Ask HN: What did you do when you suddenly got rich?

Re:Ask HN: What did you do when you suddenly got rich? by dev_dull on Wednesday July 24, 2019 @11:28PM (#20522314)

First of all congratulations. The great thing about being rich is that you only need to get rich once, then you need to preserve it.

I’ll focus my comment about things often overlooked:

Insurance. Medical, home, car, and umbrella insurance. KEEP GOOD MEDICAL INSURANCE.

Work hard on your privacy. People with deep pockets are juicy targets for lawsuits. Start an LLC (with a name not associated with you) and transfer things like real estate to it.

Investments: there are tax-free investments such as muni bonds. Invest in rental properties (under your llc). There’s no shame in sticking a bunch of money into an S&P 500 index fund. Capital gains are wonderful.

When you speak with an accountant, tell them specifically you’re interested in tax deferment and protection strategies.

For your children’s education: look into front-loading their 529 plans.

If your accountant doesn’t mention this type of stuff then find another.

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Re:Ask HN: What did you do when you suddenly got rich? by ThrowHitJackpot on Friday July 26, 2019 @10:28PM (#20540017)

agreed re keeping it is harder than making it. Made a fair bit in the past and didn't keep it.

Agree re: insurance - raised umbrella to +$3M and car to $1M. Perhaps raise home though umbrella helps that?

Agree re: tax optimizing.

For 529 front loading, there's apparently a way to do a 5 year- averaging that allows you to put 6 year's worth of 529 in. In my state a certain amount is tax deductible, so I'll factor this in.

Accountants seem good at calculating - not so good at ideas. I'm expecting my RIA/Advisor will help here, but I'm on a track consistent with what you've said - thanks!

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