New To Investing Thread

[CNS]

Pronounced “Tweet, tweet, tweet”.

[Stupid Fitz]

 

[Stupid Fitz]

So what's your lottery strategy? Say like 300m. I feel like the main thing I would need is cash management and tax advice. I could maybe even cover cash management. Would I even really care that much about taxes with that much money? I guess most rich people do. The thought of paying people 1-3% or more annually of that much money and to not beat the market sounds awful, but you prob almost have to at that level.

[catastrophe]

I’d probably start with a trusts and estates attorney to deal with tax/security issues.

If I had $300m I’d put like $50 million into Vanguard or maybe even a robo investor and use just those gains & dividends for my daily expenses (general rule is it should reliably get you about $2 million/year in perpetuity).

The rest I’d split between a charitable trust to donate to crap, trusts for the kids, and probably the biggest bucket (maybe $100m-$150m) for potential big expenses or business ventures. I’d have someone help me with that last bucket but probably not the others outside of setting it up.

[Stupid Fitz]

I’d probably start with a trusts and estates attorney to deal with tax/security issues.

If I had $300m I’d put like $50 million into Vanguard or maybe even a robo investor and use just those gains & dividends for my daily expenses (general rule is it should reliably get you about $2 million/year in perpetuity).

The rest I’d split between a charitable trust to donate to crap, trusts for the kids, and probably the biggest bucket (maybe $100m-$150m) for potential big expenses or business ventures. I’d have someone help me with that last bucket but probably not the others outside of setting it up.

This is where I am. I left out the trust part because that would be obvious. I would def open up several accounts to split the investments. They would all be various index funds but at different brokers. I guess I would prob also buy treasuries direct. A big chunk would be charities and that would prob be my favorite thing. Deciding where the annual dividends or earnings on those accounts and delivering the check would be fun. I'd prob do that anonymous though, but the process would be fun.

[sys]

prolly the traditional 80% in land, 20% in cows.

[OB_Won]

100% NIL

[Spracne]

So what's your lottery strategy? Say like 300m. I feel like the main thing I would need is cash management and tax advice. I could maybe even cover cash management. Would I even really care that much about taxes with that much money? I guess most rich people do. The thought of paying people 1-3% or more annually of that much money and to not beat the market sounds awful, but you prob almost have to at that level.

I'd buy Twitter and turn it into a $44 billion company.

[star seed 7]

I would probably start paying for sex

[ben ji]

prolly the traditional 80% in land, 20% in cows.

There is one thing they aren't making more of....land.

[steve dave]

can't remember if we've discussed the changes to 529s or not but the new rule about being able to roll them into an IRA for your kid if they don't use it for school or approved school adjace stuff is pretty damn nice. other than I worry lil sd will get wise to it and be like "rough ridin' jackpot, I'm not going to college (does a burnout in his car)"

[Stupid Fitz]

can't remember if we've discussed the changes to 529s or not but the new rule about being able to roll them into an IRA for your kid if they don't use it for school or approved school adjace stuff is pretty damn nice. other than I worry lil sd will get wise to it and be like "rough ridin' jackpot, I'm not going to college (does a burnout in his car)"

Saw this. Great deal, but if Lil SF says eff it, no college, SF is moving to the beach.

[Kat Kid]

can't remember if we've discussed the changes to 529s or not but the new rule about being able to roll them into an IRA for your kid if they don't use it for school or approved school adjace stuff is pretty damn nice. other than I worry lil sd will get wise to it and be like "rough ridin' jackpot, I'm not going to college (does a burnout in his car)"

Literally will buy a challenger and burnout. I don’t think not telling him will be that hard.

[catastrophe]

can't remember if we've discussed the changes to 529s or not but the new rule about being able to roll them into an IRA for your kid if they don't use it for school or approved school adjace stuff is pretty damn nice. other than I worry lil sd will get wise to it and be like "rough ridin' jackpot, I'm not going to college (does a burnout in his car)"

Post the rule, COWARD

This sounds like a rule tailor-made for my daily struggle of wanting to take full advantage of compounding while being increasingly convinced my boy is not college material.

[catastrophe]

Rather than wait around I did my own research and it looks like there will be a lifetime limit of $35k, which is not the kind of retirement I had in mind.

Edit: Per the Journal of Accountancy.com:

*The lifetime maximum a 529 beneficiary can transfer under the rule is $35,000;
*The 529 account must have existed for at least 15 years;
*No contributions or earnings on contributions from the last five years can be transferred;
*The transfers are subject to annual Roth IRA contribution limits (but there is no upper income constraint).

How am I supposed to exploit a law like that? LAME

[Spracne]

Rather than wait around I did my own research and it looks like there will be a lifetime limit of $35k, which is not the kind of retirement I had in mind.

Edit: Per the Journal of Accountancy.com:

*The lifetime maximum a 529 beneficiary can transfer under the rule is $35,000;
*The 529 account must have existed for at least 15 years;
*No contributions or earnings on contributions from the last five years can be transferred;
*The transfers are subject to annual Roth IRA contribution limits (but there is no upper income constraint).

How am I supposed to exploit a law like that? LAME

Sounds like you made the mistake of not being born filthy rich. Couldn't be me!

[sys]

what's the rule on starting one of these 529s, finding out 18 years later that you don't have kid and then rolling it into your own ira?

[wetwillie]

The kid turned out to be not yours, or the kid never existed in the first place?

[sys]

i'm open to either.

[steve dave]

what's the rule on starting one of these 529s, finding out 18 years later that you don't have kid and then rolling it into your own ira?

I assume you can just handle it like the old columbia house music club bills and write "DECEASED" across the front of the invoice real big and send it back and be home free.

[wetwillie]

You can transfer the funds to another child's 529 tax free.  Just keep having a new kid every 17 years

[steve dave]

You can transfer the funds to another child's 529 tax free.  Just keep having a new kid every 17 years

"kid"

[catastrophe]

what's the rule on starting one of these 529s, finding out 18 years later that you don't have kid and then rolling it into your own ira?

1. The $35k lifetime limit

2. You are still limited in how much you can contribute to the IRA depending on how much you make annually. Get that pretend kid a pretend job and you’re probably ok.

[MakeItRain]

https://twitter.com/FortuneMagazine/status/1736312242562294260

[ben ji]

https://twitter.com/FortuneMagazine/status/1736312242562294260

Looks like those genX'ers should have watched less MTV and put more into retirement instead of spending all their money on Compact Discs.