pay the bills), etc.
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market timer
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Post by market timer »

paper200 wrote:Sip martini on various beaches for a year before I decide what to do with the money - so I will invest $1000 a day thinking.
This is what I have in mind for my 2% withdrawal rate. Hopefully martini prices don't rise much faster than CPI.
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Post by linenfort »

market timer wrote:
paper200 wrote:Sip martini on various beaches for a year before I decide what to do with the money - so I will invest $1000 a day thinking.
This is what I have in mind for my 2% withdrawal rate. Hopefully martini prices don't rise much faster than CPI.
:idea:
50% Diageo
50% actual martinis
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Post by KyleAAA »

I'd exchange the job for a boat and buy a nice house in my favorite neighborhood (that would run about $1 million). But other than that, I probably wouldn't change much. I might upgrade my car a bit, but nothing too crazy. $15 million really isn't that much money.
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Post by HomerJ »

$6 million super conservative portfolio - live off $180,000 a year (3% withdrawal)

$1.5 million - paid-off super nice lake house, boat, jet skis

$2.5 million - give to family and friends (this would be FUN!)

$5 million - charitable foundation that we would run (also FUN!)
Last edited by HomerJ on Sat Apr 23, 2011 3:26 pm, edited 1 time in total.
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Post by HomerJ »

KyleAAA wrote:$15 million really isn't that much money.
Heh, you're not really as cool as you think you are... :)
Norris
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What would you do with $15 mill?

Post by Norris »

Retire

Norris
kayman
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Post by kayman »

I think about this way more than I should. I would pretty much do what the OP did. The two houses would serve a purpose, since there are two places I'd like to live in.

I'd probably spend half of the 2-3% income on myself (travel mostly) and the other half on charity. I'd make that my full-time job. Maybe some days I'd just go to restaurants and leave big tips or drop large bills into street performers' hats.
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Post by staythecourse »

I know this is supposed to be for fun, but it is odd how many folks state they are willing to give away so much to charity. Considering if you look at all the folks who actually have 15 mill. how many give away 1/3-1/2 to charity like the folks on here claim they would do?

I hate to say many on here are imagining what they "hope" they would do and not what actually happens when you have 15mill. sitting in your account.

Just an observation.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
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Re: What would you do with $15 million?

Post by docneil88 »

:) I'd buy with cash a nice 4-bedroom home, then invest the rest and rebalance periodically as follows:

15% Vanguard Federal Money Market Fund
15% Vanguard California Intermediate Term Tax Exempt Fund
15% merger arbitrage funds (MERFX, ARBFX, MNA, QEAAX)
15% Vanguard Short Term Corporate Bond Fund
20% Vanguard Total US Stock Market Index Fund
20% Vanguard Total International Stock Market Index Fund

I'd keep working; I find it satisfying teaching college students. I'd travel more often. I wouldn't worry about trying to squeeze a little more from the market via a value tilt (as I currently do). I'd withdraw at about 2.5%/year and give over 1/2 of that each year to non-profits, family, and friends.
Last edited by docneil88 on Sun Apr 24, 2011 3:30 pm, edited 1 time in total.
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Re: What would you do with 15m?

Post by YDNAL »

renditt wrote:Another thread got me thinking: What would I do if I had 15m?
Just add it to the existing $15M. :) Now we are getting into A-Rod's 2011 salary territory.
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Post by HomerJ »

staythecourse wrote:I know this is supposed to be for fun, but it is odd how many folks state they are willing to give away so much to charity. Considering if you look at all the folks who actually have 15 mill. how many give away 1/3-1/2 to charity like the folks on here claim they would do?

I hate to say many on here are imagining what they "hope" they would do and not what actually happens when you have 15mill. sitting in your account.

Just an observation.

Good luck.
Well, I think most of us Bogleheads understand the concept of "enough". Most of us have had the discipline to live below our means all these years. I don't think many of us are very materialistic. Sure, we like our comforts, and our vacations, but we're not flashy...

My current plan is to retire at about the same lifestyle I have today... Shooting for a paid-for house, and about $2 million in investments throwing off $80k a year...

If suddenly I had $15 million, I could quit today, and double my lifestyle (which really just means a slightly larger house with a very nice view, and 2x the vacations, first-class)... I could do this with $5 million easily... Since I have $15 million, let's keep $7.5 million for myself so I have a huge buffer for any future emergencies (including my parents and my kids, grandkids etc.)

I think giving away the other $7.5 million would be a blast...

I don't need $15 million to be "rich", but "rich" is subjective. I'd feel rich if I could quit today, and enjoy the exact same lifestyle, so $2 million is my definition of "rich". I'd feel really rich if I could quit today, and have double the lifestyle... I find it hard to even imagine pushing myself up to 5x-6x my current lifestyle. That would just seem silly and wasteful to me.

Again, all subjective.

I'd love to give a ton away to my family and friends... I'd love to start a charitable foundation and pick worthy charities to help. I'd be embarrassed and slightly ashamed to spend ALL of it on just my pleasure.

Again, subjective! Keeping $7.5 million for myself could easily be seen as greedy and materialistic too!

But, if someone handed me $7.5 million, I'd probably quit with $4 million, stick with the original plan (although with a huge buffer), and give away $3.5 million.

But if someone handed me $1 million, I'd keep it all... :)

I just couldn't imagine keeping much more than I need. What I "need" being purely subjective.
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Post by SP-diceman »

Two words:

Greek Bonds!
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beyou
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Post by beyou »

Quit my job and get in shape.
Nicer home.
More vacations.
Help others in need.

No need to change my retirement plans/saving/AA.
Just prefund what I would have saved while working,
in the same funds/AA, but finish the accumulation phase
earlier. The rest is for the above.
Recovered day trader.
AlwaysaQ
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Post by AlwaysaQ »

Already retired so:
Set up a trust to help family members
Make more charitable contributions
Hire a professional organizer and many strong backs to clear the house
Look for another house but my family is close now so I would probably finance many improvement projects
Travel while I still can enjoy it
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Post by manuvns »

buy a lambo for 300k . rest in 50/50 portfolio .
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Post by ddb »

I'd give $10m to a family foundation that I'd create, which would hire my wife and one other person for around $40k per year each.

With the remaining $5m, I'd replace our house with one in the $600k range, put $200k into 529 plan for each of my kids with the idea that the unused balance would be used for future generations. I'd use my employment cash flow freed up by not having a mortgage and not making taxable savings to buy or lease really nice cars (MB GL550 for wife, 2012 Nissan GT-R for myself in addition to my existing commuter/beater car).

I'd invest the remaining $4m in a 65% fixed income portfolio, and draw out approximately $20k per year for family travel. The remainder would grow for retirement at age 65 or so.

- DDB
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Post by fishnskiguy »

I'd do just what Warrren Buffet does.

Nothing would change much except I'd fly to my favorite flyfishing lodges in Wyoming, Montana, Idaho and Alaska in a leased biz jet. Probably go more often than I now do.

I'd then team up with The Nature Conservancy and travel around the intermountain West and buy up consevation and fishing easements on ranches that had good fly water, then let TNC manage them.

Chris
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Post by JDaniels »

Get up when I wake up.
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Ben24
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Post by Ben24 »

Secure retirement and give the rest away.
bradshaw1965
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Post by bradshaw1965 »

My personal needs require much less money, so I think I'd need to learn a lot about philanthropy.
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Post by bradshaw1965 »

staythecourse wrote:I know this is supposed to be for fun, but it is odd how many folks state they are willing to give away so much to charity. Considering if you look at all the folks who actually have 15 mill. how many give away 1/3-1/2 to charity like the folks on here claim they would do?

I hate to say many on here are imagining what they "hope" they would do and not what actually happens when you have 15mill. sitting in your account.

Just an observation.

Good luck.
I think it's useful to make a distinction between charity and philanthropy. Philanthropy would mean continuing to "work" on things that are important to you while not focused on extracting income from that endeavor. Seems like a life will spent to me.
linenfort
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Post by linenfort »

staythecourse wrote: I hate to say many on here are imagining what they "hope" they would do and not what actually happens when you have 15mill. sitting in your account.
It'll cost you 15 million to find out. ;-)
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