Ask HN: What would you do with $1M?
54 comments
Most likely I'd have to give half to the IRS, then could barely afford a condo not too far from the city and and a used electric car with the rest. Or, since that seems barely worth it I'd seek out a financial advisor to invest it for me, then continue to rent and maintain my old car with slightly less worry about my future.
No tax burden. Assuming your balance is $1M free and clear.
1M isn't the F-you money it was back when Barenaked Ladies wrote the song. I'm curious if anyone who had 1B would actually do something to better the world rather than private jets, drugs and other of the deadly sins...
Stocks most likely, I kind of wish I knew how to start a business.
Here's my crazy idea that there's 0% chance of me starting.
General Aviation plane. It will look an awful lot like a B2 bomber. Rooftop solar panels on the top surface, this baby is parking outside.
2 EDF sourced out of the automotive crate engine options. Chevy bolt supplychain probably? Aiming for 400-600kw combined.
2 battery packs and speed control. You have a lever which picks 1 or the other battery pack. Solar charges the one not being used by the motors.
Everything is redundant. Who doesn't want to own this already?
But it would be a more advanced GA plane, retracting gear, twin engine, etc. Most likely a 02 bottle system and not pressurized. Probably limiting it to below 18,000feet.
The purpose? Not only will the bomber be able to manage the weight of 2 car battery packs, it also carries food to remote places. Food scarcity in the far north of Canada for example is it's purpose. It would have hundreds of km range, it can get high no problem.
The key problem would be runway, it likely requires a rather massive runway. especially when it has ~20,000lbs of food in its bomb bay.
Here's my crazy idea that there's 0% chance of me starting.
General Aviation plane. It will look an awful lot like a B2 bomber. Rooftop solar panels on the top surface, this baby is parking outside.
2 EDF sourced out of the automotive crate engine options. Chevy bolt supplychain probably? Aiming for 400-600kw combined.
2 battery packs and speed control. You have a lever which picks 1 or the other battery pack. Solar charges the one not being used by the motors.
Everything is redundant. Who doesn't want to own this already?
But it would be a more advanced GA plane, retracting gear, twin engine, etc. Most likely a 02 bottle system and not pressurized. Probably limiting it to below 18,000feet.
The purpose? Not only will the bomber be able to manage the weight of 2 car battery packs, it also carries food to remote places. Food scarcity in the far north of Canada for example is it's purpose. It would have hundreds of km range, it can get high no problem.
The key problem would be runway, it likely requires a rather massive runway. especially when it has ~20,000lbs of food in its bomb bay.
> I kind of wish I knew how to start a business.
No need to wish. Starting a business is a learnable skill, and you can learn it from any of a huge number of resources. It isn't even that complex.
It's just a whole lot more work than you probably expect, even if you expect it to be a lot of work. But you get all the rewards of it, rather than being underpaid as an employee (all employees are underpaid in the sense that they have to generate more money for the business than they cost, or hiring doesn't pencil out.)
"Build your own dreams, or someone else will pay you to build theirs."
No need to wish. Starting a business is a learnable skill, and you can learn it from any of a huge number of resources. It isn't even that complex.
It's just a whole lot more work than you probably expect, even if you expect it to be a lot of work. But you get all the rewards of it, rather than being underpaid as an employee (all employees are underpaid in the sense that they have to generate more money for the business than they cost, or hiring doesn't pencil out.)
"Build your own dreams, or someone else will pay you to build theirs."
I’d invest it into a mutual fund and retire. My cost of living is pretty low so I could keep my withdrawal rate below the normal appreciation.
From there I would spend my days working out and working on open source projects.
From there I would spend my days working out and working on open source projects.
I would hire some students, mentor them, and we would build all of the open source projects that I want to build (that I'm already slowly working on/planning out on my own).
Guess i would invest most of it stock index investing would be enough. Then i would do some travelling. I may not give up on my job right away even tho in my country the 4% from the 1M would be enough.
Stocks are the smart option, but I'd heavily consider a 5% Treasury for the $50,000/year guaranteed.
5% treasuries mean you lose money to inflation. It’s $50k/yr today but in many years it isn’t worth that. Broad market stocks are much more reliable if you want income forever.
You "lose money to inflation" no matter what asset you hold or what return you get. If you mean the real interest rate is negative, the CPI inflation rate is currently 3.4% in the US.
I don’t mean the actual interest rate is negative. I mean that if you intend to pull $50k/yr from it inflation adjusted, you won’t be able to keep up with a 5% return. You would need 8% returns per year to keep up with a $50k/yr drawdown, assuming a 3% inflation rate.
The other option is you pull a fixed 50k/yr, but then your purchasing power decreases dramatically over time. In 10 years at 3% inflation per year you would need 67k/yr to have the same purchasing power as today.
The other option is you pull a fixed 50k/yr, but then your purchasing power decreases dramatically over time. In 10 years at 3% inflation per year you would need 67k/yr to have the same purchasing power as today.
You'd only want to do that if you give up your job/income and need all of the income from the capital, right?
There are alternatives of varying risks that pay more frequently.
There was a fire here recently that burned a thousand homes. I’d see if I could buy some land and start making a subdivision of modest 2bedroom homes. I might be able to get the land, infrastructure and first home done for 1m, then hopefully sales would support filling in the rest.
The housing crisis is largely a supply problem. Fix supply and you start to alleviate the problem. The good news is that along the way you have a cash-flow positive business.
The housing crisis is largely a supply problem. Fix supply and you start to alleviate the problem. The good news is that along the way you have a cash-flow positive business.
With $1 million, I would first ensure that my family's financial future is secure by paying off any outstanding debts and investing in their well-being. After that, I would set aside a portion of the money for personal savings and investments to generate passive income. Finally, I would invest in my own personal growth by pursuing educational and entrepreneurial opportunities that I'm passionate about.
Well I'd build another experimental laboratory like I had before so many disasters struck.
If you're careful you can get a lot more done than people who have spent 10x the money or even $100 million sometimes.
I never really wanted less than 10x the progress I could get in an academic or industrial institution, and for that it really helps to build it your own way.
Even though I made more than a million using my own technology, there was no windfall, I never had that much in the bank at one time to work with.
So it's really just the same thing I would have done when I still had the first lab I owned, if I would have managed to accumulate a million, which is build me another lab.
Actually I was already setting up a second location for a lot less than a million, where it would also be able to do enough invoiceable work to pay its way too, but it turned out to be too late, the final disaster came too soon.
Had the equipment standing by, and the infrastructure at the more disaster-resistant location over halfway ready for deployment too.
That's all ancient history, now I might be more likely to get a million worth of equipment onto benches and start turning them into money-making machines, without having any cash outlay at all.
After that if I had a million in cash I would put deployment on steroids and do the exponential growth thing (within limits) like normal but from a much more advanced starting point, and at a scale that can return funds to the bank faster than they can be drained by disaster.
For me a million cash would be critical mass toward financial growth, primarily for people other than myself who need a leg up.
I wouldn't let it stop me, I'll probably go forward with a million less than that even if there are more survival activities involved.
If you're careful you can get a lot more done than people who have spent 10x the money or even $100 million sometimes.
I never really wanted less than 10x the progress I could get in an academic or industrial institution, and for that it really helps to build it your own way.
Even though I made more than a million using my own technology, there was no windfall, I never had that much in the bank at one time to work with.
So it's really just the same thing I would have done when I still had the first lab I owned, if I would have managed to accumulate a million, which is build me another lab.
Actually I was already setting up a second location for a lot less than a million, where it would also be able to do enough invoiceable work to pay its way too, but it turned out to be too late, the final disaster came too soon.
Had the equipment standing by, and the infrastructure at the more disaster-resistant location over halfway ready for deployment too.
That's all ancient history, now I might be more likely to get a million worth of equipment onto benches and start turning them into money-making machines, without having any cash outlay at all.
After that if I had a million in cash I would put deployment on steroids and do the exponential growth thing (within limits) like normal but from a much more advanced starting point, and at a scale that can return funds to the bank faster than they can be drained by disaster.
For me a million cash would be critical mass toward financial growth, primarily for people other than myself who need a leg up.
I wouldn't let it stop me, I'll probably go forward with a million less than that even if there are more survival activities involved.
Income investments, into safe, medium, and high-yield risky thirds. Avoid big purchases.
Then work on projects of my own and others, and put profits into the funds above.
This was the Dominguez/Robin strategy in "Your Money or Your Life" which I learned about after a PBS special many years ago. The return to higher interest rates makes the strategy feasible again:
https://news.ycombinator.com/item?id=12299024
(I'd still invest in stocks if I came across a sure thing, however somehow I missed the NVDA rocket right under my nose. So can't count on those.)
Then work on projects of my own and others, and put profits into the funds above.
This was the Dominguez/Robin strategy in "Your Money or Your Life" which I learned about after a PBS special many years ago. The return to higher interest rates makes the strategy feasible again:
https://news.ycombinator.com/item?id=12299024
(I'd still invest in stocks if I came across a sure thing, however somehow I missed the NVDA rocket right under my nose. So can't count on those.)
Personally, I would buy a business that does about 250k-300K in yearly profits. A business I can run with a small team as needed. Now I am generating a 25-30% yearly return (yes, I am working on the business too and not totally passive but there are businesses like these you can spend may be 15-20 hours a week).
What kind of business? Sounds like you'd be spending the entire $1M on it?
Yea. I usually pay 2.5x-4x of profit multiple and mostly for small software businesses.
Would you really be willing to spend 100% of your money on one business?
I do run multiple businesses already. But I have learned that below a certain number or revenue/profits, it is not worth my time. So I would buy something that has a minimum threshold of revenue/profits and if that means I can only buy one for now, I will.
I have ~$1.5M after ~10yrs in software w/ ~5yrs being in big tech. Live in the US.
Almost all is in S&P500 index. It doesn't feel much different than when I had ~$100k in the bank. It is nice to have some safety net and know I can weather most any storm and get back on my feet. I took a few months off a few years ago. I did an expensive masters for fun. Otherwise no big changes.
It isn't enough money to stop working or buy anything crazy. And you realize that no matter how much you have, the instinctual fear of not having enough is still there. Still stuck in the corporate world and no clear way out. You just keep working and seeing the numbers go up slowly.
It is like that famous quote:
“When most people say they want to be a millionaire, what they might actually mean is “I’d like to spend a million dollars.” And that is literally the opposite of being a millionaire.”
Almost all is in S&P500 index. It doesn't feel much different than when I had ~$100k in the bank. It is nice to have some safety net and know I can weather most any storm and get back on my feet. I took a few months off a few years ago. I did an expensive masters for fun. Otherwise no big changes.
It isn't enough money to stop working or buy anything crazy. And you realize that no matter how much you have, the instinctual fear of not having enough is still there. Still stuck in the corporate world and no clear way out. You just keep working and seeing the numbers go up slowly.
It is like that famous quote:
“When most people say they want to be a millionaire, what they might actually mean is “I’d like to spend a million dollars.” And that is literally the opposite of being a millionaire.”
Oh right. I guess I took it to mean “what would you do if you woke up tomorrow with an extra million”
And my point was that I'd just put it in an index fund with the existing million and it wouldn't feel like much changed.
I'd start my next software business today rather than in a couple of years.
500k in safe indexes. 200k for stock picking. 200k for well-considered bets/gambles. 100k emergency in a 5% HYSA.
Unless you're a certified misanthrope, you won't need 'fuck-you' money for life. Why are you saying 'fuck-you' to so many people to begin with ? Most people only need enough 'fuck you' money, to say fuck you to those who exploit them under threat of retaliation. You don't need that much money to do that.
I'm assuming you're a decent person. Then yeah, at $200k gambling money, you can start living like you have fuck you money, and your relationships are likelier to improve than degrade. You won't have ulterior motives, you will have time for those you love and a stress-free person is more pleasant to be around. Sometimes you're your own gamble. So, set aside part of the $200k to take a break or start a startup. A fresh mind is a productive mind. Having bootstrap funding allows you to protect more equity in future funding rounds. The possibilities are endless !
Yes, one day, your fuck you money may run out. But the world doesn't end. You can always re-enter the work force. If anything, this time you'll have better relationships, fewer regrets and anwered what-ifs.
Fuck you money can be seen 2 ways. It's either the ability to find time to pursure what you want, now freed from the rat race. Or, it is the ability to do nothing, now that the rat race expects nothing off you. The former will pays off in dividends, either monetarily or spiritually. The latter leads to lethargy, cognitive decline and an early demise.
_________
edit: I think someone with kids is unlikely to ask this kind of question. So my response is phrased towards someone without such responsibilities.
Unless you're a certified misanthrope, you won't need 'fuck-you' money for life. Why are you saying 'fuck-you' to so many people to begin with ? Most people only need enough 'fuck you' money, to say fuck you to those who exploit them under threat of retaliation. You don't need that much money to do that.
I'm assuming you're a decent person. Then yeah, at $200k gambling money, you can start living like you have fuck you money, and your relationships are likelier to improve than degrade. You won't have ulterior motives, you will have time for those you love and a stress-free person is more pleasant to be around. Sometimes you're your own gamble. So, set aside part of the $200k to take a break or start a startup. A fresh mind is a productive mind. Having bootstrap funding allows you to protect more equity in future funding rounds. The possibilities are endless !
Yes, one day, your fuck you money may run out. But the world doesn't end. You can always re-enter the work force. If anything, this time you'll have better relationships, fewer regrets and anwered what-ifs.
Fuck you money can be seen 2 ways. It's either the ability to find time to pursure what you want, now freed from the rat race. Or, it is the ability to do nothing, now that the rat race expects nothing off you. The former will pays off in dividends, either monetarily or spiritually. The latter leads to lethargy, cognitive decline and an early demise.
_________
edit: I think someone with kids is unlikely to ask this kind of question. So my response is phrased towards someone without such responsibilities.
I would make food shelters and start a school, a dream of mine.
Buy a house to get out of this crumbling building (15-30k).
Equip it with solar and a nice home office (maybe 10k tops).
Buy house nearby for parents.
Find struggling friends and help them.
Donate to some FOSS projects.
Equip it with solar and a nice home office (maybe 10k tops).
Buy house nearby for parents.
Find struggling friends and help them.
Donate to some FOSS projects.
Where can you buy a house for 30k? :O
(I don't want to assume it from your username)
(I don't want to assume it from your username)
Yeah, you can assume :)
Buy a house, the rest into "vanilla" ETFs.
Pay off my mortgage, do a masters, have a nice holiday. Probably not the most financially sensible thing, but its what I would like to do.
Pay off everything I owe on everything I own. Take the remaining $400k and take 4 very fun years off from work.
Hire 3d artist and make my dream game. Try to make it last 5 years with me doing all the coding and designing.
fund a startup to forever change the way people buy cheese graters
https://www.theonion.com/bankrupt-dot-com-proud-to-have-brie...
https://www.theonion.com/bankrupt-dot-com-proud-to-have-brie...
If you put $1M into a globally diversified stock market index fund then you can withdraw 3%-4% for the rest of your life. That’s an annual salary of $30,000 - $40,000. Alternatively you could leave it invested and let it double every 10 years. In 40 years it’ll be 16 Million.
Read about the financial independence movement and boggleheads.
What I said is simplified, but it captures the big picture.
If you’ve just received this 1M suddenly then the best thing to do is to put it in a normal bank account for a year and not touch it. This is because money is very psychological, you need to get used to having 1M before you can safely invest/spend it. If you start trying to spend or invest this money immediately then you’ll be broke within a year.
Read about the financial independence movement and boggleheads.
What I said is simplified, but it captures the big picture.
If you’ve just received this 1M suddenly then the best thing to do is to put it in a normal bank account for a year and not touch it. This is because money is very psychological, you need to get used to having 1M before you can safely invest/spend it. If you start trying to spend or invest this money immediately then you’ll be broke within a year.
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I never had an answer. I guess that's why I'm working at Initech.
Start field trials of my Carbon dioxide Removal Startup RIGHT AWAY.
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Pay off my mortgage and get a small pool house.
A substancial amount would go to charity. Then i would invest most of it in futureproof investments, the rest would stay in my account for unexpected costs.
100% into TQQQ
Throw away the login, come back in 15 years!
Throw away the login, come back in 15 years!
Buy a house. Invest the rest.
Dump it into Boeing, Nvidia and $SPY.
[deleted]
finish my damn house
Invest it? Stocks? Index funds? Startups?
Start a business? Buy a business? What kind?
Splurge on something? Pay off debt?