Writer's Block: It's payday!
Nov. 15th, 2011 12:48 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
sabrinamari[Error: unknown template qotd]
I'm thinking about this. Mostly I'm just impressed with![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
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, unlikeglenmarshall, 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!
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!
