My dad left me $7M and I have no idea what to do with it

http://sevenmillionblog.tumblr.com/

3 13 12 years ago

sevenmillionblog.tumblr.com

sly_g• 12 years ago

Well, I have an interesting innovating idea concerning eInk electronic book readers and I just happen to look for investors. I cannot disclosure all details in public, because there are no patents yet. If it's interesting to you, let's get in contact.

axelnaess• 12 years ago

Well, at this place you're probably going to get this advice quite often: Invest in several startups. Just what YC themselves do.

I'm the CFO of a tech startup myself. We are building "The Instagram for online trade". I'd love to talk to you.

If it were my money I would invest a portion of it in startups (but you must obviously know that the risk of losing these money is present), and I would invest most of it in stocks and keep the rest in the bank. I have some personal recommendations, but if you don't have any idea on the stock market I would consider contacting an investment bank. I think that would be reasonable with your amount of money.

jondubois• 12 years ago

Obviously fake. If OP really had that money, they could afford a very good financial planner and wouldn't have to resort to asking random people on Hacker News about how to manage their finances.

If I had that much money, I wouldn't invest in any company whose CEO is gullible enough to think that this post is genuine.

sky_• 12 years ago

Hi, you should become an angel in startups' investments... take a look at http://angel.co

skidoo2• 12 years ago

Burn it, burn all of it.

skidoo2• 12 years ago

Why the vote down? Should I ask for a handout like everyone else instead?

Yay Capitalism, yay products, yay materialism! Because all of these things have done wonders for the world thus far.

BURN IT ALL.

DanBC• 12 years ago

How old are you now? How old will you be when you die? How many weeks are there between now and then? What is $7m / that number?

That's how much you can spend per week. You probably need to lock up an amount in safe savings for old age.

It'd be really easy to burn through $7m in a couple of years and you probably don't want to do that.

arsalanb• 12 years ago

The answers you get here will be posted in the best of intention by the people here, but i can't help but point this out — Whatever they post will to some extent be affected by their identity (which is unique to everybody). Most will ask you to invest it in startups, some will probably even ask you to save, and whatnot.

The thing about money is, when you don't have it, you think of all sorts of things you could do if you had money. But when you get it, you go blank. So I'd really suggest getting some professional advice from a financial planner (an expense that you can actually afford, given your financial position)

Personally, I'd buy a BMW M4 Convertible, and then think of what to do with the rest. But that's just me.

mrmincent• 12 years ago

Leave it in the bank, sit on it for a year. Think things through, take advice from different people. You will eventually find a house that you want to buy, or a business you want to invest in, or a holiday you want to take. Don't use it for the sake of using it.

shumo• 12 years ago

buy Ferrari

sbarber• 12 years ago

You could invest into my start up. I'm not asking for anything extraordinary at the moment but our general plan is to start as a computer repair business to fund our research in home automation the link to the page is

https://www.tilt.com/campaigns/help-me-open-a-computer-repai...

Right now I have an IT specialist, a Hardware Engineer, a Web engineer, and a Marketing person. If we could make enough to start on our own enough to quit our day jobs we could have a functional business within a month, because we already have clients.

gotrythis• 12 years ago

If it were me, my family and friends would have the resources to do something meaningful with their time instead of living to work. I would gift money to projects that have the intent to change the world, but don't have a method to make money. That would include funding sustainable off-grid intentional communities. I would also stop doing anything myself that is just to make money and do things of real value.

Beached• 12 years ago

General Investing Advice: 1. You will never beat the market. No one is able to beat the market, even those who's job is investing, rarely ever beat the market. Over 100 years of investing research has proven that it just doesn't happen. (See Warren Buffet for exception?). The best thing you can do when investing is to place your money in a low cost mutual index fund and wait. do NOT get involved with active trading with your retirement funds. Do not do it yourself, do not hire a broker to do it for you, do not, do not, do not!

The rule of 9 is this: Any amount of money you invest in the stock market today will double in 9 years when averaging 9% returns. (The US Stock has historically grown 11.87% per year for the past 100 years).

Specifically I would invest equally in three different funds: S&P 500 - Equally spreads your money in stocks from the 500 largest companies. (The S&P 500)

Total US Market - Equally spreads your money in stocks from all US companies in the stock market.

Target Date fund - A diversified fund that shifts from high volatility (Stocks) to low volatility(Bonds) as your near your retirement age.

----------------------What I think you should do with the $7,000,000------------------

1. Pay off Debts 2. Set up Emergency Fund 3. Set up retirement Account 4. Set up investment account 5. Any money left over can be used for helping family, donating to your favorite charity, or open-source.

--------------------Detailed Description---------------------

1. Pay off debts. - If you find yourself out of a job or in a sudden life change, the financial peace of no outstanding debts makes it easier when "life happens". In many cases, you could earn a bigger return per dollar by investing (Such as investing in a Index fund vs. paying off student loans), however the flexibility and peace of mind of not having debts is hard to measure.

2. Set aside 1.5 - 2 years worth of money in a "O shit fund". This should = your living expenses for 1.5 - 2 years. Place this money in a savings account that you cannot easily access. Many banks can set it up so you have to show up in person to access the money in your savings account. This money is in case you (or your wife) lose your job, it will float you until you get a new one.

3. Call Vanguard to open up a retirement account. https://investor.vanguard.com/home/ (I do not work for Vangaurd, they are just the best to work with, and have low management fee's from my experience) With a phone call, Vanguard is essentially a free financial planner. Surprisingly enough, All major investment firms will NOT pressure you to open an account with them over the phone, they will answer all questions you have and tell you to have a great day at the end without hassle.

4. Vanguard will help you determine the amount of money you need to place into your retirement accounts to have a happy retirement without running out of money when you hit 90+. All major investment firms will likely recommend that you place a little extra in as well, do this. Open up 2 accounts with them, a retirement account comprising of a S&P 500 index fund, Total Market Index Fund, Target date fund (These three will represent your retirement portfolio) and then a brokerage account. A brokerage account work exactly like a retirement account, except you contribute money after paying taxes, you pay "Capital gains" taxes when you withdraw cash from the account. Invest $2million into your brokerage account ($1m in a S&P 500 index fund, and $1m in a total us market index fund) and you could theoretically retire tomorrow, living off of the returns from the brokerage account alone.

5. Some ideas for what you can do with the left over funds.

a. Open a college fund for kids or future kids. (Look into 529 plans)

b. Pay your parents back for raising you, helping you with college, etc by paying off their mortgage or contributing to their retirement fund.

c. donate to charity's

d. donate to open source

e. purchase investment houses in a high demand area, let a property management company handle the houses for you, they will take a slice of the profits off the top in return for finding renters, handling maintenance calls, rent, etc. They will only call you for major repairs such as replacing appliances or the roof. (This can take many years to get a return on your initial investment but after you have earned your money back, it can be very profitable)

f. Open an HSA (High deductible health care plan required), max out your HSA contributions, and set your HSA account up as an investment account just like your retirement accounts. HSA's are accounts that have a "Triple tax advantage" so these accounts have the greatest return for the dollar. (You can only use HSA funds for health care costs, like dental visits, ER visits, prescriptions, or even buying floss or toothpaste) A little known loop hole is that you can max out your HSA every year, and pay for all your health care costs out of pocket, place all your receipts for health care in an envelope and when you retire, you can "reimburse yourself" for ALL the costs from your HSA tax free. This allows your money to gain compound interest over the many years before you "pay" for the health care, earning the most money on your money.

My dad left me $7M and I have no idea what to do with it

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