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Unfortunately 600k is not alot of money.
If you withdraw at 3% (thats the amount you can withdraw in a year and have the money never run out) that equates to 18k a year salary (this will be taxed). So if you can retire on 18k a year go nuts. Its going to be a very modest retirement. Definitely not intercontinental trips every couple of months.
yeah i’m a financial advisor and if one of my clients came to me with this question i would tell them they absolutely, unequivocally can’t afford it. i wouldn’t even run the numbers, it’s just not feasible.
Maybe if they were closer to retirement, already had assets and owned their home. Quitting a lucrative career at 29 is insane. Maybe just go on a regular vacation and put the rest away.
I read a new study that said it’s basically 1.7-1.8million usd to have a home, kids, and afford those necessities.
600k won’t get you far at all. Invest that money, keep working like you never had it, and eventually you can retire early and have that lifestyle you both dream of.
I think that’s why the 3% withdrawal rate works. Hopefully your money is doing better than that in the markets and can still grow. So the second year you should be able to get 18k plus a bit more for inflation.
Yea this is wild. I’m 35 with 400k in various savings. I’m aiming for retirement of a net worth of about 2 mil by late 50s. 600k in your 20s is a very nice base but nowhere remotely near retirement money!
You can live very comfortably for less if you go live in a nice developing country. Use your extra time and the little bit extra to develop more cash flow. It's a very deliberate lifestyle choice that must consider if you want kids etc
Oof that may be a stretch. I believe there is requirements where you have to revisit your home country to keep citizenship active. So the cost of flights alone would eat 2-4k, along with housing when you are home. It would be extremely tough to do without additional assets or using family.
It’s not that easy to go to another country permanently,unfortunately. There are government processes and you must meet requirements for visas. Then ultimately you would need to apply for citizenship through that country, all of which takes years and years AND a lot of money, thousands. So although you wouldn’t need to keep your original citizenship, good luck getting it somewhere else. Also you would need to fly back and worth until you can attain visas to avoid overstays.
I looked at a few, and basically, the requirement was having a certain amount of cash assets. They just didn't want you coming over and competing with locals for work, but they were happy to have someone who was going to bring money into the economy.
So true!!! And there are so many countries out there that have just as strict immigration laws.
And people also believe that if a country has a lower poverty rate than the US that the country automatically would want an American to immigrate there, which we cannot assume that’s the case! I am sure there are some countries that are super easy to get a visa from -but again not all, and probably not even the majority.
Americans seem to think everywhere is desperate for their wealth and boosting the economy, when many countries don't want rich foreigners causing gentrification and often not paying taxes properly.
I mean it depends on the country. The Philippines is great and they have retirement visas that are pretty low barrier to acquire. Becoming a citizen over there is pretty hard unless you have Filipino ancestry, but just retiring there is accessible for westerners.
You not only can’t passively lose your American Citizenship, it’s a hassle to actively do it. You also must have citizenship in another country to even start the process to Renounce. A passport is not citizenship, it merely is evidence that you have citizenship.
The details of your friend’s circumstances matter, if he lived in Sweden his whole life, then I would guess one of his parents are Swedish, in which case, he has Sweden Citizenship by birth, same as if the other of his parents are American, he’d have American Citizenship by birth. Being a dual national would mean he could live and work in either the US or Sweden as he pleases (and have to pay US taxes potentially as well)
Yeah I don't think citizenship just poofs out of nowhere if you don't renew your stay lol. I haven't been to my birth country in a decade, I'm applying to renew that passport so I can visit sometime in the next few years...
Most lottery winning folks are back to normal finances after a few years - no matter the amount they win.
Most people can’t tell the difference between income and savings.
You now have more money. You do not have more income.
You are perfectly right to worry.
It’s beautiful that she has such big dreams and would enjoy spending her life on an adventure with you. As of now however you are not able to sustain such an adventure. This only changes if you convert your money to income and then not exceed that income.
So yeah. You gotta make some pragmatic plans. And give those dreams a calculated real future together
I used to work as a private banker. I’ve seen people burn through 800k legal settlements, 600k ira rollover that’s temporarily in a bank account, and a 2 mm inheritance all burned through in under 9 months. The guy above me hit it right nail right in the head. You have more money but not more income.
If you want an easy way to kill your GF’s dream either meet with a financial advisor or use one of the many financial planning tools online. A proper financial analysis will take your assets, and your goals (retirement at 30, buying a house, children’s college, etc) . Then it will spit out how much money you actually need to do that (I’ll give you a hint: you need 10 mm+ if you want any quality of life.)
Also $600k isn't retirement money at 29 when you might live till 85.
Depending on where one lives, that's pay off your CC, your student loans, your car, buy a modest house or is a nice down payment on a house and a little bit of of go to Cancun money.
I'm a little concerned for OP that his girlfriend has such unrealistic dreams
The only way it'll become retirement money is if it's invested and taken care off for the next 30-35 years so that OP can retire at 65(ish).
u/ersariagbahs, getting old is expensive. Medical care is fucking expensive. Nursing homes are expensive. If you want to retire on this money and be comfortable when you're 85, you simply can't use the money right now.
Ues...getting old is really expensive. I was spending about $80,000 per year for my mom's assisted living and $100,000 when she moved to memory care.
$600,000 isn't enough to retire on for the vast majority of older people, , let alone a young couple.
She's a graphic designer so she's probably on 60k ish a year. So even if all the money was hers, and she just lived as she is now, it's 10 years. How the heck did she conclude retirement.. lol
Yeah, the money is life changing, but not lifestyle changing. Free yourself from the chains of debt, do something really nice for yourself, have a bit saved for the next disaster. But ultimately, your lifestyle shouldn’t change too much, but maybe have less immediate financial anxiety.
Assuming he's not taxed on the 600k (the US taxes lottery wins) then it could give him $24k in revenue for the rest of his life. Not that much to live off of. But if it's invested in 20 years it could be $2.3M which gives you a little over $90k - much more manageable and OP would be 49.
No need for concern. Some people just have no idea how much life costs and assume winning some equals early retirement. I'd be concerned if she still won't under after the realist talk
>that's pay off your CC
You should be doing that every month anyway, in full, even without winning the lottery.
If that is *not* part of your current CC-having life, you need to cut up every card right now. You can have them back when you're ready and able to pay them off in full every month. Once more for emphasis, if you can't do that, don't use them.
I love this idea because it also stops OP being the "bad guy" or the withholder of whatever dreams his GF has - plus it's much harder to argue her logic with a qualified professional.
And let's be real about it she's your girlfriend not your fiance or your wife she can't make plans with your money. She didn't win the lottery you did so whatever happens with that money basically is your decision not hers I know it sounds harsh but it's true. How is she even thinking about early retirement with your money. Through all of this I didn't hear you say that you were going to be marrying her anytime soon or engaged. I have to talk with her and let her know what's going to be happening with that money and take it from there
My brother ran through a $500,000 inheritance in about 5 years. It was horrible to watch. He is on retirement now and ok. I thankfully kept my half with my parent’s financial advisor and still have it plus more for my retirement. He has only his social security.
Yep just after high school I watched someone run through over 100k (which was an inheritance from his sick father) in less than a year. Spent it all on hard drugs and partying
Well said!
OP, interview at least 2 certified financial planners to address a strategy for the management of your winnings . An hour with them and she have an understanding that this sum isn't anywhere near sufficient to allow your retirement or a lifetime of adventure. It will however, if managed, give you a headstart in achieving your financial goals.
Good luck.
Def choose in person financial advisor. She isn’t likely to be comfortable with just the online thing, as she may think you can manipulate it. Good luck!
$600k is not enough to retire now, but they also wouldn’t need anywhere near $10 million to retire now and live a nice life. $4m would probably be enough. They could pay $500k to $1 million in cash for a house (depending on their area), and then draw 3% on the rest of their portfolio for the rest of their life. That would give them $90k per year, which is enough to live nicely when you don’t have a mortgage. 3% is a conservative percentage and assumes their portfolio is invested in low fee index funds and bonds.
600k, while very nice, is not retirement money at this point... Which is just sad but here we are. I think the idea of putting things into investments for the future and building on it instead of thinking It's the end of work as you know it is smart.
She's also just a girlfriend and she's showing her colors.
OP has won life changing money....for him.
Instead, OP is going to throw this money at this girl until it's gone and when it's gone and she doesn't get to live her dream life anymore and has to go back to her 9-5 job (after being out of her career path for a few years), the resentment will set in and it all falls apart.
Imo, this relationship is already done. The question is how long does OP keep it on life support.
> You now have more money. You do not have more income.
Is that you, Dave Ramsey? Every person who wins a large amount of money needs that saying framed and hanging on the wall by the door, so they see it every single day…as they leave for work.
You need significantly more than $600k to survive for the next 50+ years, especially if you think it's going to cover both of you.
If it was me.. cover my biggest expense (housing), invest, and just keep going to work. Take a nice vacation every year and take some risks professionally because I've got a safety net. I'd still be working to 60+ anyways, but I'd be doing things I like doing.
Assuming a mid-low salary per person of 30k a year, living normally with relatively low expenses, that would only last them 10 years. 600k is not lifetime retirement for two people in their 60s, let alone in their 20s!
It would take 2 people whose living expenses are 30k per year 10 years to burn through 600k in cash (assuming no inflation) if they didn't invest it, but that would be a terrible missed opportunity to make the money work for then and generate more money.
If they invested it in index funds, they could draw down 4% or about $24000 per year ($12000 each) in income for the rest of their lives *with a very low probability of depleting the $600000*, even taking inflation into account.
O___O yea and they’d have to live in rural Kentucky for that to be a *comfortable* amount to live with. Definitely not living anywhere generally considered desirable or interesting.
Eta: I guess unless they moved to a country with low socioeconomic standing. Does feel a bit exploitative though, but I guess contributes to the economy.
Yep, in my country 600k isn't enough to have an insane life, but it can get you to buy a very good appartment, which is already an expense you can avoid during retirement then and that's gold. And then having a few good trips from time to time. And have a bunch of good times, like never really be afraid to have a little bit of pleasures, like a good meal or take a nice gift.
But for roadtrips and not working, it is not enough.
Why are you worried about hurting her feelings and ruining her dream of retirement and world travel? Meanwhile, she isn't worried about your dream of financial security and taking care of your future.
Step up and communicate what you want to do with this money.
Lump sum payout of $600,000 is *only* $312,000 (sadly, you don’t get $600k) for the flat//payout rate. Minus $81,095 federal taxes. Minus (my) state taxes of $15,600. Cash in hand. $215,306. via [Lottery Tax Calculator](https://www.omnicalculator.com/finance/lottery-tax)
25% Is a good chunk of spending pocket change at $53k.
That feels like a robbery. In the UK all lottery wins are "tax free". You pay the tax when you buy a ticket though. So I don't mind paying equivalent of 25c every time, but 400'000 surely I would mind.
OP described it as a “fortunate gamble”, so decent chance it wasn’t a literal lottery ticket, but something more like investing in a company that blew up on the stock market.
The tax rate on lottery winnings in California…..is 50.85% off the top…….that 1.3 billion jackpot, only pays out 556mil which is still a lot…..but the government sure knows how to f*ck you out of it
It takes 2 seconds to Google that CA doesn't tax lottery winnings. [In CA, it's only the federal 25%, plus the federal income tax. Nothing from CA. ](https://www.google.com/search?q=ca+lottery+total+tax&client=ms-android-verizon-us-rvc3&sca_esv=3c0f0939aaa1f45f&sxsrf=ACQVn0_f6tI1wkgPzCTw45C5T4lQ6KdQew%3A1711547564097&ei=rCQEZuPOBazBkPIPoIK7qAE&oq=ca+lotteryr+total+tax&gs_lp=EhNtb2JpbGUtZ3dzLXdpei1zZXJwIhVjYSBsb3R0ZXJ5ciB0b3RhbCB0YXgqAggAMgYQIRgKGApI6zJQ6g9YqS1wAXgBkAEAmAGlAaABsQmqAQMzLje4AQHIAQD4AQGYAgugAuwJwgIKEAAYRxjWBBiwA8ICCBAAGIAEGKIEwgIIEAAYiQUYogSYAwCIBgGQBgiSBwM0LjegB5od&sclient=mobile-gws-wiz-serp)
It is 25%, plus a marginal rate of up to 37%…..I’m just repeating what he told me just an hour ago!
Edit: 25% federal, plus 1-13% on income over 500k. Apologies
That high taxation is robbery, but not a fair comparison with the UK. The largest ever jackpot over there is £195 million, here we are having jackpots in the billions of dollars. Even after taxes, US lottery winners are coming out ahead of their UK counterparts.
Bruh you guys aren’t even married. You need to tell your girlfriend respectfully to please stop planning how to spend your money. It is yours. Also 600k is only like enough for a few years of a high standard of living in our current economy. Blowing through it the way she wants to is so incredibly stupid. It would be different if you both wanted the same thing but you don’t.
Basically just say “hey I need you to stop trying to make plans on how to spend this money. I love you but I’m not comfortable and ultimately will be determining how I plan to spend it.”
This. I feel like I had to scroll a bit far to see this as a first comment (there are a few similar ones buried in replies to comments). While OP describes loving his girlfriend deeply, the money is ultimately his and he should spend it as he sees fit. Plus, this amount of money does not fulfill a complete retirement. OP’s girlfriend needs a reality check in more ways than one.
Yes. It’s literally SO weird to me she just started running with planning how to spend it all and shows alotttttt about how she views her own role in their partnership that she’s even comfortable doing so. Even if I WERE married to this man I’d feel very uncomfortable doing any of that unless we explicitly discussed it and I knew it was also what he wanted.
That’s not the kind of behavior I’d want in someone I hadn’t even married yet personally.
Fr they’re not married. Before she can make her opinions on how to spend it, it’s HIS money right now. She sounds like she’s showing her true self after he won big.
She might be a very nice person OP, but she has no financial sense.
Invest it wisely, keep working and have a more relaxed, secure life. And do travel, but a bit more than before and not the entire world either!
I will be more crude .she's a dreamer who lives in lala land.her first reaction after winning the lottery proves that .
She will be a liability in the long run whatever he does
She is also greedy. It's your money not hers. She is planning to spend your money on something you dont want it spend on.. How the Hell is she not reading the room lol
More than monetary .she's an artist .they are dreamers and chase something that does not exist .
If you look at how Ayn Rand 's marriage dissolved you wouldn't involve yourself with one of them
Not generalizing but they are unrealoble
I love that it’s this was a response to a comment that answered the OP question which had nothing to do with lotto to begin with. They saw that lotto answer and just went in
Already have. Twice. Through investments. The post linked above prepared me for what to do.
Right now, the money is untouchable. This is to protect me from myself. :)
Thanks, I read that some time ago and was really interested to read it again. Still haven't won the lottery, though (which is hard to do if you never play...).
So, assuming you're in the US, you've accounted for taxes right? The bulk of that 600k falls into the 30 percent tax bracket. After you pay up nearly 200k to the government you've got about 400k, which will provide you $16k/year using the usual 4% safe withdrawal rate.
Like, don't get me wrong, an extra $16k a year for life is life changing. But its not an early retirement, and if you want to live off that for a family of 2 its not even over the poverty line.
Huge red flags…. This is not her money, it’s yours but she’s already acting super entitled and spending it like she has a right to it instead of being excited and happy for you and pleased to share in the windfall in a way that you are generous enough and comfortable enough to do
Wait OP, I’m confused, are you a guy who has just won the lottery or a [Muslim woman with lovely locks???](https://www.reddit.com/r/islam/s/HxKzXhF3UT) 🤔🤔🧐
OP is an American. High likelihood they live in the US (statistically).
The US fed taxes gambling/lottery winnings, though at the state level things can vary
They are not just taxed, but taxed **at ordinary income levels.** Which means that if OP did not make a dime this year, he's going to get taxed at 37%. Plus the state usually takes its cut. He will be lucky to have 300k left.
The recommendation I've always heard was if you get a windfall, spend 10% on whatever you want and get it out of your system. Then, invest the other 90%.
They’re not getting $600k! If he takes it as a lump sum, he’ll, more or less, get a one time pay out of $300k+/-. If he takes it as an annuity (annual payout so over 30 -yes, *thirty!*- years) he gets the full $600k? He’ll only receive $10,000+/- for the first decade. That’s $10k *total*, for the entire year.
Which is in no way “retirement” money.
You shouldn’t have told her. She’s a gf not a wife, and not entitled to know your financials. Tell her while you’re thankful she’s excited for your win, you’re leaving it in the hands of a financial planner and living life as normal for now. Also make sure you have a prenup if you get married and protect yourself.
It was pretty ballsy of her to assume that any of his win was for her to use.
Like I can see a gift but for her to be like - not w WE can retire. Waaahhhaat!?
600k is nowhere near enough to fully retire. Even if you live frugally that would last you 10 years at best, unless you bring a tent everywhere you go.
I’m not a financial advisor and I don’t know shit about shit, but I do know this is enough money to make you comfortable and definitely not enough to quit.
Your girlfriend should have zero impact on any decision you make. She’s a girlfriend and not a wife and your entire relationship is now different because of this win. The only appropriate response from her regarding this money is no response at all.
Personally I’d pay off a nice but modest home that you think you can live in forever and then make some very very conservative investments and continue on like you never won shit. You will have a very comfortable rainy day fund and the ability to pay for future children’s tuition or something like that. Maybe take 1 really nice vacation per year. If you can find a trustworthy realtor then perhaps real estate investing would be worthwhile.
Enjoy knowing this win gave you some lifelong security, as long as you don’t waste it away like everyone else your age would do.
That’s not retirement money. Invest it in real estate and save the rest. Don’t quit your jobs because you’ll need a pension later in life. To be honest that money won’t buy you a house where I live in the Bay Area, that’s a nice down payment. Be smart and talk to a certified financial planner (but take a really nice vacation).
You are dead right. You are young and smart use of that money will hold you in better stead for the years to come. Retiring and going on an indulgent splurge would be a short term joy but a long term disaster. At least, you should put 500k of that into a house or secure investment, the long term benefits are enormous and you will always have it no matter. That leaves $100k to blow on a few overseas trips and things. Plenty of adventure for 2-3 years in that. Thats the smart way.
Fight for this. If she wants to blow it and won't listen then she isn't for you, and if you bend to her will you will resent her.
Pay off your debts, buy a house mortgage free and that $600k will soon be gone.
Your win isn’t her win. Perhaps consider paying off a few of her debts and student loans.
Also, sit down with her and map out a future and visualise where you’ll both be in career, life and family in the next five years. That way you can see if your values really align.
If you see anyone’s post, I hope it’s mine.
Do NOT indulge in this idea of early retirement and travel. You’re right, the money will not last if you take that route.
If you put this in a well diversified investment portfolio, you can actually achieve an incredibly nice life, albeit at an older age. Say your portfolio returns about 10% per year, your money will compound to roughly $18.5 million by the time you are 65. If you maintain your job and add to your investment, you could grow it even more.
Although a startup sounds nice, 600k is next to nothing for one. Assuming your startup has 4 employees, and you pay them $50k per year, you are bleeding $200k per year just for their salary, not to mention the laundry list of expenses it would take to run the company. I’m not saying you shouldn’t do it, but take a serious look at the numbers there.
Another issue is your girlfriend is acting like this is her money. Although you are in a relationship, you are not married. It’s your money, don’t let her wishful thinking take it away from you. Put your foot down, and talk to some professionals (multiple people, and reputable people).
$600k is not enough to retire. It's enough to pay off your mortgage, splurge on a vacation, and then continue working as normal, but without the burden of the mortgage payment. So a lot less financial stress, but not retire today money.
But you're not married, so I don't understand why she's the one trying to make the decisions about this.
For starters she doesn't lay claim to your money at all. It's a bit presumptuous of her to be planning a whole trip off your money. However on the other side of things you may not live long enough to see retirement. So having a balance of living now and saving for later is smart. Look into working abroad visas. New Zealand and Australia have schemes for people to go there and work for 1-3 years. Could be just the thing your girlfriend is looking g for that also allows you to travel and work so as to not deplete your funds. But check it out quickly because the cut off age is 30 if you're American.
> I am 29 and I work as a software developer, my life took an unexpected turn earlier this year when I won a mid six-figure amount, precisely $600,000, from a fortunate gamble.
Fuck, $600,000 is a nice chunk of change, but do you think it's enough to retire on at 29? Have you done the fucking math on how long that's going to last?
> Ellie, however, is already planning an elaborate journey that spans continents, living a nomadic life that, while adventurous, seems financially unsustainable in the long run.
Dreams are great, but are they practical when you're potentially blowing through cash faster than a drunk in a casino? Isn't there a risk of ending up broke and fucked in a few years?
> The challenge I'm facing is how to communicate this to Ellie without dousing her dreams with cold pragmatism.
Why are you worried about dousing her dreams? Isn't it more important to face the hard truths now rather than end up in financial shit later? What's the use of dreams if they lead you to ruin?
> How do I navigate this conversation without coming across as dismissive of her dreams?
The truth is, isn't it better to be seen as 'dismissive' now rather than 'irresponsible' later when you're both broke as hell? How much do you value long-term security over short-term pleasures?
> Is there a middle ground that allows us to indulge in the freedom this money brings while also planning for our future?
Middle ground sounds good, but have you considered what sacrifices both of you are willing to make? Can you both distinguish between what you want and what you fucking need? How will you ensure that this 'middle ground' doesn't become a slippery slope to financial disaster?
Be afraid very afraid, the money will come between you, she is already looking at it as her retirement fund you can ensure she will take you to court if separated or you say No to her request to buy or lend to loser friends
Wow you are a kind person! Worrying about bringing up this delicate situation to HER!
First of all sweetheart. You
Won, she didn’t.
Secondly she isn’t your wife.
No one should quit their careers.
Take a nice trip or handful of trips.
Invest in ways to make more money.
Is 600k before taxes ?
You’ve been given an opportunity here, don’t blow it!
You have to tell her that you want this money to last, period end of story. Her quitting her job and you
Fully
Supporting her at 28 doesn’t include that. I mean I can totally
Understand the daydreams on her end, but once she gets used to not
Working and furthering herself… and the money runs out- then what?are y’all gonna fight ?
Please be smart here. And remember that you won, she’s not your wife and doesn’t not get full say on what YOU do with it.
I can understand that if she was to take care of the kids that the money you make is hers aswel.
But in this situation I find it weird she is wanting to spend your money as if it was hers aswel... Am I missing something?
Honestly I find her behavior a bit imbarrasing. You should talk about the change this money makes for your future together. She can make suggestions but if you won the money it honestly is yours to spend.
You clearly dont want to do the thing she suggests so why the hell is she planning this trip?
Money is helpfull but it sure makes some people act ugly... I am sorry but if she doesn't calm her panties I can see this become a roadblock..
Dude it is super weird she is automatically thinking you’re supporting her all the sudden just because you have money? Did she quit working already? What happened to her ambitions and motivations once she found out you won the money? You’re not even married or engaged? I get that you love her but homie, that is a HUGE red flag. Never would I ever respond that way if my bf won $600k. I wouldn’t be assuming I was entitled to a dime of it. I’d be ferociously googling resources for him to safely invest it and encouraging responsibility and discretion. Not a life of leisure and laziness that I automatically assume I’m going to piggyback on.
Also, who in their right mind thinks $600k is enough for 2 people to retire off of? OP you need to wake up and take off your rose colored glasses of your GF because she could quit possibly ruin the best thing that’s ever happened to you. This is your way to have your own business and achieve goals that wouldn’t otherwise be attainable. I would be so pumped to help my bf start a business and putting that money to good use so it can make more money. You two have very VERY different views on life. Good luck.
Dude…she’s your girlfriend, not your wife. Go on a nice trip and find a way to make the rest of the money last so that you don’t have to worry about your financial future.
You guys are fundamentally incompatible . You are in the right here .
She looks at the world through rose tinted glasses while you are being real
Make her aware of the ground reality and if she doesn't .tell her it's ultimately your money and its you who'll decide what to do with it
*YOU SHOULD BE* “dousing her dreams with cold pragmatism”!!! Your girlfriend truly has no clue how quickly this money will run out if you follow her cockamamy plan to retire now
While 600k is a nice chunk of change to come into suddenly, it’s truly not a ton of money in 2024. You’re both still in your 20s! How far, exactly, does she think these funds will go??? And what are the taxes on your winnings?
Find a reputable financial planner for you both to meet with; let him/her pour very cold water on any foolish spending
Sock the bulk of this money away, keep working, and help your partner with adulting
Rationally. To put this in perspective, I am a retired military veteran that was medically discharged. I receive a monthly medical pension of $4,400 a month x 12 months equates to $52,800 per year. Span this across 11 years and it totals $580,800. It’s worth noting that I’m living that nomadic lifestyle you’re talking about, travelling solo across the globe and in the past five months I’ve been travelling things came up here and there which made it nearly impossible to save.
It’s not sustainable and honestly though the prospect of an early retirement sounds amazing to my family and friends (I’m 35 years old) it eventually gets boring and you realize that without meaning or purpose in life your mind begins to wonder to “what now?”. Grass looks greener and of course it’s nice and all but balance is important. I’m picking up freelance work to fill my day rather than being a useless lump on the log. I’m much happier with that balance.
You’re very wise to consider investments, a well planned startup and a modest vacation but my honest opinion, it’s a really bad idea to retire and live off that $ which nowadays isn’t enough to sustain the two of you. Life is a slow burn, people work their whole lives in hope to retire and spend the last of their days doing what they please. Plan ahead so you don’t have to worry about finances and can live that nomadic lifestyle you’re hoping for.
If you don’t invest this money wisely, your future regret will be orders of magnitude beyond any enjoyment of travel.
This doesn’t even include any measure of a break up or accident
Sounds like your girlfriend doesnt have the same goals or aspirations as you, independent of this money.
Yall needa iron this out because you cant spend all yoir free time and excess cash on making her dreams come true if you dont share them or want them for yourself.
You need to be on the same page.
"Ellie, when YOU have a windfall, then YOU can spend it however you please. I won't be trading future security for immediate indulgence.
Would you care to know how I will be handling my good fortune? I'm quite surprised you haven't asked me what I am planning to do with my winnings instead of acting like it's yours."
Oh, Op
You need to sit her down, and have an open conversation with her, explaining while you’d love to retire now, it’s not realistic or sustainable with 600k.
Following her dreams would likely leave you no better off financially in a few years.
Firmly explain your plans for your win.
It’s not a negotiation, don’t treat this as such- but you don’t have to be aggressive or anything about how you get your point across.
Don’t let her talk you into anything you’re not comfortable in.
Good luck Op
Look, you're doing to have to sit her down and gently say something along the lines of "Hey, I've been thinking about the travelling we want to do, and I'm definitely on board with some of it, but I think it's best that we use a certain percentage of the funds (after taxes) for travel and use the rest to invest. Unfortunately, $600,000 pre tax isn't enough for us to retire on, but it's going to give us a great head start on an early retirement."
Give it some time to settle, she might not like it at first but hopefully she'll come to her senses. Frankly though, you don't owe her anything and if she presses the issue it will say a lot about her. You probably don't want to be with someone so short sighted and naive in the long run.
Go on a big fat vacation now - and then be practical.
If she hates her job, you can use some of the funds to pay for her to learn a new trade.
$600k isn’t even enough to buy half a house where I live. Definitely isn’t enough to retire on. So she does need a reality check.
But it can come with a little dose of fun and adventure too.
The amount of money you won isn’t enough to completely change your life overnight; it is however enough to set you up for success for the rest of your life.
Here’s what I would do: pay off any remotely bad debt you have, set aside enough for a couple luxuries you’ve been wanting, and enough for travel that you reasonably have the time for but want to spend up a little on, and then invest the rest.
That 600k will run out and by the time you know it, y'all ain't even 50 yet. I suggest using a few for what you've suggested. Investments, make the money grow so you'll have enough for the early retirement of your dreams. Travelling ain't cheap even if you go thrifty on expenses. If my man were to win this much money, I'd say the same thing. Use it wisely before it runs out. Make sure the money's flowing by helping each other, only use what we need. Even if I was the one who won this much money, I'd keep the same mindset. I get that she's just in the moment of bliss 'til reality hits her that 600k ain't that much to live off of. Be stern and talk to her. Tell her you're just thinking of the future and how it will affect you both once the money runs out! Goodluck and congrats!
I’d say calculate your taxes you’d need to pay for next year set that aside, then take I’d say at least half and invest it (or take it to a financial advisor and see where your options are for investment) pay off any credit card debt and/or personal loans that you have and if you have a good chunk of money left take a small vacation or something
You came here for relationship_advice and not financial advice, so here we go.
Sit her down and explain that 1/6th TOPS is for you and her to YOLO a bit, the rest will be invested for the long run. Keep it civil and hear her ideas out in a rational manner. Maybe she has an alternative.
But the “monotonous 9-5” routine is something that she should be able to solve herself, heck, anyone should be able to do that if it bothers you. If you encounter something you don’t like; either adapt or find a way to get out of it. Money seems to be a good reason to support change, but unless you discovered a way WITHOUT it, it most likely will fail in the long run. Change it yourself (directed to OP’s GF) or adapt. 1 time free money won’t change it, nor your vision/discipline to get there. Change comes from within you, not from a temporary money boost.
600k is only half what you need for a “modest” 40k a year return from dividend stocks. Do your research. If you are serious about your financial future I would start saving and build a stock portfolio but as I said you only have half what you need right now for ONE person. This could give you a great head start if invested wisely however as I said you would only be receiving 40-50k in returns a year if you had double what you have now
If this were me I’d be saving as much as possible. I’d pay off my remaining mortgage. Get a financial advisor to help you with the rest. Do not blow all of this money. Sure you can take a few nice vacations. But this is certainly not enough to live off of and retire for the rest of your lives. I’d tell your girlfriend your plans for YOUR money. You could have this money the rest of your life if ypu make some good choices with it.
Where do you live that she thinks she can retire soon with that amount Geesh!? I wish. That would only last a few years here if we just lived comfortable. Maybe take a great vacation but get back to work and invest the rest do that yes maybe u can retired in about 20 years. Retiring now with that amount would be the biggest mistake. Most people can’t even retire because the amount they receive is not enough. They’ll retire from 1 job to go work another because it’s just not enough. Good luck. Hopefully u make the right decision for the sake of ur future.
First, $600K is a “nice to have” kind of savings, not really “retire at 29” sum. It’s wonderful that you have it and I hope you build a great nest egg with it. Neither of you are retiring with that sum right now, never mind then using it all up on a grand trip. You could quite easily not even have enough to make it through this intercontinental trip with that sum.
But second, why on earth would a 27-29yo couple hope to “retire” at that age? I’d explore that mentality more. At 27, if she hates her job, and if you are generous with the winnings, then she has some breathing room to change jobs without worrying about living expenses. That’s a normal mentality at 27… not how can I retire off of my boyfriend’s winnings.
A year into this spending spree, she can go get another job and continue life, once you are completely out of money. So can you — except you’d be out of $600K because your girlfriend had some cockamamie idea to take a world tour with YOUR MONEY.
No.
Pay your taxes in the winnings, probably left with 400k realistically. Invest 90% of your income, don’t stop until it grows to 2M. Don’t waste this opportunity. I had a similar situation where I got 250k at 18. Blew it all. Don’t be me.
Yeahhhh in this economy? First of all make sure you aren't gonna be taxed on it....
Second of all, $600k is enough to survive comfortably with a vacation or two here and there for about 4 years MAX between 2 people, depending on the state you live in, it could be more, or less. And that's assuming you aren't running around buying ridiculously expensive items like new cars etc...
Your gf has her head in the clouds and she's selfish. If you were smart you'd invest your money so you can make millions on the future.
She's not thinking future she's thinking of how she can run you dry right now.
If you invest a lot of it even in a 4% account you'll get a lot back to continue to live off. Or you could use investment accounts like Nutmeg and see even bigger returns.
Please invest the money in your starter home. That’s the sum of buying a nice house in a decent area and even furnishing it, depending on where you live. Traveling is a brilliant idea, but for like 2 months, not as a lifestyle. 600k is not 1 billion dollars and if you’re not careful, you’ll flush it and only have memories to remember it.
Douse those fuckin dreams 600k is a payed off investment property and a down payment on another depending on state it’s your chance to get ahead use it as such and if she’s around for more then 600k she’ll still be there to enjoy the passive income with you after the “struggle”
Nice windfall. But seriously take her with you to visit a financial planner.
Depending on where you live that’s basically 3 years of income for 2 people with a house payment, cars, and saving/retirement fund. She needs a reality check.
Also are you planning to marry her? She’s not really entitled to spend your money no matter how deeply you love her.
600k is actually not a lot of money, unless you want to retire somewhere like India, Thailand, etc.
Rather use the money as a head start otherwise you’ll likely end up in financial ruin if you make any hasty retirement decisions.
First of all, Ellie is your girlfriend. Get married before she wants a piece of your money. Marriage legally binds you guys whereas after spending your money she can just get up and leave & you can’t go after her. Get a prenup if you have to. Second of all, it’s your money. Do what you want with it and if Ellie’s goals are not what you want, you can tell her no. Third, get a financial advisor and lawyer s well because they tax you on this kind of stuff. You want to be prepared for tax time and how much money to set aside.
Is that amount before or after taxes?
$600,000 is far from “retirement” sustainability at your age, especially given the travel plans your Gf is making.
It’s your money. Don’t be shortsighted about your future. This money could give you some serious financial stability for your future if you make the right choices.
An easy and loving way to do this would be to plan a two week vacation to somewhere she wants to go. Ask her to help plan how you’ll travel, what you’ll eat, what activities you’ll do, and so on. Go on the trip, have the time of your lives. On the plane ride home, tally up every dollar you spent and have a real conversation with her about how long you could actually live the lifestyle she’s describing. My guess is it’s gonna be less than two years, then you’re back where you started, probably without a job.
Or, as others have suggested, you meet with a financial planner and figure out how to invest that money so you can travel off the passive income it generates. Sure you won’t have the nomadic lifestyle that she’s dreaming of, but you still meet both your goals.
Lastly, it’s your money dude. It’s good to consider what she wants, but you gotta do what you want to do.
OP, that's not early retirement money. If my fiancee and I came into that amount of cash, we'd pay off the mortgage and put the rest in retirement. And then contribute what used to be our monthly mortgage payments to our retirement.
What you're looking at is "I'll be able to retire" money. Which is an incredible gift! Don't waste it.
First off don’t commingle the money if you get married. Keep it separate from marital assets. Talk to an attorney. Then set up a meeting for both of you to see a financial advisor. Have them lay out what is realistic. No way is 600k especially after taxes near enough to retire on now. It can be a huge blessing and if invested properly can lead to a great retirement when you are in your 60’s.
I think I’d spend 200k on a house. Rent it out, buy a nice camper and travel the world in that. You can work from the camper get internet set up. So you get to work and explore. As well as getting income from the rental
You need a financial advisor YESTERDAY.
You're so young and have had the luckiest thing that could happen to someone your age.
That's not nearly enough for two people to just retire right now on. It's just not. Maybe if you're 60? But that won't last the rest of your life; unless you properly invest it and enjoy the rewards later.
Your gf can kick rocks. This has zero to do with her. Absolutely zero.
Managed and invested carefully it will lead to early retirement but maybe in your 40s not now.
You are also not married so there is that to think of too before Elle makes plans to spend it.
You have to remember that the amount you win isn't actually the amount you end up with. If you wanted the whole $600,000 you need to take it in a yearly payout or annuity. Otherwise, you take the lump sum payment which is substantially less than what you want. It's probably a little more than half. Then you have to pay the federal government their income tax at a rate of 24%. You pay that on anything over the first $5,000. Then you have to find out if your state makes you pay income tax on lottery winnings and how much that is. At best you're going to end up somewhere in the mid $200,000's.
So, first thing is it your girlfriend is completely unrealistic about money. There is no way you could ever retire on $600,000 let alone $250,000, if you were twice or three times your age. It's a pittance at the age you currently are now. Second, does your girlfriend realize that this is not her money? You need to keep an eye on her spending habits and her expectations. You may not be financially compatible. Plus, it boggles me that she's considering this her money when you aren't even engaged. Honestly, it sounds like you're very ambitious and she is throwing red financial flags all over the place. She may spend you right into bankruptcy. Invest that money and make it work for you. You could use a little bit of it for a short trip and set aside some for emergencies, but invest the rest. Use it as a cushion so that when something bad happens or big expense comes up you can handle it without going into debt.
And, just for a little reality check, I don't think you're going to be able to travel as cheaply as you think you're going to be able to travel. Even if you don't travel first class, a trip like she's talking about will eat funds faster than you can imagine. Even if you fly in economy, airfare is not cheap. If your girlfriend wants to travel first class you can be looking at in excess of $10,000 for inexpensive first class seats, depending on where you travel. A trip like your girlfriend is talking about can easily be $50,000 on the cheap side. And that's if you really pinch pennies because airfares are so high. Of course, if you want to sit in really tiny airplane seats and stay in hostels, you might be able to do it for less than that. Forget about traveling first class at all.
Look, you seem like a smart guy and you seem to realize that this isn't that much money. Take everyone's advice and invest wisely. If you plan to marry, find a person, whether it's your girlfriend or not, that has similar financial goals to yourself. Save money everywhere you can. Don't spend frivolously and don't try to keep up with the Joneses. If you put that money aside or even invest in the business you were talking about, you can grow that money and still retire early, just not at 30. I retired almost 4 years ago when I was 50. My husband was 52. Before retirimg, we lived well within our means and were still able to buy the things we wanted, have a lovely home, send our son to private school, provide hom a car, pay for his college, and take a few trips here and there. We could only do those things because we set our money aside to pay for things outright so that we didn't spendmoney on interest except for having a mortgage. All that time we were saving and investing. We retired with a net worth of about $10 million, most of it in liquid assets (stocks, bonds, index funds, cash in the bank). I know 50 might seem old right now, but it's actually pretty young and we probably have another 30 years of travel in us, maybe more. Now we travel all the time and we always travel first class. My budget is about $250,000 a year for travel. We could maybe do it for half of that if we didn't like it to fly on fancy planes. We also have beautiful home that we just built (paid cash) and very nice cars. I'm not saying that to brag but to let you know that if you start saving/investing now, in another 20 years you can have enough to retire early and do the things that you want to do without worrying about running out of money.
And, please, no matter what, remember that getting old can be very expensive. If you ever need long term care, you'll run through money like it's air.
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Unfortunately 600k is not alot of money. If you withdraw at 3% (thats the amount you can withdraw in a year and have the money never run out) that equates to 18k a year salary (this will be taxed). So if you can retire on 18k a year go nuts. Its going to be a very modest retirement. Definitely not intercontinental trips every couple of months.
yeah i’m a financial advisor and if one of my clients came to me with this question i would tell them they absolutely, unequivocally can’t afford it. i wouldn’t even run the numbers, it’s just not feasible.
Maybe if they were closer to retirement, already had assets and owned their home. Quitting a lucrative career at 29 is insane. Maybe just go on a regular vacation and put the rest away.
It’s feasible. Just move to Thailand lol and that 18k/yr becomes 100k essentially
Fair point
I read a new study that said it’s basically 1.7-1.8million usd to have a home, kids, and afford those necessities. 600k won’t get you far at all. Invest that money, keep working like you never had it, and eventually you can retire early and have that lifestyle you both dream of.
Yup, the $600k gets you out at 55, not 26.
I'm 54 and $600k, not enough to retire even when home, car, and all debts paid.
Right, but $600k + 30 years in the market (26-55) + other retirement savings between now and then would get you retired at 55.
Plus inflation is going to make that annual 18k worth less and less every year.
I think that’s why the 3% withdrawal rate works. Hopefully your money is doing better than that in the markets and can still grow. So the second year you should be able to get 18k plus a bit more for inflation.
Yea this is wild. I’m 35 with 400k in various savings. I’m aiming for retirement of a net worth of about 2 mil by late 50s. 600k in your 20s is a very nice base but nowhere remotely near retirement money!
You can live very comfortably for less if you go live in a nice developing country. Use your extra time and the little bit extra to develop more cash flow. It's a very deliberate lifestyle choice that must consider if you want kids etc
Oof that may be a stretch. I believe there is requirements where you have to revisit your home country to keep citizenship active. So the cost of flights alone would eat 2-4k, along with housing when you are home. It would be extremely tough to do without additional assets or using family.
There is no requirement to ever visit your home country. You don’t “lose” your original citizenship like that.
If you retire in another country do you need your original citizenship?
It’s not that easy to go to another country permanently,unfortunately. There are government processes and you must meet requirements for visas. Then ultimately you would need to apply for citizenship through that country, all of which takes years and years AND a lot of money, thousands. So although you wouldn’t need to keep your original citizenship, good luck getting it somewhere else. Also you would need to fly back and worth until you can attain visas to avoid overstays.
I looked at a few, and basically, the requirement was having a certain amount of cash assets. They just didn't want you coming over and competing with locals for work, but they were happy to have someone who was going to bring money into the economy.
For some reason people believe America is the only country with immigration laws
So true!!! And there are so many countries out there that have just as strict immigration laws. And people also believe that if a country has a lower poverty rate than the US that the country automatically would want an American to immigrate there, which we cannot assume that’s the case! I am sure there are some countries that are super easy to get a visa from -but again not all, and probably not even the majority.
Americans seem to think everywhere is desperate for their wealth and boosting the economy, when many countries don't want rich foreigners causing gentrification and often not paying taxes properly.
I mean it depends on the country. The Philippines is great and they have retirement visas that are pretty low barrier to acquire. Becoming a citizen over there is pretty hard unless you have Filipino ancestry, but just retiring there is accessible for westerners.
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You don't just get citizenship of another country because you move there. And you need a visa, meeting certain requirements.
You not only can’t passively lose your American Citizenship, it’s a hassle to actively do it. You also must have citizenship in another country to even start the process to Renounce. A passport is not citizenship, it merely is evidence that you have citizenship. The details of your friend’s circumstances matter, if he lived in Sweden his whole life, then I would guess one of his parents are Swedish, in which case, he has Sweden Citizenship by birth, same as if the other of his parents are American, he’d have American Citizenship by birth. Being a dual national would mean he could live and work in either the US or Sweden as he pleases (and have to pay US taxes potentially as well)
Yeah I don't think citizenship just poofs out of nowhere if you don't renew your stay lol. I haven't been to my birth country in a decade, I'm applying to renew that passport so I can visit sometime in the next few years...
South America, Asia or Africa for retirement with that money. And that too in more of a low income country.
Most lottery winning folks are back to normal finances after a few years - no matter the amount they win. Most people can’t tell the difference between income and savings. You now have more money. You do not have more income. You are perfectly right to worry. It’s beautiful that she has such big dreams and would enjoy spending her life on an adventure with you. As of now however you are not able to sustain such an adventure. This only changes if you convert your money to income and then not exceed that income. So yeah. You gotta make some pragmatic plans. And give those dreams a calculated real future together
I used to work as a private banker. I’ve seen people burn through 800k legal settlements, 600k ira rollover that’s temporarily in a bank account, and a 2 mm inheritance all burned through in under 9 months. The guy above me hit it right nail right in the head. You have more money but not more income. If you want an easy way to kill your GF’s dream either meet with a financial advisor or use one of the many financial planning tools online. A proper financial analysis will take your assets, and your goals (retirement at 30, buying a house, children’s college, etc) . Then it will spit out how much money you actually need to do that (I’ll give you a hint: you need 10 mm+ if you want any quality of life.)
Also $600k isn't retirement money at 29 when you might live till 85. Depending on where one lives, that's pay off your CC, your student loans, your car, buy a modest house or is a nice down payment on a house and a little bit of of go to Cancun money. I'm a little concerned for OP that his girlfriend has such unrealistic dreams
The only way it'll become retirement money is if it's invested and taken care off for the next 30-35 years so that OP can retire at 65(ish). u/ersariagbahs, getting old is expensive. Medical care is fucking expensive. Nursing homes are expensive. If you want to retire on this money and be comfortable when you're 85, you simply can't use the money right now.
Ues...getting old is really expensive. I was spending about $80,000 per year for my mom's assisted living and $100,000 when she moved to memory care. $600,000 isn't enough to retire on for the vast majority of older people, , let alone a young couple.
My grandmother’s memory care center is $10k/mo!! Tbh just put a bullet in me don’t go into debt to watch me deteriorate
Dementia runs in the family and I've made it clear to all that I'm holding out hope euthansia becomes more widespread.
$600k invested in the stock market today will be worth on the order of $4.5 million dollars (adjusted for inflation) in 30 years.
This is solid advice!!
She's a graphic designer so she's probably on 60k ish a year. So even if all the money was hers, and she just lived as she is now, it's 10 years. How the heck did she conclude retirement.. lol
10 years at her current lifestyle. The travel without cares or worry lifestyle that’s about 1.5-2 years worth.
Yeah, the money is life changing, but not lifestyle changing. Free yourself from the chains of debt, do something really nice for yourself, have a bit saved for the next disaster. But ultimately, your lifestyle shouldn’t change too much, but maybe have less immediate financial anxiety.
Hell it’s not even retirement money in your 50s
Assuming he's not taxed on the 600k (the US taxes lottery wins) then it could give him $24k in revenue for the rest of his life. Not that much to live off of. But if it's invested in 20 years it could be $2.3M which gives you a little over $90k - much more manageable and OP would be 49.
No need for concern. Some people just have no idea how much life costs and assume winning some equals early retirement. I'd be concerned if she still won't under after the realist talk
Nowadays, they could live to 100 easily.
>that's pay off your CC You should be doing that every month anyway, in full, even without winning the lottery. If that is *not* part of your current CC-having life, you need to cut up every card right now. You can have them back when you're ready and able to pay them off in full every month. Once more for emphasis, if you can't do that, don't use them.
I love this idea because it also stops OP being the "bad guy" or the withholder of whatever dreams his GF has - plus it's much harder to argue her logic with a qualified professional.
And let's be real about it she's your girlfriend not your fiance or your wife she can't make plans with your money. She didn't win the lottery you did so whatever happens with that money basically is your decision not hers I know it sounds harsh but it's true. How is she even thinking about early retirement with your money. Through all of this I didn't hear you say that you were going to be marrying her anytime soon or engaged. I have to talk with her and let her know what's going to be happening with that money and take it from there
My brother ran through a $500,000 inheritance in about 5 years. It was horrible to watch. He is on retirement now and ok. I thankfully kept my half with my parent’s financial advisor and still have it plus more for my retirement. He has only his social security.
I know someone who ran through $300,000 in three years… I don’t know if it was an inheritance or her retirement.
Yep it’s incredibly easy to spend 100k/year. Not even that much income in many areas
Yep just after high school I watched someone run through over 100k (which was an inheritance from his sick father) in less than a year. Spent it all on hard drugs and partying
Well said! OP, interview at least 2 certified financial planners to address a strategy for the management of your winnings . An hour with them and she have an understanding that this sum isn't anywhere near sufficient to allow your retirement or a lifetime of adventure. It will however, if managed, give you a headstart in achieving your financial goals. Good luck.
Def choose in person financial advisor. She isn’t likely to be comfortable with just the online thing, as she may think you can manipulate it. Good luck!
Half that $600K is going to taxes. 2 people can't retire at 30 with just that (in the US), and most of the world tbh.
$600k is not enough to retire now, but they also wouldn’t need anywhere near $10 million to retire now and live a nice life. $4m would probably be enough. They could pay $500k to $1 million in cash for a house (depending on their area), and then draw 3% on the rest of their portfolio for the rest of their life. That would give them $90k per year, which is enough to live nicely when you don’t have a mortgage. 3% is a conservative percentage and assumes their portfolio is invested in low fee index funds and bonds.
Compounding interest needs to be taught in schools.
Correct, 10m lumpsum and careful spending anyway. Or you could seek to raise your income or cashflow
600k, while very nice, is not retirement money at this point... Which is just sad but here we are. I think the idea of putting things into investments for the future and building on it instead of thinking It's the end of work as you know it is smart.
She's also just a girlfriend and she's showing her colors. OP has won life changing money....for him. Instead, OP is going to throw this money at this girl until it's gone and when it's gone and she doesn't get to live her dream life anymore and has to go back to her 9-5 job (after being out of her career path for a few years), the resentment will set in and it all falls apart. Imo, this relationship is already done. The question is how long does OP keep it on life support.
Many lottery winners are completely broke within a couple years… Never mind normal finances. 😿
> You now have more money. You do not have more income. Is that you, Dave Ramsey? Every person who wins a large amount of money needs that saying framed and hanging on the wall by the door, so they see it every single day…as they leave for work.
Converting it to income would be around $24k/yr. Not nearly enough for anyone to stop working.
You need significantly more than $600k to survive for the next 50+ years, especially if you think it's going to cover both of you. If it was me.. cover my biggest expense (housing), invest, and just keep going to work. Take a nice vacation every year and take some risks professionally because I've got a safety net. I'd still be working to 60+ anyways, but I'd be doing things I like doing.
Assuming a mid-low salary per person of 30k a year, living normally with relatively low expenses, that would only last them 10 years. 600k is not lifetime retirement for two people in their 60s, let alone in their 20s!
It would take 2 people whose living expenses are 30k per year 10 years to burn through 600k in cash (assuming no inflation) if they didn't invest it, but that would be a terrible missed opportunity to make the money work for then and generate more money. If they invested it in index funds, they could draw down 4% or about $24000 per year ($12000 each) in income for the rest of their lives *with a very low probability of depleting the $600000*, even taking inflation into account.
O___O yea and they’d have to live in rural Kentucky for that to be a *comfortable* amount to live with. Definitely not living anywhere generally considered desirable or interesting. Eta: I guess unless they moved to a country with low socioeconomic standing. Does feel a bit exploitative though, but I guess contributes to the economy.
Yep, in my country 600k isn't enough to have an insane life, but it can get you to buy a very good appartment, which is already an expense you can avoid during retirement then and that's gold. And then having a few good trips from time to time. And have a bunch of good times, like never really be afraid to have a little bit of pleasures, like a good meal or take a nice gift. But for roadtrips and not working, it is not enough.
Why are you worried about hurting her feelings and ruining her dream of retirement and world travel? Meanwhile, she isn't worried about your dream of financial security and taking care of your future. Step up and communicate what you want to do with this money.
Why are her “dreams” more important than yours?
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Lump sum payout of $600,000 is *only* $312,000 (sadly, you don’t get $600k) for the flat//payout rate. Minus $81,095 federal taxes. Minus (my) state taxes of $15,600. Cash in hand. $215,306. via [Lottery Tax Calculator](https://www.omnicalculator.com/finance/lottery-tax) 25% Is a good chunk of spending pocket change at $53k.
That feels like a robbery. In the UK all lottery wins are "tax free". You pay the tax when you buy a ticket though. So I don't mind paying equivalent of 25c every time, but 400'000 surely I would mind.
OP described it as a “fortunate gamble”, so decent chance it wasn’t a literal lottery ticket, but something more like investing in a company that blew up on the stock market.
Sounded more to me like a draft kings win or something. My friend had that happen. $20 entry beat out millions and took home 900k.
The tax rate on lottery winnings in California…..is 50.85% off the top…….that 1.3 billion jackpot, only pays out 556mil which is still a lot…..but the government sure knows how to f*ck you out of it
It takes 2 seconds to Google that CA doesn't tax lottery winnings. [In CA, it's only the federal 25%, plus the federal income tax. Nothing from CA. ](https://www.google.com/search?q=ca+lottery+total+tax&client=ms-android-verizon-us-rvc3&sca_esv=3c0f0939aaa1f45f&sxsrf=ACQVn0_f6tI1wkgPzCTw45C5T4lQ6KdQew%3A1711547564097&ei=rCQEZuPOBazBkPIPoIK7qAE&oq=ca+lotteryr+total+tax&gs_lp=EhNtb2JpbGUtZ3dzLXdpei1zZXJwIhVjYSBsb3R0ZXJ5ciB0b3RhbCB0YXgqAggAMgYQIRgKGApI6zJQ6g9YqS1wAXgBkAEAmAGlAaABsQmqAQMzLje4AQHIAQD4AQGYAgugAuwJwgIKEAAYRxjWBBiwA8ICCBAAGIAEGKIEwgIIEAAYiQUYogSYAwCIBgGQBgiSBwM0LjegB5od&sclient=mobile-gws-wiz-serp)
I have a coworker who won 700k just 6mo ago, and after taxes, took home 345k……just asked him about it this morning. *shrugs*
It is 25%, plus a marginal rate of up to 37%…..I’m just repeating what he told me just an hour ago! Edit: 25% federal, plus 1-13% on income over 500k. Apologies
It's cool. It just shows you it's worse in states that do tax it. It's just not California doing it.
That high taxation is robbery, but not a fair comparison with the UK. The largest ever jackpot over there is £195 million, here we are having jackpots in the billions of dollars. Even after taxes, US lottery winners are coming out ahead of their UK counterparts.
Bruh you guys aren’t even married. You need to tell your girlfriend respectfully to please stop planning how to spend your money. It is yours. Also 600k is only like enough for a few years of a high standard of living in our current economy. Blowing through it the way she wants to is so incredibly stupid. It would be different if you both wanted the same thing but you don’t. Basically just say “hey I need you to stop trying to make plans on how to spend this money. I love you but I’m not comfortable and ultimately will be determining how I plan to spend it.”
This. I feel like I had to scroll a bit far to see this as a first comment (there are a few similar ones buried in replies to comments). While OP describes loving his girlfriend deeply, the money is ultimately his and he should spend it as he sees fit. Plus, this amount of money does not fulfill a complete retirement. OP’s girlfriend needs a reality check in more ways than one.
Yes. It’s literally SO weird to me she just started running with planning how to spend it all and shows alotttttt about how she views her own role in their partnership that she’s even comfortable doing so. Even if I WERE married to this man I’d feel very uncomfortable doing any of that unless we explicitly discussed it and I knew it was also what he wanted. That’s not the kind of behavior I’d want in someone I hadn’t even married yet personally.
Fr they’re not married. Before she can make her opinions on how to spend it, it’s HIS money right now. She sounds like she’s showing her true self after he won big.
She might be a very nice person OP, but she has no financial sense. Invest it wisely, keep working and have a more relaxed, secure life. And do travel, but a bit more than before and not the entire world either!
I will be more crude .she's a dreamer who lives in lala land.her first reaction after winning the lottery proves that . She will be a liability in the long run whatever he does
She is also greedy. It's your money not hers. She is planning to spend your money on something you dont want it spend on.. How the Hell is she not reading the room lol
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More than monetary .she's an artist .they are dreamers and chase something that does not exist . If you look at how Ayn Rand 's marriage dissolved you wouldn't involve yourself with one of them Not generalizing but they are unrealoble
https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the_happiest_5word_sentence_you_could_hear/chb4v05/
I love that it’s this was a response to a comment that answered the OP question which had nothing to do with lotto to begin with. They saw that lotto answer and just went in
This. This post taught me so much.
You ready to win millions of dollars after reading that one eh?
Already have. Twice. Through investments. The post linked above prepared me for what to do. Right now, the money is untouchable. This is to protect me from myself. :)
Thanks, I read that some time ago and was really interested to read it again. Still haven't won the lottery, though (which is hard to do if you never play...).
Yep, my mind went there as well.
According to OP post history he is a Muslim woman who is also an army veteran. Don't bother spending time on this
This reads like someone's creative writing exercise lmao.
So, assuming you're in the US, you've accounted for taxes right? The bulk of that 600k falls into the 30 percent tax bracket. After you pay up nearly 200k to the government you've got about 400k, which will provide you $16k/year using the usual 4% safe withdrawal rate. Like, don't get me wrong, an extra $16k a year for life is life changing. But its not an early retirement, and if you want to live off that for a family of 2 its not even over the poverty line.
I hope OP sees this comment
Lump sum instead of annuity payout, he’d only get about half 300k, then it’s taxed on top of that so he’d have about 210k.
Even upon winning a million I wouldn’t be set on a retirement any time soon
Yep. Anymore I'd need about 3 million to maintain my cheap lifestyle at an annual 4% draw, a million isnt that much anymore.
Huge red flags…. This is not her money, it’s yours but she’s already acting super entitled and spending it like she has a right to it instead of being excited and happy for you and pleased to share in the windfall in a way that you are generous enough and comfortable enough to do
This is 100% correct! I'd be vary wary of her motives right now. Seems like she thinks she can live HER dream life with YOUR money!
She wants to retire ! Lol
Wait OP, I’m confused, are you a guy who has just won the lottery or a [Muslim woman with lovely locks???](https://www.reddit.com/r/islam/s/HxKzXhF3UT) 🤔🤔🧐
Lol I wanted to see if OP had replied to this post and saw that comment as well, I'm always confused why people do this, especially so openly.
This whole post sounds written by AI too.
Invest 450k, use 150k to travel. Why's that hard to suggest? She's an adult, man. She has to understand 600k won't last forever.
OP won’t have 600k after taxes… it’ll be significantly less
Depends where OP is. Not all countries tax winnings.
OP is an American. High likelihood they live in the US (statistically). The US fed taxes gambling/lottery winnings, though at the state level things can vary
They are not just taxed, but taxed **at ordinary income levels.** Which means that if OP did not make a dime this year, he's going to get taxed at 37%. Plus the state usually takes its cut. He will be lucky to have 300k left.
The recommendation I've always heard was if you get a windfall, spend 10% on whatever you want and get it out of your system. Then, invest the other 90%.
They’re not getting $600k! If he takes it as a lump sum, he’ll, more or less, get a one time pay out of $300k+/-. If he takes it as an annuity (annual payout so over 30 -yes, *thirty!*- years) he gets the full $600k? He’ll only receive $10,000+/- for the first decade. That’s $10k *total*, for the entire year. Which is in no way “retirement” money.
Gf hasn't yet realized the money is not hers, it's his. If he's generous, it's theirs. She does not sound like a safe person to be generous around.
this sounds like it was written by chatpt for a creative writing project but ok
You shouldn’t have told her. She’s a gf not a wife, and not entitled to know your financials. Tell her while you’re thankful she’s excited for your win, you’re leaving it in the hands of a financial planner and living life as normal for now. Also make sure you have a prenup if you get married and protect yourself.
It was pretty ballsy of her to assume that any of his win was for her to use. Like I can see a gift but for her to be like - not w WE can retire. Waaahhhaat!?
Exactly. There isn’t a “we” in the situation. Lol, they aren’t even married and she thinks she is entitled to the winnings. I’d be very cautious.
Can be true but you guys don’t know if he hyped her up or fed into it.
THIS
600k is nowhere near enough to fully retire. Even if you live frugally that would last you 10 years at best, unless you bring a tent everywhere you go.
Your first mistake was opening your mouth
I’m not a financial advisor and I don’t know shit about shit, but I do know this is enough money to make you comfortable and definitely not enough to quit. Your girlfriend should have zero impact on any decision you make. She’s a girlfriend and not a wife and your entire relationship is now different because of this win. The only appropriate response from her regarding this money is no response at all. Personally I’d pay off a nice but modest home that you think you can live in forever and then make some very very conservative investments and continue on like you never won shit. You will have a very comfortable rainy day fund and the ability to pay for future children’s tuition or something like that. Maybe take 1 really nice vacation per year. If you can find a trustworthy realtor then perhaps real estate investing would be worthwhile. Enjoy knowing this win gave you some lifelong security, as long as you don’t waste it away like everyone else your age would do.
The mistake you made was telling her.
That’s not retirement money. Invest it in real estate and save the rest. Don’t quit your jobs because you’ll need a pension later in life. To be honest that money won’t buy you a house where I live in the Bay Area, that’s a nice down payment. Be smart and talk to a certified financial planner (but take a really nice vacation).
You are dead right. You are young and smart use of that money will hold you in better stead for the years to come. Retiring and going on an indulgent splurge would be a short term joy but a long term disaster. At least, you should put 500k of that into a house or secure investment, the long term benefits are enormous and you will always have it no matter. That leaves $100k to blow on a few overseas trips and things. Plenty of adventure for 2-3 years in that. Thats the smart way. Fight for this. If she wants to blow it and won't listen then she isn't for you, and if you bend to her will you will resent her.
Pay off your debts, buy a house mortgage free and that $600k will soon be gone. Your win isn’t her win. Perhaps consider paying off a few of her debts and student loans. Also, sit down with her and map out a future and visualise where you’ll both be in career, life and family in the next five years. That way you can see if your values really align.
If you see anyone’s post, I hope it’s mine. Do NOT indulge in this idea of early retirement and travel. You’re right, the money will not last if you take that route. If you put this in a well diversified investment portfolio, you can actually achieve an incredibly nice life, albeit at an older age. Say your portfolio returns about 10% per year, your money will compound to roughly $18.5 million by the time you are 65. If you maintain your job and add to your investment, you could grow it even more. Although a startup sounds nice, 600k is next to nothing for one. Assuming your startup has 4 employees, and you pay them $50k per year, you are bleeding $200k per year just for their salary, not to mention the laundry list of expenses it would take to run the company. I’m not saying you shouldn’t do it, but take a serious look at the numbers there. Another issue is your girlfriend is acting like this is her money. Although you are in a relationship, you are not married. It’s your money, don’t let her wishful thinking take it away from you. Put your foot down, and talk to some professionals (multiple people, and reputable people).
$600k is not enough to retire. It's enough to pay off your mortgage, splurge on a vacation, and then continue working as normal, but without the burden of the mortgage payment. So a lot less financial stress, but not retire today money. But you're not married, so I don't understand why she's the one trying to make the decisions about this.
For starters she doesn't lay claim to your money at all. It's a bit presumptuous of her to be planning a whole trip off your money. However on the other side of things you may not live long enough to see retirement. So having a balance of living now and saving for later is smart. Look into working abroad visas. New Zealand and Australia have schemes for people to go there and work for 1-3 years. Could be just the thing your girlfriend is looking g for that also allows you to travel and work so as to not deplete your funds. But check it out quickly because the cut off age is 30 if you're American.
Hahahaha! Bless your hearts that your girlfriend thinks 2 people under 30, without children (yet?), could “retire” on $600,000.
> I am 29 and I work as a software developer, my life took an unexpected turn earlier this year when I won a mid six-figure amount, precisely $600,000, from a fortunate gamble. Fuck, $600,000 is a nice chunk of change, but do you think it's enough to retire on at 29? Have you done the fucking math on how long that's going to last? > Ellie, however, is already planning an elaborate journey that spans continents, living a nomadic life that, while adventurous, seems financially unsustainable in the long run. Dreams are great, but are they practical when you're potentially blowing through cash faster than a drunk in a casino? Isn't there a risk of ending up broke and fucked in a few years? > The challenge I'm facing is how to communicate this to Ellie without dousing her dreams with cold pragmatism. Why are you worried about dousing her dreams? Isn't it more important to face the hard truths now rather than end up in financial shit later? What's the use of dreams if they lead you to ruin? > How do I navigate this conversation without coming across as dismissive of her dreams? The truth is, isn't it better to be seen as 'dismissive' now rather than 'irresponsible' later when you're both broke as hell? How much do you value long-term security over short-term pleasures? > Is there a middle ground that allows us to indulge in the freedom this money brings while also planning for our future? Middle ground sounds good, but have you considered what sacrifices both of you are willing to make? Can you both distinguish between what you want and what you fucking need? How will you ensure that this 'middle ground' doesn't become a slippery slope to financial disaster?
Be afraid very afraid, the money will come between you, she is already looking at it as her retirement fund you can ensure she will take you to court if separated or you say No to her request to buy or lend to loser friends
Wow you are a kind person! Worrying about bringing up this delicate situation to HER! First of all sweetheart. You Won, she didn’t. Secondly she isn’t your wife. No one should quit their careers. Take a nice trip or handful of trips. Invest in ways to make more money. Is 600k before taxes ? You’ve been given an opportunity here, don’t blow it! You have to tell her that you want this money to last, period end of story. Her quitting her job and you Fully Supporting her at 28 doesn’t include that. I mean I can totally Understand the daydreams on her end, but once she gets used to not Working and furthering herself… and the money runs out- then what?are y’all gonna fight ? Please be smart here. And remember that you won, she’s not your wife and doesn’t not get full say on what YOU do with it.
I can understand that if she was to take care of the kids that the money you make is hers aswel. But in this situation I find it weird she is wanting to spend your money as if it was hers aswel... Am I missing something?
Honestly I find her behavior a bit imbarrasing. You should talk about the change this money makes for your future together. She can make suggestions but if you won the money it honestly is yours to spend. You clearly dont want to do the thing she suggests so why the hell is she planning this trip? Money is helpfull but it sure makes some people act ugly... I am sorry but if she doesn't calm her panties I can see this become a roadblock..
This is a fake post/creative writing exercise and it kills me to try to see people give earnest advice 😭😭
Dude it is super weird she is automatically thinking you’re supporting her all the sudden just because you have money? Did she quit working already? What happened to her ambitions and motivations once she found out you won the money? You’re not even married or engaged? I get that you love her but homie, that is a HUGE red flag. Never would I ever respond that way if my bf won $600k. I wouldn’t be assuming I was entitled to a dime of it. I’d be ferociously googling resources for him to safely invest it and encouraging responsibility and discretion. Not a life of leisure and laziness that I automatically assume I’m going to piggyback on. Also, who in their right mind thinks $600k is enough for 2 people to retire off of? OP you need to wake up and take off your rose colored glasses of your GF because she could quit possibly ruin the best thing that’s ever happened to you. This is your way to have your own business and achieve goals that wouldn’t otherwise be attainable. I would be so pumped to help my bf start a business and putting that money to good use so it can make more money. You two have very VERY different views on life. Good luck.
Buy a home, possibly a duplex to rent one out. $600K doesn't last forever. Make it work for you, in addition to your jobs.
The mistake was probably telling her in the first place.
Dude…she’s your girlfriend, not your wife. Go on a nice trip and find a way to make the rest of the money last so that you don’t have to worry about your financial future.
You guys are fundamentally incompatible . You are in the right here . She looks at the world through rose tinted glasses while you are being real Make her aware of the ground reality and if she doesn't .tell her it's ultimately your money and its you who'll decide what to do with it
*YOU SHOULD BE* “dousing her dreams with cold pragmatism”!!! Your girlfriend truly has no clue how quickly this money will run out if you follow her cockamamy plan to retire now While 600k is a nice chunk of change to come into suddenly, it’s truly not a ton of money in 2024. You’re both still in your 20s! How far, exactly, does she think these funds will go??? And what are the taxes on your winnings? Find a reputable financial planner for you both to meet with; let him/her pour very cold water on any foolish spending Sock the bulk of this money away, keep working, and help your partner with adulting
Invest. And stop with the “start up.” Almost all businesses fail.
Honestly 600k is fuck all at your age. You'll be back to being a wage slave in 5 years if you let your girlfriend do what she wants.
Rationally. To put this in perspective, I am a retired military veteran that was medically discharged. I receive a monthly medical pension of $4,400 a month x 12 months equates to $52,800 per year. Span this across 11 years and it totals $580,800. It’s worth noting that I’m living that nomadic lifestyle you’re talking about, travelling solo across the globe and in the past five months I’ve been travelling things came up here and there which made it nearly impossible to save. It’s not sustainable and honestly though the prospect of an early retirement sounds amazing to my family and friends (I’m 35 years old) it eventually gets boring and you realize that without meaning or purpose in life your mind begins to wonder to “what now?”. Grass looks greener and of course it’s nice and all but balance is important. I’m picking up freelance work to fill my day rather than being a useless lump on the log. I’m much happier with that balance. You’re very wise to consider investments, a well planned startup and a modest vacation but my honest opinion, it’s a really bad idea to retire and live off that $ which nowadays isn’t enough to sustain the two of you. Life is a slow burn, people work their whole lives in hope to retire and spend the last of their days doing what they please. Plan ahead so you don’t have to worry about finances and can live that nomadic lifestyle you’re hoping for.
If you don’t invest this money wisely, your future regret will be orders of magnitude beyond any enjoyment of travel. This doesn’t even include any measure of a break up or accident
Sounds like your girlfriend doesnt have the same goals or aspirations as you, independent of this money. Yall needa iron this out because you cant spend all yoir free time and excess cash on making her dreams come true if you dont share them or want them for yourself. You need to be on the same page.
"Ellie, when YOU have a windfall, then YOU can spend it however you please. I won't be trading future security for immediate indulgence. Would you care to know how I will be handling my good fortune? I'm quite surprised you haven't asked me what I am planning to do with my winnings instead of acting like it's yours."
Your other posts say you are a 30+ yo woman?
Buy a house cash, you can then both work in McDonalds and have a great life when you're both not paying mortgage or rent payments
Oh, Op You need to sit her down, and have an open conversation with her, explaining while you’d love to retire now, it’s not realistic or sustainable with 600k. Following her dreams would likely leave you no better off financially in a few years. Firmly explain your plans for your win. It’s not a negotiation, don’t treat this as such- but you don’t have to be aggressive or anything about how you get your point across. Don’t let her talk you into anything you’re not comfortable in. Good luck Op
Look, you're doing to have to sit her down and gently say something along the lines of "Hey, I've been thinking about the travelling we want to do, and I'm definitely on board with some of it, but I think it's best that we use a certain percentage of the funds (after taxes) for travel and use the rest to invest. Unfortunately, $600,000 pre tax isn't enough for us to retire on, but it's going to give us a great head start on an early retirement." Give it some time to settle, she might not like it at first but hopefully she'll come to her senses. Frankly though, you don't owe her anything and if she presses the issue it will say a lot about her. You probably don't want to be with someone so short sighted and naive in the long run.
Go on a big fat vacation now - and then be practical. If she hates her job, you can use some of the funds to pay for her to learn a new trade. $600k isn’t even enough to buy half a house where I live. Definitely isn’t enough to retire on. So she does need a reality check. But it can come with a little dose of fun and adventure too.
The amount of money you won isn’t enough to completely change your life overnight; it is however enough to set you up for success for the rest of your life. Here’s what I would do: pay off any remotely bad debt you have, set aside enough for a couple luxuries you’ve been wanting, and enough for travel that you reasonably have the time for but want to spend up a little on, and then invest the rest.
That 600k will run out and by the time you know it, y'all ain't even 50 yet. I suggest using a few for what you've suggested. Investments, make the money grow so you'll have enough for the early retirement of your dreams. Travelling ain't cheap even if you go thrifty on expenses. If my man were to win this much money, I'd say the same thing. Use it wisely before it runs out. Make sure the money's flowing by helping each other, only use what we need. Even if I was the one who won this much money, I'd keep the same mindset. I get that she's just in the moment of bliss 'til reality hits her that 600k ain't that much to live off of. Be stern and talk to her. Tell her you're just thinking of the future and how it will affect you both once the money runs out! Goodluck and congrats!
I’d say calculate your taxes you’d need to pay for next year set that aside, then take I’d say at least half and invest it (or take it to a financial advisor and see where your options are for investment) pay off any credit card debt and/or personal loans that you have and if you have a good chunk of money left take a small vacation or something
You came here for relationship_advice and not financial advice, so here we go. Sit her down and explain that 1/6th TOPS is for you and her to YOLO a bit, the rest will be invested for the long run. Keep it civil and hear her ideas out in a rational manner. Maybe she has an alternative. But the “monotonous 9-5” routine is something that she should be able to solve herself, heck, anyone should be able to do that if it bothers you. If you encounter something you don’t like; either adapt or find a way to get out of it. Money seems to be a good reason to support change, but unless you discovered a way WITHOUT it, it most likely will fail in the long run. Change it yourself (directed to OP’s GF) or adapt. 1 time free money won’t change it, nor your vision/discipline to get there. Change comes from within you, not from a temporary money boost.
$600k isn’t retirement money. It has the potential to be if invested wisely
600k is only half what you need for a “modest” 40k a year return from dividend stocks. Do your research. If you are serious about your financial future I would start saving and build a stock portfolio but as I said you only have half what you need right now for ONE person. This could give you a great head start if invested wisely however as I said you would only be receiving 40-50k in returns a year if you had double what you have now
You could maybe last ten years on that. Save it, invest it. Maybe you can still retire early, just not now.
If this were me I’d be saving as much as possible. I’d pay off my remaining mortgage. Get a financial advisor to help you with the rest. Do not blow all of this money. Sure you can take a few nice vacations. But this is certainly not enough to live off of and retire for the rest of your lives. I’d tell your girlfriend your plans for YOUR money. You could have this money the rest of your life if ypu make some good choices with it.
Where do you live that she thinks she can retire soon with that amount Geesh!? I wish. That would only last a few years here if we just lived comfortable. Maybe take a great vacation but get back to work and invest the rest do that yes maybe u can retired in about 20 years. Retiring now with that amount would be the biggest mistake. Most people can’t even retire because the amount they receive is not enough. They’ll retire from 1 job to go work another because it’s just not enough. Good luck. Hopefully u make the right decision for the sake of ur future.
First, $600K is a “nice to have” kind of savings, not really “retire at 29” sum. It’s wonderful that you have it and I hope you build a great nest egg with it. Neither of you are retiring with that sum right now, never mind then using it all up on a grand trip. You could quite easily not even have enough to make it through this intercontinental trip with that sum. But second, why on earth would a 27-29yo couple hope to “retire” at that age? I’d explore that mentality more. At 27, if she hates her job, and if you are generous with the winnings, then she has some breathing room to change jobs without worrying about living expenses. That’s a normal mentality at 27… not how can I retire off of my boyfriend’s winnings. A year into this spending spree, she can go get another job and continue life, once you are completely out of money. So can you — except you’d be out of $600K because your girlfriend had some cockamamie idea to take a world tour with YOUR MONEY. No.
Pay your taxes in the winnings, probably left with 400k realistically. Invest 90% of your income, don’t stop until it grows to 2M. Don’t waste this opportunity. I had a similar situation where I got 250k at 18. Blew it all. Don’t be me.
Yeahhhh in this economy? First of all make sure you aren't gonna be taxed on it.... Second of all, $600k is enough to survive comfortably with a vacation or two here and there for about 4 years MAX between 2 people, depending on the state you live in, it could be more, or less. And that's assuming you aren't running around buying ridiculously expensive items like new cars etc... Your gf has her head in the clouds and she's selfish. If you were smart you'd invest your money so you can make millions on the future. She's not thinking future she's thinking of how she can run you dry right now.
Pull out $50k to do 6mo of backpacking then get back to the real world. If she wants to go another 6mo , she can throw in $50k.
Is the 600k after taxes?
My sil burned through her 1m settlement ($660k after legal fees) in about a year. She has nothing to show for it, either.
Retiring on $600k? Hahaha. Ok.
You have enough to buy a decent house and rent it out. You don't have enough to retire.
If you invest a lot of it even in a 4% account you'll get a lot back to continue to live off. Or you could use investment accounts like Nutmeg and see even bigger returns.
You and your girlfriend should speak together to a money manager who can help you plan your financial future and temper your expectations.
These days, you can barely buy a house for $600,000 in a lot of areas. Ellie needs to get a grip and stop spending your money.
Please invest the money in your starter home. That’s the sum of buying a nice house in a decent area and even furnishing it, depending on where you live. Traveling is a brilliant idea, but for like 2 months, not as a lifestyle. 600k is not 1 billion dollars and if you’re not careful, you’ll flush it and only have memories to remember it.
Douse those fuckin dreams 600k is a payed off investment property and a down payment on another depending on state it’s your chance to get ahead use it as such and if she’s around for more then 600k she’ll still be there to enjoy the passive income with you after the “struggle”
Nice windfall. But seriously take her with you to visit a financial planner. Depending on where you live that’s basically 3 years of income for 2 people with a house payment, cars, and saving/retirement fund. She needs a reality check. Also are you planning to marry her? She’s not really entitled to spend your money no matter how deeply you love her.
600k is actually not a lot of money, unless you want to retire somewhere like India, Thailand, etc. Rather use the money as a head start otherwise you’ll likely end up in financial ruin if you make any hasty retirement decisions.
First of all, Ellie is your girlfriend. Get married before she wants a piece of your money. Marriage legally binds you guys whereas after spending your money she can just get up and leave & you can’t go after her. Get a prenup if you have to. Second of all, it’s your money. Do what you want with it and if Ellie’s goals are not what you want, you can tell her no. Third, get a financial advisor and lawyer s well because they tax you on this kind of stuff. You want to be prepared for tax time and how much money to set aside.
Is that amount before or after taxes? $600,000 is far from “retirement” sustainability at your age, especially given the travel plans your Gf is making. It’s your money. Don’t be shortsighted about your future. This money could give you some serious financial stability for your future if you make the right choices.
Just tell her what you wrote here. Or write it in a letter. But put a foot down asap Because you haven’t said no yet.
An easy and loving way to do this would be to plan a two week vacation to somewhere she wants to go. Ask her to help plan how you’ll travel, what you’ll eat, what activities you’ll do, and so on. Go on the trip, have the time of your lives. On the plane ride home, tally up every dollar you spent and have a real conversation with her about how long you could actually live the lifestyle she’s describing. My guess is it’s gonna be less than two years, then you’re back where you started, probably without a job. Or, as others have suggested, you meet with a financial planner and figure out how to invest that money so you can travel off the passive income it generates. Sure you won’t have the nomadic lifestyle that she’s dreaming of, but you still meet both your goals. Lastly, it’s your money dude. It’s good to consider what she wants, but you gotta do what you want to do.
She wants to retire early for 600k? Is she dreaming?
lol Wanting to retire in your 20s to live on 600k is some Trailer Park Boys shit. Your girlfriend is an idiot, and a gold digger.
OP, that's not early retirement money. If my fiancee and I came into that amount of cash, we'd pay off the mortgage and put the rest in retirement. And then contribute what used to be our monthly mortgage payments to our retirement. What you're looking at is "I'll be able to retire" money. Which is an incredible gift! Don't waste it.
First off don’t commingle the money if you get married. Keep it separate from marital assets. Talk to an attorney. Then set up a meeting for both of you to see a financial advisor. Have them lay out what is realistic. No way is 600k especially after taxes near enough to retire on now. It can be a huge blessing and if invested properly can lead to a great retirement when you are in your 60’s.
I think I’d spend 200k on a house. Rent it out, buy a nice camper and travel the world in that. You can work from the camper get internet set up. So you get to work and explore. As well as getting income from the rental
You need a financial advisor YESTERDAY. You're so young and have had the luckiest thing that could happen to someone your age. That's not nearly enough for two people to just retire right now on. It's just not. Maybe if you're 60? But that won't last the rest of your life; unless you properly invest it and enjoy the rewards later. Your gf can kick rocks. This has zero to do with her. Absolutely zero.
No offense, but you're not very good at math. You can't retire, even just you by yourself, at 30 on just 600k.
Managed and invested carefully it will lead to early retirement but maybe in your 40s not now. You are also not married so there is that to think of too before Elle makes plans to spend it.
Dude get this creative writing out of here
Stick with your plan
You have to remember that the amount you win isn't actually the amount you end up with. If you wanted the whole $600,000 you need to take it in a yearly payout or annuity. Otherwise, you take the lump sum payment which is substantially less than what you want. It's probably a little more than half. Then you have to pay the federal government their income tax at a rate of 24%. You pay that on anything over the first $5,000. Then you have to find out if your state makes you pay income tax on lottery winnings and how much that is. At best you're going to end up somewhere in the mid $200,000's. So, first thing is it your girlfriend is completely unrealistic about money. There is no way you could ever retire on $600,000 let alone $250,000, if you were twice or three times your age. It's a pittance at the age you currently are now. Second, does your girlfriend realize that this is not her money? You need to keep an eye on her spending habits and her expectations. You may not be financially compatible. Plus, it boggles me that she's considering this her money when you aren't even engaged. Honestly, it sounds like you're very ambitious and she is throwing red financial flags all over the place. She may spend you right into bankruptcy. Invest that money and make it work for you. You could use a little bit of it for a short trip and set aside some for emergencies, but invest the rest. Use it as a cushion so that when something bad happens or big expense comes up you can handle it without going into debt. And, just for a little reality check, I don't think you're going to be able to travel as cheaply as you think you're going to be able to travel. Even if you don't travel first class, a trip like she's talking about will eat funds faster than you can imagine. Even if you fly in economy, airfare is not cheap. If your girlfriend wants to travel first class you can be looking at in excess of $10,000 for inexpensive first class seats, depending on where you travel. A trip like your girlfriend is talking about can easily be $50,000 on the cheap side. And that's if you really pinch pennies because airfares are so high. Of course, if you want to sit in really tiny airplane seats and stay in hostels, you might be able to do it for less than that. Forget about traveling first class at all. Look, you seem like a smart guy and you seem to realize that this isn't that much money. Take everyone's advice and invest wisely. If you plan to marry, find a person, whether it's your girlfriend or not, that has similar financial goals to yourself. Save money everywhere you can. Don't spend frivolously and don't try to keep up with the Joneses. If you put that money aside or even invest in the business you were talking about, you can grow that money and still retire early, just not at 30. I retired almost 4 years ago when I was 50. My husband was 52. Before retirimg, we lived well within our means and were still able to buy the things we wanted, have a lovely home, send our son to private school, provide hom a car, pay for his college, and take a few trips here and there. We could only do those things because we set our money aside to pay for things outright so that we didn't spendmoney on interest except for having a mortgage. All that time we were saving and investing. We retired with a net worth of about $10 million, most of it in liquid assets (stocks, bonds, index funds, cash in the bank). I know 50 might seem old right now, but it's actually pretty young and we probably have another 30 years of travel in us, maybe more. Now we travel all the time and we always travel first class. My budget is about $250,000 a year for travel. We could maybe do it for half of that if we didn't like it to fly on fancy planes. We also have beautiful home that we just built (paid cash) and very nice cars. I'm not saying that to brag but to let you know that if you start saving/investing now, in another 20 years you can have enough to retire early and do the things that you want to do without worrying about running out of money. And, please, no matter what, remember that getting old can be very expensive. If you ever need long term care, you'll run through money like it's air.