posted on Jun, 29 2006 @ 09:32 AM
Well, I really hate to say this, but a million bucks is not a lot of money where I live (all of use live actually). Certainly not enough to quit
working, maybe enough to start a business.
Here is what I would do:
#1 Sell my condo and buy a decent home, maybe $400,000 ish (that’s a basic middle class home in my area). Now my house is 100% equity and I don’t
have to pay all that interest.
#2 Put $100,000 into a 401K of some sort (worth millions by the time I retire)
#3 Put $100,000 into my kids college fund. He is just 2.5, so that will compound nicely.
#4 Pay off all me and my wife’s debt, maybe $10,000-12,000
#5 Buy some “toys” $200,000 ish. Couple cars, a nice 25’ Boston Whaler, home theater, nice stuff for my family, etc.
#6 Bank the remaining $190,000 or so.
What this does: Saves me about $3000 per month in mortgage and savings, so now my paychecks are more valuable even though they didn’t increase.
Also: $600,000 of what I spent is still mine, just in the form of a home and some savings plans.
Yup, that’s what I would do.