Personal Development for Smart People Forums - View Single Post

hotwired · 06-22-2007, 10:45 AM

Ok, $1,000,000 and I'm 40. So here's what I'd do

1. pay off any existing debt, EVEN low interest deductible mortgage interest, not because it's the wisest thing money wise, but because it gives peace of mind and it'/s really cool to claim "debt free".

2. put all except $50,000 in long term growth/income mix with professional manager managing (fee only financial planner)

3. continue to work, both my wife and I would put the first $10,000 of our wages into our SIMPLE retirement plans and take $20,000 from the interest generated by our investments to replace it, so the net effect is that we're movig as much "taxable" funds into tax sheltered funds immediately. I'd consider switching to 401 K so I could put around 15k instead of 10k each, but we'd be retiring in 4-7 years anyway. Also put our ROTH investments from our earnings.

4. put $40,000 into my child's college fund. she's 6, and this 40k, if forecasts are correct will be 50% of what she'll need to do 4 years at harvard with all expenses. the other half will come from our funds. Only putting half in is a way of offsetting the risk of her NOT going, or not needing that much. Once it's in there, it's in there and you'll get taxed taking it out. (or at least the earnings)

5. help our parents - take on a few of their bills to ease their lives. Take the entire family to disney at least once so the grandparents (who've never been!!) can enjoy it and also enjoyu the magic of seeing their granddaughter enjoying it.

6. yes, do some fun stuff, NYC, vacays and cruises. Nothing extravagant, but just instead of saying "let's do that someday", we do it on our terms

7. prepare to sell my businesses and completely stop THAT work by age 50 or 2 million dollars, whichever comes first (net worth of 2 million)

06-22-2007, 10:45 AM	#6 (permalink)
hotwired Member Join Date: Nov 2006 Posts: 96	My thoughts Ok, $1,000,000 and I'm 40. So here's what I'd do 1. pay off any existing debt, EVEN low interest deductible mortgage interest, not because it's the wisest thing money wise, but because it gives peace of mind and it'/s really cool to claim "debt free". 2. put all except $50,000 in long term growth/income mix with professional manager managing (fee only financial planner) 3. continue to work, both my wife and I would put the first $10,000 of our wages into our SIMPLE retirement plans and take $20,000 from the interest generated by our investments to replace it, so the net effect is that we're movig as much "taxable" funds into tax sheltered funds immediately. I'd consider switching to 401 K so I could put around 15k instead of 10k each, but we'd be retiring in 4-7 years anyway. Also put our ROTH investments from our earnings. 4. put $40,000 into my child's college fund. she's 6, and this 40k, if forecasts are correct will be 50% of what she'll need to do 4 years at harvard with all expenses. the other half will come from our funds. Only putting half in is a way of offsetting the risk of her NOT going, or not needing that much. Once it's in there, it's in there and you'll get taxed taking it out. (or at least the earnings) 5. help our parents - take on a few of their bills to ease their lives. Take the entire family to disney at least once so the grandparents (who've never been!!) can enjoy it and also enjoyu the magic of seeing their granddaughter enjoying it. 6. yes, do some fun stuff, NYC, vacays and cruises. Nothing extravagant, but just instead of saying "let's do that someday", we do it on our terms 7. prepare to sell my businesses and completely stop THAT work by age 50 or 2 million dollars, whichever comes first (net worth of 2 million) __________________ Ken LaVoie Winslow, Maine Creator of Lawn Guru - Lawn Care success eBook and Program.