$525,600.00. Tasty. That zest morsel of money, one dollar for each minute of the year could seriously change lives. I know my life would be forever altered by $525,600.00. I could, in fact, forever alter my life and the lives of many people with that kind of money and have enough left over for a sandwich and a beer. How, you ask? Well, I am glad you want to know, since that's what the rest of this blog happens to be about.
Charitable Contributions to Me Myself and I
Starting money $525,600.00.
Contribution to moribund retirement fund $250,000.00
Ending money $275,600.00.
Contributions to my Home
Starting money $275,600.00
Pay off all debts (except mortgage), new garage/driveway/renovate windows/finish basement $70,000.00
Ending money $205,600.00
Contributions to Charity/Church
Based on 12.5% of the original sum $65,700.00.
Ending money $139,900.00
A New Car!
Beginning money $139,900.00
Restoration of Corvette $25,000.00
New daily driver car $30,000.00
Ending money $84,900.00
You're going to Italy!
Beginning money $84,900.00
Month long vacation to Europe $25,000.00
Ending money $59,900.00
Rainy Day Fund
Beginning money $59,900.00
Contribution to Rainy Day Fund $25,000.00
Ending money $34,900.00
Expenses relating to having $525,600.00
CPA/Lawyer, etc. $12,000
Ending money $22,900.00
Guilt for having that much money left over
Starting money $22,900.00
Donation to schools and hospitals $15,000.00 That brings the total charitable contributions to $80,700.00 or 15% of the windfall.
Ending money $7,900.00
A big-ass party to celebrate having $525,600.00
Beginning money $7,900.00
Party costs $7,880.00
Ending money $20.00
A Beer and a Sandwich
Beginning money $20.00
A beer and a sandwich $22.95
Ending money -$2.95
See... I'd still be in debt.
Not really. You're forgetting to factor in the MASSIVE tax deductions you would get from your philanthropic activity, your retirement contributions and your capital improvements to your home. Therefore, you're truly ahead of the game.
ReplyDeleteHowever, instead of making a blanket $250K contribution to your current retirement fund, your money would be much better spend purchasing a life annuity, that will guarantee a set amount each month, for the duration of your life, and you can even add in for Emily too after you die. Most retirement funds that are traditional run out of money before the person dies because it has a set sum in it. Rather, if you purchase an annuity, you plunk down your cash, they invest it, you generally earn between 6-10% interest each year, and get a guaranteed payment. It is a tax free payment upon your reaching retirement age. Nothing not to like here.
And see, I even gave you that advice for free. Therefore, you can cut your CPA/lawyer budget down to about $10K. I'd cut it even further, though, as Dave, your best friend, should be doing your legal work and estate planning at a significantly discounted rate for friends and family. You can tell him I said that:)
@ Kelly, thanks! But first we have to have a retirement fund (and of course the money).
ReplyDeleteNow, where do we get that money??
To the bank!
ReplyDeleteWell, I'm not responsible for finding the money, just helping you sock it away for the future!
ReplyDeleteHmm, maybe we should call you in case we don't get this money...
ReplyDeleteI been workin' the corner now for a week and aside from some people who be throwin' pennies at me, aint nobody been payin' me for my milkshake... Shoo!
ReplyDelete