Hypothetical--Receiving a windfall

[DLgal]

$2 million would probably be invested and we'd pull out 4% per year for 25 years, taking us to 64 years old. Hopefully, it would grow enough in those 25 years to provide income for another 25 years. We will have a military retirement in 2 years and $2M right now would allow my husband to fully retire at 41 years old and then we could just sit back and enjoy life.

 

[lovin'fl]

As my youngest are about to start college and we just moved and downsized our home and our bills....I would keep our house as is. I would not want to do much different at all. Just would be nice to be set for DH to retire at a nice comfortable age. But I wouldn't run out and spend lavishly. We are driving two older cars with 110k+ miles and twin DDs, who are about to go to college, do not have cars so maybe we'd make some changes there but nothing crazy. Maybe trade in the two old cars for two modest new Toyotas or Hondas...then in a year, when DDs can have a car on campus, we'd give them one and add another new one for ourselves. Would pay off DS's car too. Set aside enough for college costs and then invest rest. And when kids finish college we would maybe buy beach vacation condo. We are also DVC, currently, and would continue our two annual trips.

We play lotto often and I always tell DH I would rather win a $1-2 million prize than a big $200 million prize. I prefer a low key simple life....well, an American standard simple life which is lavish to other countries. I just don't want the problems and headaches that come with having a ridiculous amount of money. Nor do I appreciate fine things.

 

[MaryLovesPoohBear]

Two million dollars isn't enough to retire without already having a hefty retirement fund.

Exactly.

And if you already have quite a few years until retirement, that money would have to carry you for a longer period of time.

 

[hopemax]

I'd want to figure out a long-term plan regarding housing. We're in our starter house, but I want something I'm going to be happy with for 20+ years. For us, that's hard because we're not even sure if we want to stay where we are, or go back "home" to the state we both grew up in. "Home" is expensive, so a windfall would make it a possibility to end up in one of the nicer areas we would want to live in, instead of having to compromise. I also would want to set-up some sort of financial vehicle to fund vacations for the rest of our life.

 

[PollyannaMom]

A trip to Europe - me, DH, DS, and my brother and SIL (plus a gift toward their house fund)

College or money to start a business for DS (plus some put away to help with his future house)

I'm not sure what I'd do as far as our house goes. Depending on my mood, I'd either:
A) design my dream home
B) make some improvements here
C) move to Celebration

Whatever's left would probably just get added to our retirement fund.

 

[dotfurio]

1. Pay off all debt
2. fully fund college and cars for both girls
3. move out of this godforsaken town and take my mom, too
4. travel! Europe- maybe with a Disney cruise, Hawaii, Puerto Rico, China, visit all the Disneys (only ever been to DL)

 

[dgthree]

Pay off my mortgage and move closer to work (right now, I'm about 35 miles/1 hr each way), get a dog, fund retirement...

 

[Grumpy_Dad]

I would never assemble furniture again.

 

[scrhsa]

Pay off all debt. Get my girls in the college of their choice. Then buy 20 or so acres in South Carolina and build a compound for the family. Make our own little subdivision Then squirrel whatever I have left away.

 

[LYSE]

I would invest the vast majority of it right away and keep working and using the dividends to supplement my income....extremely rough estimate would put those dividends at around 60-80k a year if you invest with dividend income being your priority.

 

[aprilchem]

Two million dollars isn't enough to retire without already having a hefty retirement fund.

Two million is DH and my retirement fund goal. That amount will generate $100k a year in interest income only without touching the principle.

 

[wenrob]

Set aside some for the kids' college expenses.

Pay off our current house & sale it.

Build our dream house.

And, then, if there was enough left over - Buy a beach condo.

Why would you pay off the current house before selling it?

 

[kimblebee]

First thing would be buy a new car..heck, we could get two lol

Make sure my daughter is set for University and a few years after that.

Donate to a few charities.

Share a bit with my sister and brothers..I know my parents would decline any gifts- they have everything they need/want.

Buy a nice house.

Talk to an investment person to make the rest of the money work for me for a long time.

 

[mefordis]

Two million dollars isn't enough to retire without already having a hefty retirement fund.

2 million invested at 5%, wouldn't that give you 100k a year? If so, I think that would be plenty for most people to retire on, at least if they don't have kids to raise.

 

[DaisyJ]

2 million invested at 5%, wouldn't that give you 100k a year? If so, I think that would be plenty for most people to retire on, at least if they don't have kids to raise.

If they plan on staying healthy until they die, sure. Two million doesn't go as far as people seem to think it does.

 

[mefordis]

If they plan on staying healthy until they die, sure. Two million doesn't go as far as people seem to think it does.

ONe issue I can see is if you are in your 40's and quit your job, the social security payment in the future will drop significantly. I can also see the possibility of people getting into that principle even when they swear they won't.

 

[amberpi]

If they plan on staying healthy until they die, sure. Two million doesn't go as far as people seem to think it does.

As you mention though, if you've already got retirement funded and additional assets, low debt, that would put you over the edge for sure.

 

[LYSE]

Two million is enough for most people to retire on today ..given that they are at retirement age (and don't have too much debt)...it takes more money if your young and still building your life.

Of course, if your currently making 250k a year...retiring on 2 Million dollars sounds like the poor house.

 

[DaisyJ]

As you mention though, if you've already got retirement funded and additional assets, low debt, that would put you over the edge for sure.

Yes, if you already have retirement funded and additional assets, in addition to the hypothetical two million dollars, then you'll be fine.

 

[firefly_ris]

Pay off the mortgage and get back into real estate -- investments, flipping, renting, etc. Save the rest.