What do you do with $3M cash today?

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aggiefan2002
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8:57a, 7/3/23
I am curious what the various (very intelligent and thoughtful) posters on this board would do if handed $3M in post tax money today. I understand the answers will vary widely based on your age, other investments, etc. but that's part of what makes me curious. I think answering this for a broad swath of folks will give a fantastic set of options rather than the more standard answers one might get if they spelled out their exact situation when framing this question.

So let's hear it: you're handed $3M in post tax dollars today. Tell me what you're doing with it and why.
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AgOutsideAustin
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9:06a, 7/3/23
AG
Here we go.
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rononeill
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9:09a, 7/3/23
H&B options.
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Brush Country Ag
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9:13a, 7/3/23
AG
What is your age, and what is your current financial status ?
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aggiefan2002
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In reply to Brush Country Ag • 9:18a, 7/3/23
I'm 41 with a current net worth of just over $1M. But I was really hoping to hear what others would do to gain a broader set of possibilities than some of what the more standard answers would be.
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Old Buffalo
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10:31a, 7/3/23
AG
Two chicks at the same time.
“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command.”
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class of 03
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In reply to Old Buffalo • 10:34a, 7/3/23
Winner
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cas8019
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In reply to Old Buffalo • 10:39a, 7/3/23
AG
Why not 3 chicks?……it's 3mil and all
Kiss my beans
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txaggieacct85
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10:59a, 7/3/23
AG
Tithe 10% to my church.

I would invest in family mortgages for three of my four children (the fourth is still in college)

Put the remainder in an online brokerage account and invest in various stocks.

use it to fund my living expenses while I'm semi retired and retired in the future.

Oh wait. I'm doing this already.



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Win At Life
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In reply to Old Buffalo • 11:09a, 7/3/23
AG
Old Buffalo said:
Two chicks at the same time.


You know what I would do if I had 3 million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities.
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Ag92NGranbury
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In reply to aggiefan2002 • 12:02p, 7/3/23
AG
congrats on winning the lotto!
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Ragoo
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12:08p, 7/3/23
AG
Retire
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JohnLA762
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12:19p, 7/3/23
AG
Only 3 million?!? I'd keep at my day job with that pocket change.
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aduey06
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12:28p, 7/3/23
Take $1 MM and start a CD ladder aiming for at least 4% - $40,000.
Take $1 MM and open a brokerage account focuses on high quality high yield dividend stocks of 5% - $50,000.
Take $1 MM and invest in multi family syndication, should get cash flow of 6% plus upside when properties sell - $60,000.
Learn to live on $150,000 a year.
Try to get a severance from my work then do absolutely nothing.
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$30,000 Millionaire
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12:31p, 7/3/23
AG
For most people, put it in an income fund and walk away.

For me, buy Ferrari, put rest in MSFT and GOOGL
You don’t trade for money, you trade for freedom.
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AgOutsideAustin
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In reply to aggiefan2002 • 12:58p, 7/3/23
AG
aggiefan2002 said:
I'm 41 with a current net worth of just over $1M. But I was really hoping to hear what others would do to gain a broader set of possibilities than some of what the more standard answers would be.


After two chicks at the same time I would offer this view.

Standard wins.
Boring wins.

Get rich quick can lose.
Speculative can lose.

To me at 41 it sounds like you are well on your way keep it simple.

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AgLA06
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In reply to aduey06 • 2:10p, 7/3/23
AG
aduey06 said:
Take $1 MM and start a CD ladder aiming for at least 4% - $40,000.
Take $1 MM and open a brokerage account focuses on high quality high yield dividend stocks of 5% - $50,000.
Take $1 MM and invest in multi family syndication, should get cash flow of 6% plus upside when properties sell - $60,000.
Learn to live on $150,000 a year.
Try to get a severance from my work then do absolutely nothing.


Pretty sure you could get a 40 yr annuity paying $150k a year instead of all that.
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Whirligigs
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7:16p, 7/3/23
Whole life.
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double aught
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In reply to cas8019 • 8:02p, 7/3/23
AG
cas8019 said:
Why not 3 chicks?……it's 3mil and all
Six chicks at the same time.
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NoHo Hank
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9:42a, 7/4/23
AG
I would invest half in low risk mutual funds and I would take the other half to my friend Asadulah who works in securities...
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YouBet
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10:10a, 7/4/23
AG
Would put it in income funds. $1M is not enough to retire on but you should be able to secure your future with this windfall.
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bmks270
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10:20a, 7/4/23
AG
Probably split it up between some index ETFs. I'd park a good chunk in the utilities index, which is low volatility and pays a good dividend.
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aduey06
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In reply to AgLA06 • 10:44a, 7/4/23
Thought about an annuity, but probably don't want to lock up all the capital in case you change your mind and there is no upside. Does protect from any downside though.

Don't know what the death benefit of a 3 MM annuity would be but also want to be able to pass along to heirs.
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aggiefan2002
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10:50a, 7/4/23
Thank you all for your replieseven the tongue in cheek ones. I like seeing how others would think about this as it's not something I trust many friends and family members with.
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Proposition Joe
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11:32a, 7/4/23
$1M invested very conservatively.
$1M invested normally.

With the above your future retirement is likely set.

Then with the last $1M I'd divvy it up and use it for future business opportunities. Real estate investment deals, new business ideas... Hell even the best buddy that wants to open a bar with you (as bad an investment as that likely is).

I'd go crazy playing golf every day... Still being able to dip my toes in some new business ventures knowing I've got a very secure safety net means I can learn a lot of new things/industries, possibly make a lot of money, but not have near the stress that comes with normal business investments.
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sniperag
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11:33a, 7/4/23
Me personally, would be taking a big portion and do some giving. A few scholarships for Gold Star children, maybe find a few good people down on their luck and gift them.

Invest the rest in real estate/funds/individual stocks, keep my day job, and live as if nothing happened.
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AgLA06
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In reply to aduey06 • 11:54a, 7/4/23
AG
aduey06 said:
Thought about an annuity, but probably don't want to lock up all the capital in case you change your mind and there is no upside. Does protect from any downside though.

Don't know what the death benefit of a 3 MM annuity would be but also want to be able to pass along to heirs.


Didn't say it was a good idea. Just pointing out the same return without all the intricate investing strategy suggested.
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chris1515
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2:53p, 7/4/23
AG
I'd pay off my mortgage, even at a really low rate.

I'd take a couple hundred K and help some family members improve their lives a bit. Home renovations, health improvement, whatever.

I live in Dallas. I'd look to spend $750K or so on a vacation home in the mountains of New Mexico or Colorado. It would be available for rent to friends and family at a very cheap rate.

With what's left, to invest, I'd slowly bleed it into the S&P 500 over a 12-18 month horizon. The cash in the meanwhile would be some kind of CDs or something else paying around 5%.
I would get too fancy.

That's my take on the situation.
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infinity ag
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In reply to aggiefan2002 • 6:59p, 7/4/23
aggiefan2002 said:
I am curious what the various (very intelligent and thoughtful) posters on this board would do if handed $3M in post tax money today. I understand the answers will vary widely based on your age, other investments, etc. but that's part of what makes me curious. I think answering this for a broad swath of folks will give a fantastic set of options rather than the more standard answers one might get if they spelled out their exact situation when framing this question.

So let's hear it: you're handed $3M in post tax dollars today. Tell me what you're doing with it and why.

Put $1M in an long term annuity so I don't have to worry about income. Then invest 1M in an index fund like the Nasdaq. And 1M in a high risk high reward ETF.

PS: I don't have any debt. If I did I would pay it off first, however small.
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infinity ag
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In reply to aggiefan2002 • 7:00p, 7/4/23
aggiefan2002 said:
I'm 41 with a current net worth of just over $1M. But I was really hoping to hear what others would do to gain a broader set of possibilities than some of what the more standard answers would be.

How do you calculate your NW? Do you include items like car, house, loans, mortgage, bank accounts, retirement accounts? Anything else?
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Old Buffalo
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In reply to infinity ag • 7:30p, 7/4/23
AG
I count my house, but I don't count my mortgage.
“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command.”
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aggiefan2002
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In reply to infinity ag • 10:06p, 7/4/23
I have a 30 year note at 2.5% (about 27 years left on it), and I just can't imagine paying it off. Even with no mortgage my property taxes and insurance would be nearly as much as the mortgage was so I'm really not "free."
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aggiefan2002
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In reply to infinity ag • 10:06p, 7/4/23
All assets minus all liabilities.
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AgLA06
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In reply to aggiefan2002 • 10:14p, 7/4/23
AG
Insurance is a choice once the mortgageis psid off. Property tax varies by location. Some states it's almost nothing.
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BenTheGoodAg
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In reply to aggiefan2002 • 10:29p, 7/4/23
AG
aggiefan2002 said:
I have a 30 year note at 2.5% (about 27 years left on it), and I just can't imagine paying it off. Even with no mortgage my property taxes and insurance would be nearly as much as the mortgage was so I'm really not "free."
The property tax and insurance costs have gotten completely out of hand in Texas. I have a similar note, and the property tax alone exceeds the mortgage payment.

It's so ridiculous to have such enormous tax revenues off of an asset that produces no income.
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