6 years ago. "It's difficult to acquire wealth. Don't play it too safe, but not too risky either. Depending on your tax filing status and other income, these dividends are likely to have a federal tax rate of zero. That’s a difference of $1,667 monthly for the 45-year-old versus $416 per month for the 30-year-old. You have to be involved in this sort of business for the next 4 years. Easy money, right there! New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Last thing I want is to repeat the pattern I've seen so many times and be out of money in 3 years. In which case, invest in a mutual fund of your choice and keep working until retirement age. 1. Don't stock pick. ._3gbb_EMFXxTYrxDZ2kusIp{margin-bottom:24px;text-transform:uppercase;width:100%}._3gbb_EMFXxTYrxDZ2kusIp:last-child{margin-bottom:10px} I’d like to hear what people would do with one million dollars. I am a bot, and this action was performed automatically. Press J to jump to the feed. Figure out what it was so you can avoid it this time. I have a low mortgage rate so it's probably not the best financial decision, but it'd be worth it for the security. If you're still working start-up hours, "The Investment Answer" covers the key points in 96 pages. This is personal finance 101 (although not likely not the first thing you think you would do with a million dollars.) It wouldn't last me half my remaining life even if I lived cheaply. Report Save. This: http://www.reddit.com/r/personalfinance/wiki/windfall. Bragging about being 401 k 1 million on deposit to do reddit ab the stock robinhood invest 1 million dollars for guaranteed the 12 best subreddits about finance Reddit Investing Trader Turns 766 Into 107 758Investor Turns 100 000 Into […] Plus side is, I don't mortgage the house or live on the street if the business fails.. for me, i'd opt to pay for a fee only financial advisor. Then collect that sweet expense ratio year over year. Set yourself up a Roth IRA with the 2045 find as well and schedule an annual $5500 transfer and investment into that fund, that'll build you a stock for retirement, never touch this, Next, since I assume you'd like to enjoy your new found wealth, set a recurring transfer of ~1-2k out of the investment into your account, you'll be pulling 1-2% which will still let the balance grow while supplementing your income, use this supplement to replace the income you lose by maxing out your 401k, If you never take more from the investment fund than the automatic transfer you will never run out of money and will have fantastic retirement savings, Don't try to roll this into another business, that's a good way to lose it all. I've been in your shoes at a younger age. What's the best way to turn this into a very good amount that I can live on later in life and maybe even get to use to build bigger businesses? Its stock … Another scenario: say you want to use $100,000 of the $1 million a year from now. For now it's going in a savings account while I go to a financial planner. Report Save. Actually they started nothing. https://techcrunch.com/2011/10/13/understanding-how-dilution-affects-you-at-a-startup/. This gives you an increase with the stocks and safety with the bonds. So 6,000 in IRA and 494,000 in mutual funds? Investing $1 million in a traditional portfolio and taking yearly withdrawals provides retirees with more financial flexibility than with purchasing an annuity. In the meantime, stay in the workforce and leave that money alone. As another user mentioned, that's plenty to live off of especially since you mentioned that you paid off all debt. Edit: thank you everyone for your advice. This is a fairly aggressive fund so its still good for non retirement purposes. That might be stating the obvious, but if you want to build wealth through stocks, you've got to invest in growth. Investing it 70-30 in a total stock fund and international fund is reasonable, risking it on a bet isn't. I did make some adjustments to lower the risk profile. “Investing any of that $100,000 in stocks would be a gamble because the timeline of when you need that money is so short,” explains Robert P. Lawson, CPA, CFP, director of wealth advisors at Vector Wealth Management in Minneapolis. Make sure it is a fee only financial planner with a fiduciary duty to you. 8. Want to go back to school for a graduate degree? share . You had a liquidity event that's extremely rare. This is essentially like investing in mutual funds except that they are for wealthy people. I have recently cashed out company stock (was a startup) and after tax and paying off debt it leaves me just over $1 million. How would you develop a recurring income stream? This should generate about ~7500 tax free each year Put the remaineder in your RRSPs or a non-registered account so 1 million in CCP. level 2. I'd suggest reading up on investing first. Whatever you invest your million dollars in—be it stocks, bonds, real estate, or smelly but adorable alpacas you should spread your money around so it’s not too overly concentrated in one stock, sector, or even one country’s economy. This kind of diversifying prevents unnecessarily large losses if one stock, sector, or even a country’s economy falters. I’ll start with some major mistakes you should avoid: Often, people view investing like a game of jump rope, where you hop in or out at the right moment and walk away with oodles of cash. level 2. I plan on holding onto it for at least 20 years. save. You can sell shares to generate the remaining $22k for a total of $40k annual withdrawal (4%). Next, I'd get a professional financial advisor to tell you what to do with the rest of it after making out 401k, and having some money to continue doing that. I am leaving Seattle and moving to a smaller city and have more money than this and no way could I live off of it without taking on serious risk.