Have none of you guys ever heard of municipal bonds?

invest it in a storage unit REIT that pays out monthly checks that are nearly the same amount as the depreciation, thus avoiding taxes. Sit back and live off the monthly payment.

aggiefan2002 said:

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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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Agree... My home mortgage is 3.25% (didn't bother refinancing because the balance was so low the fees would have killed the savings) and my car loan is 2.4%.

I have enough cash in my MM to pay both off today but 4.75% return is higher than the interest I am paying on the loans. If rates drop below those loan rates before I pay them off, I'll simply pay them off at that point. But for now my hyper optimizing brain just won't let me make the trade.

OldArmyCT said:

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Have none of you guys ever heard of municipal bonds?

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Yes, we have a muni bond ladder as part of our portfolio.

Hmmm this is a good one. I'm a younger Ag so let's try not to blow it all! Would set up an initial meeting with a financial advisor but off the top of my head I would do the following.

Fun
-C5 Z06 and/or first generation Acura NSX
-88-97 Toyota Hilux
-Trip to Europe
-Fix up the barn and build a shop on the old family farm

Investments
-Various milsurp pre-WW1 to WW2 bolt action rifles
-Various Class III firearms
-20% down on a modest home
-$1MM in short term treasuries until rates are dropped or run a wheel/theta decay strategy on SPY/QQQ until I get bored.
-Remaining $1.8MM or so split 2/3-1/3 into SPY and QQQ. Probably add some international funds at some point.


I would probably keep my current finance job and wait for the day I hit $5MM in investable assets and quit. Benefits are awesome here and I never get close to using all my vacation time.

1. Payoff debt
2. Put $1MM in MM or CD Latter and DCA interest into a vanguard ETF.
3. Put $1MM in 80/20 etf with Vanguard funds
4. Keep $500K liquid for one off real estate LP investments and opportunities.

Find something you enjoy that is low stress and provides benefits and enjoy life.

30%: I'd buy my future retirement home (Scottsdale, Florida, Montana, wherever) and run it as a VRBO for the next 20 years.

10%: pay off current real estate

10%: giving to local ministries

25%: high divvy stocks

23%: s&p

2%: a badass golf club entry fee

Keep working my ass off for the next 25 years knowing I've got kids to get through college and a new country club membership to pay for.

I don't know how I'd manage the money... but I'd retire and get a job working at REI, a local bike shop, or something along those lines.

hbc07 said:

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I don't know how I'd manage the money... but I'd retire and get a job working at REI, a local bike shop, or something along those lines.

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Cabela's would have been an awesome place before it was ruined.

If i fall into F you money (whatever number that is for you) the last thing I'm going to do is get a job. Buy/open a brewery/gun store/bike shop? Sure. Go work for some goober who is at the peak of his career as a bike shop manager? No thanks.

3M falls in my lap I'd start with a bigger boat and a spot at a dry stack

I would move to Albuquerque.

Try out some new "recipes"?

ABC. Always Be Cookin

After reading this thread, I feel like I'm being too conservative with our money. Or some of yall are too cavalier. I'm not sure if I'm right or not.

i'd pay cash for 3 more Airbnb/vrbos with opposite high seasons and retain 300k in something the serve as a maintenance fund. my full time job would become something that would let me qualify as a real estate professional in the eyes of the IRS, do some contract work in my current field and have a hobby job like REI for insurance.

I don't know the splits of each but I'd do a combination of:

- help parents, some family live more comfortably.
- earmark enough to front load any future grandkids college education
- pay off any high interest debt (>7-8%)
- Donate or endow to Texas A&M
- enjoy some it: a nice car and/or beach house, travel, H&B, etc
- invest in deals. Oil and gas interests (already do this), real estate, fund businesses.
- invest conventionally (age appropriate higher risk/growth mixed with conservatively) as long as annual yield is over 10%-15%.

Foamcows said:

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invest it in a storage unit REIT that pays out monthly checks that are nearly the same amount as the depreciation, thus avoiding taxes. Sit back and live off the monthly payment.

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Any recommendations on the REIT?

Ah, so you want to go the approach of how to best turn $3mil to $30k.

Your reply cracked me up...because you're correct!

Back in the 90's, when H. Ross Perot was running for President, the press made a big deal about how he was a billionaire and didn't pay a cent in taxes. He had recently sold EDS to GM and obviously had a ton of cash. He flat out admitted he didn't pay a cent and then said all of his money was in tax free municipal bonds.

Fast forward to today. I hate when Biden says billionaires need to pay their fair share of taxes. He insinuates they're stealing and cheating the system. Crazy how the masses will believe just about anything.

Vacation property in the mountains and quit full time work.

I don't think the 1.8 would be enough but could definitely take low stress job to get benefits and slow cash burn.

Ag92NGranbury said:

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vettes are proof that schleps win lottos

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Would love to have one and I think they are pretty sweet but this observation is spot on!

chrisfield said:

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If you quit your job, gave away $100k, bought two houses for $500k each, and bought a vette for $100k, you'd have 1.8M left. What would you do with that to be able to live off the money without a job? Sincerely curious because all four of those are personally interesting things I'd also enjoy spending money on.

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Well I'd give away at least $300K (10%). The vacation places would be income producing. I'm actually not sure on the beach place really. But definitely a place in the mountains or far west Texas. Ft. Davis or Alpine area. So I can keep it under $500K.

We have 2 rental properties now. One with a lot of equity that I need to tap into. But what to do with the $1.8MM or so leftover? Probably $500 in a CD. The rest in something boring and safe.

Either way, if I had a $3 million windfall, there is no way I would continue working my 9 to 5. But I would happily buy a used truck, trailer, and lawnmower, and cut grass to keep busy.

Question for the board. If this $3 million came in to a business/side hustle you had....

If your business is set up as an S corp, could you buy dividend stocks with the LLC, and then make a portion of the dividend payments your "salary" with the rest being the bonus payments?

I'm trying to figure out how S corps work so if I am way off base let me know.