What would you do if you received an 8 figure trust fund at age 25?
Assuming you are too young to early retire but also don't want to work for someone else and get treated like dogshit anymore. I'd like to do something entrepreneurial. How hard is it to start up your own hedge fund? I could seed it with my own money and hire a couple smart analysts but how do you grow? Why would someone invest their money with a genetic lottery winner?
If I received an 8 figure trust fund right now, I would use my new found free time to learn more about the various forums on WSO so that I post my topics in the right forum.
put money in index funds
sit back and watch
Pay off my parent's mortgage, set aside money for my brother's college tuition, and, as the user above posted, put the rest in index funds and let compounding interest go to work.
If he received an 8 figure trust fund I seriously doubt his parents are struggling with the mortgage or his sibling's tuition
short vix
Agree. Short the VIX at all costs.
Lol love the assumption that all people senior to you are automatically going to treat you like dogshit.
When you say "retire" are you really saying "not work"? That's what it sounds like but they are not the same thing. Retirement doesn't mean you have to go to the house and just watch TV while drool runs down your chin.
Were I to win that lottery, I would certainly quit my job and do something on my own, but it wouldn't just be lounging around letting my brain rot. I'd continue to "work" but it would be on things that interest me. I'd get myself some office space and a really nice executive assistant so I have somewhere to go most days and someone to help me do whatever I decide I want to do. Meet with some local leaders and do something philanthropic to make yourself feel good and get your name in front of people that make things happen where you live. The most rewarding type of investments are the ones you can make at the local level.
Regardless of if a hedge fund is easy/hard to start - if you are taking the attitude of "you dont want to work for someone else" then you should absolutely not start a fund of any kind where you are taking custody of other people's money.
Invest 50-70%, pay off remaining accounts, set aside a set amount for family planning, use the rest for business ventures I want to launch and focus on that, and, depending on just how big this 8 figure fund is, become an angel investor/vc . No lifestyle changes whatsoever.
If it was me I think I’d pick a social problem and attempt to make a positive dent in it (e.g. declining civic participation among millennials, treatment for a particularly nasty disease, rise of bias in journalism, whatever resonates).
With an 8 figure fund you have total freedom from having a profit motive and a lot of time on your hands, assuming your smart and motivated you could make a difference to humanity.
Alternatively, you might consider getting a relatively normal job that interests you and just being super chill about it—leave whenever you want, decline assignments that don’t interest you, etc. Afterall the job is unnecessary given your nest egg, so there is no worry about getting fired or career advancement.
I've always thought it would be super fun (if you had money like the OP is talking about) to go to my local university and offer to sponsor/fund sociology research that may not get the attention of the real scientists but is nevertheless intensely curious. Like get some legit credentials from the school and have them come up with some consistent questionnaires, etc. And THEN... when that one MF'er cuts you off in traffic or double parks in the parking garage you can follow them and calmly be like "Hi I'm a researcher [shows credential] and I'd like to ask you why you did what you just did. Don't worry, I'm not angry - it's for science. Here's $100 to tell me the truth."
Then later you can rage about it but at least you'd understand WHY people are such garbage sometimes.
PS: If the OP or anyone else would like to endow such a project, I will happily volunteer to commit myself to it full time.
already been covered here: https://www.wallstreetoasis.com/forums/what-to-do-if-you-win-the-lottery
if this is a curiosity exercise, fine. if this happened to you, PM me after you've read the above mentioned thread.
Develop Real Estate
Definitely depends on if I'm on the $10,000,000 side of 8 figures or the $99,999,999 side.
open a pizza shop, sweep all day and pretend to have a new York accent
I'd be king of the world, on a boat like Leo.
gonna ride a dolphin, doin flips n shit?
Definitely; the Dolphin would be splashin', getting everyone all wet... :)
Invest in various Vanguard index funds, buy a Ferrari and a penthouse, and bang hot chicks.
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