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SlyFrog posted:For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother. It would get me that much closer because I already have about $300k. Since I could reasonably live on $30k a year without changing a thing, and using the good sperglord rule of 4% a year withdraw rate (you should NOT be assuming 13%, good lord), I need $750k. At my current savings rate, I'd be there real quick. $80k - slumlord rentals (I'd say maybe 4 x $100k houses with 20% downpayments) $200k - taxable account $70k - cash on hand (rental expenses, future down payment when I know where I want to live because I'm in between cities/states/coasts)
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Jan 12, 2015 14:15
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District Selectman posted:It would get me that much closer because I already have about $300k. Since I could reasonably live on $30k a year without changing a thing, and using the good sperglord rule of 4% a year withdraw rate (you should NOT be assuming 13%, good lord), I need $750k. At my current savings rate, I'd be there real quick. I want to do what you're doing. 4% is probably more reasonable anyway. I think actively managing a portfolio like that would be stressful after a while when it is supposed to be a stress free source of income, or something close to it, so the more conservative the expected returns are the better I guess.
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Jan 12, 2015 14:40
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a posting ghost posted:350,000 at 13% a year -15% for capital gains (if you don't wanna do any tricks) is ~37k a year. you can live off that almost anywhere in the world. I could live off half of that if 13% sounds too aggressive (it isn't). Where are you getting 13% a year in any way that is stable/guaranteed? That's my point. I mean, I know there has been a market run-up lately, but it's not exactly as though you can rely upon 13% annual returns. Or if you can, please tell me where, so I can just retire now. Seriously though, I need to get smarter about investing and managing my money. Because I actually have a decent amount saved, but I feel like I am nowhere near retirement or the ability to do so.
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Jan 12, 2015 16:58
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District Selectman posted:It would get me that much closer because I already have about $300k. Since I could reasonably live on $30k a year without changing a thing, and using the good sperglord rule of 4% a year withdraw rate (you should NOT be assuming 13%, good lord), I need $750k. At my current savings rate, I'd be there real quick. What about inflation? Doesn't that throw off your yearly spending greatly over the course of your life?
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Jan 12, 2015 17:58
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The 4% rule typically implies 7% returns - 3% inflation = 4% perpetual withdrawal.
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Jan 12, 2015 18:08
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Lelorox posted:What about inflation? Doesn't that throw off your yearly spending greatly over the course of your life? Like GoGoGadgetChris said, inflation at 2-3% is baked in. Historical real returns of stock (including inflation) is 6% or so, so my money still grows even while I withdraw. That's why hypothetically your account never hits $0, because it's just growing less when you take out 4%, not shrinking.
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Jan 12, 2015 18:27
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VostokProgram posted:Is it actually possible to report and pay taxes on money without explaining how you got it? Wouldn't the IRS want to see something that proves you earned it in a legitimate business or something? Otherwise, you presumably either stole it, counterfeited it, or earned it illegally. I doubt you can write "it magically appeared underneath my bed one day" on the forms. Form 1040, line 21 is the appropriate place to report income gained illegally. It gets a little more complicated if you get audited, of course. Also, you're allowed to deduct expenses related to your criminal activities (since you're presumably self-employed).
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Jan 12, 2015 18:43
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SlyFrog posted:Where are you getting 13% a year in any way that is stable/guaranteed? That's my point. I mean, I know there has been a market run-up lately, but it's not exactly as though you can rely upon 13% annual returns. Why did you type all these words..my brother owns a hedge fund ok, he's also the one who gave me the 350k. He guarantees me the returns. I never said anything about stable or guaranteed. Just pretend I threw the whole thing in a CD if that would make you feel better.
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Jan 12, 2015 19:31
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Series DD Funding posted:The IRS can't care. It'd be unconstitutional to put you in a double-blind of self-incrimination or tax fraud. Well, you might want to tell the Supreme Court that, since they've held the opposite view since 1927. However, the most likely place we would get a briefcase full of $350,000 in cash is inheriting it, and inheritances are not taxable to the recipient. And it's not so impossible; my grandfather died recently and had $30,000 in cash in a hole in the wall in his garage because he grew up during the Depression and that's apparently what you did back then.
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Jan 12, 2015 19:51
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Hobologist posted:Well, you might want to tell the Supreme Court that, since they've held the opposite view since 1927. However, the most likely place we would get a briefcase full of $350,000 in cash is inheriting it, and inheritances are not taxable to the recipient. And it's not so impossible; my grandfather died recently and had $30,000 in cash in a hole in the wall in his garage because he grew up during the Depression and that's apparently what you did back then. Apocryphal story time: Decades ago, I recall reading or hearing something about a guy finding a briefcase full of cash while out hunting, and it was in the neighborhood of $350k. I told the gang at work about and there was some discussion and the general consensus among co-workers was "toss that poo poo in a closet and take out $100 every day and spend it". As I recall, the guy turned it over to the cops and ended up not getting to keep it.
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Jan 12, 2015 20:06
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Hobologist posted:Well, you might want to tell the Supreme Court that, since they've held the opposite view since 1927. However, the most likely place we would get a briefcase full of $350,000 in cash is inheriting it, and inheritances are not taxable to the recipient. And it's not so impossible; my grandfather died recently and had $30,000 in cash in a hole in the wall in his garage because he grew up during the Depression and that's apparently what you did back then. I will do you one better (or worse). My grandfather was a jeweler and like to hide gold bullion...no one else knew exactly where though. And then he got Alzheimers.
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Jan 13, 2015 01:10
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Hobologist posted:Well, you might want to tell the Supreme Court that, since they've held the opposite view since 1927. However, the most likely place we would get a briefcase full of $350,000 in cash is inheriting it, and inheritances are not taxable to the recipient. And it's not so impossible; my grandfather died recently and had $30,000 in cash in a hole in the wall in his garage because he grew up during the Depression and that's apparently what you did back then. There's always money in the banana stand. For real though, payoff student loans then park it in a taxable Vanguard account. Super boring, but whatever.
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Jan 13, 2015 02:38
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Why are multiple people so angry a dude would donate some of the money 
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Jan 13, 2015 02:52
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Because this is BFC.
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Jan 13, 2015 14:52
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Precisely. Is a man not entitled to the sweat of his (dead uncle's) brow?
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Jan 13, 2015 19:14
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Hobologist posted:Well, you might want to tell the Supreme Court that, since they've held the opposite view since 1927. However, the most likely place we would get a briefcase full of $350,000 in cash is inheriting it, and inheritances are not taxable to the recipient. And it's not so impossible; my grandfather died recently and had $30,000 in cash in a hole in the wall in his garage because he grew up during the Depression and that's apparently what you did back then. Read my post more carefully, I was thinking of that case when I wrote it.
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Jan 13, 2015 20:11
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I am debt free so I would park the whole thing into taxable mutual funds. Part of me would want to take the whole thing and buy up stocks in a few mid size E&P companies who leveraged themselves wayyyy too heavily over the shale boom. Especially companies who have assets that won't expire in the next 3 years. Best case scenario is the price of oil hits >70 and I make out like a bandit (seriously, some of these companies lost 80% of their market cap in the last year) and worse case scenario is they get bought out and I still make out like a bandit.
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Jan 13, 2015 20:40
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JohnGalt posted:I am debt free so I would park the whole thing into taxable mutual funds. Call me dumb but how exactly does this work?
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Jan 14, 2015 00:06
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OP, are you actually looking for advice on what to do with a 350k inheritance/poker winnings/drug money?
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Jan 14, 2015 00:41
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Droo posted:OP, are you actually looking for advice on what to do with a 350k inheritance/poker winnings/drug money? It's close enough to being possible and yet still well within the realm of the hypothetical. Flip a coin, shake the magic 8 ball, answer hazy try again later.
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Jan 14, 2015 00:55
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Jesus Christ posted:Call me dumb but how exactly does this work? You basically assume you can time the market for energy stocks this year and buy at the real bottom. A few years down the road when the price of oil recovers the energy companies stock price will recover.
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Jan 14, 2015 02:13
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Jesus Christ posted:Call me dumb but how exactly does this work? Work with the assumption that oil will be above 70/bbl in the next 3-4 years. One such company had proven reserves (@$100/bbl oil and $4/btu gas) worth a billion dollars and recent unproven acquisitions that massively increased its surface area leases several times over. The current market cap is less than a couple hundred million. If you think oil prices will recover then you would also assume said company is highly undervalued as well?
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Jan 14, 2015 04:23
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Droo posted:OP, are you actually looking for advice on what to do with a 350k inheritance/poker winnings/drug money? The number the OP picked is weird to me because (a) it's not a "classic" round number like $250K or $500K and (b) it's around what I've calculated I stand to gain if we were to liquidate the assets my grandmother passed along to me and several other family members in a partnership before she died. OP are you my cousin? If so can we please convince your mom to sell?
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Jan 14, 2015 05:50
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I'm fortunate enough to be inheriting around this amount within the next few years so I've thought about this quite a bit. I'll probably use a few thousand and buy myself something (a nice watch, fancy vacation, or maybe kickass headphones) The rest is going into tax efficient investments. Probably also using it to make sure I'm able to max contribute to a Roth IRA. Boring as hell, but there you go.
onemillionzombies fucked around with this message at 08:18 on Jan 14, 2015 |
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Jan 14, 2015 08:14
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It gives me the warm and fuzzies to see so many people would do boring things with a considerable windfall.
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Jan 14, 2015 17:31
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dreesemonkey posted:It gives me the warm and fuzzies to see so many people would do boring things with a considerable windfall. We say that now, when it's only theoretical. But when we actually hit it big, you know it's going to be $350,000 worth of hookers and blow.
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Jan 14, 2015 18:28
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Thanatosian posted:We say that now, when it's only theoretical. One of my clients said that he got paid $200k (many years ago) for an architectural contract so he bought a Ferrari. Not very financially responsible but he enjoyed it.
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Jan 15, 2015 00:04
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We were just talking about this very topic last night. If we had a 350k windfall in cash, it would be used well. 1) Pay off bills, and do IRAs for this year (so like 11,000ish a year for 2 traditional IRAs and then pay off the home equity loan 20k/car debt 10k left/and any credit card debt we have. We would keep the mortgage though for the tax credit atm...no point in losing that just yet) 2) Pad up the emergency fund 3) Play a little bit, maybe take a trip...get some hobby stuff. Something fun, and fix up the house a little...new drapes etc. 4) Give a little to our families to help them out, as well as to charity 5) Put remainder into the retirement funds/investment accts etc We are not terribly spendy people by nature, so this would make us happy 
Disco Salmon fucked around with this message at 01:38 on Jan 15, 2015 |
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Jan 15, 2015 01:36
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This is mostly mind experiment and I chose $350k 'cause like... well $100k or $1 million are to common. 350 is oddball number that makes you think because it doesn't necessarily set you up to be super rich but if you play your cars right you can live quite comfortably but it requires a bit more brain-thinking.
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Jan 17, 2015 23:40
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I'm debt free so I would put it all into Vanguard taxable index mutual funds and retire earlier than I otherwise would. I would not change my lifestyle or spending at all.
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Jan 19, 2015 03:22
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Invest $340k of it, put $5k into my savings where I can get at it if I need it, blow the other five grand on comics and bullshit, and keep living like the poor college dropout I am right now, just without worrying about money.
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Jan 19, 2015 20:26
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I have the money for it already but I'd go ahead and drop ~$10,000 on a new roof. The rest I would put into a mix of investments. I enjoy accumulating wealth more than I do spending it. Let that money earn me more money!
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Jan 20, 2015 03:09
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Nail Rat posted:Why are multiple people so angry a dude would donate some of the money I'm not angry that a dude would donate his money. He basically said "Hurrr, $350k isn't that much when you give it all away". 
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Jan 21, 2015 12:52
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I'd start a WISP to bring low-cost broadband Internet to rural and under-served communities in my area.
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Jan 21, 2015 16:40
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OneWhoKnows posted:I'd start a WISP to bring low-cost broadband Internet to rural and under-served communities in my area. I know a guy that did this. He actually spoke before Congress a few years ago about FCC spectrum auctioning and how it uncompetitively favored major wireless players. Been at it for 20 years now. Cool Dude.
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Jan 21, 2015 21:52
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350k -176k house principal -13k credit card debt -10k (new) used car -6k new AC -4k tree removal -------------- 144k Our yearly expenses not counting mortgage/credit are 31k Wife and I both work part time from home and make about 47k post tax Without the house and credit payments to worry about we'd be able to max our Roth every year and live really comfortably working part time. That would still leave 20k for liquid savings and the 120k nest egg for non retirement investment and occasional travel. Our 31k expenses has traditionally included a good 2.5k in travel anyway so we'd probably try some bolder trips like Europe. I wouldn't retire early, but goddamn never having to work more than 24h a week from age 27 on would practically be retirement anyway. So maybe I'd take some cash to get snipped too lol. Kids would affect everything.
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Jan 21, 2015 22:04
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Pay off the house & update some of the stuff inside ~ $200k Subaru STI with vanity license plate ~ $40k Additional emergency fund money ~ $10k Taxable mutual funds ~ $100k With the house paid for, that frees up enough money to max my Roth 457 on top of already maxing my Roth IRA every year. Withdraw 10% of the current balance starting Jan 1st every year of the taxable mutual funds and go on vacations throughout the year. If/When the fund gets low enough... say $40k start using it $10k at a time until gone. How long would that fund last at that kind of withdrawal schedule? If it were in a money bag... monthly expenses would all be cash... and lunch would be on me.
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Jan 26, 2015 02:19
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SweetSassyMolassy posted:Pay off the house & update some of the stuff inside ~ $200k The thread deserves to know what the vanity license plate would be.
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Jan 27, 2015 02:08
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I would give 50k to my parents and 25k to my brother. With the rest I would withdraw 10k to spend on fun things and of the remaining 265: 50k tracking the FTSE 50k tracking the NASDAQ 100k in a managed fund 10k in a cash ISA 50k in a savings account that is just used for rent for the next few years 5k on a holiday.
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Jan 27, 2015 02:14
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Pay off my student loans and my mortgage. That would about cover it, I think.
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Jan 27, 2015 04:29
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