If you suddenly became a millionaire....

[cercis]

Re: If you suddenly became a millionaire....

There are t-bills and other gov't bills. You are guaranteed to get your principal and a certain amount of interest.

This is what "Your Money or Your Life" recommends. Not a huge return, but safe and guaranteed.

[baselle]

Re: If you suddenly became a millionaire....

But we'd still eat Kraft dinner!

First off - I'd keep mum about it, or at least as mum as I could. I would put it in a several large 6 month CDs. I would ask - quietly - for recommendations for a lawyer and a fee-based financial planner.

I would get a safe deposit box.
I would re-write my will, perhaps put the money in a trust for my inheritors. (I'm in the midst of this - its on my mind).
I have already made some investments that I'm confident in. During those 6 months of incubation I would determine with the financial planner what percentage of this windfall would go in those, figure out my final positions in them. After 6 months I would begin to implement buying on a monthly basis - still using dollar cost averaging.

I might buy a house, but I think I'd patiently wait for something that I'd really like. Seattle isn't like Orange County, but real estate price would take out a big bite out of the windfall and a house is not something I have a burning, burning desire to have.

I would retain the lawyer for the "fair weather friends".

And then, after all that, reserve about 5% for fun, like buying some Dijon ketchup...

[cercis]

Re: If you suddenly became a millionaire....

Who knew there'd be so many Bare Naked Ladies fans? LOL.

I heard that song in 1993 and became an immediate fan. It took until 1998 before I could find the CD in the states though.

[Tree0164]

Re: If you suddenly became a millionaire....

If I had a million dollars instantly.

1. Take ou taxes (probably 350,000)
2. Pay off mortgage $120k
3. Add a second level to the house $100k
4. Put $150k in 529 plans (50k in each child's name)
5. Buy a vacation on the lake $150
6. Max out 401k each year and Roth
7. Invest the difference in mutual funds

[catlover15]

Re: If you suddenly became a millionaire....

I don't know. I would keep the same friends and try not to act differently around people.

[CRFSaver]

Re: If you suddenly became a millionaire....

Savingsadvice.com who? LOL

[marglo]

Re: If you suddenly became a millionaire....

Oh, boy this is fun to think about! I know I would want to invest but would have to learn how as I've never had enough money to get much experience with investing.
Right off the top of my head though I'd do these things:
1. Give at least 10% to my church and other organizations I believe in.
2. Pay off all our debts.
3. Buy a new car (ours is 12 years old)
4. Buy a motorhome and travel with it for a year and then decide how I want to travel after that and also where I want to live.
5. Give to our children...try and meet their most urgent needs at least. Put money away for our grandchildren's education.
6. Maybe buy a new house...maybe not. I like my home. I would definitely want to remodel though! Or might sell or rent our house and just travel until ready to settle down again!

[MarshallMiddle]

Re: If you suddenly became a millionaire....

I would continue to invest the same way and not change things. Currently I have automatic 401K contributions, and personal savings which I invest a portion of.

[rusty@saving]

Re: If you suddenly became a millionaire....

i would live in a new trailer every year until the money was gone.

[poundwise]

Re: If you suddenly became a millionaire....


I would wake up and get back to work.

[Broken Arrow]

Re: If you suddenly became a millionaire....

i would live in a new trailer every year until the money was gone.

That's a very strange answer, sir.

[Thrifty Ray]

Re: If you suddenly became a millionaire....

Savingsadvice.com who? LOL

LOL!

Ok, with a million...

Sit down and make a serious plan that would include mulling over:

Paying off all debts- including mortgage.

Investing at least 1/2 for retirement.

Help each of the kids out.

fixing up the house...all of our flooring needs to be replaced, and the kitchen, bathrooms and laundry room are all in need of some sort of repair/update.

Donations.

Now if I suddenly received 2 million, Id be inclined to buy a new-to-me modest sized home on a river somewhere.

[Ima saver]

Re: If you suddenly became a millionaire....

I guess I would pay off my few debts and put the rest in different bank accounts earning 5%, then dollar cost average into some of my mutual funds each month. Might buy a piece of property or two.

[jodi]

Re: If you suddenly became a millionaire....

The first thing I would do would be to pay off our student loans ($22k and growing). Then I would pay off Dh's car ($1400) and buy a new car for myself (right now I have a piece of junk minivan). That would take a relatively miniscule amount from a mil...
After funding our Roths for the year, I would stick the rest into my savings account and take my sweet time figuring out where to invest it. Most of all, I would want no one to know anything had changed for us - especially our kids. I would rather them grow up knowing the value of a dollar and be totally surprised when they read our will At that point, I will know they could spend the money wisely and not blow it. Not to say we wouldn't take some money and have fun in our lives...but I rather enjoy my minimalist lifestyle. There's not much I can honestly say I want except financial security and the opportunity to travel with my family.

[Bookie]

Re: If you suddenly became a millionaire....

Probably I would do nothing for the first year. I've read too many horror stories about lottery winners who turn their live upside down only to regret it later on.

Honestly, I can't think of any large changes I'd want to make in my life at this point. My debts will be paid off by the end of the year. There's no reason to replace any of my possessions. I'm currently still disposing of excess from the past. There's nothing I really want to acquire. Very unimaginative I am.

I'd like to help out a couple of friends financially if I could do it anonymously.

It's too late in my life for a million to matter.