If I were a billionaire…

By: ispeculatornew
Date posted: 03.14.2011 (5:00 am) | Write a Comment  (5 Comments)

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The old question used to be. What would you do if you won 1 million dollars today? Of course, with inflation and time,  $1 million is not what it used to represent. For most of you, $1 million stacked away in your retirement portfolio will not end up being enough to generate enough passive income to keep on the same pace in your lifestyle. Think about it… at 5% of interest or dividend yield, a $1 million portfolio will generate $50,000 but that amount will become less and less in real dollars because of the inflation. So no, having $1 million will not be enough to save the world, quit working at 25 years old or buy a house and car for all of your family.

Billion is the new million!!

Ok maybe, I’m slightly exaggerating in the sense that you can still do a lot with $1 million and needless to say that $10 million would be enough for most of us to enjoy life. But just for the sake of it, I thought it would be interesting to think about what is it I would do if I had $1 billion deposited into my bank account by tomorrow morning. I would love to hear from you as well. And no, I’m not looking to hear about the every single item that you would buy rather the general principles that you would use in managing that money. What would be your big plans? Here are ten things that would be on my list:

My list

Charity Fund: I have discussed the giving pledge and have become more interested in the work of many of those who signed the pledge in recent months. I think it’s incredible how much of a difference these individuals are making and would certainly love having the opportunity to sign up to give most of my money over time to charity through different forms.

Create my own VC fund: You all know it, I’m passionate about technology companies, Silicon Valley and I think there will be many more stories similar to Facebook. I would love to be involved in such companies and being an investor would be a great way to do so.

Stack away 99% of the money initially: I think we all have our different ways of seeing this but becoming rich overnight can be dangerous and many former lottery winners could testify. I would personally store away 99% of the money (in this case leaving me with a more than respectable $10 million) for one year. That would give me an entire year to think about good ways to manage the funds without being wasteful.

Make sure my inner circle can live a good life: My family and friends would obviously the first ones I would look out for. It’s surely a big challenge to not get into any fights when someone in the family has so much money (I wouldn’t know) but hopefully I could find some way to make it work.

Have my own plane & pilot: Traveling is perhaps my favorite thing to do and being able to go away where and when I want would be a luxury unlike any other for me

Hire a few people to take care of myself and family: Having a cook, a personal trainer and a few other people on staff would certainly be a great way to ensure being healthy.

How far away am I?

I would say quite far, I’m still working on my first million, but the first one is the most difficult right?:)

What is your list?

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5 Comments

  1. Comment by SophieW — March 14, 2011 @ 5:28 pm

    My first thing would be to give 10% up to $1 million to my ex. I know some people would be shocked to hear that, but he is my daughter’s father and she lives with him half the time.

    Then I’d look after my parents, sister and ex’s parents. Not sure of the amount, but def enough to pay off all the debts and some fun money to boot.

    Charities such as the Heart and Stroke foundation and WWF (NOT wrestling…)

    Fun money for travel, cruise, chillaxing and so on

    Investments towards ‘retirement’ though with that amount of money, I think I’d already be there 😉 This would probably be the bulk of the money because while I”m on the higher risk side for my investments, I like knowing that’s where the money is going.

    Investments in other businesses that I become involved in and believe in.

    And lastly, paying it forward. I don’t believe in handouts, but I sure do believe in helping people up and out of the situation they’re in.

  2. Comment by IntelligentSpeculator — March 14, 2011 @ 7:03 pm

    @SophieW – Love the ideas, thanks so much for sharing and I actually do admire that you are in such good terms with your ex, hopefully he would do the same.

    And what do you mean by paying it forward?

  3. Comment by SophieW — March 14, 2011 @ 7:55 pm

    I’d like to think he would too lol

    Maybe I’m a bit of a snob, but I’ve known too many people on welfare who see the money they recieve as their due. Plus I have seen social workers actually try to convince single mothers to not work because overall they would end up with less money after child care expenses if they got a job, than if they stayed home and on the dole… Not that being a SAHM is in any way a bad thing, but I believe in being self sufficient; depending on the government simply because it is easier bugs the he!! out of me!

    Don’t get me wrong, I know there are times when people need that help, but to become dependent upon it and breed dependence is, in my mind, beyond contempt. If I had the money to help people, then I would be the one to help those that are willing to help themselves. I guess that – after this longwinded ramble – is what I meant by paying it forward; giving people the chance to move forward with my help, rather than just giving them smokes or booze money for the month…

    Cynical? maybe, but hey, it’s my money 😉

  4. Comment by IS — March 15, 2011 @ 9:24 am

    @SophieW – Yes I see what you mean exactly, and also think that while there are (many) exceptions, being dependent on the government is usually a very bad idea for everyone involved.

  5. […] If one million was not enough, you can read what the Intelligent Speculator would do with one billion dollars. […]

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