What Would You Do with $1 Million?

I recently ran into the article titled The Dark Side of Financial Windfalls which detailed the hardships many people suffer when they receive a financial windfall.

I know, you're thinking the same thing I was: "Boy, I'd love to have their problems." ;-)

But I don't really want to discuss that issue now, but the bigger issue this piece brings up: what do people do with financial windfalls and, specifically, what would you do if you came into a bunch of money?

There's a poll associated with the piece that asks What would you do with $1 million? At the time of this writing, most people are saying "Not much, I'd invest and keep working" but this doesn't give much detail . So I'm asking you, "What would you do with $1 million?" Leave your answer in the comments below -- it should be interesting to see what everyone says.

As for me, here's what I think I'd do, assuming I actually had $1 million to spend (meaning I already paid taxes and had $1 million left over):

• Give 10% off the top to my church (actually, I would give 10% of the gross amount (before taxes), so let's say that's $140,000 just to have a round number).

• Put $600,000 away for retirement/college costs.

• Give another $200,000 to various charities.

• Splurge with the rest and buy a few "fun" things (as well as some needs -- such as improvements to our house) plus give some nice gifts to family members.

Of course, no one knows what they would actually do with the money until they had it. Plus, I'd (of course) make the decisions above with my wife, so this is only my best guess as of now.

So, what would you do with $1 million?

Comments

[jamie]

well see me my mom and my little sister are homeless so with a million dollars i would buy or even rent a decent home and put my left overs in a safe,because with what little money my moms has gotten from unemployment she put in the bank and the banks have screwed up 4-5 time since july 2008,any way i would use the rest of the money for bills and food while my mom looks for a job

[guest]

With a million dollars i would:

Buy a big fancy house for 3000000 dollars

Buy a macbook for 1000 dollars

Buy an imac for 1000 dollars

buy an iphone for 1000 dollars

And put 703000 dollars in the bank

[papazian]

155 000 - pay off my home
35 000 - Tax free investments
10 000 - Checking account
500 000 - Buy rental properties
100 000 - Play market aggressively
100 000 - Safe mutual funds/GICs
100 000 - Invest on building a new career/schooling

[ross gullett]

i never had much in my life so to be truthfull i dont know what i would do, execpt take better care of my wife and kids and give them what i never had, a home to call theres when thay growup . i wood beter my schooling,help my real friends that hae the same problems as i do. i would give to famlys at the to schools my kids go.if, i could,this is what iwould do

[Mike Hunt]

Mr. Payltforward,

Good luck to you sir.

For the people who are talking about buying a house, land in foreign countries, a stableful of cars- get a clue! $1 million isn't much money these days.

Earning 1 Million, I'd feel more proud and aware of the effort used to get this.

I often use the analogy the value of a person taking a crap. See, if a person makes minimum wage (say $6 per hour) and has to take a dump on company time, and this takes 10 minutes- well you have a $1 crap individual. Someone working in a VP job for a big company, pulling in $240K per year (or $120 per hour if they only work 2000 hours per year- usually it's much more but for the sake of argument let's say 2000) will be taking a $20 dump. Now a CEO earning $2.4 M per year is taking a $200 grundy on company time. Pretty sweet if you ask me.
Anyway, I digress. Just a thought on the value of time vs. money.

If 1 million were handed to me with no effort put in it would have much lower value to me. I would:

1. Buy a ticket to Vegas
2. Go to the high roller roulette wheel (European version, no 00 just 0)
3. Put it all on black (or red if I feel a change of heart)
4. Let it ride, baby. Let it ride.

-Mike

[mark jacobo]

I have suffered my whole life with a mental illness. I have had some good times but vary few and far between.quite simply I would be in uforia if I got 1,000,000 dollars! dont get me wrong,I would be smart with my money. I would envest so I would never be broke. I am a musicion so I would get my band going,get some top of the line equipment,good studio time and make it big time! I would probubly hook up with some famouse rock stars and live the dream Im saposed to live!

[Bill Hutson]

I already work over 100 hours per week so that I can sustain Table Talk Ministries, we make free home repairs for the elderly and the disabled.
First, I would eliminate the waiting list, we currently have 36 on it.
Then I would purchase a couple newer trucks with tool beds and trailers so we could be more effective in our work.
Lastly, I would be able to start a proper ad campaign to bring in donations, (they're tax deductible).
I actually, might splurge on a vacation/honeymoon, I haven't had a vacation since 1982, I got married in 2002 and we never got to go on a honeymoon.
I would continue to work until I knew for sure that Table Talk could become self-sustaining.

[Marc]

Pay off 70K in High Interest Student Loans
Pay off 40 K in car loans
4 month vacation:
1 month in Belize/Costa Rica
1 Month in Alaska
1 Month in Italy
1 Month in Switzerland
Buy expensive Wine
Get back to reality
Invest 500K in Stocks and real estate
20 percent down on nice house
Invest in business-->Work like Hell to turn the remaining into another 10 mill
Not tithe, but use the money to make more money and give to a real charity down the line

[kevin]

i really dont see much imagination in anyone here.

The biggest difference is how much experience you have and if you know the correct things to do. Obviously if you are just starting out you will have to overcome the learning curve. I have noticed that the more experience I gain the more my income is starting to increase, truth is there is no limit but you’ ll have to be realistic, if you provide something of value that helps people you should do well.

[Sweet Sandy]

frist even if I said I'd tell no one I know I would...that's me. But my family is not like most of the above...they would not ask for anything. 10% or more for abused women, and to shelters for abused children. 10% more to try and educate battered women so they did not go back to that life. Pay off home and bills, remodel home, love where I live. Pay off college loans for grand children buy all new cars ($20,000) at most. Give children some, also sisters and brothers and friends. I know I would have to force this. Do some traveling hopefully with my friends and relatives. As I write this I know how nice the money would be...BUT I ALSO SEE (TO ME) family and friends are EVERYTHING

[Financial Samurai]

To the person making $1million every 4 months, WOW! What do you do?

I think you are exactly right. It's about not telling anybody, but just being more generous to others!

[Whydopeoplethatdontdeservemoneyhaveit?]

Some good advice but some bad ones too. I'm confused on the atheists point of view. Why would you care or be so hurtful to those who want to give $ to churches. Religion is supposed to give you guideance and help to become a better person to people around you. Clealry some of you atheists, not all, the ones I know are peaceful and nice, but really need to find something that will make you a better person, you sound miserable. A million dollars will change anyones lives but wow some of you with money on here are more bitter than most people I know living on the streets. After reading these some of you don't deserve it and you should give your money to help those in need, so at least some people will find happiness since you clearly don't deserve it.
I would pay off student loans, pay off family debt, donate to charities and church, invest alot, and travel the world. I traveled Europe for 4 months on $3000. Can't imagine if I had a million. The best advice on here was the 9 bank accounts that are FDIC insured for only up to $100k. Great advice in today's economy.