$6M Gross - What Do You Do
 

My friends (a married couple) just came into $6M. They had 50% of Jamie Gold. As they are in my immediate social circle and it's been a dominant topic of conversation, been on the brain - "optimal way to spend the $".

Let's assume you don't have a ton of savings, you live in LA (as does the aforementioned couple) and this is basically your capital base. What's the best way to go about this? Or rather, what would you do?

-Al

Re: $6M Gross - What Do You Do
 

The first thing I'd do is leave LA.

Re: $6M Gross - What Do You Do
 

New - yes that's the first thing I thought.

-Al

Re: $6M Gross - What Do You Do
 

Optimal meaning a financial sense? Allocating capital most efficienly or seeking the most utility?

Re: $6M Gross - What Do You Do
 

Unless they are completely tied to their jobs/social circle, I'd probably leave LA and buy a big house in a nice, cheaper community, and manage my investments for a living.

If they stay in LA, look to invest the large majority of it, and keep maybe 100K to spend on luxury items/vacations.

$6M would be enough for me to retire.

Re: $6M Gross - What Do You Do
 

Leave LA for someplace with a far lower cost of living, invest the lump and cruise off of interest. Is the $6M before or after taxes?

A modest return of 6% on $6M would be $360k/annum.

I.e., don't get funky, just invest and live fine off the juice for the rest of your life.

Re: $6M Gross - What Do You Do
 

[ QUOTE ]
Optimal meaning a financial sense? Allocating capital most efficienly or seeking the most utility?

[/ QUOTE ]

Maulik - optimal based on your definition of optimal.

-Al

Re: $6M Gross - What Do You Do
 

buy beachfront properties. live off of 1M for two or three years. sell beachfront properties.

Re: $6M Gross - What Do You Do
 

Sam:

[ QUOTE ]
$6M would be enough for me to retire.

[/ QUOTE ]

I was saying that wouldn't be the case for me, but I'm not sure maybe you're right. (I'm 30 years old.)

-Al

Re: $6M Gross - What Do You Do
 

[ QUOTE ]
Leave LA for someplace with a far lower cost of living, invest the lump and cruise off of interest. Is the $6M before or after taxes?

A modest return of 6% on $6M would be $360k/annum.

I.e., don't get funky, just invest and live fine off the juice for the rest of your life.

[/ QUOTE ]

Sounds perfect to me.

ScottieK