Paid 1mm for 6 Months Off
Buddy of mine told me that he is switching jobs and was offered 1mm smackaroos for the sit out time (6 months) but has no idea what to do. Any specific ideas outside of 'travel'?
Dafuq does your buddy do
I don't understand any of this.
Really? He works at a fund and the money is to partially compensate him for his bonus missed during his noncompete. It is fairly common now with top talent.
Oh ok thanks for the clarification.
Well yes, that makes sense. But given that the post contained zero of that context......
That’s a lotta smacks. I’d tell him to invest in a good face moisturizer and to start looking into surgeons who specialize in facial reconstruction.
Never Happened.
What didn't happen?
your buddy should become an independent financier for 6 months, spend some of the time (more towards the beginning) looking for interesting projects to get involved with, doing research/trying to set up meetings/taking calls/etc - all to figure out which projects (or which sole project) to get involved with on a deeper level - and then spend the rest of the time working on each of the projects that he decides to get further involved with - due diligence the investment to make sure it actually makes sense to make the investment, help de-risk the investment by working with the person who he's investing in to secure partnerships or improve the business plan or something), set aside a very small amount of the $1 MM payout (25k-50k) and split this very small amount up into each of the projects that he wants to finance (putting 5k-10k into each project), only moving forward with projects that have some reasonable chance of working out/being a good investment. and then he can stay involved on a very limited basis with each of the projects after he starts his new job.
what types of projects to finance, you might ask? there are tons of independent filmmakers or music artists who are sinking their own money into their projects that could use outside financing, where 5-10k could have significant meaning. I'm not saying to give some random artist money to make some art where there's not a good chance you'll actually make any money back, or to give some random artist money when that person isn't committed to it, but there are people (like myself) already putting up thousands of their own dollars to make art, hoping that it will eventually get recognized by people who can do something with it to commercialize it. that's just one idea of a type of project. I don't know enough about short films to know how you could ever make your money back by financing one of them but you could get a good amount of music produced that you could own a piece of for 5-10k.
No offense, this is an idiotic idea. You are describing angel investing. This type of investing is incredibly risky and requires that the individual doing this has either experience as a founder, is an incredibly good judge of character, or doesn't mind lighting money on fire.
okay let's say that his buddy wants to travel the world for 6 months - that would be pretty expensive, no? this is just an alternative idea, the 25-50k number could be substituted with a smaller number if necessary. dude if this guy is getting paid $1 MM to sit out for 6 months, it's not the most idiotic idea to take like 10% or less of the net on that and spend the 6 months actually doing something interesting that could maybe pay for itself. you could easily blow thousands traveling on and off for 6 months and get nothing back from that in terms of money, that would be more idiotic if we are looking at it purely from a lighting your money on fire perspective, or I could have said spend 6 months finding 6 charities to get intimately involved with and donate 5-10k to each of the charities, staying involved on a limited basis after the 6 month period is over. like you got some money go do some cool shit with it whether it be financing projects or traveling or donating money to charity, or don't but if you don't want to be bored for 6 months this is just an idea that you kind of have the luxury of being able to afford if you're getting paid $1 MM by someone to do nothing for 6 months.
in reference to the 'incredibly risky' part of your comment - yeah exactly, I understand this. I just commented on another thread about some other person on here trying to start a record label, in reference to my own music project, that 'my project is currently a junk bond so if anyone wants to finance it then the risk reward paradigm would have to be quite favorable' - you would have to in a sense be okay with the fact that the money might just get lit on fire. but if I was the financier I would only pick people to invest in who are also already lighting their own money on fire, we would be lighting our money on fire together.
Damn I'm jealous, he's clearly crushing it. Maybe spend time w/ folks, develop that hobby that he's been wanting to really master, work out a shit ton, and take this moment to pause & reflect. He'll work till he dies, but getting 6 months off again in the middle of his career is by no means guaranteed
In lieu of travel, I’m assuming they’re NYC based, explore the City. When is the last time they went to the Met, MOMA, visited the other boroughs, ate at a great ethnic restaurant?
Other alternatives are learn a language or skill or see a project through to completion. If they’ve always wanted to build a wooden boat or something this is the time to do it.
This is a very good point and also the irony of living in NYC, putting up with the stress in taxes if you have a demanding job...
Family time
and FREE!
Knew a Variable Annuity wholesaler who got paid a chunk to sit on the beach for several months. His company was pulling a product line but wanted to retain talent. Literally was told to just go hang out, play golf, whatever for 6 months until they had new offerings approved by regulators. Ultimately left because the x date kept moving back and he wasn't the type to sit still. I would have started my own biz if I were him but he did alright.
You’ve come to the right place. Stay tuned for brilliantly tailored advice by unverified killers working in high finance.
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