Poll: What Would You Do If You Had a Million Dollars

Couldn’t pick just one box

Actually, the first thing I would do is see a psychologist. Winning a large amount of money does funny things to one’s head, and leads to impulsive and reckless decisions. A family in our area did this when they won the lottery, and they’ve been managing their money intelligently for more than a decade now. (No impulsive decisions or bad investments!)

I would buy a rental property (a suite of apartments or a physio or a dental clinic) which has no or low maintenance fess and hand it off to a property management company. I myself would keep working because it is what I like.

I’d definitely create a well diversified investment portfolio with it, though it’s not quite enough to securely retire on for me at this point. Given the time horizon I’m already looking at for retirement, it would definitely speed things up a bit for me. In retirement, I’d definitely do some self-funded missions work that I just don’t have a lot of time for now.

1) 10% to tithing ($100,000)
2) Pay taxes on it (??? probably a lot ???)
3) Pay off the student loans, mortgage and car ($123,323)
4) Buy a minivan ($18,000)
5) Finish the basement, install new windows, and other home repairs ($10,000)
6) Put the rest in a retirement account and savings

I would buy you a green dress (but not a real green dress, that’s cruel.)

Following Diasdiem, I’d buy you a monkey.

1) pay off my home and student loans
2) pay off my husband’s student loans
3) buy a second property for investment
4) figuring at that point i’m at about the half-way point, send 10% to my favorite charity
5) that’ll leave about $400,000, so i’ll invest $100,000
6) remaining $300,000 goes to small, paid off houses for my parents and brother (both live in low cost of living areas)

First thing I’d do is pay off my mortgage. Then I’d set aside enough money cover one year’s worth of expenses. Next I’d put enough for a new car in the new car fund. I don’t plan on buying a new car for another year or two, so I don’t need to spend it right away.

After that, I’m not entirely sure what I’d do. I would consider offering to pay off my mom’s mortgage, but I don’t know if she’d accept the offer. I also don’t know how much she owes With her being close to retirement I’d feel better knowing she didn’t have a mortgage payment. I would also invest some money in an appropriate account I could use to care for her when her health declines.

I would also want to make some improvements around the condo – painting the walls something other than eggshell white, for example. And maybe buying some furniture.

Next on my list would be something fun – going to Australia and New Zealand. It’s one of those trips where I always think, “Someday,” but there’s always something else more important to save for.

And, finally, I would sign up for a course. It’s last on my last not because it’s isn’t important, but of all the things I listed it’s the least expensive.

That’s what my expenses would be. After all that, whatever is left over I’d invest for retirement. Further, depending on how much was left over (my guess is still a good amount), I would look into setting up a scholarship fund. I received financial aid and I’d like to pay that forward. I currently do to a small extent by donating to my alma mater, but creating a scholarship fund would make a larger and more immediate impact.

But I wouldn’t be doing all of this at once. The only thing I’d do right away is pay off my mortgage. I’d probably want to wait a bit just to get used to having all that cash. Beth is right when she says that getting a sudden, large windfall can mess with your head. So I’d want to take some time to consider my options. I would write down the goals I just listed, put them away, and revisit them from time to time. Maybe I’d wait a few months to a year. One thing I do worry about is how family members and friends will react. I wouldn’t broadcast my windfall, but word is bound to get out among my closest relatives and friends. I know money can do weird things to people, and bring out the worst, so I worry that I may see a side of my family and friends I’d rather not see.

1 – Tithe 10%
2 – Buy a newer car (not new, just newer)
3 – Being 20 years old, stick some in stocks (Berkshire class B, maybe)
4 – Stick the rest in a tiered CD ladder that would allow me to place it into my IRA at the maximum amount each year

I would pay off all my debt (mortgage, student loans, credit cards) – about $150,000
I would set up an interest bearing account for my daughter’s college fund – or contribute to it, anyway. She’s only 2, so there’s not much in there right now. about $200,000
I would do some home improvements (hot tub, anyone?) $25,000
Share a little with my family and friends $100,000
I would buy a new car $40,000
Take a big ole vacation to Europe – $10,000
Invest the rest. $325,000

Pay cash for a new (not crazy priced, which can be easy on Long Island) home. Pay off all student loans. The remaining amount would be invested half in a diversified portfolio the other half in dividend stocks.

I’d pay off our mortage, pay off my car loan, buy hubby a new car, and invest the rest (retirement, college, and “just because” funds). I might try to set up a small trust for my mother or give some of it to my college.

25k – Finish building my emergency fund
100k – 2009 Maserati GranTurismo S
100k – CD ladder for IRAs for 30 years (stole that from Zach, I like it)
250k – living expenses to allow me to easily max out my 401(k) for the next 40 years
150k – buy a condo (currently renting an apartment)
250k – save for family (when my parents get old, sister wants a house, has a kid, etc)
remainder – invest

I chose invest, but keep working, because I already have a small business. But I would change how I work, and where I focus my energies. I wouldn’t use it as an excuse to quit; rather as a security blanket. I don’t think I will ever truly “retire.” I think I will always work in some capacity.

First, I would take a much deserved vacation. Then when I get back I would talk to a financial consultant who will be able to help my invest my money properly. All the while, I’d still be going to work and school. Also, that million dollars would go towards college.

I am a college senior, about to start working in the financial services industry, at a small-shop structured finance firm. While the $1,000,000 could provide for a well-planned retirement, I would still start working, as I have all of my working years a head of me. I’d likely save a large chunk of it spend it on some big purchases likely to occur in my near future (down payment on a house, white goods, etc.), invest the vast majority of it, and really get a chance to diversify y investments, and hold on to the rest for “walking around” money. I wouldn’t have to worry about beer money for a while, I would assume.

I could also use that invested seed money for starting a business down the line, once I have some worthwhile experience and the know-how to try such a thing.

Ben

Ben

Pay off debts, invest the rest.

I chose Other…

1] Take a percentage and divide it between people I support overseas, my church, and Kiva/Heifer/etc.

2] Pay off everything (credit cards and student loans) $50k

3] Start adding to my Retirement Account, open a Roth IRA, etc.

4] Create some sort of fund for each of my nieces and nephews. (for when they come of age, not necessarily a college fund)

5] Down payment on a house. (if not buy outright)

6] High interest savings for emergency purposes.

7] Buy a car.

8] Depending on what’s left over invest it and/or spread it around to friends currently under-employed.

Definitely would keep working.

1. Pay off student loans (wife) and mortgages (our house and wife’s old house)
2. Create CD ladder emergency funds that mature every 6 months and contain amount to cover 6 months of expenses
3. Share with family and church
4. Invest and add previous debt payments to savings

Why is this always such a fun question to answer?! This is exactly what I’d do:

1. Tithe: $100,000.
2. Pay off mortgage balance and student loans: $85,000.
4. Save for baby’s college fund: $50,000.
5. Pay for someone else to finish all those annoying home projects plaguing us: $20,000.
6. Buy two 2-year-old cars: $30,000.
7. Pay off both our parents’ mortgages: $200,000.
8. Go on a fancy vacation to GREECE! (*Sigh*): $5,000.
9. Invest half of what’s left: $250,000.
10. Go crazy giving money away anonymously! Quit my job and spend my time volunteering overseas.

(At this point I can’t imagine wanting anything else out of life, ever.)

I would keep 50K in cash. I would increase my umbrella coverage to 5million.

I would invest the bulk in a large apartment building with 20% down. The rest would go into a strip mall purchase, but that would require more like 30-40% down. This would only be for diversification.

Best of luck.

@Anon : That is almost exactly what I was going to write!
1) 10% to tithing ($100,000)
2) Pay taxes on it (??? probably a lot ???)
3) Pay off the student loans, mortgage and car ($123,323)
4) Buy a minivan ($18,000)
5) Finish the basement, install new windows, and other home repairs ($10,000)
6) Put the rest in a retirement account and savings

#6 would be put the money in some investments that would allow me to do the following one day:

Build a YMCA type Recreational Center for our small rural town

Set up a fund for the local High School Band that would allow so much every year for helping with things like buying new instruments & equipment…my kids love band and they always need money!

Have a good college fund ready for my 3 kids just in case it is needed…if not it would be great for them to have in the bank to get started in life with.

These are my goals anyway…just in case I never wake up to find a million has magically appeared…I am going to work on them little by little, as best as I can…hard work and good smarts can take you far!

1) pay off my debts
2) pay off any debts for mom, dad and brother
3) invest $500,000 in diversified portfolio and retirement options
4) take a year’s sabbatical to travel, study, etc.
5) Get another degree in a field that interests me, then go to work in that field.
6) split the rest between charities, gifts and whatever else caught my whim

I’d be boring.

1) Pay off the house (only debt)
2) Invest the rest in a low cost index fund
3) Continue to pay my mortgage, but put it in the account w/the balance of the 1 mil
4) When I had accumulated enough so that I could live off of 3% of the balance w/out touching the principal, I’d quit my job, put the money into a bond fund, and start training for the Race Across America

I’d pay off my mortgage and invest the balance in a core set of ETFs and hopefully have enough to retire from my current job in 10 years to focus on something else.

What I would do with 1 million dollars isn’t anything exciting. The very first thing I would do is pay off all our debt so that we could finally breath. Then I would help my children, invest some and finally travel to visit friends and family I haven’t seen in forever.

First thing first, 10% off the top to tithing.

Then I’d give my sister-in-law some cash to raise their kids (they’re not wealthy but because of decisions I really respect like her staying home to raise the kids, etc). Let’s say that’s $25k.

I’d pay off all my debts, but I don’t have any, so $0k.

Next, I’d take a nice long vacation, so I feel like I’ve enjoyed the money.

Then I’d invest everything else ($850k) pretty conservatively. Every year I would use the profits to:
1. Add to the principle in order to keep up with inflation.
2. Tithe on the earnings.
3. Max out Roths so future earnings can be tax free.
4. The rest wouldn’t be enough to live on by any means ($20k) but it would be enough for me to take a lower paying job that I like more or allows me to travel more.

I would adopt lots of children, because we are having trouble having them and really would like a family and adoption is expensive.

1. Pay off my student loans
2. Pay off my remaining credit card debts
3. Fund a college trust fund for my son and 2 nieces
4. Buy a home
5. $250k to open small business in my home town
(No bank/financing required!)
6. Invest the rest, so I can live off a supplemental income while the small business gets going.

OK, so I would totally retire early. I’ve held down steady jobs since I was 13. I put myself through college and grad school with zero financial help from my parents or other family members. I did my time in corporate America. And now I have my own business.

If I had a million dollars, I would retire early, enjoy life, and still be involved in projects that my friends and contemporaries are doing without the worry of bills, where my next meal is coming from, or if this purchase is going to deduct from some other financial need. Life is too short for those kinds of decisions.

I’d pay off my own and my boyfriend’s debts (about $250K), set aside enough money for a six-month emergency fund and a new car (though I don’t need one yet, saw that suggestion above and thought it was great!), set some aside for my sister and dad as annuities, and invest the rest in a diversified portfolio.

Ooh, and set aside money for a wedding (nothing huge, but something nice).

I would invest it (some CDs/bonds, some stock market) and keep working until I felt comfortable that I could live off the interest/dividends.

I’ll try to keep this short and sweet and hard to beat:

Invest, keep working.
Donate to charity (deduct what I can later on).
Share a reasonable amount with family.
Return to school.
Plan to retire earlier than anticipated.

Funny, a co-worker and I were just discussing this earlier today.

I would pay off the mortgages on my rental property and my primary home. I would then get rid of all of my student loan debt. With the remaining $600,000, I would make several donations to charities ($75,000) and invest the rest in mutual funds, CD’s and cash savings.

I would pay off my daughter’s student loan, invest the rest and work doing some sort of humanitarian service internationally.

1) Pay off my remaining student loans. ($25k)
2) Pay off the mortgage for my parents’ house. With that out of the way, dad could retire and do well on what he has available now. ($150k)
3) Restore my old car, 1971 Dodge Coronet ($50k)
4) Buy a few bicycles and another velomobile for my dad and I. ($25k)
5) Share a good chunk with extended family. ($200k)
6) Figure out the details on a good way to safely invest and be able to pull some of the interest, allowing me to choose a job that I like, not one that I need for a paycheck. ($500k)
7) Fritter away the rest to friends and fun stuff. ($50k)

Aren’t these types of questions fun to answer?

I would start by paying off my student loans and mortgage. Then I would start a business. But, I would never go into debt again!!

They named the bean “tlilxochitl”, or “black flower”, after the mature bean, which shrivels and turns black shortly after it is picked.

First I would pay off my mortgage (popular idea).
Taking a longer holiday, I would go with some friends to the world soccer championships (off course watching all important games) and having a great time. Okay, Winter Olympics in Vancouver for a week or so, as well.
I put the rest in a secure investment.

After all, still staying at the present job.

First I would pay off our mortgage. Then I would contribute to my kids education. I would then invest the rest and wait for it to be big enough to retire early.

I would pay off my charge card and put the rest toward retiring from teaching

Would continue to work… for now. But would certainly look forward to a MUCH earlier retirement

I would buy a farm in the mountains and become as off-grid and self sustainable as possible

The funny thing about a million is that while it’s a life-changing amount of money for most of us, it gets whittled down pretty quickly once you start to divy it up. It’s not enough to retire on, at least not for me. And I don’t have any appreciable debt to pay off. But I could fully fund retirement savings for the kids I don’t yet have and accelerate a lot of things.

First things first, tithe: $100K
Fund 529 plans for two kids: $200K
Home Improvements $50K
Just absolutely blow some*: $50K
Save the rest: $600K

*Yes, blow it. Just go nuts. Maybe I get the golfers in the family together at Pebble Beach to play a round. Maybe I bring a few of my favorite bands in to play a private concert. Maybe a second honeymoon to Bora Bora. Only two rules for blowing some of the money:
– Once the budgeted amount is gone, it’s gone. You don’t get to spend it twice.
– No guilt – you were responsible with the other 95%, so live a little.

@Matt – I like your idea of blowing some of it, just to blow it. I think I might do that too now that I think about it. I’d probably get a really sweet bike (as in bicycle, not motorcycle). There’s one that I read a review for that sounded really nice…but it was $17k! If I had money to blow, I’d probably get one of those to just have, and then maybe a few others (different styles) that are cheaper for myself and my wife…maybe 40K on bikes and 10K on a vacation

1. Buy a comfortable, inexpensive home for cash, and save a similar amount for future repairs and expansion. Total: $300,000.
2. Put away money for kid’s college education. Total: $200,000.
3. Buy dividend-paying investments to generate passive income. Total: $500,000.

These are always fun! As others said, I would def. divide it up into most of those areas.

100k to Charity, 100k to two friends and one family member who are awesome and wouldn’t spend it on hookers and blow, 100k to pay off the house and debt, and split the 500k between a savings account and investment account. Then I’d use the savings as necessary to grow the business.

Pay off the bills and travel the world.

So much to do, so little money.

First, I would pay off all debt (student loans, etc) probably 15%.

Second, I would set up a trust fund with 25% for my kids (to be received at at 28).

Third, I would invest 50% of it.

Fourth, I would take the last 10% and travel to all the places I have dreamed about – London, Paris, China and Africa.

I would pay off my credit card debt, put a down payment on a house, donate to charities that are important to me, and then give some to my Dad. I used to have a pact with a friend of mine that if one of us won a lot of money, we’d pay off the other’s debts. Thankfully I’m not friends with her anymore, because she’d come out way better on that deal than I would!

I chose the “Share it with friends and family”. If I won/had a million dollars, I would first settle all of my personal debt. Then, I would help clear the debt of my family and closest friends. While doing this, I would ensure that I had enough money left over to invest in the best way possible. This would be to ensure that I can continue to live debt free and help the others in my life do the same.

I picked “Invest it and keep working”, but I would probably work part time and try to start a business. Knowing that I don’t need to save as much money with some sitting there, I could take more of a risk and hopefully not have to work at a job again.

I’d share some with family and friends then invest the rest and retire and live modestly with the rest and travel around.

Pay off mortgage and invest. I can’t imagine I would be any less frugal than I am now, even with $1 mil in the bank.

First, pay off hubby’s old tax debt. Then max out our retirement accounts and pay off the house. Fix up the house & car & yard; take a couple of trips; try and come up with awesome gifts for family members that they wouldn’t get themselves. I would not quit my job or buy a new house or car or anything. I might not even pay off my ridiculously cheap student loan, though I probably would.

I chose other. I’d pay off all our debts immediately, give some to my parents to help them out, splurge on a trip (we never get vacations) and invest the rest for ourselves and our children.

Interesting question, and a fun game to play as well.

1) Immediately eliminate all debt, including mortgage and car loan (approx. $230,000)
2) Fully fund my “Emergency” Account ($30,000) to top it off at $50,000
3) Fund 529 plans for my 2 children ($75,000 apiece). We’re currently contributing about $5,000 p.a.
4) Repairs/upgrades to our home (i.e. updated kitchen and bathrooms = $50,000)
5) Fund savings accounts for my 2 children for private school (the public schools in our area are decent but on the decline = $65,000 apiece)
6) Invest in my “on the side” business ($25,000)
7) The remainder would be invested in some select equities and index funds.

This seems kind of boring and I’m sure a nice vacation would be thrown in for the family, but we really don’t need much.

Have to pay off the rest of our debt, very little when compared to this sum of money. Then invest the rest, mostly for retirement and interest. See what happens when the kiddo needs some money for school, years to go!

1) Take out 40% for taxes (you know they’ll come get you!)
2) pay off our mortgage
3) fully fund our daughter’s college fund
4) Invest the rest.

1) Take out 40% and save it for tax time
2) Pay off our mortgage
3) Secure our 2 daughters’ college fund.
4) Invest the rest.

pay off debts for myself and family, invest the rest!

Just had a baby, and I suspect that by the time he gets to college, that’s what it’ll take for him to go.

I voted for “Invest it, but keep working,” but that’s only part of the story.

First, I’d stop looking for another money job and work at writing. My current novel is a little over half done, and I’m enjoying being able to work on it every day without the mental fatigue that would come from a money job.

Second, I’d take a portion of it and pay off the remainder of our mortgage (in the low $100K range). Then I’d set up automatic transfers of our monthly mortgage amount into the same investments as the remainder of the million to rebuild it.

Once the million was rebuilt, I’d start looking at charitable organizations to give the bulk of our mortgage amount to each month.

Long and convoluted plan, but there it is.

First on the list would be making somewhat-aggressive investments with roughly $500K. I have a couple years before coming out of college, so there’s quite a while before I retire!

My next purchase would be an old house — Victorian fixer-upper, preferably. This probably wouldn’t be the best fiscal itself decision, but I love old houses, decorating and remodeling work.

Additionally, I’d try to use the house as a personal investment, providing a meeting place with clients and somewhere to host others to network and socialize. If all goes to plan on the remodeling front, too, I would hopefully be able to do some design consulting on the side! (Dream job, nothing to do with my degree in Finance, haha.)

I’d look to buy a condo close to where I work.
Not sure it’d be enough, housing still expensive
here in silicon valley.

save the family farm and live there …leave it to my grand childern ( the money and the farm)

First, I’d head on a LONG cruise so I could reflect and think about it. Then, I would put about $750,000 aside to live off of and buy a house with the $250,000.