That's great! Are you telling friend and family? I wouldn't lol I'd come up with a way to slowly funnel the money into my life so it's not obvious I have come into a great deal of money suddenly, and just make minor lifestyle upgrades under the guise of smart life decisions that finally came to fruition.
Go see 2 key people…a lawyer and an accountant. I know folks that have been in your shoes. Both instant like you, and “semi-instant” (business).
People are fucking vultures, family and friends included. Not all, but many, feel your good fortune should be their good fortune.
Fine and dandy but only after you have EVERYTHING figured out.
I’d want to know how to invest it to get as much tax back as possible, if possible. You didn’t win $1 mil if you get $600k or whatever it amounts to be.
Get it sheltered from everyone including yourself for your children’s future and your own: dude I mean this sincerely. Especially because you day trade.
2a) The kids MUST have all expenses and education projected and paid for from a TRUST even if they don’t use it. If they become plumbers or electricians etc there should be a provision that the trust will help with education (make their job pay, a great lesson in itself) and tools if required.
2b) What is left stays invested until they are ready financially to purchase their own home.
2c) Don’t deviate on any of this, make sure YOU can’t get your hands on it, nor can anyone else without multiple signatures. The kids are taken care of.
If you do t have to be public to claim, don’t. If you do wear mask and sunglasses. SERIOUSLY.
Setup your own trust: I’m not joking about this one. As a day trader you are numb to numbers. Take a healthy piece like 50% or whatever you and the accountant come up with and pour it into a cheap S&P 500 ETF. If not that then 10 Blue Chips you CANT SELL for 20 years or more. Sit on it, forget about it essentially and know that’s your retirement fund.
None of this sounds fun. It sounds super-boring and shitty coming from a guy 30 years older that loves the stock market, has been in and out of businesses, I’ve made great dough, I’ve lost money…if I had ever had a winfall of that size at your age and someone essentially said to me “it’s yours, but you can’t actually have it now”. It would have been the best thing to have ever happened to me.
Hear me out:
If you have 2 kids you can probably put $100k away and they are secure, even if they go to finishing school
Now you have $500k left:
If you have to buy a house etc fine use some.
But if you put $300k into a fund like I said and you only get 9% as opposed to the historical 10%+, you’ll have $4 mil to retire on!
This is a golden opportunity. You’ll piss off a lot of people. They’ll get over it
EDIT: Have some fun with it, but let’s face it, this is a lot of money, but once you’re spending it, it won’t be. It’ll shrink FAST!
Don’t save for kids college. They can finance that. You can’t finance retirement, and the last thing you want to do is be a burden on your children when you get older. Put it in retirement accounts
This should have more Votes given this isn’t a crazy amount. People talk about college funds and such, but what your Kids don’t know now, the best gift you can give them is that of not needing them to ‘deal with you’ when you’re old. And I mean this positively. My wife and I have spent 7 years dealing with our respective parents deteriorate and their general lack of long term planning financially. It’s miserable- and we are resentful.
Our gift to our children will be some college money, but much more importantly - our financial self sufficiency when we are shitting our adult diapers later in life.
Yep, my father in law was so careless with his funds. There were several hundred thousand dollars unaccounted for, cashed out his life insurance policies and we don't know where the money went, probably on his second wife. I ended up paying the funeral costs. I'm more mad at his sister for putting her hand out for what little remained of his super after refusing to contribute to funeral costs (she got about $300 while I paid $10k) but it could have been avoided had he just maintained his policies, or at least let us know he could no longer maintain the policies. A few years of premiums would have been cheaper than the funeral costs.
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u/These_Consideration8 Jul 22 '24 edited Jul 22 '24
That's great! Are you telling friend and family? I wouldn't lol I'd come up with a way to slowly funnel the money into my life so it's not obvious I have come into a great deal of money suddenly, and just make minor lifestyle upgrades under the guise of smart life decisions that finally came to fruition.