What i would do if i had 10 or 20 million dollars

I guess most of us from time to time think about what they would do if they somehow became rich. Of course the more money you have the more options you got. You can for example blow it all on girls, fancy cars, parties or invest so you can hopefully retire and do what you're really passionate about. Or pretty much anything in between. Here's what i would do with 10 or 20 million dollars...

Note: The following strategy is custom tailored to my personal situation, goals and needs. I for example already have a paid off house and no debt. If you currently do not have those things i would recommend taking care of that stuff first and only invest the remaining balance. Also if you love your current job and have no desire to start your own business and/or travel a lot than there is absolutely no reason to quit/retire from that job. If possible, i would not tell anyone about your newly acquired wealth aswell. Because of that the following strategy is not meant to be a "one size fits all" solution but best used as a source of inspiration.

What i would do with 10 million USD

With inflation and greed, money unfortunately isn't worth nearly as much as it used to be. So while 10 million sounds like a lot at first it might not get you as far as you think depending on your goals. What i would do is to invest 50% (5 Million) in an S&P 500 ETF and the other 50% (5 Million) in buying income producing real estate with cash. (No debt) The strategy here would be creating enough safe & stable income so i can retire (meaning NOT BEING FORCED TO work anymore just to survive / being financially independent), live comfortably and pursue the things that i really want to do in life. At 10 million i feel this dave ramsey and warren buffett mashup strategy would be the best choice. With this strategy i think you should be able to quit your hated job even if you're only in your 20s. Why? Lets go a bit more into detail...

The S&P 500 returned 10% on average for a very long time now. (I'm talking decades) Inflation was just 4% on average in that same period. Meaning on average you get 6% yearly return after accounting for inflation. At 5 million that would be 300k per year or 25k per month before taxes. If you could manage to live below that your money would not just keep up with inflation but actually still keep growing.

But the S&P 500 will not return 10% every year. In fact in some years you will might even end up loosing money. And what if the us economy collapses? (Which is very unlikely but still...) That's why you should never put all your eggs in one basket. Hence lets add some real estate.

With income producing real estate (in this situation, i'd prefer 1 or 2 local appartment complexes with no HOA that i can rent out) paid for in cash (no debt) you have a pretty safe storage of value (like gold) that over the long run usually appreciates in value while producing income in rent. You might be struggling a bit with tenants and repairs now and then but all in all it provides a second stream of income that's safe and reliable over the long run. If the S&P 500 is temporarily down because of a recession - instead of freaking out because all your money is in that one basket - you can still collect rent and live off that because people will always need a place to live. Just make sure to budget for necessary repairs or renovations when buying property. Have a good margin of safety. Also safe a sufficient portion of your rental income net profit for future repairs/renovations and emergencies instead of spending it all and you should be golden.

That's the basic plan. Maybe i would invest a little less and buy a few things that i really want like a nice classic car for example but the vast majority would be invested as described above. Unless you plan on spending all your investment income (living paycheck to paycheck is never a good idea), you can save and treat yourself later step by step.

What i would do with 20 million USD

If i had 20 millions i would pretty much do the same as if i had 10 millions plus:

• Invest even more in local hoa free income producing real estate (Maybe in las vegas)
• Start a classic car and limousine business (Selling, Renting, Repairshop...) (Maybe in las vegas)
• Treat myself buying a large personal residence with space for my hobbies and some classic cars/equipment that i want) (Maybe in las vegas)
• Invest 1 million in small units of diamonds, gold etc.
• At this point i would think about relocating to las vegas, nevada (Because i love vegas and it has huge tax benefits aswell)

Of course that specific business would be something i know about and like. You obviously could start any type of business you want or none at all if you had a net worth of 20 million usd. Needless to say you also don't have to move anywhere if you don't want to but las vegas has tax benefits as i said earlier so if you like it it's maybe worth considering in this case.

Conclusion

While more is always better, it is indeed possible to have a really good life with 10 or 20 million usd if invested right. (At least by my standards) Lots of people would utilize debt to maximize this money even further and to save taxes but i would be rather following dave ramsey's advice of playing it safe. With more money (50, 100 million etc.) comes more choices. But in the 10-20 million range i think the plan described above is pretty hard to beat as long as you're looking to play it safe.

Disclaimer: I'm not a financial advisor so this is merely my personal opinion and not to be seen as financial advice. You have to do your own due diligence when making investments and you're the only one responsible for the outcome of such investments.