# What would you do with $1 million?



## youngone (10 February 2011)

Fun Friday!

You dont want it to sit in the bank, and you would like to some some money aside into investments and shares, to generate passive income. 

what would you do if you have won $1 million sitting in the bank?


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## tech/a (10 February 2011)

*Re: Would would you do with $1 million?*

Or do with it?

Business
Property
Share portfolio

Both in and out of SMSuper.

Make it *WORK*


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## Liar's Poker (10 February 2011)

*Re: Would would you do with $1 million?*



youngone said:


> Fun Friday!




It's Thursday...


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## jimmyizgod (10 February 2011)

*Re: Would would you do with $1 million?*



Liar's Poker said:


> It's Thursday...




lol lay off the booze


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## mattryanshares (10 February 2011)

*Re: Would would you do with $1 million?*

If he's got a million just laying around wondering where to stick it!! He can call it anyday he wants!!


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## matty77 (10 February 2011)

*Re: Would would you do with $1 million?*

1. 250k shares
2. 250k house IP
3. 150k for daughter in trust
4. 50k holiday for me and family
5. 250k long term deposit

Anything left over gets wasted on stupid things like cars or whatever.



Now if it was at least 8 million I could afford to quit work, now that would be good. But a million would make life a bit easier in the short term!


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## Lantern (10 February 2011)

*Re: Would would you do with $1 million?*

Approaching the big 60, I think I would just go and live in Thailand. Would be no need to invest as it would see me out in fine fashion. Bank interest would be fine, and less to worry about.


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## Bill M (10 February 2011)

If I didn't have a house then I would

Buy a house 400k----live rent and mortgage free

Shares 300K----- dividend paying stocks around 5%

Fixed Interest Securities and cash 300K------ Hybrids, floating rate notes, Bonds and cash, generating around 7% income.

That would give me $700 a week for the rest of my life.


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## burglar (11 February 2011)

Buy a life membership at Stiletto


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## GumbyLearner (11 February 2011)

Hire Graham Richardson and/or Michael Kroger as a consultant


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## VSntchr (11 February 2011)

What would I do with $1 mil?
Two options:
a) buy a house for $500k and invest the other $500k in equities aiming for an average 15% pre tax return.

b) Use the money to relocate to somewhere in Europe, buy a cheap residence somewhere of my choice and use whats left over to invest and grow.


Option a more likely,  but option b preferred


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## Sir Osisofliver (11 February 2011)

Well there's this solid gold toilet seat I've had my eye on... I'm sure the missus won't mind. 

Cheers 
Sir O


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## tothemax6 (11 February 2011)

Probably put it in (more than one) bank. Then slowly siphon it into assets after ridiculous amounts of research (I have trouble investing non-trivial amounts of money).

Other than that, really don't know what I would buy with it.
Sports car would be useless to me. What, you get to drive it at *100kph!?*, awesome. Not a fan of boats either. 
Don't want to buy a house until I see better prices, preferably during a dip (perhaps when china has its real-estate correction).
Would probably get some guy to build an epic computer for me (and by computer standards, epic means 'it actually works well').

Would then probably go on a 6 month holiday to Japan. Yeah, I think that's one thing that might be worth the money.


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## Buckfont (11 February 2011)

Sir Osisofliver said:


> Well there's this solid gold toilet seat I've had my eye on... I'm sure the missus won't mind.
> 
> Cheers
> Sir O




Sir O,
I`m sure your missus would love such a throne, and if you want to allay future complaints may I suggest that you get the heated model, `AUHOT`


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## easylikesunday (11 February 2011)

150k on toys (cars, boat etc)
150k in shares (20k to my adviser 
500k on property (unit development or similar)
150k in a long term deposit (5 years @ 7% to cover me if it all comes crashing down)

&

30k on a trip to Amsterdam, Thailand and the USA.. for errr business ideas


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## nulla nulla (11 February 2011)

As in a win? Put it with the other millions. LOL


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## Tanaka (11 February 2011)

put it all on red! :nuts:


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## Julia (11 February 2011)

tothemax6 said:


> Probably put it in (more than one) bank. Then slowly siphon it into assets after ridiculous amounts of research (I have trouble investing non-trivial amounts of money).
> 
> Other than that, really don't know what I would buy with it.
> Sports car would be useless to me. What, you get to drive it at *100kph!?*, awesome. Not a fan of boats either.
> ...



Now this post points up the truth (imo) that once you have enough money, more is superfluous unless you have a particularly altruistic nature and want to give it away.





Buckfont said:


> Sir O,
> I`m sure your missus would love such a throne, and if you want to allay future complaints may I suggest that you get the heated model, `AUHOT`



And in the interests of marital harmony, a throne to that value should have some automatic sensor which lowers the lid after a male has used it.  No more whining about "why don't you put the seat down?"

Seriously, though, Sir O, would you agree with my comment above that, once you have enough money, more is pretty much meaningless?


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## Slipperz (11 February 2011)

burglar said:


> Buy a life membership at Stiletto




ROTFLMAO

Set up a master trading platform in the hot tub and conquer the worlds's financial markets trading as "the prune"
irate:


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## Blake Windermere (11 February 2011)

youngone said:


> Fun Friday!
> 
> You dont want it to sit in the bank, and you would like to some some money aside into investments and shares, to generate passive income.
> 
> what would you do if you have won $1 million sitting in the bank?




Buy another rub n tug joint


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## gooner (11 February 2011)

Spend $900k on champagne, cocaine and women. And waste the rest.........


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## trainspotter (13 February 2011)

gooner said:


> Spend $900k on champagne, cocaine and women. And waste the rest.........




Charlie Sheen eat your heart out ...... DITTO !


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## Market Depth (13 February 2011)

Not really allot of money these days. So a good start would be to make it turn into 10 million


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## grandia3 (13 February 2011)

bet it on the "0" on the roulette, pray, and get $35million


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## Sir Osisofliver (14 February 2011)

Julia said:


> Now this post points up the truth (imo) that once you have enough money, more is superfluous unless you have a particularly altruistic nature and want to give it away.
> 
> 
> 
> ...





Julia its a solid gold toilet seat - I'd need muscles like Arnie to lift it in the first place so it doesn't need an automatic sensor, I just have to aim well. 

Yeah Julia, as I've said before, money only matters when you don't have it. I tend to avoid the trappings of wealth.

Having a million fall into your lap with no effort expended to get that million would most likely mean for the majority of people that they do not respect it. They are much more likely to blow it because they haven't earnt it.

Example I can probably afford any car on the market (I might need to free up some cash if it's particularly expensive vehicle but still - I could do it).

I did buy a car recently (actually I bought two and upgraded the Missus' car as well coz buying in bulk has always worked well for me and when the car salesman realizes he might sell *two* cars instead of one you can screw them on the margins - especially around end of year runout sales. 

My cherished '92 Ford Festiva which ran on the smell of an oily rag was starting to cost more to resolve issues than the car was worth (In fact it was probably worth more when I filled the tank up).

So what did I buy?

I'm now the owner of a three door Toyota Yaris. Maybe when I retire I'll buy something expensive.

Cheers 
Sir O


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## tech/a (14 February 2011)

> Seriously, though, Sir O, would you agree with my comment above that, once you have enough money, more is pretty much meaningless?




As Sir O has answered I thought Id add.

Not meaningless but generally a consequence of whatever it is that you have in place to get you there in the first place (If you have earnt it and not WON it---which is the thread topic).

Truth is that generally it can be a lonely existance from the point of view that few friends can keep up with you.
We love travel and rarely get the opportunity of travelling with friends---which is enjoyable if your with people you know.

Often friends find it difficult to cope with other friends wealth---often "thinking" they need to compete---which isnt the case.
But have seen the girls all racing off to get the latest fashion because "Julia's" just been to Kuala Lumpa Shopping---if you get my gist.

I drive the same vehical as the rest of my staff and have friends who simply MUST have the Latest Merc or Audi---Mind you really do like the Audi---


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## Julia (14 February 2011)

Sir O and Tech, interesting comments about the cars.  You might recall that a few months ago I'd decided to buy a 'luxury' car.  Didn't need it but could afford it and just felt a bit self indulgent.  That sounds really precious I know, but after many years of being pretty frugal, and given I was driving a 1990 vehicle, I thought it was time to splash out.

So I did all the chasing around with Mercedes and BMW, hampered somewhat by there being no local dealership.

Some very good deals were being offered.

But when it came to the point I just couldn't rationalise spending $60K or so on a car which would do about 1000kms a year, essentially going shopping, and which would have the dog in the back shedding hair and drooling down the windows.

I still don't know whether my ultimate reluctance to spend the money means I'm just mean, or whether I'm just not into wasting money.  

I bought a 3 year old Holden Astra which contains the dog beautifully in the tail section and is reasonably pleasant to drive, entirely adequate for my purposes.

So, would I buy the luxury car if that unexpected million landed in the bank a/c?
Probably not because the decision wasn't about money.


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## KurwaJegoMac (14 February 2011)

Julia said:


> I still don't know whether my ultimate reluctance to spend the money means I'm just mean, or whether I'm just not into wasting money.




I think you pretty much answered your own question:



Julia said:


> But when it came to the point I just couldn't rationalise spending $60K or so on a car which would do about 1000kms a year, essentially going shopping, and which would have the dog in the back shedding hair and drooling down the windows.
> 
> I bought a 3 year old Holden Astra which contains the dog beautifully in the tail section and is reasonably pleasant to drive, entirely adequate for my purposes.




If the car is pleasant to drive and adequate for your purposes, what is the point of paying a premium?

I remember reading an article about the Stig one day (for those that don't know, the Stig is a professional driver who stars in the U.K. show Top Gear - It hasn't always been the same person, sometimes it's a rally driver or F1 driver and was once even Michael Schumacher for a few weeks)

Anyway, point of the story is that this professional race car driver owned a Honda Accord despite earning over $200K per year. He said pretty much the same thing as you did Julia - "why should I buy a more expensive car when this one is more than adequate for my needs and is pleasant to drive."

In the end I'd rather spend the premium on a nice holiday, some sort of new experience - even shout my family a trip. That'll bring a lot more joy and happiness to one's life than a prestige car.

At least in my opinion


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## waimate01 (15 February 2011)

I read somewhere that most rich people drive the sort of cars that poor people think only poor people drive. And some poor people borrow money to drive the sort of car that poor people think only rich people drive.

Many poor people are perplexed: "man, if I was that rich, I wouldn't drive a humble car like that. I'd buy myself a <highpricecar>".

What the 'poor' people miss is the causative relationship. It's exactly because the 'rich' people are happy to drive humble cars that they became 'rich'.

The choice of car is not a product of wealth-level; it's the other way around.


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## Knobby22 (15 February 2011)

I like Astra's, good choice. 
I personally drive a Ford Focus.
I know its a sensible choice but think what you can spend the money on - 12 months in  a tropical paradise in Fiji for instance - and still have money left over. 

I personally couldn't shell out for a Mercedes even if I had a spare mill. Just seems silly.

I have some young Asian workmates, they all drive old Mercs and BMWs. They tell me its their social scene and they wouldn't be caught dead driving Hyundai, Holden or even Fiat. 

My neighbour drives a huge family Honda and a brand new convertible Merc. Two cars! No kids and her husband has a car too. I think it is an attempt to be happy but it makes me feel sad for her.

It's just how it is.


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## GumbyLearner (15 February 2011)

Knobby22 said:


> I like Astra's, good choice.
> I personally drive a Ford Focus.
> I know its a sensible choice but think what you can spend the money on - 12 months in  a tropical paradise in Fiji for instance - and still have money left over.
> 
> ...




I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either. 

People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.


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## Julia (15 February 2011)

waimate01 said:


> I read somewhere that most rich people drive the sort of cars that poor people think only poor people drive. And some poor people borrow money to drive the sort of car that poor people think only rich people drive.
> 
> Many poor people are perplexed: "man, if I was that rich, I wouldn't drive a humble car like that. I'd buy myself a <highpricecar>".
> 
> ...



Interesting post.   Makes sense.


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## tech/a (15 February 2011)

GumbyLearner said:


> I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either.
> 
> People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.




So 
I guess when I fly long haul Business class is a waste??


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## jimmyizgod (15 February 2011)

i dont know, i know plenty of people who earn quite a bit of money and drive mercs, bmws, top of the line lexus suvs etc etc. as a person into cars myself (even though i dont own one - i have a work ute) i can see why they shell out for such expensive cars, and its usually luxury over performance/handling/cache.

most people buy them on leases as well, and once the 3 or 4 year lease is up, just get another one.

plus you also have to think if you get a new ford laser then sell it 4 years down the track you might get 10k for it, but if you get a new bmw m3 and sell it 4 years later you will still get 60-70k.

imo anyways...


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## KurwaJegoMac (15 February 2011)

GumbyLearner said:


> I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either.
> 
> People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.




If you have $1 mill in investments earning you say 10% a year - then buying an expensive motor vehicle worth 100K is just not worth it. But if you have $10 mill earning 10%, then buying a $100k car is hardly that expensive or 'unwise'. 

In the end it's all relative. There are certain things that one must buy and you remain poor if you buy stuff that is outside of your affordable range. Buy stuff within your means and you'll become wealthy eventually. Buy stuff well below your means and you'll accelerate your wealth faster, but compromise your standard of living. 

I would personally rather forego expensive cars and stuff at a premium for a few years to let that money work for me and make my life easier later on. Each to their own - just because someone buys something expensive does not straight away mean that they are under accumulators of wealth.


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## Julia (15 February 2011)

tech/a said:


> So
> I guess when I fly long haul Business class is a waste??



No, no, no!   I reckon it's absolutely worth the extra cost.   If you can afford the destination with hotels etc., you can afford the comfort of not being squashed between a couple of obese cretins that can make the trip a total nightmare.

But personal taste again.  We're all going to have different priorities.

I'd rather have fewer holidays but when I do then I want to fly business and stay in 5 star hotels.


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## Gringotts Bank (15 February 2011)

Some posters are assuming that having an expensive car is all about impressing others.

There's also the love of driving high performance cars at a decent speed.  I would buy an Aston Martin, five sets of tyres and a day's worth of track time at Philip Island and thrash the ####### out of it.


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## sinner (15 February 2011)

1 mil, easy.

Buy $500k worth of rural land near fresh water (either one really really awesome property or 5 untouched blocks). 

Buy $300k productive business in Sydney or Melbourne CBD. Bakery? Milkbar? Newsstand? Whatever.

Buy $100k worth of gold and various sovereign bonds (50/50).

Give $100k charity. I would be thinking for a donation of this size, giving to either an underfunded hospital or indigenous education.

Done.


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## ENP (15 February 2011)

If I had $1 million...

I'd give $50k each to my brother, sister and mum and dad. I'd invest it into buying my own home for roughly $300-400k and get flatmates in to pay me rent. 

Then I'd use the remaining $400-500k to invest in high quality shares that pay a dividend or in rental properties. I'd continue to work as I quite enjoy my job, 4 days a week instead of 5 and I'd start coaching a school sports team.

I'd take one overseas holiday a year. 

I'd keep my 1992 Nissan Bluebird, keep my crappy clothes and keep buying budget brands at the supermarket. 

Buying the latest gizmo doesn't do much for me. I'm 22 years old.


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## GumbyLearner (15 February 2011)

KurwaJegoMac said:


> If you have $1 mill in investments earning you say 10% a year - then buying an expensive motor vehicle worth 100K is just not worth it. But if you have $10 mill earning 10%, then buying a $100k car is hardly that expensive or 'unwise'.
> 
> In the end it's all relative. There are certain things that one must buy and you remain poor if you buy stuff that is outside of your affordable range. Buy stuff within your means and you'll become wealthy eventually. Buy stuff well below your means and you'll accelerate your wealth faster, but compromise your standard of living.
> 
> I would personally rather forego expensive cars and stuff at a premium for a few years to let that money work for me and make my life easier later on. Each to their own - just because someone buys something expensive does not straight away mean that they are under accumulators of wealth.




That's good advice. 

Do note that I did use the word generally when equating expensive car ownership with UAWS and PAWS. 

I think it really depends on occupation as well. If someone works in say real estate, they would probably buy an expensive car to take prospective buyers to the location of the sale. Also, a lot of the highly paid could probably spend $4000 on a suit. I certain wouldn't envy anybody grossing 250K a year with huge outgoings (eg. an expensive lifestyle, little savings, huge mortgage, brand new beamer etc...). 
On the other hand there are plenty of people who earn half that and dwarf such people when it comes to net worth. I know plenty of young professionally qualified people that could fit into either category. The smartest are the ones that aren't over-leveraged and working their guts out in a profession that requires them to 'keep up appearances'. 

A good book on topic that cuts through a lot of the myths/assumptions/bulldust about wealth is *The Millionaire Next Door: The Surprising Secrets of American's Wealthy*
By THOMAS J. STANLEY, Ph.D and WILLIAM D. DANKO, Ph.D

http://www.nytimes.com/books/first/s/stanley-millionaire.html


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## Knobby22 (15 February 2011)

tech/a said:


> So
> I guess when I fly long haul Business class is a waste??




No, just sensible. Business class is great!!
That's living as against owning. Completely different in my view.

I know people who spend all their money on things and don't even enjoy good holidays.


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## KurwaJegoMac (15 February 2011)

Median Household Income in Australia: $66,820
Less Tax: $53,224

Assuming you work from age 25 until age 65 (40 years)

$53,224 * 40 = $2,128,960 earned over your lifetime.

That's a lot of money and doesn't even account for investing. 

Putting away $10,000 every year for forty years at a very conservative 5% return (5% after tax) nets you $1,268,397.63. $10K is not a lot of money to put away every year.

Really makes you think...


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## nunthewiser (15 February 2011)

short BHP


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## Sir Osisofliver (15 February 2011)

tech/a said:


> So
> I guess when I fly long haul Business class is a waste??




No.  It's built into the travel policy.


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## nulla nulla (15 February 2011)

nunthewiser said:


> short BHP




Down to $36.00?


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## Agentm (15 February 2011)

nunthewiser said:


> short BHP




lol

and i was thinking about snorting it 

great reply..


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## nunthewiser (15 February 2011)

nulla nulla said:


> Down to $36.00?




nice low risk levels at current( low%loss on MY definative stoploss point) ....personally think worth a punt and thats where i have been putting a lapdance or 2 and will add

1st main target 39/41 area......

could be wrong and happy to walk away if i am.

but hey i been known to punt on cockroach racing whilst drunk so i wouldnt pay no heed to me


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## nunthewiser (15 February 2011)

Agentm said:


> lol
> 
> and i was thinking about snorting it
> 
> great reply..




snortin goes with the turf


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## ROE (15 February 2011)

What would I do with a million 

I chuck into the rest of the other millions I made along the way

live in uncle Average suburb standard three bedroom home.

drive well maintained old car and the 
freedom and enjoyment of never have to worry about job security and a pay 

cheque and that got to beat 

fast car and big home with up keep and all the head ache to go with it


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## nunthewiser (11 March 2011)

nunthewiser said:


> short BHP




and with using massive amounts of leverage my 1 million is now 647 million.....:

how you guys go?


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## nulla nulla (11 March 2011)

nunthewiser said:


> nice low risk levels at current( low%loss on MY definative stoploss point) ....personally think worth a punt and thats where i have been putting a lapdance or 2 and will add
> 
> 1st main target 39/41 area......
> 
> ...




Looks like your short is in the money. Well done, good call.


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## Reasons (19 March 2011)

KurwaJegoMac said:


> Median Household Income in Australia: $66,820
> Less Tax: $53,224
> 
> Assuming you work from age 25 until age 65 (40 years)
> ...




Hi KurwaJegoMac;611964

You are a person of my own heart and thinking. I have been slowly introducing this idea to my own kids for some time now they are old enough to better understand the concept.

There are about 174,000 millionaires in Australia, being defined by at least $US1m of recognised asset classes outside of the the family home and does not include crap like cars, jet skis and other depreciating consumer junk. That is only ~0.8% of our population.

I read the other day that 72% of the wealth of those over 60 is in their family home. As the median house price in Melb and Syd is about $600K, that shows how close the average person/couple is not to this category.

When you consider your calculation and the theoretical relative ease of many people in Australia achieving that status (and then some if there are 2 working) over a person's lifetime with good investing practices, it shows how few have the capacity to execute and hold to simple longterm finance plans.

But, we need company profits to go up and dividends to increase, so it is probably all for the best.


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## Wysiwyg (19 March 2011)

> Median Household Income in Australia: $66,820
> Less Tax: $53,224
> 
> Assuming you work from age 25 until age 65 (40 years)
> ...



Really makes me think if I lived in a cave eating Sui Min and painting murals on the walls in my time away from work I could accumulate significantly more.


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## Agentm (19 March 2011)

* What would you do with $1 million? 				*


should read

*what did you do with your your first million?*


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## Reasons (20 March 2011)

Agentm said:


> * What would you do with $1 million? 				*
> 
> 
> should read
> ...





That is rephrased really well - but too confronting for most people.

Considering they have possibly gone through the first million by their early 30's, the 2nd million by their mid 40's and the 3rd million by the time they are 60 even if they are on an average wage. More scarry if they have had 2 wage earners or been paid way above average pay scales.

I am sure there is a special plaque in everyone's honour on the wall of one of Gerry Harvey's money bins.


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## white_goodman (21 March 2011)

Two chics at the same time


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## prawn_86 (21 March 2011)

Right now, if i won $1m i would probably take long term leave (or quit if they wouldnt let me) from my job and go to South America and rent a nice apartment over there for a yr or so to just chill-out and then make further decisions after that


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## jtriganza (21 March 2011)

$500k into blue chips and use the margin to run a covered call strategy.


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## tigerboi (5 October 2012)

*Re: What should i do with about $850,000*

need some serious investment advice myself coming into $850,000 plus life time medical
expenses taken care of, i am confused as to what to do & what way to go.

buy a unit, start a business (risky?)put some into the market?

should i be conservative & maybe put it away & pay myself a annuity

every week.dunno what i should do but ive got til after xmas to decide

all ideas considered...thx in advance TIGERBOI...


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## So_Cynical (5 October 2012)

*Re: What should i do with about $850,000*



tigerboi said:


> need some serious investment advice myself coming into $850,000 plus life time medical
> expenses taken care of, i am confused as to what to do & what way to go.
> 
> all ideas considered...thx in advance TIGERBOI...




850K is a lot of money, surely enough to live on for the rest of your life if managed conservatively and with diversification..just spread across 20 stocks it should give a gross (tax free) yield of around 5% = 42+K 

Plenty if you already own your own home... probably not enough if you don't.

Depending on your circumstances and wants and desires...you can buy a very nice apartment in the Philippines for about 50K and have a full time, fully qualified medical helper for less than $60 a week.


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## tigerboi (5 October 2012)

i can buy the 2 bed unit im living in for $240,000 ish & put away say 1/2 which is

$400,000 & spend $200,000...i will give the pillypines a miss maybe for a hols?.

$850,000 is alot but its only $42,000 a year which is about 25% less than what

i was earning, so essentially i get 80% of my average wage for the next 20 years

so i have to invest it smart.

i think bricks & mortar is a solid investment.tb


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## Julia (5 October 2012)

tigerboi said:


> i
> 
> i think bricks & mortar is a solid investment.tb



Most people say that because it's what's most familiar to them.  When prices are in many places falling and there's little indication of that changing appreciably, and net yield from rents is not high enough to compensate for the lack of capital gain, I'd be doing the sums on that very carefully if I were you.

$850,000 is not enough to be careless with if you want to generate enough to live on for the rest of your life.
(I'm assuming you're still some distance from usual retirement age?)

All very well for SC to suggest it can generate a reasonable yield from stocks, but it sounds as though you're less than experienced in the market, tigerboi, so that generated income could well be quickly offset by loss of your capital.

I'd be spending your 'deciding time' very carefully looking into the options and *actually doing the "what it" calculations.*


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## matty77 (5 October 2012)

interesting question but really a lot depends on where you are with you life, from what you are saying it seems like you are far from retirement.

I had similar money coming out of an investment this year and have just rolled it all over for another 5 years, I am hoping in another 5 years it will be around 2 million and that time I will pull it out. So I was thinking about what I would do a fair bit if I decided to take it all out.

If that money was coming to me this is what I would do:

Put it all into a LTD for minimum of 6 months, this will give me time to think about what I want to do with it.

My suggestion would be to spread your investments:

Put 250k into your property
Put 250k into a long term deposit
Put 250k into Shares, long term
Spend 50+k - buy a new car to make yourself feel happy, waste it.

The worst thing you can do is going and waste it on crap, this might be the only time in your life that you have a chance to invest this size of money so you need to think carefully about it. 

I always say that when I invest for the future save now and spend later, when I retire all the money will get spent, I can only advise that you put it all away and spend as little as possible now. Once it has gone it has gone...

I have my long term strategy on investment, basically that money is "dead" to me until I retire, it doesnt exist and just builds up passively in the back ground.

This is a good time for you to put in some plans to generate passive income until your retirement, I would suggest doing that and NOT reducing your work or taking it easy - dont take the foot off the accelerator until you are ready to retire. 

I think that makes sense.


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## prawn_86 (5 October 2012)

Man i would love to have 850k to invest like Matty, although i understand TBs situation is a bit different

Personally i think with that amount of money you can't go wrong paying off your home and owning it debt free. I would then split the balance into a mix of shares, hybrids, term deposits and possibly some precious metals. In the current market no-one knows where we are going next so i am of the belief that diversification is of the best bet.

Alternatively you could keep the surplus funds until a golden investment comes along. Are you looking for income from the 850k, or will you have an alternative income?


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## young-gun (6 October 2012)

I'd buy 500k of silver and 300k of gold immediately, then an african safari..Ill think about the rest when we return


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## drillinto (6 October 2012)

I would give better prizes for the winners of Aussie Stock Forum's Stock Tipping Competition
***


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## DB008 (9 October 2012)

Fly to vegas. But all on black....pray....


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## lindsayf (10 October 2012)

Julia said:


> No, no, no!   I reckon it's absolutely worth the extra cost.   If you can afford the destination with hotels etc., you can afford the comfort of not being squashed between a couple of obese cretins that can make the trip a total nightmare.




Holy cow!  I'm never flying economy again if that's what happens!


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## tigerboi (13 October 2012)

i am only 47 in february & thanks for all the sound advice so i do like property but maybe later on say 5-10 years.

heres what ive been thinking i prefer to invest in an income producing asset so i can outlay $350,000 to start

my own business in the industry i know... transport...that $350,000 will return $2,160,000 in revenue first year,

with approx $648,000 mine less the $350,000 start up. also ive still got $500,000 to live on.

thats my thoughts use the money to go into business rather than tie up a large amount in a unit.

what do you guys think?is it a wise move or keep about half in a property which i like but maybe later on

as i do think property is expensive.

my company is TFL (TIGERBOI FREIGHTLINES) national logistics.


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## tigerboi (13 October 2012)

matty77 said:


> This is a good time for you to put in some plans to generate passive income until your retirement, I would suggest doing that and NOT reducing your work or taking it easy - dont take the foot off the accelerator until you are ready to retire.
> I think that makes sense.




matty i got injured at work & had to have surgery on my neck & i cant go back to work
so thats the reason i am getting a large payout.if i could i would put it in the bank & just go back to work.
essentially ive been retired from any physical activity such as truck driving/loading/unloading as 
i can only handle about 3 -5 kg strain on my neck.


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