… would you give up the Internet?
If it were permanent, I don’t think I’d give up the Internet.
Here is what I would do, though, assuming that I didn’t lose half of it to tax confiscation right off the bat, which I probably would! These would be my first priorities, in alphabetical order:
- Put $50,000 on the side to cover all expenses for the year so that me and the girlfriend can focus our energies on our passions, and see how far we can go with that. This amount should be more than enough to live a normal life.
- Pay down our mortgage so that we could very easily cover all of the monthly costs for our home with just a little bit of side income. This means probably leaving about $50,000 or so on it. Paying it off completely is tempting, too, but the interest rates are still very low right now, and even if they rise, on a mortgage of $50,000 it will be more than bearable.
- I would place $100,000 in a trust fund for my grandmother to make sure she’s comfortable and is well covered for medical expenses and other contingencies. She is not too up for travelling these days, but I would throw in a little bit more for a few cruises or something that would be comfortable and feasible for her.
Put a ring on it
- On top of the business, I would book another $50,000 for world travel… not bling bling style, since the goal would be to see as much of the world as we can. With a laptop and an internet connection, this could be done in parallel with the business idea.
What about the rest?
After all of this I would have about $600,000 left. By paying down the debt, a little bit of side income would be enough to cover basic living expenses. If our businesses were not enough at the start, then a little bit of part-time work would be enough to make the difference without needing to touch what was set aside under business.
Here’s where I would put the rest:
- The whole idea behind paying down debt is that I don’t need to rely on fixed income to cover my living expenses, so I don’t think I would worry too much about this one. I don’t mind working a bit on contract if I need to, but hopefully side income would grow and take care of this need.
Long term growth
- Vanguard index funds would be where I put the bulk of the money for long-term growth. The last thing I would want to do is dump a large lump sum when the market is expensive, so it depends on how everything is doing. If we’re in the middle of a huge bull market then I’ll try to find what is cheap, and if we’re in a situation like the end of 2008 then I’ll go all-in. A little scary, but this is for the long-term and long-term I think people will be happy they bought in when it was cheap, even if there are times in the short-term when they don’t feel the same way.
- I would balance this out by taking advantage of our Tax Free Savings Account and Registered Retirement Savings Plan accounts where it makes sense to do so, with the rest unregistered.
Precious metals and commodities
- Depending on relative prices, 5% to 10% would go into here in the form of physical bullion. I simply like shiny coins, but I also feel that these metals represent a good alternative to holding cash especially in a day and age where debt is large and the temptation to devalue the currency in order to keep political promises is high. I’m not a guns & ammo guy, but you don’t have to be to see the value in something that cannot be inflated away as easily.
- My friend Mich over at Beating The Index is the expert when it comes to oil & gas. Oil & gas still have an important role to play in our economy for the foreseeable future, so I would place a good $50,000 or so with him as well.
- This is where I would have put $5,000 into something like Bitcoin back in its infancy!
A million dollars
In short, $1,000,000 would be more than enough to buy financial independence, though not enough to live solely off the capital. Maybe once upon a time that was possible, but not with today’s devalued dollar.
The most important thing is that it would give financial freedom and represent a big boost toward achieving my dreams. My lifestyle would not change that much in many ways; I would not go out and buy a new car, nor a new home, and there aren’t many things that I want that I can buy with a million dollars without sacrificing other goals which are more important to me.
Having the freedom to be independent, not require a large income to cover living expenses, and travel would be the biggest personal gains. Up here in Canada money doesn’t play as much of a role when it comes to old age as it does in other countries, but some money could help make my grandmother’s life more comfortable in other ways. A driver could help her visit her relatives and descendants more often, as well as with the small things like groceries, and this would be a huge gain for the family.
Read more on what others would do at the roundup over at Yes, I Am Cheap. Lots of great thoughts and discussions!
- How to spend a million dollars? (Single Saver)
- If I Had $1,000,000 (Daily Money Shot)
- If I had a million dollars (Money Mamba)
- If I had a million dollars (No Debt MBA)
- If I had a million dollars (Retire by 40)
- If I Had a Million Dollars (Soover Debt)
- If I Had A Million Dollars… (Bucksome Boomer)
- If I Had a Million Extra Dollars (Family Money Values)
- What I would do if I suddenly inherited a million dollars from my long lost cousin Bertha (Totally Money)
- What Would We Do If We Won $1 Million? (Fat Guy Skinny Wallet)
So, reader, what would you do if you had a million dollars? Would giving up the Internet permanently be an acceptable option to you?