If you inherited a sheet load of money...

Discussion in 'Business, Careers & Education' started by Shoe City Thinker, Dec 23, 2010.

  1. Prada_Ferragamo

    Prada_Ferragamo Senior member

    Messages:
    6,552
    Likes Received:
    106
    Joined:
    Jul 7, 2008
    Location:
    The Loop
    I work at a company that is primarily controlled by one family. Several of our employees are members of the founding family and they individually own stock worth 9-10 figures. They show up every day and work their asses off (they are also pretty normal and live fairly pedestrian lives). It is pretty inspiring and has convinced me that a large inflow of cash probably would not cause me to change my life too significantly.

    The phrase is financially responsible.
     


  2. Valor

    Valor Senior member

    Messages:
    836
    Likes Received:
    0
    Joined:
    Mar 24, 2010
    Location:
    NYC
    Hookers and Blow.
     


  3. tonylumpkin

    tonylumpkin Senior member

    Messages:
    2,518
    Likes Received:
    88
    Joined:
    Mar 2, 2007
    Location:
    Pittsburgh
    I work at a company that is primarily controlled by one family. Several of our employees are members of the founding family and they individually own stock worth 9-10 figures. They show up every day and work their asses off (they are also pretty normal and live fairly pedestrian lives). It is pretty inspiring and has convinced me that a large inflow of cash probably would not cause me to change my life too significantly.
    The phrase is financially responsible.
    Much of this, I would think, is the result of always having had money. There is a massive difference between growing up with everything you need, and suddenly acquiring the means to have everything you've ever wanted.
     


  4. CouttsClient

    CouttsClient Senior member

    Messages:
    1,974
    Likes Received:
    54
    Joined:
    Sep 16, 2010
    Location:
    Los Angeles/ DC/ The Gulf Coast/ Airplane...
    I work at a company that is primarily controlled by one family. Several of our employees are members of the founding family and they individually own stock worth 9-10 figures. They show up every day and work their asses off (they are also pretty normal and live fairly pedestrian lives). It is pretty inspiring and has convinced me that a large inflow of cash probably would not cause me to change my life too significantly.
    Let us be clear. This is not cash. I have a situation that is similar although I sell down when possible and prudent... Having a large share of stock in a family run business doesn't = cash. I have several friends in a situation like that and they struggle to pay rent like so many others. I think about money often but not in terms of buying things with it. I don't usually buy anything that hasn't been carefully considered. I spend most of mine on travel because I like to do it in a particular fashion. If I was in the situation provided by the OP, my life wouldn't change at all.
     


  5. MrGoodBytes

    MrGoodBytes Senior member

    Messages:
    412
    Likes Received:
    3
    Joined:
    Nov 24, 2010
    Much of this, I would think, is the result always having had money. There is a massive difference in growing up with everything you need and suddenly acquiring the means to acquire everything you've ever wanted.

    agreed, I took a nice inheritance a few years ago. It was enough to pay off my immediate debt, put a nice down payment on a condo, rehab said condo... and experience a certain level of social lifestyle that was beyond my means. The problem is being able to ramp down that living when the bulk of the money is gone. I don't regret being somewhat careless with what I was given, but I didn't really gain anything out of it (at least not until the housing market turns around)
     


  6. sho'nuff

    sho'nuff grrrrrrrr!!

    Messages:
    22,225
    Likes Received:
    14
    Joined:
    Apr 15, 2006
    Location:
    Irvine
    lock it up in some assets that cant be liquidated and keep your azz workin like there is no money. that's what i do.
     


  7. P-K-L

    P-K-L Senior member

    Messages:
    1,082
    Likes Received:
    497
    Joined:
    Mar 6, 2008
    Location:
    77
    ... what would you do now that your net worth is more than what you made in salary in the past 4 years? Take a new career direction? Go on sabbatical?

    I would not change much for i.e. 300.000 Euro - buy some nice things but in general I would continue as before...
     


  8. Lane

    Lane Senior member

    Messages:
    4,996
    Likes Received:
    694
    Joined:
    Jul 27, 2010
    Location:
    dunno
    donate it to charity
     


  9. jenlain

    jenlain Senior member

    Messages:
    178
    Likes Received:
    8
    Joined:
    Oct 15, 2009
    Let us be clear. This is not cash. I have a situation that is similar although I sell down when possible and prudent...

    Having a large share of stock in a family run business doesn't = cash. I have several friends in a situation like that and they struggle to pay rent like so many others.

    I think about money often but not in terms of buying things with it. I don't usually buy anything that hasn't been carefully considered. I spend most of mine on travel because I like to do it in a particular fashion. If I was in the situation provided by the OP, my life wouldn't change at all.


    It is a publicly traded company and there are willing buyers for their stock. They could liquidate tomorrow. The point is not the mechanics, but the behavioral lesson.
     


  10. CouttsClient

    CouttsClient Senior member

    Messages:
    1,974
    Likes Received:
    54
    Joined:
    Sep 16, 2010
    Location:
    Los Angeles/ DC/ The Gulf Coast/ Airplane...
    It is a publicly traded company and there are willing buyers for their stock. They could liquidate tomorrow. The point is not the mechanics, but the behavioral lesson.

    [​IMG]
     


  11. Trompe le Monde

    Trompe le Monde Senior member

    Messages:
    2,004
    Likes Received:
    205
    Joined:
    Oct 30, 2009
    i dont have debt and i already travel a ton, so i would blow it on a fancy car [​IMG]
     


  12. random-adam

    random-adam Senior member

    Messages:
    1,173
    Likes Received:
    178
    Joined:
    Nov 14, 2008
    Location:
    20781
    We would own our house outright instead of being on payment 1 of 360 and the lender would be kinda cheesed off at being unable to collect more interest over the 45-day life of the 30-year loan.

    Such outlay would require, almost precisely, the entire value of 4x my annual salary + bonuses (not including my fiancee's pay). So... we'd proceed to live in a paid-for house at the age of 30. Not bad.

    Freed up monthly income would split evenly three ways: enhancing our standard of living, cranking up our contributions to a Vanguard 401k, and throwing money at whatever charities/causes we think are worthy.
     


  13. ama

    ama Senior member

    Messages:
    3,823
    Likes Received:
    52
    Joined:
    Jul 14, 2008
    Didn't we just have this threak?
     


  14. CouttsClient

    CouttsClient Senior member

    Messages:
    1,974
    Likes Received:
    54
    Joined:
    Sep 16, 2010
    Location:
    Los Angeles/ DC/ The Gulf Coast/ Airplane...
    Didn't we just have this threak?
    Seems like 2 per week...
     


  15. Dashaansafin

    Dashaansafin Senior member

    Messages:
    1,850
    Likes Received:
    12
    Joined:
    Oct 29, 2008
    Yea congrats. 4x your salary. So even if you are making 250k a year its still only 1m. And if you were making 250k I hope you aren't asking such as stupid question. Unless you are a 23 yr old who inherited upwards of 10m just pay off your debt and put the rest into an index fund.

    Dont take a vacation when you are 22. Unless you worked some hardcore hours throughout your life until now, your life has been pretty easy. Taking a long vacation now will screw up your resume and piss off your current employer.
     


Share This Page

Styleforum is proudly sponsored by