How would various amounts of money affect your life?

[Gunslinger08]

Not sure why everyone is saying "pay off house" with the $150K. Most mortgages are below 4% interest. It would be much better to invest that money. You can definitely do better than 4%..most people can do 8% without even trying.

I've actually argued for the same thing in other threads, but thinking about it now, I'd rather just have the mortgage gone. Having a "house payment" of a couple hundred a month (taxes and insurance) would be a relief.

 

[SaDiZTiKStyLeZ]

Travel.

 

[Fingolfin269]

I'm really sad for the people who think it takes $600k to go on a nice vacation. That really sucks. Or my idea of a nice vacation is completely different from the majority.

It's hard for me to answer questions like this because I feel like any incremental cash at this point just allows me to buy nicer versions of stuff I already have, or multiples of something I don't really need multiples of (like cars). A vacation house might be nice I guess. The real kicker at this point is where would I finally feel like the number is enough to just retire and do something I really love but don't care so much about how much money it brings in because I can just live off of interest of my fortune. That's bliss.

 

[BoberFett]

$150K - Save/invest it all, it's not a significant amount of money, but would make a very nice buffer and earn a respectable amount of interest.

$600K - Pay off current mortgage, save the rest.

$6M - Build $1M dream home, save the rest and live off the interest.

$60M - Hookers and blow with Charlie Sheen.

 

[Atomic Playboy]

$250,000 : ~$150,000 after taxes - I'd buy a nice car, like an Aston Martin DB9. Then I'd build a giant trebuchet and fling the Aston through the wall of the local cinema, because $10 for popcorn is fucking absurd.

$1,000,000 : ~$600,000 after taxes - I would get the entirety of it in pennies, dump it into a pool and dive into it like Scrooge McDuck, killing myself instantly.

$10,000,000 : ~$6,000,000 after taxes - I'd buy an entire town somewhere in the midwest just so I could strut past people and hear them whisper "that there fella owns this here town." That's the only situation I can think of where it would be socially acceptable for me to wear a Stetson, which has always been my only goal in life.

$100,000,000 : ~$60,000,000 after taxes - I'd buy a blimp, get some modified T-Shirt cannons and fly around the continental United States blasting wadded up $5 bills at everyone. Here comes the money blimp! Everyone's a winner! But I'd only fly over nice neighborhoods because places like Brooklyn and Compton are depressing.

 

[ichy]

$150k isn't a significant amount of money?

 

[child of wonder]

$250,000 : ~$150,000 after taxes - Pay off my student loan ($9k), get the wife and I next to new cars ($50k after selling our existing cars), do a few home upgrades ($31k), buy some misc. crap ($10k), invest the remaining $50k in anticipation of purchasing a lake home in the future.

$1,000,000 : ~$600,000 after taxes - See previous, as well as pay off mortgage ($180k). Pay off wife's impending student loans while she's attending school right now ($38k), take remaining $232k and shop for a lake lot to build a future home on.

$10,000,000 : ~$6,000,000 after taxes - See previous, but would purchase a lake lot with an existing small home on it, demo existing home, and build new house. Purchase a boat, truck to haul boat, and pair of jet skis. Invest remaining money and begin to collect interest as income.

$100,000,000 : ~$60,000,000 after taxes - All of previous plus purchasing second home in Denver, CO. Would buy expensive cars, etc. Would make sure at least half of the $60M was invested safely so no matter what happens I have a very livable amount of interest to use as income each year. Would also use money for philanthropic endeavors to support education and vaccinations for children.

 

[Saint Nick]

I would have a hard time not blowing it all. Pretty much would do everything everyone stated in the thread already (pay off loans, CC bills, maybe some family members' things).

I'd end up buying lots of drugs and partying around the world

 

[HardcoreRobot]

I'm really sad for the people who think it takes $600k to go on a nice vacation. That really sucks. Or my idea of a nice vacation is completely different from the majority.

It's hard for me to answer questions like this because I feel like any incremental cash at this point just allows me to buy nicer versions of stuff I already have, or multiples of something I don't really need multiples of (like cars). A vacation house might be nice I guess. The real kicker at this point is where would I finally feel like the number is enough to just retire and do something I really love but don't care so much about how much money it brings in because I can just live off of interest of my fortune. That's bliss.

You can take really great vacations on a budget, no doubt.

Its a different world when you start considering international first class airfare, 5 star hotels, etc.

 

[Dr. Detroit]

$250,000 : ~$150,000 after taxes - Absolutely zero impact on my day to day life - Would put it in bank for retirement, kids college. Would spend about $10K on travel and a few other nice things we'd like but don't need.

$1,000,000 : ~$600,000 after taxes - 75% would go towards future retirement, $3K towards a new 60" TV, $5K towards a set of Mirage OMD speakers, $6K towards a nice vacation, $25K towards renovations in Mom's house, $1,500 towards a new BBQ Smoker, rest (about $100K) in kids college fund.

$10,000,000 : ~$6,000,000 after taxes - Game Over, Full Retirement. 3% in conservative non-taxable Muni investments leaves me $180K a year to spend without touching the principal. Move out of US and rent a modest condo with a boat slip for a nice 40' boat that I can cruise the Caribbean, fish, and island hop.

$100,000,000 : ~$60,000,000 after taxes - Same as above with more & nicer travel. I'm not much of a philanthropist but would set aside $500K for my brothers kids college education. I would never pay another nickel to the US in the form of taxes again - every nickel would be offshored.

 

[nageov3t]

I'm really sad for the people who think it takes $600k to go on a nice vacation. That really sucks. Or my idea of a nice vacation is completely different from the majority.

emphasis on the nice part

not that I'd spend $600k on a vacation, but if I had that much in the bank, I wouldn't stress out about flying first class halfway across the world and spending a month hopping between 5-star hotels in Eurasia or going on a safari in Africa.

 

[Gooberlx2]

$250,000 : ~$150,000 after taxes - Pay off non-mortgage debt and most of my mortgage. Refinance the remaining to a 15 year fixed for a dirt cheap payment.

$1,000,000 : ~$600,000 after taxes - Pay off the mortgage. Buy a new car. Make improvements on the house. Vacation(s). Travel. Invest most of it.

$10,000,000 : ~$6,000,000 after taxes - Above + buy a vacation property. Charity. Possibly not work anymore, but try to pursue/monetize some things I'm more passionate about.

$100,000,000 : ~$60,000,000 after taxes - Above + definitely not working anymore. Invest most of it. Stash amounts away for college funds for all of my nephews and nieces. Setup trusts, etc...

 

[dr150]

$250,000 : ~$150,000 after taxes - Lease a pricey German car to pose that I've arrived (...not).

$1,000,000 : ~$600,000 after taxes - Buy a bachelor pad....with an exotic fish tank as my headrest...and a gold plated stripper pole with disco ball in the entertainment room.

$10,000,000 : ~$6,000,000 after taxes - Hit Vegas every weekend. Try my best to pay off Vinny, the bookie, so he doesn't follow through on his promise to kneecap me.

$100,000,000 : ~$60,000,000 after taxes - Paranoia sets in from my Ponzi scheme. Hookers and blow to tie me over.
.
.
$0.0: ~$0.0 after taxes - FBI owns me. I see Vinny in jail with a crowbar, looking at my kneecaps....and my ass. FTML! :'(

 

[Gooberlx2]

I'm really sad for the people who think it takes $600k to go on a nice vacation. That really sucks. Or my idea of a nice vacation is completely different from the majority.

I think most people could certainly go on a nice vacation with just a couple thousand. When considering priorities with a windfall, I think many, possibly most, people would rather pay off their substantial debts. I would. $150K to $600K is a big jump and I'd guess most people here with mortgages have enough debt to consume the entirety of $150K, but not $600K.

After paying off my debt, I could easily save a few months and use the money no longer going to my mortgage company to take my wife on a great vacation.

 

[Blieb]

$10,000,000 : ~$6,000,000 after taxes - 3% in conservative non-taxable Muni investments ... I would never pay another nickel to the US in the form of taxes again - every nickel would be offshored.

After you take the after-tax portion ... if you just kept it in cash (no interest) or non-taxable munis ... you wouldn't have any taxable income to pay tax on ...

Just sayin' ...

 

[PrinceofWands]

$250,000 : ~$150,000 after taxes - Pay off the small debts I have left, buy a few things I've been putting off (new monitors, laptop, wardrobe, etc), drop another $5-10,000 in my daughters e&e, and use the rest to increase my quality of life for the next 5-7 years or so.

$1,000,000 : ~$600,000 after taxes - Buy the lot next door and build a garage/workshop with apartment, then as above except I'd add $30,000 to daughters account, I'd do quite a bit of traveling over the next few years, and my life would improved for 20 years.

$10,000,000 : ~$6,000,000 after taxes - Give away $4,000,000 to friends and family, then as above but add a vacation home and quit any kind of work for life.

$100,000,000 : ~$60,000,000 after taxes - Inconceivable amount of money. Become philanthropist, elevate friends and family to comfortable retirement, and do anything I wanted for life.

 

[Pandamonium]

Student loans are killer...

$250,000 : ~$150,000 after taxes - Pay off most of our grad plus loans (8.5%).

$1,000,000 : ~$600,000 after taxes - Pay off all of our student loans (mix of 5%, 6.8%, 7.9%, and 8.5%). I think even with 600k after taxes, we'd still have some outstanding loans. I shudder at the thought.

$10,000,000 : ~$6,000,000 after taxes - Buy a modest house for residency (400-800k, depending on where we end up). Go on a modest european vacation after graduation, send parents and in-laws on a vacation. Probably get ourselves newer cars, likely certified pre-owned luxury brands. Get a financial advisor, probably something along the lines of 3M capital preservation, 1M growth. We would make sure that our immediate families have all of their needs met. At this point, I would still fly coach. I would do more of my grocery shopping at Whole Foods. And I would almost certainly stop shopping at Wal-mart. We'd hire a lawn and plowing service, but would only have a cleaning service come by once a week or so. I'd be willing to pay the annual fee on an Amex Platinum.

$100,000,000 : ~$60,000,000 after taxes - Mostly the same as above. Definitely a swankier house, probably still <2M though. Lawn, plowing, and cleaning service. We like to cook so no chefs here. I'd also figure out where I like to vacation most and would buy a modest vacation home there. Definitely new cars at this point- luxury but nothing >100k. Consider multiple financial advisors. Maybe at this point we'd be willing to tolerate a 50/50 capital preservation vs growth. We'd definitely do our grocery shopping at Whole Foods. We might fly first class if we could finagle a way to bring our dogs in the cabin. I would be willing to pay the fee for an Amex Centurion.

 

[BoberFett]

$150k isn't a significant amount of money?

A single payment of $150K? No. That's like two years of net income. It's a nice amount of money that I wouldn't turn down, but nothing life changing.

 

[PrinceofWands]

A single payment of $150K? No. That's like two years of net income. It's a nice amount of money that I wouldn't turn down, but nothing life changing.

5+ years for most. Hell, 20 for some. About 10 for me if I average across a decade.

 

[maddogchen]

$250,000 : ~$150,000 -invest it all in a target mutual fund.

$1,000,000 : ~$600,000 after taxes - pay off mortgage, invest the rest.

$10,000,000 : ~$6,000,000 after taxes - pay off mortgage, pay off parents mortgage, invest half, buy a bigger house, rent out current one.

$100,000,000 : ~$60,000,000 after taxes- invest half, become a real estate tycoon, buying and renting out places. Buy a beach house and take conference calls from the beach.

 

[Drako]

$250,000 : ~$150,000 after taxes - Retire.

$1,000,000 : ~$600,000 after taxes - Retire. Travel

$10,000,000 : ~$6,000,000 after taxes - House improvements. Retire. Travel.

$100,000,000 : ~$60,000,000 after taxes - Buy a mansion. Retire. Travel.

 

[Apple Of Sodom]

$150k isn't a significant amount of money?

A good portion of people make that in a year, so not really. It is a nice chunk of change, and I speak from experience when I say this, once you have that amount of money, you realize it isn't a life changing amount. I already have more than that saved, and right now I'm using it to invest (retirement, stocks, funding another business.)

 

[bbs lm-r]

My first priority would probably be helping my parents/family. Paying off their credit cards/bills, paying off my mom's car and taking my dad car shopping, also helping dad open his own business, and buying (or atleast putting a down payment on) a new house for them. Then would probably be fixing up my grandparents' house with any amenities they'd want, and then would probably help close relatives out. After that'd I'd pay off my student loans, pay off some tools, get a car (sti hatch ^_^), and from whatever's left over, save some/invest some.

 

[Baked]

For all: Pay off mortgage, get a Subaru BRZ, donate rest to PBS/NPR. Continue working, but cut down to 5 days a week instead of 7.

 

[PrinceofWands]

A good portion of people make that in a year, so not really. It is a nice chunk of change, and I speak from experience when I say this, once you have that amount of money, you realize it isn't a life changing amount. I already have more than that saved, and right now I'm using it to invest (retirement, stocks, funding another business.)

2.8% is a 'good portion' of the population? I mean, yeah, it's nearly 7,000,000 people, but it's a pretty small percentage.