$6M Gross - What Do You Do

[Aloysius]

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

[New001]

The first thing I'd do is leave LA.

[Aloysius]

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

-Al

[Maulik]

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

[Aloysius]

[ 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

[Aloysius]

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

[Borodog]

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.

[ScottieK]

[ 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

[samjjones]

[ 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 ]

Exactly. $360K a year is more than enough for two people to live in a comfortable manner in a non-urban environment.

[Aloysius]

Because they're getting half of the 1st place WSOP ME, it's $6M Gross (as mentioned in the subject line). Let's assume they will not be taxed twice on this amount, though I'm not sure how it will actually work out with them.

-Al