I've got $2M. Where to spend it?

[Rawknees'Turbo]

I hear that the Deez and M2 genetically engineered unicorns have horns the size of traffic cones!

[pmax]

Forget the cars...

https://www.youtube.com/watch?v=b9Y4bmbh1KY

[stealthn]

I’d retire...

[MotorWorks]

Originally Posted by stealthn

I’d retire...

Yep

[JacobS911]

Retire at 35 here as long as that 2 mill is on top of current assets :] restoration on the body of my 930. Then roadtrip to find curvy roads!

[Matt Monson]

Man, you guys must be really good investors or super frugal. I’ve had this conversation with my 40-something friends and we generally agree $8-10 million to retire today and continue with current lifestyle for another 40 years.

[Alan A]

Originally Posted by Matt Monson

Man, you guys must be really good investors or super frugal. I’ve had this conversation with my 40-something friends and we generally agree $8-10 million to retire today and continue with current lifestyle for another 40 years.

I reckoned 5 then sink it into triple tax free munis at about 4%. Invest anything left over at the end of the year.

The thought of not paying taxes is more attractive than the potential return in the market.

[NYNick]

You guys have high priced lifestyles. $8 million Matt? You gotta be kidding me. Even at 5% that's $400k per year you'd be generating/spending. Most advisors do the math at 2-4% for your lifetime.

Don't forget there's other income if you ever decide to draw down on SS, even though I've been advised to stall that for as long as possible. And mortgages get paid off, college expenses go away, large purchases settle down and debt goes away. I found the highest outflow years were 40-60 for me, but I had my kids late.

One thing I learned after I retired. Our spending didn't go down.

[Matt Monson]

Originally Posted by NYNick

You guys have high priced lifestyles. $8 million Matt? You gotta be kidding me. Even at 5% that's $400k per year you'd be generating/spending. Most advisors do the math at 2-4% for your lifetime.

Don't forget there's other income if you ever decide to draw down on SS, even though I've been advised to stall that for as long as possible. And mortgages get paid off, college expenses go away, large purchases settle down and debt goes away. I found the highest outflow years were 40-60 for me, but I had my kids late.

One thing I learned after I retired. Our spending didn't go down.

My wife is 37, so I figure I need 50 years worth of money even though I will likely be dead in less than 40. I do have a mortgage and unlike some of you others, have yet to acquire a second or third home. So figure at least $1 million of my number is just property. I also have a few other cars I want in my “collection”. I’m not going to retire if I can’t afford to purchase the things I want in the future and just exist at current asset levels. And I used the conservative earning number.

Or look at it another way. At my age I’m hitting my peak earning and expect to work another 20 years+/- How much money is that for you? I wouldn’t expect it to be too far off my walk away today number. The difference being of course taxes and interest.

[Matt Monson]

Also, two other things in my number that might not be in others...

I have two daughters. $500k ea for college. The $100k that got me through a 1/4 century ago won’t cut it.

And racing. It is very easy to spend $1/4M a year in PCA club racing. Throw in something like 24 Hour Historics or 25 hours of thunder hill as a driver and that’s a six figure weekend.

Could I do it on less? Absolutely. But if I account for fulfilling my life goals and dreams the number is nearly twice the just get it done number.

[NYNick]

Originally Posted by Matt Monson

Also, two other things in my number that might not be in others...

I have two daughters. $500k ea for college. The $100k that got me through a 1/4 century ago won’t cut it.

And racing. It is very easy to spend $1/4M a year in PCA club racing. Throw in something like 24 Hour Historics or 25 hours of thunder hill as a driver and that’s a six figure weekend.

Could I do it on less? Absolutely. But if I account for fulfilling my life goals and dreams the number is nearly twice the just get it done number.

If you've got to budget 1/4 mil for racing alone, I can see where you'll get to the $400K number very quickly.

And your daughters must be very young for you to be budgeting 1/2 mil for each one of them for college, the biggest federally co-sponsored, unregulated, industrial rip off in the land.

Thank God I'm done with those. Writing those big checks to those schools hurt.

I made a deal with my kids. Any scholarships you get and use, I'll refund 50% of any money you save upon graduation. One of them went into NROTC at a high end college. I wrote him a big check upon graduation, and I was happy to do it. Better him than them.

[Matt Monson]

Originally Posted by NYNick

If you've got to budget 1/4 mil for racing alone, I can see where you'll get to the $400K number very quickly.

And your daughters must be very young for you to be budgeting 1/2 mil for each one of them for college, the biggest federally co-sponsored, unregulated, industrial rip off in the land.

Thank God I'm done with those. Writing those big checks to those schools hurt.

I made a deal with my kids. Any scholarships you get and use, I'll refund 50% of any money you save upon graduation. One of them went into NROTC at a high end college. I wrote him a big check upon graduation, and I was happy to do it. Better him than them.

It was 4-5 year ago we had this conversation, so it took me a few to figure out how I had gotten to that number. I think I had plugged $2.5M for racing over a 10-15 year period. That was back when a privateer could still run a car in Grand Am and not everything was factory built. You used to be able to share a seat in a Cayman or Miata in ST class for a whole year for pro-am racing for under $1/2M. Now even the cheap seats are twice that and the cars are factory built $1/4M plus spares package just to hit the grid.



My kids are little. Penny is just potty training right now. April is 8. Here they are visiting me in my office a couple of days ago.



My first semester at Cal for $872 was tuition. By the time I graduated it was more than $4k a semester. I can't even imagine what it will be at a private school in 10 or 15 years. I 100% agree that it's the 2nd biggest rip off in America exceeded only by health insurance and drugs. I'm glad that school and medical are the two big issues in this election, even if a lot of the ideas being bandied about are totally unfeasible. We need to start pushing it the other way at some point or America is gonna go broke. We, collectively as a nation, cannot continue to spend 20-25% of our personal income on health care. I spent over $40k on myself in 2019 with my current health issues. Only $10k of that was insurance and rest of it was my out of pocket!!!

[NYNick]

Originally Posted by Matt Monson

It was 4-5 year ago we had this conversation, so it took me a few to figure out how I had gotten to that number. I think I had plugged $2.5M for racing over a 10-15 year period. That was back when a privateer could still run a car in Grand Am and not everything was factory built. You used to be able to share a seat in a Cayman or Miata in ST class for a whole year for pro-am racing for under $1/2M. Now even the cheap seats are twice that and the cars are factory built $1/4M plus spares package just to hit the grid.



My kids are little. Penny is just potty training right now. April is 8. Here they are visiting me in my office a couple of days ago.



My first semester at Cal for $872 was tuition. By the time I graduated it was more than $4k a semester. I can't even imagine what it will be at a private school in 10 or 15 years. I 100% agree that it's the 2nd biggest rip off in America exceeded only by health insurance and drugs. I'm glad that school and medical are the two big issues in this election, even if a lot of the ideas being bandied about are totally unfeasible. We need to start pushing it the other way at some point or America is gonna go broke. We, collectively as a nation, cannot continue to spend 20-25% of our personal income on health care. I spent over $40k on myself in 2019 with my current health issues. Only $10k of that was insurance and rest of it was my out of pocket!!!

Your girls are adorable. Lucky man. Squirrel away every penny you can. We only live once!

[1979-930]

I agree with Matt.
My minimum would be $8M.
If I didn’t work boredom would cause spending to increase.
I was able to pay off the house a couple years ago. But taxes and insurance are like a mortgage. More than my first or second house payments. Then there is the constant maintenance on a home. Owning doesn’t stop the bills like you think it will. It does relieve some stress.

Bottom line is I’d get bored. Probably start some other business just to pass the time. I’ll be working until I’m 70.



Sent from my iPhone using Tapatalk

[Macroni]

$400,000 is roughly $280,000 after federal tax....

[Matt Monson]

I turn 49 in 60 days. The whole reason I said I’ll work another 20 is also the boredom thing. I’d like to sell my business 10-12 years from now and then dink around with vintage car restoration stuff for “work”. The need for custom one off Porsche gearbox Parts is gonna grow I suspect. It’s only in the last year that I got a call for an LSD for a 962. I recently saw a 959 gearbox apart and there’s stuff in there that you can no longer get. These sorts of needs are enough to keep a guy like me in it and busy until I’m ready to stop.

[Macroni]

Originally Posted by Matt Monson

I turn 49 in 60 days.

Youth....

[Matt Monson]

Originally Posted by Macroni

Youth....

2 yutes and a posi-traction lsd.

[NYNick]

It's all personal.
I met an old friend at my recent 50th High School Reunion. He told me:
"I've got all the money I need."
That stopped me in my tracks.

[Rawknees'Turbo]

It is amazing how simple my lifestyle is compared to youse high roller bisches - I require far less money to be fairly content than the sums I see being tossed around above - wow! I guess I'm lucky in that regard?!?!

Great pic, M2!