Reply to If your HHI went from $350k to $900k +

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[quote=Anonymous]I'll echo the comments about assuming it won't last.  My uncle was a dentist, and made this kind of money 20 years ago (he owned several practices, so was really more of a business owner).  They had multiple houses, 5 cars, private schools, the expensive ex-wife, etc.  He got brain cancer, and was dead within 4 months of diagnosis.  My aunt (mother's sister) was left with 2 kids in middle / high school, low 8 figures in assets, and pretty severe depression / alcohol issues.

It took her about 10 years to run through all the money, plus another mil of my grandparents'.  A lot of that was the recession and housing markets (they had a lot of real estate).  She currently lives with my grandmother with no income or assets, and pretty much eats TV dinners for every meal.  Her kids, now grown, who went to the best private schools and were given new Escalades on their 16th birthdays, do not have health insurance.

So, knowing that, if it was me:

1.  Pay off all non-mortgage debt
2.  Create tax-advantaged passive income streams
3.  Diversify and create a capital preservation plan
4.  Set up strong trusts to provide for people I care about if something happens to me
5.  Create plans for my children and grandchildren
6.  Improve my lifestyle, primarily through experiences (I would definitely buy a Porsche, though)
7.  Depending on how I felt about the job (Maybe I love it), get heavily involved with non-profits

We are about at your starting point (ie. $350k, depending on how you measure), but have been lucky enough to have had great life experiences.  I get much more value out of a $10k safari in South Africa than a $10k watch.

My college roommate started making that kind of money in his early 30's (trader in Chicago).  He took a year off when each of his children were born, and they temporarily relocated to rental beach houses in Florida.  His wife and kids summer in France every year (the kids speak fluent french), and he joins them when he can.  He also paid for his younger sister-in-law's college.  Must be nice!  [/quote]

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