Writer's Block: It's payday!

[sabrinamari]

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I'm thinking about this. Mostly I'm just impressed with glenmarshall's answer, who knew exactly how he would divide it amongst four different Vanguard and PIMCO funds. Damn, that's so cool.

I love both Vanguard and PIMCO (PIMCO is run by the sexiest 70-year-old on the planet, a guy named Bill Gross who's a smart, compassionate, health-oriented, liberal financial strategist. And a great writer. Some people just have it all).

So, unlike glenmarshall, I can only say that I would divide it up more or less as follows:

1. First, hire a financial advisor who could help me shelter as much of it as possible, and take whatever is owed in taxes off the top
2. As part of this, earmark a nice chunk to set up a Vanguard charitable fund for U.S.-based giving (probably focused on inner-city child and adult education, HIV/AIDS-related giving and funding health care system innovations),
3. A second Vanguard fund for international giving (gotta research exactly where this money would go)
4. A nice chunk set aside for my brother's family with money earmarked for a house (at midwest prices, so this is doable), my sister-in-law's continued career exploration when the kids are older, fully funded educational funds for Zalia and Jasmine, and some portion for my brother, not sure exactly for what...
5. A fully funded educational fund for Trent [NOTE: Educational funds have 15+ years to compound, so fully funding one would require less cash than you might expect, even at a low expected rate of return.]
6. Plentiful capital for Michael's business
7. A $60,000 cash reserve in some internet money market fund (I know, that's too much to hold in short-term reserves. I don't care. I like the illusion of security.)
8. The rest in long-term investments, probably amongst my favorite fund families: Vanguard, PIMCO, Royce, T. Rowe Price and that cool Muslim-run fund that I've wanted to own shares in forever...
8. ...And some money to promote my book.
9. Oh damn! I would totally hire John as my coach, full-time, for the next six months. Sweet.
10. Oh, I'd buy a car. Not a new car, because I think it would simply cause me too much pain to invest in a depreciating asset. I would just feel too stupid if I did that. But maybe a lightly used hybrid.

This is actually a lot to cram into the after-tax remains of a single million.

I wouldn't buy a house. Houses tie you to places, and I would need to be really sure about where I wanted to live for the next 5+ years to do that. Plus, it's a big chunk of money that will not necessarily pay off long-term; it's really about finding a place to live, not about an investment.

Not sure how I would construct the long-term investment portfolio. But oh gods, I would have so much fun doing it!

Comments

[karmawings.livejournal.com]

That's a very responsible and thought out answer. Mine would probably run along the lines of "pay off student loans, set up financial buffer, spend rest on custom-made corsets and giant Kirbys"

[sabrinamari.livejournal.com]

Shit, I left out the custom-made corsets.

[sabrinamari.livejournal.com]

Or almost anything from here:

http://www.deliciousboutique.com/DC-.html

[karmawings.livejournal.com]

Ooh, yes, I have several of their things (including an especially awesome skirt) on my wish list. My one and only (sort of) custom corset is by them! It is the burgundy/black one I wore to Mabon.