It really depends, some would retire for life with that money. Others would use it to become more rich. But from my point of view I don't think you should quit your job immediately but rather work until you know what you want to do.

Also congratulations!

 
Best Response

if this is a troll, I'm going to be sorry for answering seriously.

first thing's first, do not buy taxable bonds with that much money, that'd idiotic. that's what munis are for. you're welcome, I just saved you hundreds of thousands of tax dollars.

next, do some thinking. what's important to you? $25mm is enough to retire on, but not enough to live like a celebrity on, so be careful. are there any nonprofits you care about? is there some career you've always wanted to do but it didn't give you the income you needed? I'm thinking things like ski instructor, golf instructor, charter boat captain, things like that. you now have the resources to do those things. or, do you simply want to continue working and allow the money to grow?

once you've decided your general direction, hire an attorney, estate planning mainly. you want to have this money put into various trusts so that you can access it during your lifetime but also so there are some tax savings and creditor protections put in place. also, you should be able to divorce proof some of the assets if you put them in irrevocable trusts before you're married. sidebar: get a prenup signed.

next, you'll need to manage the money, so I'd interview at least 3 financial advisory teams. sure, you could manage it yourself, but there are 3 big risks to you losing all of this money: predators, your emotions, and overspending. a good FA will help you avoid all 3 of those and while you'll pay a fee for it, a good advisor at this level of assets is worth his weight in gold. if you need help choosing, feel free to ask.

predators: people will come out of the woodwork asking for help, tuition for some summer class, help with medical expenses, help with debt, new clothes, and more. just say no. if you have a problem saying no, tell them "let me ask my broker," that will usually shut them up because your broker won't advise that you give away all your money. what I'm not saying is don't help ANYone. if I had that much money, I'd definitely clean up all my parents' debt and any medical expenses they needed, but where you get into trouble is by improving the lifestyles of other people.

your emotions: it's my guess you're under 30 and have limited experience investing (you mentioned your associate, so that tells me you're an analyst, likely in banking). your emotions are the devil. at your level of assets, most advisors will recommend something called a "core-satellite" model, which basically has a balanced stock/bond allocation at its core (say 50/50, 60/40, etc.) for the bulk of your assets (say 15mm), and 10mm of satellite strategies, maybe 1mm in a trading account that you control, 2mm cash, 5mm in PE (good advisors will have access to PE deals you can't participate in off the street), and so forth. sure, you could put the whole amount in vanguard, interactive brokers, eTrade, but how much time do you want to spend on your investments? if you want to do that, knock yourself out. I think it's a stupid idea, and I invest other people's money for a living. if I came into that much money, I'd hire a team to manage it for me, and then I'd go to the beach. having someone to run your decisions by on a regular basis is important, especially since they'll have more experience than you.

overspending: don't buy a $5mm house, don't start buying ferraris, don't buy a private jet. assuming you're only spending the interest from your assets, at 2% div yield/muni coupon, that's only 500k/year after tax or a little over 40k/month. your goal should be to not draw down the principal of this money. on 40k a month you can live a wonderful lifestyle, but you cannot own 3 properties in big cities, eat filet on a regular basis, charter jets to exotic locations for all of your friends, and so on, without overextending yourself.

if it were me, I'd get all the legal/advisory/tax stuff taken care of, and take a year off. maybe rent a nice place for a year (not just one place, maybe a loft in NYC for 3 months, beachside house in australia for 3 months, backpack europe, and then island hop for another few months in the south pacific) to see how you like it, travel, volunteer, and so on. when you get back to reality, you'll know if you can do that on a constant basis. at this level of assets, you could really just dick around for the rest of your life, but my guess is you'll want something else out of life. it's my guess that "something" isn't investment banking or business school.

feel free to ask more questions either here or via PM, I have to answer this question from time to time if a wealthy client dies and the kid is wondering what to do.

 

Jeez you just made me question my existence. Anyone have a nice day dream after reading this?

I had a flair for languages. But I soon discovered that what talks best is dollars, dinars, drachmas, rubles, rupees and pounds fucking sterling.
 

Got me simultaneously excited and sad.

Consumption smoothing is retarded. If you stay in this game for a handful of years, money will be the least of your worries. Live it up, because this is the one time in your life where you might actually have time to spare.
 

Dr.Poula has make me believe that voodoo is real and it works. I seek a lottery spell (voodoo) from him and he gave my the right lottery numbers, It was easy fast and i was doubting every bit of it that am not going to win the lottery. But can you believe that it worked and i won $32,000.00 I settled my debt immediately and i was so grateful and happy. believe me that the secret behind winning lottery is Drpoulaspell(at)gmail(dot)com

 

If this is not a troll, you sprint to a lawyer and get your shit in order. I'll take a cut for that advice too because it'll save you far more than whatever you give me.

That said, you posted this shit at 3:30 am, probably at work, most likely delirious and day dreaming of winning $25M after tax. Instead of thinking about sluts or cars or houses or travelling or whatever...you thought about corporate bonds, getting a MBA, and your work tasks? Bullshit

Commercial Real Estate Developer
 

wow, congrats on the flawless victory!

I think thebrofessor gave you there was extremely on point, but he left out one really critical thing... BUY GOLD BULLION! Buy lots of it. Not gold mining equities or paper etf's, you want the real deal hard metal. I'd be sticking at least 30-40% of my assets in gold or its derivatives at this point. Nothing else will protect you when the sovereign credit crisis hits in t-3 years... #inflationiscoming

Also, please play the WSOP Main Event next year so that i can live vicariously off of you... 'Grats brah!

 
  1. don't claim until you've spoken to GOOD lawyers and accountants and have your affairs in order
  2. don't buy property... yet. there will be a time in the near future, and you will know when it is, when the RE market will take a downturn and you can buy loads of property and watch it appreciate. When that time comes, (depending on interest rates) leverage the shit out of your money and buy the ground underneath the properties in 'never-fail' areas. You'll make conservative returns that will provide a comfortable $1mm+ yearly income.
  3. do whatever you want... write, drink, fuck, eat, work, watch tv, act, it's really up to you.
 

Another fantasy money thread, except this one is slightly more realistic than undergrad students jerking off to dreams of the first million they'll make by 28.

Those who can, do. Those who can't, post threads about how to do it on WSO.
 

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