Ok good, you have had a generous exit from your career — 8 million all cash!
First of all — Don't tell anyone. I really mean it. Do not tell a single soul. This is because you will have friends popping up out of nowhere — you never knew you had before.
This causes all kinds of problems and heartache. You start giving people money — and it’s never enough!
You help someone with money, they spend it and they come right back around for more. Someone comes to you in need, you help them and then someone else gets wind of it. Your house is robbed in the middle of the night, with you in it.
The other bad thing you will find out quickly; the old cliche — money doesn’t buy happiness. Yes, this is a thing. It’s really hard to be rich. So it helps to zip it and throw away the key.
Now, that part is done. The other important cliche is A fool and his money — soon parted! So then, let’s protect your money and cover What not to do:
- Don’t buy a Ferrari: I mean it. Whatever you spend on a fancy exotic car, you will spend twice again maintaining it.
No, this isn’t you. You don’t even have a garage to park this thing, much less maintain it.
This includes a Lamborghini. The girl is only there for temptation; she won’t stick around when all your money is gone. No. Stop!
- Don’t go to Vegas (Don’t Gamble):
You didn’t just win at life so you could lose it right back in Vegas. Don’t!
As nice as it looks, don’t! It’s easy to spend millions on a house on the West or East Coast. And did you know just the property taxes on a $4,000,000.00 home are $52,400 a year. It’s 1.31% of the value of your home — every year!
As a mentor, I advise not to spend one dollar of that new money. I advise to invest it properly and to only spend the fruits of the investments. So here’s what you can do:
1: So let’s drop one million into a good dividend stock: IEP, Icahn Enterprises: It pays about 12% dividend per year. That's $120,000 income on $1,000,000. Not Bad. I combed through 1,000 stocks to get you IEP so don’t feel like I’m just giving you a random stock.
I've been with IEP for 15 years and they always paid the nice dividend. The stock is a rollercoaster, but stay with the dips and peaks to eke out that dividend income. IEP is hard to beat.
2: Put down one million into an apartment rental: (3–4 units California/USA): It will take some looking but you can find a 4 Unit Apartment rental in Los Angeles California that makes a small profit in monthly rent. Expect to pay about $1,000,000 (one million).
Each rent can fetch about $1,750 a month plus. That’s $7,000.00 per month and $84,000 per year income. Put %10 management company fee and %10 costs for upkeep = 84,000* .80 = $67,200 a year income. I’m just going to round that down to $60,000 per year. You may have more costs. Take this deal.
Add the $120,000 income from your dividend stock and we are bringing in about $180,000 with #1 & #2 above, combined — per year. Can you handle that?
We just invested two million dollars; the rest is up to you. Notice, we didn’t actually spend any of that precious eight million; only spend what comes from the investments; never spend the original amount.
“Cut the fruit from the tree. Never cut the tree.” — Wiseman.
You will need to pay taxes. Don't complain. Keep humble with your new-found money and keep your investments private. Your financial future depends on it.
I’m also telling you a lot about what Not to do. Don't do anything risky. When the in-law comes to you with a wonderful investment idea — you will promptly respond with NO! This is not the shark tank — You are not a shark!
Also — you are not a bank! Do not think you can just loan out your new-found money; it’s unlikely to return. Your new big word is NO. Practice that. Practice that and practice keeping quiet. Don't flaunt your money; people will take it from you. Be smart. That’s my advice. Best of luck.
