You are given a million dollars with rules...

[LCL]

You inherit 1 million dollars, but the caveat is:

1. You must spend it all in 24 hours
2. You cannot use it to buy a new house
3. You cannot use it to buy a new car
4. You cannot use it to resolve personal debt
5. If you fail to spend it all, then you must pay double what you didn't spend back to the will.

What do you spend it on?

 

[bob22]

A used house
A bunch of used cars
A Supreme Court Justice.

 

[CasualFan24]

The answer is real estate. However, since I can't do that based on the rules. I'm buying gold. Or some other sort of precious metal to hold onto until I can buy real estate lol

 

[Orin Swift]

The answer is real estate. However, since I can't do that based on the rules. I'm buying gold. Or some other sort of precious metal to hold onto until I can buy real estate lol

You can buy real estate, just not a new house. At minimum commercial real estate is in play. I would imagine an apartment building too as long as you don’t live in it.

I’ll keep the spirit of the argument and use it for fun things vs. practical. A good chunk and buy some unicorn bourbon and wine that is entirely too expensive - a few bottles each of BTAC line, Michters 20 and 25 year, OFC, Eagle Double Rare, and then vintage bourbons. On the wine side, I’ll hang out with Justice Thomas and buy a few cases of DRC in addition to Screaming Eagle, Penfolds, d’Yquem. Hunt down a few works from Picasso, Klimt, Martisse or Warhol. A case or two of Partagas Lusitania. If there’s anything left, a private jet membership.

 

[soccerdad72]

Can't buy a car, but no rules about a boat:

2023 Cruisers Yachts 390 Express Coupe | SkipperBud's

Mercruiser T-8.2 MAG B3 Axius Premier SC Hull, Slate Gray Cockpit Seating, Pearl White Interior, Ebony Oak Hardtop w/Fiberglass Slider Chaise Lounge--Foredeck, Gray w/Wht Cvr Dinette w/Flip Up Bunks, Dwell Cliff Cockpit Aft Seats w/Power Backrests Table, Cockpit, Aft w/Fillers, White Batteries...

www.skipperbuds.com

 

[CasualFan24]

You can buy real estate, just not a new house. At minimum commercial real estate is in play. I would imagine an apartment building too as long as you don’t live in it.

I’ll keep the spirit of the argument and use it for fun things vs. practical. A good chunk and buy some unicorn bourbon and wine that is entirely too expensive - a few bottles each of BTAC line, Michters 20 and 25 year, OFC, Eagle Double Rare, and then vintage bourbons. On the wine side, I’ll hang out with Justice Thomas and buy a few cases of DRC in addition to Screaming Eagle, Penfolds, d’Yquem. Hunt down a few works from Picasso, Klimt, Martisse or Warhol. A case or two of Partagas Lusitania. If there’s anything left, a private jet membership.

Awesome lol

 

[CasualFan24]

In that case, I'm splitting the money up between 2 properties at the beach. Yes I'll have mortgages still but the weekly rental income will both pay the mortgages off pretty quickly, and fund my work-free lifestyle I'll start living. Hello early retirement!

 

[Crusaders]

Build a nice storage unit operation

 

[Zunardo]

GME stock.

 

[D4fan]

The way I'm reading it is the money must be spent in 24 hours, not under contract to be spent. So I hope it's a 24 hour period when the market is open and I buy one million worth of stock.

 

[SWGA Fan]

The answer is real estate. However, since I can't do that based on the rules. I'm buying gold. Or some other sort of precious metal to hold onto until I can buy real estate lol

You must NOT have seen the segment on the Twilight Zone. Where some dudes stole a truck load of gold and went into suspended animation for fifty years. So they couldn't be traced by the authorities. When they awoke, gold was WORTHLESS!

 

[Steel Valley FB]

They should make a movie about something like this, with a poor black guy having to spend the money within a certain time frame, per terms of the will. If he fails, he gets NOTHING!!

 

[Zunardo]

They should make a movie about something like this, with a poor black guy having to spend the money within a certain time frame, per terms of the will. If he fails, he gets NOTHING!!

Finally, a fresh idea! Hollywood could use more of that, for sure.

Now, we’d need a likable actor with good comedic chops to give this treatment the pathos needed. Bill Bellamy comes to mind. We could call it “Bellamy’s Billions” ….

Nah, he’s too young. Come to think of it, the name doesn’t sing. Hmmm - Billingsley, Beidelman …. How about Brewster? That has a nice folksy sound to it. And billions is just too much for the unwashed masses to grasp - make it millions instead.

Run that baby!

 

[Yappi]

If it was a million dollars in cash, it would be very hard to spend all in one day on real items outside of giving the money away. That would be 10,000 $100 bills.

I would definitely start with a contractor to fix up my house with repairs and additions. Hope I could find a reputable contractor that doesn't run off with the money after paying him up front. $300,000

Definitely have a Yappi party but it would be in NEO so some of you may have a 4 hour trip to get here on very short notice. $100,000 (I would buy good food and drinks)

Rent a building to have nice indoor batting cages with the new hitting/pitching machines. $100,000.

Buy $10,000 in gift cards for my 10 favorite restaurants. $100,000.

Nice expensive gifts for the family...whatever they want. $100,000.

One month rental for a big house on the beach at Hilton Head in July. $50,000

Not to be a downer but pay for funeral expenses so that isn't a future burden. $50,000.

I feel like my 24 hours are just about up so I go to the casino and play all the big games and get treated like a whale. With my luck, I would actually win (I never win) and have to work even harder to get rid of the money. $199,000

Rent a very nice hotel room and crash for the night. $1000

 

[D4fan]

If it was a million dollars in cash, it would be very hard to spend all in one day on real items outside of giving the money away. That would be 10,000 $100 bills.

I would definitely start with a contractor to fix up my house with repairs and additions. Hope I could find a reputable contractor that doesn't run off with the money after paying him up front. $300,000

Definitely have a Yappi party but it would be in NEO so some of you may have a 4 hour trip to get here on very short notice. $100,000 (I would buy good food and drinks)

Rent a building to have nice indoor batting cages with the new hitting/pitching machines. $100,000.

Buy $10,000 in gift cards for my 10 favorite restaurants. $100,000.

Nice expensive gifts for the family...whatever they want. $100,000.

One month rental for a big house on the beach at Hilton Head in July. $50,000

Not to be a downer but pay for funeral expenses so that isn't a future burden. $50,000.

I feel like my 24 hours are just about up so I go to the casino and play all the big games and get treated like a whale. With my luck, I would actually win (I never win) and have to work even harder to get rid of the money. $199,000

Rent a very nice hotel room and crash for the night. $1000

Am I missing something? Seems like the task would be to spend the money on things that appreciate in value.

It's kind of like waking up in the morning of December 31 and finding out from your accountant you have to spend a large sum of money, or pay over 50% tax on whatever you fail to spend. So the goal is to spend the money on items that make more money down the road, and save you money today.

A few years back I found myself in that exact situation. I spent most of it in inputs for the following year, spent another large sum on a couple pieces of equipment. One purchase I made was for a large mower. While at first it seemed like a depreciating item and bit frivolous in nature, that mower is now "employed" in mowing three large estates weekly, and makes me a fair return on investment.

That is what I see in the question here. How can you spend one million in one day and do so wisely with the hope of future return on investment?

I guess you could spend it on celebratory services , but where's the fun in that?

 

[Smarty2022]

Can't buy a car, but no rules about a boat:

2023 Cruisers Yachts 390 Express Coupe | SkipperBud's

Mercruiser T-8.2 MAG B3 Axius Premier SC Hull, Slate Gray Cockpit Seating, Pearl White Interior, Ebony Oak Hardtop w/Fiberglass Slider Chaise Lounge--Foredeck, Gray w/Wht Cvr Dinette w/Flip Up Bunks, Dwell Cliff Cockpit Aft Seats w/Power Backrests Table, Cockpit, Aft w/Fillers, White Batteries...

www.skipperbuds.com

I was thinking a high rise on Siesta Key along with a really nice boat. Sell the building whenever for at least another couple million in a few years and buy another one! A really nice Winnebago! Gas,Food and Campsites all over the country.

 

[Yappi]

Am I missing something? Seems like the task would be to spend the money on things that appreciate in value.

It's kind of like waking up in the morning of December 31 and finding out from your accountant you have to spend a large sum of money, or pay over 50% tax on whatever you fail to spend. So the goal is to spend the money on items that make more money down the road, and save you money today.

A few years back I found myself in that exact situation. I spent most of it in inputs for the following year, spent another large sum on a couple pieces of equipment. One purchase I made was for a large mower. While at first it seemed like a depreciating item and bit frivolous in nature, that mower is now "employed" in mowing three large estates weekly, and makes me a fair return on investment.

That is what I see in the question here. How can you spend one million in one day and do so wisely with the hope of future return on investment?

I guess you could spend it on celebratory services , but where's the fun in that?

At first, I thought the same way but I assumed that the fun of this post was buying real items. Of course, in a real situation like this I would buy $1,000,000 in stocks and sell it the next day. But that seems boring and against the spirit of the question.

 

[CatAlum]

Truthfully, $1 million isn’t enough money to change most people’s lives. Enjoy some goodies, perhaps. That’s why I’d think about giving a lot of it away.

1. Half of it…$500k…talk to some clergy friends of mine in Cle and Y-town and others who know my city and it’s needs and identify 4-6 charities/people for whom $100k could make a major difference in accomplishing some worthwhile goal(s)…not just clear up a deficit…a needed car; fund a creative idea of a young “idea” person;

2. Buy myself a $75-100k car that I’d never consider buying out of my own funds.

3. Buy us an expensive vacation in a place like Tuscany or Venice or an unaffordable part of Paris or maybe Copenhagen or Barcelona ($75-100k)

3. Buy an investment tool to fund my first (and only) grandchild’s education ($150k)).

4. Wire the remainder to a relative who’s working in a Peace Corps type function in Africa. ($150k)

 

[arizonawildcat]

It would be easy for me: give it all to charity.

 

[eastisbest]

Truthfully, $1 million isn’t enough money to change most people’s lives. Enjoy some goodies, perhaps. That’s why I’d think about giving a lot of it away.

1. Half of it…$500k…talk to some clergy friends of mine in Cle and Y-town and others who know my city and it’s needs and identify 4-6 charities/people for whom $100k could make a major difference in accomplishing some worthwhile goal(s)…not just clear up a deficit…a needed car; fund a creative idea of a young “idea” person;

2. Buy myself a $75-100k car that I’d never consider buying out of my own funds.

3. Buy us an expensive vacation in a place like Tuscany or Venice or an unaffordable part of Paris or maybe Copenhagen or Barcelona ($75-100k)

3. Buy an investment tool to fund my first (and only) grandchild’s education ($150k)).

4. Wire the remainder to a relative who’s working in a Peace Corps type function in Africa. ($150k)

We found the privileged guy, lol

Me? I'm buying nine hitmen and a good lawyer.

 

[CasualFan24]

If it was a million dollars in cash, it would be very hard to spend all in one day on real items outside of giving the money away. That would be 10,000 $100 bills.

I would definitely start with a contractor to fix up my house with repairs and additions. Hope I could find a reputable contractor that doesn't run off with the money after paying him up front. $300,000

Definitely have a Yappi party but it would be in NEO so some of you may have a 4 hour trip to get here on very short notice. $100,000 (I would buy good food and drinks)

Rent a building to have nice indoor batting cages with the new hitting/pitching machines. $100,000.

Buy $10,000 in gift cards for my 10 favorite restaurants. $100,000.

Nice expensive gifts for the family...whatever they want. $100,000.

One month rental for a big house on the beach at Hilton Head in July. $50,000

Not to be a downer but pay for funeral expenses so that isn't a future burden. $50,000.

I feel like my 24 hours are just about up so I go to the casino and play all the big games and get treated like a whale. With my luck, I would actually win (I never win) and have to work even harder to get rid of the money. $199,000

Rent a very nice hotel room and crash for the night. $1000

See my previous post - You can rent from me! I'm thinking Palmetto Dunes....good for you!?

 

[CatAlum]

We found the privileged guy, lol

I know, I know...

Look, I said most...50% plus 1. A million bucks...if you're 40 years old, can you quit working? Not likely. You'd be forfeiting all of your future SS earnings, so that would have to be part of the calculation. You'd have to buy medical insurance for the next 25 years. For most, $1 million gets you...a bigger house in a better neighborhood; a bigger/newer car; South Florida for a month rather than Marbelhead for 1 week. Then most of it would (wisely) go into savings.

Good to have...would move (most) into a different part of the middle class.

 

[eastisbest]

I know, I know...

Look, I said most...50% plus 1. A million bucks...if you're 40 years old, can you quit working? Not likely. You'd be forfeiting all of your future SS earnings, so that would have to be part of the calculation. You'd have to buy medical insurance for the next 25 years. For most, $1 million gets you...a bigger house in a better neighborhood; a bigger/newer car; South Florida for a month rather than Marbelhead for 1 week. Then most of it would (wisely) go into savings.

Good to have...would move (most) into a different part of the middle class.

Perhaps you're thinking from YOUR perspective? From your abilities, your knowledge? Is that possible? Spend a moment on empathy, imagining the life situation and money experience of "most people" and take another stab at it. Go sit in the East Cleveland public library for some inspiration.

"Changing people's lives," you've posted of only the positive outcomes (implying those limited, agree to disagree for "most") that come from wise and practiced experience with money, let alone what is to most, 5-20 years' SPENT income. One day, doesn't get "most people" time to find a money manager or wisdom to handle that kind of cash. It doesn't protect them from every grifter in the family that wants to know why that selfish person didn't share. It doesn't consider the effects of sudden self-indulgence that most people are going to involve themselves in. All of which have life changing affects.

The implied rules of the game are that after one-day, the money is gone. That's life changing and second guessing for most people. The rules of the game are that you spend it all or you go into debt. If the rules of the game are simply the money has to change form, then it's not really spent at all, is it.

 

[oxat622]

Am I allowed to buy land? The average cost of an acre of land in Ohio looks to be around $10,000. Give me 100 acres of land.

 

[eastisbest]

You can't save any of the million to cover the property taxes, insurance or any to kick start a way to use it to earn revenue. Need to be a very quick turn around would't it? There's some big property people around here, maybe they know if under the conditions, that would be a good bet.

 

[D4fan]

You can't save any of the million to cover the property taxes, insurance or any to kick start a way to use it to earn revenue. Need to be a very quick turn around would't it? There's some big property people around here, maybe they know if under the conditions, that would be a good bet.

I know "big " is a relative term, and to some I may qualify as such, especially those of tender young years. To others, I'm a gnat among elephants.

I find land to be in theory, an excellent investment vehicle. The theory is, agriculture land returns approximately 2-3% of its value in annual cash flow via lease agreement. So $10,000/acre leases for $200-$300. The average return in land appreciation is somewhere around 5% , making for a total return of about 7% annual.

Some problems to the theory include: finding an operator who does not go bankrupt and unable to pay you, making sure your tenant replaces fertility via fertilizer and does not plunder your minerals, what is the underground drainage tile situation and how expensive is it to repair it replace, and last you need good liability insurance. The property tax man will want approximately .5% annually of the lands value as well.

VOO (S and P 500) averages 12% returns since its inception, has little concern of bankruptcy, requires little time to review and has near zero exposure to liability and taxation so long as the realized profits are deferred. I have chosen this over additional land investment in the last few years.

 

[eastisbest]

I know "big " is a relative term, and to some I may qualify as such, especially those of tender young years. To others, I'm a gnat among elephants.

I find land to be in theory, an excellent investment vehicle. The theory is, agriculture land returns approximately 2-3% of its value in annual cash flow via lease agreement. So $10,000/acre leases for $200-$300. The average return in land appreciation is somewhere around 5% , making for a total return of about 7% annual.

Some problems to the theory include: finding an operator who does not go bankrupt and unable to pay you, making sure your tenant replaces fertility via fertilizer and does not plunder your minerals, what is the underground drainage tile situation and how expensive is it to repair it replace, and last you need good liability insurance. The property tax man will want approximately .5% annually of the lands value as well.

VOO (S and P 500) averages 12% returns since its inception, has little concern of bankruptcy, requires little time to review and has near zero exposure to liability and taxation so long as the realized profits are deferred. I have chosen this over additional land investment in the last few years.

Reflecting back what I think you said.

If a person had no other resources and had one day to both buy the land and plan for its revenue generation, it's not easy. But if you have experience with it, there can be a good return, maybe $100,000 per year?

 

[D4fan]

Reflecting back what I think you said.

If a person had no other resources and had one day to both buy the land and plan for its revenue generation, it's not easy. But if you have experience with it, there can be a good return, maybe $100,000 per year?

If were just talking non irrigated farm land, which is what sells for approximately the 10k per acre mentioned, one million probably is more likely to return 70k per year before taxes, insurance and general maintenance, approximately 25k of that 70 would be cash flow and 45k would be unrealized gain until sold.