Personal Finance

If you have $10M+ CAD networth in your 20s, what would you do?

  • Last Updated:
  • Dec 10th, 2018 12:01 pm
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[OP]
Newbie
Jun 2, 2018
5 posts
3 upvotes

If you have $10M+ CAD networth in your 20s, what would you do?

I have a friend who confided that he recently cashed out cryptos around $10M + CAD after tax. He said he used to have much more than that but he sold to protect his remaining capital.
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life. I dont know what kind of advice i can give him other than telling him, it's a lot of money.

What do you think? Would you retire? Would you keep working? He still works at his 9-5 job. I don't know why he's still working; I'd start a business!
41 replies
Deal Addict
Aug 30, 2011
3010 posts
792 upvotes
Ottawa
Why not use some of the $$ to help a low income student to afford university, sponsor a refugee family, or contribute to an environmental cause? I'm a minority on this forum in thinking that you can have too much money Smiling Face With Sunglasses and at my stage in life (retired) have a different perspective about these matters than someone in their 20s.

If he has a hobby he really enjoys, he could turn it into a business. Edit: actually, no need to make it a business. Get creative and just enjoy the process, whether art, woodworking, restoring vintage cars, whatever!
Last edited by OttawaGardener on Nov 30th, 2018 8:30 am, edited 1 time in total.
Deal Addict
User avatar
Mar 31, 2009
1047 posts
526 upvotes
I would definitely quit working, any 9-5 job. No question. With lesser levels of wealth maybe you consider keeping some sort of job because you need something to do, but with that much money I think just spending the money on things would give you enough to do.

But at that age, you have a lot of time on your hands and your best years ahead of you... If I was in my 20's (especially early 20's) I'd go to university again and go into programs that interest me instead of things that are actually going to lead to any career. Maybe go to universities in other parts of the world and live in residence? It'd cost quite a bit, but you'd still be spending less than the interest earned on that amount of money per year. (I would keep my spending levels such that I never spent principal, so I could live this life indefinitely).

I'd spend a lot of time going to museums and traveling, anything to give myself more culture and old world knowledge.

I'd spend a lot of time exercising and being in great shape. I think I'd try to become an expert on life enhancement and extension, to try to stack the deck in favor of me living to the oldest age that I could and in the best health I could. With that much money, you'd be able to consult experts and do tests, everything possible that would help ensure I lived to 100+ years old and in good physical/mental capacity.

When I started to feel too 'old' to be a university student I'd re-evaluate. Maybe by then I'd be enough of an expert in something that I would actually get a job teaching at one of the universities. If you had a few niche masters/phd level credentials behind your name you could probably teach something somewhere. I like the idea of being a fully financially independent 40 year old university professor somewhere, being an expert in a niche (but something I find very interesting) field, teaching other extremely smart people about a field I am passionate about. I think that would continuously add to your own knowledge base, and put you in a position to keep your mind active and young for an extended time.

Just writing this down is a bit inspirational to me, and I don't even have that much money..
Deal Expert
User avatar
Jul 30, 2007
21876 posts
6899 upvotes
Toronto
Like 99% of the 20's something, they will blow away their fortune within a few years ... Smiling Face With Sunglasses
Deal Addict
Jul 3, 2006
1780 posts
342 upvotes
newRFDmembers wrote:
Nov 30th, 2018 3:47 am
I have a friend who confided that he recently cashed out cryptos around $10M + CAD after tax. He said he used to have much more than that but he sold to protect his remaining capital.
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life. I dont know what kind of advice i can give him other than telling him, it's a lot of money.

What do you think? Would you retire? Would you keep working? He still works at his 9-5 job. I don't know why he's still working; I'd start a business!
10m @ 3% = 300 000 k a year with low risk
Deal Addict
Jul 27, 2017
1819 posts
664 upvotes
GTA
OP, same question for someone that just won $10 million lottery

$10 million is $10 million it's a huge chunk of change, with that he could basically live worry free as far as expenses.

after speaking to his family about this, suggest that your friend to seek professional advice on the money

as far as their life is concerned, it's theirs to decide what to do (give some of it to loved ones & family), unless you also have a small fortune & have traveled the road

of course he could continue to work - why not, or do something useful, give back, volunteer
Deal Fanatic
Dec 11, 2008
8901 posts
878 upvotes
Retire and do what he loves while ensuring he can afford it in the long run. If he has a hobby that he can afford go for it. Volunteer his time to a cause he cares about. Help out family and friends with his free time.
Deal Addict
May 12, 2014
1463 posts
910 upvotes
Montreal
OttawaGardener wrote:
Nov 30th, 2018 6:47 am
I'm a minority on this forum in thinking that you can have too much money Smiling Face With Sunglasses ...
Oh no, I'm in absolute agreement. Having too much money can be a terrible affliction.

Luckily I have found a way to relieve anyone so afflicted and I'll be happy to help you or anyone else. Just PM me for details.
Sr. Member
May 1, 2018
513 posts
247 upvotes
Vancouver
If I were him and I had that much cash in their 20s, I would travel the world. Spend the year, live abroad and go see as many places as you can. The money is not a problem (I'd say he'd spend close to $1 million should he travel for 2 years) and he'd still have money leftover. Furthermore, while he travels, he can always invest the money into GICs, TFSAs, mutual funds, etc to keep the cash flow coming while he's travelling. Some people never get to travel the world and see places outside of their continent. He should be fortunate he has the money to do so.
Deal Fanatic
User avatar
Jun 26, 2005
8873 posts
1039 upvotes
Toronto
Definitely invest that and spend only the dividends that cames out of it.

Here's a serious example, CIB512 mutual fund. It pays $0.06/unit/month cash dividend. Price has been moving around $10-12 for >10yrs (my Uncle has this fund and he tracks it).

$10 million / $11.49 (current price) = 870,322 units
870,322 units x $0.06/unit = $52,219.323 per month

So you will get $52,219 PER MONTH
times 12 = $ 626,632 PER YEAR !!

Okay, maybe just buy half of that, still enough to live off without touching your principal.
Deal Addict
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Jan 9, 2011
3284 posts
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Vancouver
newRFDmembers wrote:
Nov 30th, 2018 3:47 am
I have a friend who confided that he recently cashed out cryptos around $10M + CAD after tax. He said he used to have much more than that but he sold to protect his remaining capital.
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life. I dont know what kind of advice i can give him other than telling him, it's a lot of money.

What do you think? Would you retire? Would you keep working? He still works at his 9-5 job. I don't know why he's still working; I'd start a business!
Personally I'd buy a small apartment building and hire a management company to run it. It might not be the best investment in a $$$ return, but it would provide me with long term steady decent income, and it would help preserve affordable rental housing in my city, which is something I care about. Too much of this type of housing is being torn down and replaced with luxury strata units that are used as safety deposit boxes by investors who just let them sit empty.
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Member
Jan 4, 2017
305 posts
140 upvotes
While I like what I do just fine and it's a great gig, it's not like an ultimate life passion, so it's a no brainer - I'd quit my job. Whatever portion I'd need in order to guarantee my current income perpetually would go into a dividend portfolio. Free of the time and money constraints, I would spend a lot of my time traveling and pursuing photography dreams.

There are so many things on the list of never enough time and money to do, that it's hard to fathom having that liberation. I'm pretty sure I wouldn't spend as much time on this forum, LOL
Deal Addict
Jul 27, 2017
1819 posts
664 upvotes
GTA
$10 million in a zero interest chequing account drawing $5000/wk will last approx 40 years

OK, so spend $2.5 million, clear the debts, $7.5 million left, draw $5000/wk it will last 30 years

for a senior, the money would out live them
Deal Addict
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Aug 10, 2015
1357 posts
316 upvotes
St. Catharines, ON
Early 20s - Low risk investment. Finish university degree. Work in bicycle shop for fun. Race mountian bikes all across North America
Mid 20s - Low risk investment. Quit 8-5 job. Buy an awesome 4x4 truck, and modify it for overlanding. Drive all over North America, hitting as much dirt as possible.
Late 20s - Smart investment. Quit 8-5 job. Travel the world with my wife. Maybe start a YouTube channel.
Last edited by rkjredflag on Nov 30th, 2018 2:50 pm, edited 1 time in total.
Deal Fanatic
Sep 16, 2004
7761 posts
1044 upvotes
Toronto
He should get some professional investment advice and don't put all into one basket.
Continue on with life. Do what he really likes in life.
Try new things, travel, school, career wise etc.

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