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Thursday, July 5, 2007

If I had $1,000,000: A poor man's guide to money



Well, maybe I should be Brian Wilson first, lying in bed. But really, what would an ordinary person (like me) do with $1,000,000 tax-free dollars?






  • $150,000 goes to the S&P 500 for a long-term investment. The stock market long-term is usually a 10-12% Return on Investment yearly. I think that's pretty good.

  • $150,000 in mid-term CDs.

  • $200,000 in some depressed Real Estate market that I figure can be turned around. I would look South or West in the United States. Move to my temporary home (looking for a good 'out time' always) but turning it into a modern home with state-of-the-art bells and whistles. Always conscious of the appearance, the neighborhood, etc.

  • $40,000 on furnishings in my newly acquired loft/ranch/whatever it happens to be, but make it a cross between a business style home and bachelor pad. Yes, this doesn't sell it, but I plan to live there for at least 2-3 years.

  • $100,000 to my immediate family. That should get them out of debt and buy some normal things. Over time, I don't expect them to spend it wisely, so another $50,000 will be available.

  • $30,000-50,000 on the most fuel efficient vehicle I can purchase on the market. Alternative fuels ready and gets 50-65 Highway MPG or more. Plenty of latest things, but I'm not into 15-in subwoofers or anything. Just good technology....

  • $20,000 on high-tech gadgetry. Blackberry, laptop, home system, high-end printer, productivity software I can't ferret from Download.com or other free/cheap areas of the Internet. I'd try to get a Consulting business started with a few techies I've met over the years. Since there are so many avenues for making money - and plenty of competition too - I'd have to sit down with 5-6 of these guys and figure it out. I can only do the low-end, low-margin stuff: writing business plans, resumes, sensitivity analysis, Pro forma statements, labor standards, some 2-D AutoCad designing and maybe some minor stuff. But a real business that is tied to the Internet explosion and produces a great product or service, that's where the money is. An additional $30,000 would be set aside for investment into technology initially.

  • $10,000 on a new clothing and accessories. Look, I haven't been clothes shopping since I don't know when, so this is small compared to the amount I see people waste on getting uncomfortable shoes and baggy crap that makes you look stupid.

  • $200,000 left. Charity is an option. More investment in certain stocks. More into a real business venture. But really, this is was my previously earned income currently for 3-4 years. (Now I make what your paperboy does...) So, this is for living day to day while I get my new company or ideas off the ground. Since I've wanted to be a writer, this may also go into getting a few books published and keep me from pissing it all away.

So that's it. Money doesn't quite go as far as it use to.



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