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If the average middle-class American
Posted on 9/14/18 at 2:18 pm
Posted on 9/14/18 at 2:18 pm
Were given $1 million. What should their next move be?
I would assume 90% of the middle class would have no clue what to do with that kind of money.
I would assume 90% of the middle class would have no clue what to do with that kind of money.
17
Posted on 9/14/18 at 2:30 pm to LSUengineer12
Pay off house, savings account and vacations.
Clarification: This is what the majority would do, not me.
Clarification: This is what the majority would do, not me.
This post was edited on 9/14/18 at 4:23 pm
Posted on 9/14/18 at 2:33 pm to LSUengineer12
having very little knowledge on this type of subject, my early 30s-middle class answer would be:
-pay off mortgage (only debt)
-buy a few rental properties with the idea of having some kind of passive income during retirement
-put as much as possible left into retirement/investment type vehicles
-stay at my job maybe 7-10 more years, while massively upping my work retirement contributions
-retire around 40 if feasible
-pay off mortgage (only debt)
-buy a few rental properties with the idea of having some kind of passive income during retirement
-put as much as possible left into retirement/investment type vehicles
-stay at my job maybe 7-10 more years, while massively upping my work retirement contributions
-retire around 40 if feasible
This post was edited on 9/14/18 at 2:34 pm
Posted on 9/14/18 at 2:35 pm to WG_Dawg
quote:
-pay off mortgage (only debt)
-buy a few rental properties with the idea of having some kind of passive income during retirement
-put as much as possible left into retirement/investment type vehicles
-stay at my job maybe 7-10 more years, while massively upping my work retirement contributions
-retire around 40 if feasible
A million bucks ain't that much dude
Posted on 9/14/18 at 2:36 pm to LSUengineer12
IB4 hookers and cocaine
Seriously - most would waste it within 18 months
Seriously - most would waste it within 18 months
Posted on 9/14/18 at 2:47 pm to WG_Dawg
quote:
Retirement/investment type vehicles
Like?
Posted on 9/14/18 at 2:54 pm to LSUengineer12
I’m guessing the average American would:
1. Pay off credit card debt. Maybe do that for their brother or mom or someone too
2. Buy a new car for them/their spouse
3. Sell house and buy a bigger one
4. But some nice toys and start spending more in general
1. Pay off credit card debt. Maybe do that for their brother or mom or someone too
2. Buy a new car for them/their spouse
3. Sell house and buy a bigger one
4. But some nice toys and start spending more in general
Posted on 9/14/18 at 2:55 pm to LSUengineer12
Pay off all bills. Then what's left, I would put 50% in savings, invest 40%, 10% would be for fun. Would continue to work
Posted on 9/14/18 at 2:58 pm to LSUengineer12
If younger than 45, VTSAX and keep working.
Posted on 9/14/18 at 3:05 pm to WG_Dawg
They should start a realty company and purchase a night club.
Posted on 9/14/18 at 3:36 pm to LSUengineer12
pay off all debt...get a rough idea of the cost of things you want/need to do now....contact referred tax attorney and financial adviser, to set up kids/grandkids etc with whatever is left over, after I and Mom croak, with minimal tax exposure....and did I mention hookers and blow
This post was edited on 9/14/18 at 3:38 pm
Posted on 9/14/18 at 4:21 pm to LSUengineer12
Isn’t there a show about people who win the lottery and lose it all in a few years? Lottery Nightmares or something.
Posted on 9/14/18 at 4:51 pm to LSUengineer12
What should their move be?
Retire all debt
Sock away a year's worth of expenses in a rainy day fund.
Spent $10,000-$15,000 on a nice vacation.
Buy two new, sensible cars
Invest the rest in an index fund.
Most people would blow it though.
Retire all debt
Sock away a year's worth of expenses in a rainy day fund.
Spent $10,000-$15,000 on a nice vacation.
Buy two new, sensible cars
Invest the rest in an index fund.
Most people would blow it though.
Posted on 9/14/18 at 10:09 pm to LSUFanHouston
26 here.
Pay off wife's student loan debt
Put 20% down on a single family home <$200k (We're moving back to our hometown and settling down. Have always rented)
$100k into my side hustle that would 100% make it my full hustle
Small portion into college account for daughter
Would split the rest into some form of RE and Index Funds.
Pay off wife's student loan debt
Put 20% down on a single family home <$200k (We're moving back to our hometown and settling down. Have always rented)
$100k into my side hustle that would 100% make it my full hustle
Small portion into college account for daughter
Would split the rest into some form of RE and Index Funds.
This post was edited on 9/14/18 at 10:13 pm
Posted on 9/14/18 at 10:13 pm to LSUFanHouston
quote:
What should their move be?
depends on their age/situation
Posted on 9/14/18 at 10:21 pm to TigerintheNO
If you spend 1 hour on Google you can answer any questions you have re 529 plans.
Posted on 9/14/18 at 11:48 pm to LSUengineer12
What should their next move be is tough, but I'd say don't blow it all so you can have something to show for it decades from now.
What's interesting to me is if this hypothetical happened to a 30something, they could blow 75% of it and continue working as normal and be set for life having that 250k do its thing. The sad thing is most folks would still frick it up and be back at square one within a couple years.
What's interesting to me is if this hypothetical happened to a 30something, they could blow 75% of it and continue working as normal and be set for life having that 250k do its thing. The sad thing is most folks would still frick it up and be back at square one within a couple years.
Posted on 9/15/18 at 7:41 am to LSUengineer12
quote:
I would assume 90% of the middle class would have no clue what to do with that kind of money.
More or less. Some of them might manage to hang on to it but most would be exactly where they were to begin with in 4-5 years if not less. I've seen it happen twice.
Once with a $5 million insurance windfall and the second with a $10 million legal settlement. The first guy blew through his money in a little over three years, the second finally came to her senses when her account balance went below seven digits but it was a bit late by then. She was disabled and couldn't work so she went back on disability and used what was left as a supplement.
Posted on 9/15/18 at 8:32 am to LSUengineer12
pay cash for as many income properties as possible. Use passive income for more rental properties.
Posted on 9/15/18 at 8:50 am to LSUengineer12
Personally, as a single guy in my mid 20's: I'd pay off anything on my home and then invest in property around the Knoxville area and then some into some ETFs. Snowball it from there. And then obviously take out like 5-10K for a fun vacation.
This post was edited on 9/15/18 at 8:54 am
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