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40 years old, 15 million cash, what do you do?

8,022 Views | 56 Replies | Last: 3 yr ago by SMM48
aggiefan2002
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I met a guy traveling last week that said a little much over a few beers but really captivated me with his story.

His net worth is 15 million, fully liquid if he wanted, and he said he still worries about money sometimes because he grew up without much and still feels like he doesn't have much.

So I was curious...if someone was VERY conservative to limit almost any possible downside risk, what could they reasonably expect as an annual return? 2-3-4%?

Secondarily, just for fun, what would you do with your time if you were 40, worth $15 million, and didn't really care for your job. Just for fun, the guy said he's pretty cheap and lives off about 10-12k/month. Ha ha.
Keeper of The Spirits
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AG
10 pretty amazing homes in places with low property taxes, rent/Airbnb 9 of them, live off the profits moving in between them. Let's say 5 million conservatively invested for security
Jet Black
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WTF I wanted
Barnyard96
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AG
Philanthropy.
K_P
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AG
Buy a $14.9m ranching/farm operation, then work all the time and b*** about not having any money
Casey TableTennis
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AG
A significant portion of first generation wealth feels "behind", even at those levels. It is part of what drives the success.

It is easy to look backwards and see decisions that could have been made differently that would have led to more of whatever is important (often money). This seems especially true for this profile of individual.

I personally don't think there is a number where I would do anything materially different beyond the scale of what I give away. Would be fun to actually test that theory.
Ag92NGranbury
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AG
asking for a friend.... or for you?

P.S. if u graduated in 2002, that makes you about 40
TwoMarksHand
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AG
Put half in the market. Put half in money market/high interest savings/CDs. Live off the interest of the latter half. Use the interest/gains off the former half to buy land over time.
thirdcoast
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AG
Read the books on technical analysis and option trading recommended on stock market thread, and absorb as much as possible from OA1 and other legends who share their trades.

I doing it with about $15K, so we'll see how bad I do.

SMM48
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At this point? Like now? No stocks?

Munis. Roughly 4.5% tax free. 675,000 a year right now tax free. 56250 a month. Live off what you need, reinvest the remainder.
iluvpoker
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Setup investment holding company with subsidiaries. Most of the money invest in your normal stuff - bonds, stocks that pay good dividends, value stocks, growth stocks, future sector funds like artificial intelligence, precious metals, real estate ( high growth areas like Texas metros), etc.

Take $1 million and put into a high interest savings account like Cap1 currently pays 1.2%. Invest on average $10,000 over the next 5 years in boom or bust ideas. Speculative oil well, gold mine, bar, HVAC company, cure for cancer, robotics, weed grower, etc, etc. Let your brokers, CPA, financial advisors, friends and family know and you will have emails everyday with a new idea. On average pick 2 deals each month. 80% of these will go bust or break even or get a small return on your money. But 20% should more than make up for it and there should be a couple of grand slams in there. Throwing $10k at byte coin back off the advice of my Asian friend when it was cheap was the best investment I've made so far. And I'd never done that if I hadn't setup a boom or bust fund because I'm too conservative.

Might surprise you, but there are lots of inventors who are horrible at marketing. Putting $10k into their investment pool can yield some very good returns. Think of it like Shark tank.

Warning! You're going to see 20 crappy deals to find 1 good one. So good deals are hard to find. That's why it's important to throw as many lines in the water as you can. Especially nowadays when there is a flood of cash chasing deals.

TLDR - once you're financially set for life take a sliver and put it into a boom or bust fund and spread it around over a 5 year period. Then 5 years will turn into a lifetime of chasing big bucks NO whammy!
DRE06
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AG
You obviously haven't read all of the covid/Airbnb nightmare stories. There have been a few articles on people (I'm sure there are many of them) who built their own Airbnb empires in vacation homes and are now getting all of their properties foreclosed on bc nobody is taking vacations and they can't cash flow the $50,000/month for all of their rentals.
AgOutsideAustin
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Another rich person worrying about money.
Pssssht please ! I wouldn't have a worry in the world except for my family's health. And that worry wouldn't be much because I'd have money for any doctor/treatment.

I would have homes in the mountains, beach, desert, and a few nice apartments in a couple of the worlds best cities. I would travel the world and go in all the off seasons so I would avoid the crowds and having to tell people how happy I am being filthy rich.
OasisMan
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aggiefan2002 said:

...Secondarily, just for fun, what would you do with your time if you were 40, worth $15 million, and didn't really care for your job...
sell 12,500 one week AAL puts at 0.49
Drip99
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AG
Fish and golf in the summer and ski in the winter.
Furlock Bones
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JesusQuintana said:

Fish and golf in the summer and ski in the winter.
Tumble Weed
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Hire a decent FA, a decent Accountant, and a decent Bartender.
All three of them will make sure that you don't outlive your money.

Buy a villa in Capri.
AgEng06
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AG
PuryearAg98
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I was hoping that someone would post this. It's not TexAgs without a post like this...
FrioAg 00
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Post cap gains tax, post reinvestment to cover inflation I think you can expect a 3.5-4% perpetuity to spend (assuming an aggressive asset mix without illiquidity premiums)

So he's about 4X overfunded. He should "stay ahead" but pick some philanthropy he wants to see impact the world
FrioAg 00
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As far as his time - he should consider that is most valuable asset and he should spend it doing whatever brings him joy

For me that's mentoring and raising young people
ABATTBQ11
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AgEng06 said:




30 chicks at the same time
evestor1
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I'd golf - ski - fish -post in Texas. I'd talk crazy trash to liberals. When they call me out I'd post my personal net worth statement and tell them to eff off.


Much like MG Barnes
Ulrich
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thirdcoast said:

Read the books on technical analysis and option trading recommended on stock market thread, and absorb as much as possible from OA1 and other legends who share their trades.

I doing it with about $15K, so we'll see how bad I do.



I'm not sure that this is the answer to "So I was curious...if someone was VERY conservative to limit almost any possible downside risk...."

Maybe it is what you would do with 15mm though.
Ulrich
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I would spend 5mm on a property in a low tax part of the country and split the rest between two wealth managers (in case one turns out to be a criminal), both with the goal of getting me safe, stable annual income.
E
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AgEng06 said:




30 chicks at the same time

Edit: didn't see the post 3 hrs before me saying exact same thing
Cyp0111
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Put $10MM in a simple vanguard or Schwab 3 fund portfolio with 75/25 mix. Invest another 1-2 MM in income generating real estate. Keep $1MM in a money market account for cool opportunities and spend $3MM on a few properties where I would want to live.
ABATTBQ11
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AG
You get a blue star anyway
Baby Billy
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FunkyKO said:

At this point? Like now? No stocks?

Munis. Roughly 4.5% tax free. 675,000 a year right now tax free. 56250 a month. Live off what you need, reinvest the remainder.


Where are you getting at 4.5% Muni bond? Detroit?
iluvpoker
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Idea that hasn't been posted. He can take $1-5 million and place it with a private equity fund. The good ones are flush right now so he will need to find a good up and comer PEG. One good way is to go to ACG conferences. Go from booth to booth. Think of it like a dating service for money. He has money and he wants to find young talented people to invest it in industries that he believes in.

Bonus of these conferences is his chance to become friends with an established talented fund that might let him invest in their next fund. He would have to commit min $5 million. But as I said, right now these guys are flush so they won't consider his cash without knowing him personally.

Another idea - does he know any billionaires or anyone worth at least $100 million? I've got in on a couple of deals because I had a good relationship with people who are super rich. The old saying, it's not what you know but who you know that matters.
SMM48
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AG
Ornax. / Ornyx
Pimax / himyx
Nhmax/ nhmrx
Dr. Doctor
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Keeper of The Spirits
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Welll most of the people who lost their asses were over leveraged with no emergency fund. Domestic tourism hotel alternatives are back to doing quite well
$30,000 Millionaire
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That net worth level is when most people opt for a managed account that covers things like tax reduction, capital preservation, and distribution strategies. There are lots of vehicles like muni bonds to consider. You could put all your money in SPY and live well on the dividends.

I know the feeling though. I didn't have anything growing up and I always have this nagging feeling it will all come crashing down back to that.
Hendrix
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5mm in QQQ
5mm In Real Estate
1mm house/toys
4mm play money account

Live below your means at about 250-300k a year.
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