What would you do with Five Meeeeelion Dollars

burntfrijoles

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Morning musings after a conversation I had over lunch yesterday.
Suppose you were gifted $5,000,000 tax free. What would you do with the money.
Here would be my plan:
I would buy my daughter a nice new house and give her some amount of cash.
I would put $250,000 in a trust for each of my two granddaughters (for college, etc)
I would set aside some funds for my sister should she need long term care. (She's 81)
I would retain an amount sufficient to cover my living expenses for 20 years should they sunset Social Security and Medicare in the future. (it's a thing)
Anything that is left would be "mad money" for fun, travel, donations to worthy causes or I might run for office.

It's funny, I always thought if I came into a large some of money I would use some of it to buy a new house with a studio and fill it up with guitars etc. Now, that doesn't even make the top 10 of my wish list.
5 Mil ain't what it used to be...
 

bgmacaw

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breakingbadhuellmoney.gif
 

Stanford Guitar

Friend of Leo's
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Feb 11, 2020
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3,363
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USA
Morning musings after a conversation I had over lunch yesterday.
Suppose you were gifted $5,000,000 tax free. What would you do with the money.
Here would be my plan:
I would buy my daughter a nice new house and give her some amount of cash.
I would put $250,000 in a trust for each of my two granddaughters (for college, etc)
I would set aside some funds for my sister should she need long term care. (She's 81)
I would retain an amount sufficient to cover my living expenses for 20 years should they sunset Social Security and Medicare in the future. (it's a thing)
Anything that is left would be "mad money" for fun, travel, donations to worthy causes or I might run for office.

It's funny, I always thought if I came into a large some of money I would use some of it to buy a new house with a studio and fill it up with guitars etc. Now, that doesn't even make the top 10 of my wish list.
5 Mil ain't what it used to be...

You should buy the house as an investment and grant your daughter a life estate. Significant tax benefits.
Put an amount into a 529 program for college for all future generations. Significant tax benefits.
Set up a 503c Family Foundation to take care of your sister. Significant tax benefits.
Invest the rest in some sort of tax deferred, inflation adjusted annuity. Public colleges are good vehicles for this. Significant tax benefits!

As you can see, keeping Uncle Sam, the effects of inflation, and risk out of your pocket should be job 1.

The first thing you should do, is hire a savvy attorney and financial planner.
 

BlueTele

Tele-Meister
Joined
Nov 16, 2008
Posts
207
Location
California
$1,000,000 to my daughter so she can actually "buy" a home in California and stay close to me.
$1,000,000 to my son to do the same
$1,000,000 for myself to bolster my retirement fund...use as a little play money perhaps
$1,000,000 to one or more children's charities
$1,000,000 to get rid of my wife...a little "lovely parting gift" as we divorce and get on with our lives
 




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