What do you do with a lot of extra money?
- Thread starter GROUCHO MARX
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Real estate. Maybe I'd start my own trailer park. Friend of a friend lives in one and the landlord hands out speeding tickets, pretends its his own personal fiefdom. I think I'd like that. I'll name all the little streets after characters on "Dukes of hazzard." There will always be people who need affordable housing in good times and bad and I figure as RE goes this is as down-to-earth as it gets. I'd get some hilltop property too so I could run a wind farm, my satellite dishes could "see" both horizons, I could watch the sun rise and set, and I could whip out my binoculars and watch my trailer park on the flood plain below.
If I had scads of money I'd buy my employer and turn the place around, cut some dead wood, turn a profit, and flip the joint a few months later.
If I had scads of money I'd buy my employer and turn the place around, cut some dead wood, turn a profit, and flip the joint a few months later.
Originally Posted By: moribundman
Quote:
mori strikes again!
Someone projected an "m" into the clouds above the city.
I'm surprised my beam reached that far.
Quote:
mori strikes again!
Someone projected an "m" into the clouds above the city.
I'm surprised my beam reached that far.
I'd let it sit in a bank account and guard it jealously as I dine from the dollar menu.
Originally Posted By: Aldaris
I'd let it sit in a bank account and guard it jealously as I dine from the dollar menu.
Sounds good to me.
I'd let it sit in a bank account and guard it jealously as I dine from the dollar menu.
Sounds good to me.
I was thinking about that this morning (Why I don't know!)
If I won a lottery (and my odds of winning are only slightly lower compared to those who actually buy tickets) I'd take the lump sum, modestly buy a few things, such as pay off my home and buy a couple of cars, invest the rest, and live on a percentage of the yearly earnings, letting it grow.
I think that now I'd keep working, but until I'm really faced with this issue it's all a dream.
If I won a lottery (and my odds of winning are only slightly lower compared to those who actually buy tickets) I'd take the lump sum, modestly buy a few things, such as pay off my home and buy a couple of cars, invest the rest, and live on a percentage of the yearly earnings, letting it grow.
I think that now I'd keep working, but until I'm really faced with this issue it's all a dream.
I would buy alot of new carbon fiber and Ti bicycle goodies. Yessir, that's what I'd do with alot of extra money.
I believe the textbook answer is you spend most of it on wine and women, and the rest you spend foolishly.
Pay off debt, save up emergency fund, payoff/sell house, buy rv and tell family to kiss my rosey red *** and hit the road
Originally Posted By: GROUCHO MARX
What do you do with a lot of extra money? Does anyone here know?
Move west and start a business with Pablo.
What do you do with a lot of extra money? Does anyone here know?
Move west and start a business with Pablo.
Every extra dime I have goes into saving for my retirement. That's why I live cheap now.
Although relatives of mine that became wealthy from living cheap, still lived cheap...
Although relatives of mine that became wealthy from living cheap, still lived cheap...
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Although relatives of mine that became wealthy from living cheap, still lived cheap...
It's a lifestyle habit that's hard to break after a lifetime of practice. I guess if they find satisfaction in watching the numbers grow ..more power to them, but at some point you should probably ask yourself "what's the point?".
If I became FILTHY RICH ..after the family was buffered with irrevocable trusts that would only dispense 2 of the annual yield ..allowing them to grow for eternity, I'd probably attempt an experiment with a small community. I'd offer to establish like trusts for all current expenses ..under the irrevocable agreement that they can only use the revenue from the trust to fund community expenses. If they want to spend more, they have to add more money to the trust that the yield (which will never go down and will be perpetual) will produce the needed additions. This would be such a benevolent trap for them. They would be handed a free lunch ..and only have their own tinkering to blame for any increases in taxes. It would temper and confound the basic human condition and make it so exquisitely self destructive to be the person responsible for messing up the perfect environment for "easy living".
I've often pondered if many non-profit organizations had been setup this way in more bountiful times ..that they would not be so large and self consuming. For some reason things need to "grow". If they had merely established trusts, they would have never felt compelled to spend every dime that they got their hands on in expansion and would have NOT grown to such hungry institutions. You want to expand services? Build a bigger trust to fund it. You'll never go hungry.
Although relatives of mine that became wealthy from living cheap, still lived cheap...
It's a lifestyle habit that's hard to break after a lifetime of practice. I guess if they find satisfaction in watching the numbers grow ..more power to them, but at some point you should probably ask yourself "what's the point?".
If I became FILTHY RICH ..after the family was buffered with irrevocable trusts that would only dispense 2 of the annual yield ..allowing them to grow for eternity, I'd probably attempt an experiment with a small community. I'd offer to establish like trusts for all current expenses ..under the irrevocable agreement that they can only use the revenue from the trust to fund community expenses. If they want to spend more, they have to add more money to the trust that the yield (which will never go down and will be perpetual) will produce the needed additions. This would be such a benevolent trap for them. They would be handed a free lunch ..and only have their own tinkering to blame for any increases in taxes. It would temper and confound the basic human condition and make it so exquisitely self destructive to be the person responsible for messing up the perfect environment for "easy living".
I've often pondered if many non-profit organizations had been setup this way in more bountiful times ..that they would not be so large and self consuming. For some reason things need to "grow". If they had merely established trusts, they would have never felt compelled to spend every dime that they got their hands on in expansion and would have NOT grown to such hungry institutions. You want to expand services? Build a bigger trust to fund it. You'll never go hungry.
JG Wentworth will find a way to turn that trust into "cash now".
If a community has a benevolent trust pay for, say, all their public schools, they'll have taxes anyway that pay for sports stadiums and other junk. Or, even worse, outsiders will come in and pack the town council and hijack the treasury.
Look at Harvard's endowment, plenty of cash, but their tuition and accessibility is incredibly tough. Chicken and egg?
If a community has a benevolent trust pay for, say, all their public schools, they'll have taxes anyway that pay for sports stadiums and other junk. Or, even worse, outsiders will come in and pack the town council and hijack the treasury.
Look at Harvard's endowment, plenty of cash, but their tuition and accessibility is incredibly tough. Chicken and egg?
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Obviously the trusts weren't constructed properly. I'm sure that there are non-transferable and trusts that cannot be leaned against. I'm sure that there is some court tested irrevocable trust with terms and conditions that can tie the hands of spending. That is, in your example, if they wanted sport stadiums (we're talking a small community here), they would be forced, by agreeing to the terms of the trust, to augment the trust to the tune of yielding enough to fund the proposed projects cost.
Now sure there will be unexpected costs that will have to be made up on the spot ..stuff like fuel cost increases and whatnot, but it would require that making up that deficit in taxation will require it to be 1000% of the new expense PLUS paying the shortfall (like your escrow account with your mortgage)..and that would be deposited in the trust. Makes playing games with agendas and whatnot much more perilous for the shepherd.
Now sure there will be unexpected costs that will have to be made up on the spot ..stuff like fuel cost increases and whatnot, but it would require that making up that deficit in taxation will require it to be 1000% of the new expense PLUS paying the shortfall (like your escrow account with your mortgage)..and that would be deposited in the trust. Makes playing games with agendas and whatnot much more perilous for the shepherd.
Originally Posted By: Pablo
Originally Posted By: GROUCHO MARX
What do you do with a lot of extra money? Does anyone here know?
Move west and start a business with Pablo.
Yes Pablo, my ministry needs to broaden.
Originally Posted By: GROUCHO MARX
What do you do with a lot of extra money? Does anyone here know?
Move west and start a business with Pablo.
Yes Pablo, my ministry needs to broaden.
Bank it untill I would figure how /where to wisely invest it.
Originally Posted By: moribundman
What is "alot?" Seriously, it's not in the dictionary.
It is in mine but it is an old one or maybe a new one .
What is "alot?" Seriously, it's not in the dictionary.
It is in mine but it is an old one or maybe a new one .
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That's all right. Some heir to some Nigerian fortune is giving him $3.4M
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