To live an unconventional life you have to do unconventional things, which leads to unconventional conversations.
Which is why I enjoy meeting fellow early retirees and aspirees so much. There is so much more to build on than with more traditional thinkers: “Early retirement? Oh my…. I just don’t know what I would do with myself all day.”
So recently I had coffee with a reader who was passing through Taipei while doing nontraditional things, and we had a traditional conversation. This included riffing on that stereotypical question: “What would you do if you had $10 million?”
What would you do if you had $10 million?
$10 million is a lot of moola. It could be used to purchase homes/cars/vacations, sustain a $400,000 annual budget for life, help hundreds or thousands pursue higher education, or some combination or derivation thereof.
I was asked a similar question by J on the Fire Drill Podcast: “What is your absolute wildest dream? Wild. Out there.”
Both questions are inspiring – what would you do if you had no restrictions in life, financial or otherwise?
So of course I fumbled both answers. “Uh… I really just don’t know what I would do with myself.”
I’ve been living my dream for the past 6+ years. Early retirement and world travel were goals we worked towards for years, and I guess we haven’t gotten bored with it yet. I feel like Jeff Bezos.
To challenge my creativity, I sat down to think through how I would force myself to spend $10 million (just like that classic film, Brewster’s Millions.) First on ourselves and then on the world.
Spending more than enough
Houses, cars, fine dining… we already have all of that (or don’t want it.) I’m very happy being renters for life and never driving around to find parking, and I’m not hungry enough to eat 4 meals per day.
Literally, I can’t think of anything that we would buy up front so we would just add $10 million to our investments. Using the 4% Rule as a guide, we could spend an additional $400k per year or $33k per month.
- Taxes – It is nigh impossible to pay zero tax on $400k per year. Assuming a 15% effective tax rate on dividends and capital gains, we would spend $60k/year or $5k/month on taxes. Remaining to spend: $340,000
- Business Class – we recently booked ~$7k of economy class round-the-world tickets (we paid ~$200.) The retail price for business class tickets was about $40k. Remaining to spend: $300,000
- Nanny – the going rate for a full-time live-in nanny in Taiwan is ~$12,000/year. We would need a bigger apartment, both in Taipei and as we travel. This might add $6k/year ($500/month) to our rent. We would also pay additional airfare of between $2,500 and $13,000 per year (would he/she travel business or coach?) This whole concept makes me feel a tad uncomfortable, but it is the price we pay for financial success… Remaining to spend: $275,000
- Dining – with 24/7 outsourced parenting available, we would probably have more solo dining experiences aka Date Night. No more 1-star Michelin Star restaurants for us, 3 Star all the way! Extra spend: $500/month. Remaining to spend: $269,000
- Laziness – Over the past 3 or 4 weeks I’ve been booking trains, buses, hotels, and Airbnbs for our upcoming European trip. Maybe I spent an hour or 2 per day figuring it all out, including how to get good value out of housing and transport. Instead I could just throw $ at it, which might cost $500 more per month. Remaining to spend: $263,000
I’m not making very good progress here. I feel a bit like Edward Norton’s character in The Italian Job… it seems I have no financial dreams of my own, and would have to borrow from others.
Perhaps we could embark on once in a lifetime trips – $50k for an epic Safari in Tanzania or $200,000 to be amongst the first to launch with Virgin Galactic.
Winnie said she would maybe get a personal fashion consultant/shopper to pick out her new wardrobe (I suggested she just do this anyway…)
Our new personal shoppers
I suppose we could also downgrade our life while increasing costs by moving to San Francisco or something..
Go Curry Cracker Foundation
It seems we could push our already absurdly luxurious lifestyle up to 11 by spending an extra $100k or so plus tax.
I would also gift some $ to family to help give an upwards boost and pay for upcoming education expenses for nieces and nephews.
That leaves a whole lotta room for charitable efforts. Done properly, this would also reduce our tax bill thereby allowing even greater contributions. Specifically, I would make a lump sum contribution to a donor advised fund, which would allow annual giving in perpetuity.
My first priority would be to open a Go Curry Cracker charitable hospital.
“Wait, what is the name of your hospital?” Hahahahahaha….
Because laughter is the best medicine.
If funds were still available, I would like to promote world unity and brotherhood through travel by assisting young people from low-income / non-culturally diverse communities to have positive experiences with people from other cultures. Perhaps it would be similar to Birthright Israel, but in reverse.
As a guiding principle, we can use the popular joke/meme:
A Muslim, a Jewish person, a Christian, and an atheist all walk into a coffee shop…. and they all talk, and laugh, and become good friends. It’s not a joke, it’s normal.
Summary
Life is good. There isn’t much that more $ would do to make it any better for us, but could certainly help others.
We currently are away from our home 4-5 months out of the year as it is with traveling the US, so we might just go homeless and travel 12 months out of the year, staying for a few months at a time in each location. Our daughter would have nothing to worry about financially, although we would like to see her continue working since she is young still. I would definitely do more charity work than I already do, probably setting up some charitable trusts to help in that regard. But like yourself, I don’t have a lot of wants that I would have a burning desire to purchase. Maybe that is due to my age, the fact that I have done a lot in life already, or just the fact that I have always tried to follow a frugal lifestyle. Would love to have the problem of an extra $10M nonetheless.
I can think of worse problems for sure.
Hands down #1 – open (or pay people to open while still being involved) an animal sanctuary. Probably mostly traditional farm animals, but most would be welcome. The operation and staffing costs would be quite high. Leftovers would be more travel than I already do (early retired at 46, 79 countries so far). Maybe I’d finally spring for that personal suite to Dubai? Definitely Seychelles and Maldives a lot sooner than currently planned. Enough for private jet flights for sure.
Your idea sounds great, Robin.
Last year, I read about someone who established a home for old and sick dogs to live out their remaining days in peace, love, and comfort. They would run free on acres of land, play with other dogs, sleep in cushy pet beds, and spend time with vets and volunteers who love animals. (It must have been one of those CNN Heroes stories…) That story had me weepy with appreciation for the good in the world. No need to stop with pets and other animals. More ideas to build a better world? Great use of money!
How much do flights on private jets cost? I really have no idea.
I’m with you. Almost nothing I would change. What I would do, however, is buy a decent-sized portfolio of properties in the American midwest. Large enough that it made sense to hire a full-time property manager. That would function as the bond portion of my portfolio. Then I”d just get back to living the Vida Loca!
Make more money is the answer I expected to see most. Why the midwest vs a high growth city or abroad?
I’ve already been on a handful of safaris, and I would definitely return to Masai Mara in Kenya and bring my whole family. It would be amazing. I would top off our index funds by $1 million, so we would be solidly FI. Then (after all that taxes jazz) I would spend the rest of the money on increasing people’s access to clean water and sanition.
How much does a safari cost? I would like to do it when Jr is a little older
Well, I’ve only done budget safaris while based in East Africa for a few months. 3 days in Masai Mara and fancy tents only cost me $250. But you’d probably not rough it like I did in college. I also went on a tent camping safari for five nights in Ngorongoro and Serenghtti for $600 all inclusive.
Two years ago I looked into going back and was quoted $3400 for seven days all inclusive for two adults in Kenya (pick up/drop off in Nairobi, Masai Mara, Lake Naivasha, and a biking safari in Hell’s Gate). We didn’t end up doing it and just did a one day safari closer to where we were volunteering in Tanzania.
I still have debt. So that would solve that. And I wouldn’t have to worry about college tuition for our son. I would also like to set up my parents and retire them both to a place they would be happiest. I would set up an annual family vacation for everyone somewhere fun and exotic (but probably a cruise to actually get them to go), and a super wonderful trip for all my girlfriends annually. Business class for all travel. Invest the rest and give a hefty percentage to the charitable organizations we already support, because they do an amazing job with the money. Then, I would continue to do what I do. I love my work~ and I love my home base in Central California. Oh! (I want a housekeeper once a week, too.)
I love this answer. Sounds like a great life.
Hmm… maybe sell our house and move to Hawaii?
The cost of living is quite high there, but with an extra $10mil around we could probably swing it.
I hear there are a few dozen homesites going for really keep right about now.
“really cheap right about now”
I would set up a foundation for charitable giving through Vanguard (min $25k) and only give what it earns, not the principle. I would hedge the giving by only giving to matching donations. I would seek matching donations to all the charities I thought worthy mainly to refugee children.
Sometimes it feels weird to answer the question of what I would do with more money, or if I could retire today. I’ve been asked those questions before and I usually stumble over an answer. Either that means I’m creatively challenged or it could mean I am happy with my life. As a poet, I’d like to hope it’s the latter. I would spend money on spending more time with family though, and fly them places so we could be together more often.
I stumble with these kind of questions in real time… for some reason writing it out helps the ideas flow.
I like the concentrated quality time with family that comes with travel – everybody is on vacation and more in the present.
Ha, Brewster’s Millions – classic 80’s!!
If I had $10 million I would probably just start a foundation of some sort and seek to do philanthropy with all of it. I have what I need now. I would perhaps travel more often but maybe not.
Richard Pryor was a true genius.
Hey, I’ll get started on the RB40 villa. It’ll be a rustic 10 acre on the Big Island of Hawaii. I’ll build little huts where friends and families could stay. There will be a central place where you can entertain, cook, eat, and chill. I guess kind of like a commune. Other than that, no big changes. We already have everything we want. We’d spend a little more on nicer stuff, but wouldn’t change our lifestyle completely.
Oh yeah, I almost forgot – a convertible and weekly massages.
Ala 10 things I’ll buy when I’m rich. https://retireby40.org/10-things-ill-buy-when-im-rich/
How about an RB40 Villa on Koh Samui or thereabouts?
That might work.
I’d buy my parents a house so they could retire without worrying about housing. I’d continue paying my ridiculously luxurious European base apartment while I travel abroad, instead of finding a new one every year when I return. I’d give up flying coach– seriously, I sleep (uncomfortably) anyhow, so it’s not like I have any uplifting experiences in coach. I’d have someone come in 2X a week to clean. Hmmm…I don’t know why I don’t do that now.
I can’t say I’d eat any better. The 3 star michelin restaurant here is a 25 minute walk. I prefer the 1 star michelin that’s a 5 minute walk :).
Oh, I know… once or twice a month I’d go for a long bike ride with friends along with a support vehicle bringing snacks, spare tubes, and spare clothing. We’d end up the ride some place awesome for food, and then we’d get driven back. (I’d fly over my friends that live in other continents if desired :-)).
Maybe higher a palanquin to bring you to the 3 star?
Please send my e-ticket for the next bike ride
Definitely get some cleaning help. We have somebody come once every 2 weeks and it is amazing.
I wrote a fatty fatFire post to this and that was my conclusion. There’s not much else to upgrade besides conveniences but it’s still a fun thought. I think everyone has help or nanny care on their list. Nannying sounds like a solid career to go into haha.
I feel the same as you. $10 million would be great, but I don’t really “need” much more and I’d rather spend that money towards helping others. Business vs. Economy is always a great choice if you can do it though.
It is definitely easier to sleep well in Biz, which is nice for those 12-16 hour flights. It’s pretty crazy to think of the hourly rate though…. $300-$500+ per hour to rent a chair, basically.
Travel by armchair, stop on a whim, sleep in own bed.
Man, no clue! I’d do my damnedest to not spoil my kids too much by investing it and leaving a nine figure inheritance!
First class or biz tickets or the occasional fractional jet rental would be in the budget. I’d raise my threshold from paying attention to a dollar or two to paying attention to $10 or $50 (as in I’d stop spending much time economizing for anything under $50 maybe??). In general I’d go higher class on pretty much anything and ignore the price tags a lot more. Instead of looking for the $100/nt airbnbs I’d be doubling or tripling that. I’d hire a house cleaner and a guy to mow the grass (or hire a guy that hires those people for me and manages all aspects of real estate maintenance).
At least I think I’d do all that. As it is, we’re only spending at a 2% withdrawal rate and that’s with constantly saying “yes” to all kinds of spending that we didn’t used to do. So maybe we wouldn’t change a thing and would keep on with our normal frugal lifestyle?? Either way I wouldn’t worry too much about the new money. If spending more money is the path we take then we’d enjoy it. If not, life is still pretty good :)
I appreciate Warren Buffett’s take on this – you want to leave enough to your kids so they can do anything, but not so much that they can do nothing.
I’ve looked a bit at these $200-$300/night Airbnbs… mostly it seems you just get a bigger place. I don’t need 4 bedrooms, so we just go with the $100/night places. We splurged a bit on our palatial place in Estonia in the heart of Old Town Tallinn this summer, paying $125/night vs $50-$75/night 5 minutes out…
Are you kidding! I have tons of things I’d spend $$ on
1. Set up an education foundation for teenaged girls from less privileged backgrounds – pay for college etc
2. Pay for a full time housekeeper – I am never doing laundry again, baby!
3. Give 1M to my parents
4. Fund a superpac – lobby for my ideological point of view
5. Only fly private – airport security? Pshhh!
And there – its all gone :)
Great job keeping the expectations in check!
Now this is more of a tongue-in-cheek comment, but you could easily crank up the dining costs even in Taipei! Even though none of this will break your budget, organic/health foods in Asia actually seems difficult to come by and expensive (walnuts, oatmeal, strawberries in Japan). In some ways we have it pretty good in the U.S.!
I have well over $10 million. I just leave it invested coz converting it from stock to cash would lose almost 40% to taxes.
I live in SF, $10 million does not seem like big money around here. A remodeled 3000 square foot home in a good school district around here could easily run $4+ million.
$10 million is not private jets territory. IMHO it’s not even hire-a-nanny or fly-first-class-always territory, unless you are still earning active income. I just live a simple life, except I can travel whenever and where-ever I want (but not however).
Now $50 million, that’s a different story… lol
This has a name: ‘http://www.museful.net/2011/quantitative-finance/utility-function-of-wealth‘
So we have really good friend that actually struggle with this problem. They have small children and want/need to live near family. Not sure if it’s a trust or what. They go above and beyond to act/be normal. They have “jobs” in a building they built specificity so all there little kids and dog could go with them each day. They have routines. We split the cost of pizza because that’s normal(and we are financially ok just not FI). They struggle with but are mostly successful finding happiness in being normal people(although ones that don’t really have obligations other then family). The difference for them is you would need to add another zero. They do have access to a jet and some pretty luxurious experiences. They do an amazing amount of charitable work.
I’d grow my beard longer, wear my grubby t-shirts, travel(low key so I could live like a local), not tell my wife and kids the $ amount but just say we’re fine and focus more on watching my kids grow. Then grandkids. I’ve experienced rich people and hedonistic adaptation at it’s finest. Rarely happy people. Then I’d have problems with what to do with the $$$ later.
After my wife and I pass we would leave it in a charitable trust for our kids to manage—hopefully they would be in there 40-50sthen.
Well, can you buy Fame? I’d hire a manager to make me famous. (S)he’d get me on all of the talk shows and buy likes & friends for me on social media. Then I’d go to all the Hollywood & New York events and do exciting, outragous, or crazy things to keep my fans tweeting & liking me. I’d sell them “stuff” with my name on it, so that they’d feel better about themselves while keeping me rich. I might even host my own talk show, when I just sit drinking coffee with other famous people and chat & laugh for the audience for an hour everyday.
Do you think I could buy fame for around $5 M and keep the other $5 M in VTSAX in case the fame thing isn’t profitable? I might not be as cool and exciting as I think I am… ;)
Wow – I almost feel guilty entertaining this idea…it’s practically incomprehensible…
Travel, start a charitable foundation (to be determined – probably focused on education, women’s issues, and/or contribute to cancer research). Help out my family (siblings and parents) – with debt and to be sure they are OK through retirement. Help the non-profit 12-step organization I’m involved in.
Continue to rent, perhaps in a city location – Boston/San Fran/London.
Ahhh….to dream!
Well that’s a good question. It sure is fun to think about! Mostly I think I would create an education fund for decedents, and fund a scholarship for low income kids who need a break. My street has become noisy (the CARS! ugh), so maybe move to somewhere a little quieter, but still within walking distance to town. Eat out more probably. Travel more, maybe. I would also buy a new car (a little one) because I hate the maintenance problems on older cars. I like the idea proposed above re the super pac, because I really am concerned that we create more environmental problems when we make the big bucks (did I mention the CARS?). Thanks for asking.
After reading your article, the really question that comes to my mind “what is amount of money that I require to take the risk to do what I really want to do?” The amount that would give me the security that I lack to take a leap of faith.
I would definitely put some of it in the crypto markets. The only point I have while doing is that do with money you don;t mind losing. So if I do get or have an extra million or more, Bitcoins is where I’m rushing to. Of course, after having a sumptuous meal because instant gratification is thang.
With $10million dollars, the first thing I would do is take my parents and my younger brother (23) and sister (25) to an around-the-world trip for a full year at least. I would retire my parents also.
After that, who knows? I’d re-evaluate then.
Perspective is everything. Oprah paid over $55,000,000 for her Montecito pad, which she then renovated (she since has bought the neighbor’s house as well), Bill Gate’s Washington home is worth $150,000,000. Heck, even a Ferrari 250GTO just recently sold for $64,000,000, so $10M is not going to do much of a dent.
I’d probably buy a slightly nicer house in my neighborhood ($2M to $27M around here), and the rest is barely enough to pay the bills.
Everyone wants to be financially secure any amount of money above this would be donated by any decent person