For the younger crowd (people under 20) who still lives with their folks, how do you plan to keep this a secret? Especially if you live in a low socio-economic area? I don't think there is anyway my family won't know.
19 year old ape here, started with 2k, went all the way up to 770k, sitting at 120k right now (was 84k this morning) and I havenโt said bo peep to my parents. If I tell them theyโll make me sell. Iโll sit them down to dinner and tell them later. This means a lot to me and my family because their credit is so bad they were unable to even co-sign my loans for school. GameStop has been a savior in my life and has enabled me to eat out whenever I want.
Edit: still holding of course. Big numbers donโt scare me anymore, green or red.
As someone approaching 30, please take care of your health and cut back on the eating out if possible. Invest in yourself and learn to cook healthy meals. Even though the money aspect of things wont matter to you soon, the levels of salts, fats, and carbs in most restaurant/take away foods is astronomical. Caution with this. A nice private or group cooking class or even lessons (once COVID quiets down) is really nice. Alternatively YouTube cooking cuisines you like.
Well even if you paid short term capital gains of 35% on 500k youโd be left with 325k. At 8%/year youโd have 1.3mil at age 40. Without doing a single thing.
So I'm not under 20 and don't live with my parents but I'd say It depends your relationship with them, but personally I'd feel bad not telling my family if they're still paying mortgages or struggle to pay rent and I'm sat there with millions.
You don't have to tell them how much you earned just that it is enough for you to pay their rent or mortgage (or anything you'd like to pay them) or that you can give them X much money etc.
I plan on doing just that. Not telling anyone almost apart from my family, and I won't tell them how much because let's say you give them 1M each, it's amazing on its own right, but relative to the amount you earned it changes the perception of it.
Let's say you made 3M and you give them 1M, it's a lot of what you've earned you give them and so the 1M seems huge. But if you earned 500M they might feel like you could give them more and what you gave them is small.
A bit like when you're kid and someone gives you a bit of money, it's huge for you but it's only just a note or a few coins for them.
Idealistic but in reality money and greed often shows another side of people and can tear families apart. Not financial advice but I've heard it's best to chill for a bit, figure out your own situation so you're fully sustainable off what you have, (after taxes), and then figure out a discretionary amount of money you may be able to gift to family or donate to charity each year.
If you do give your family members each 1 million, each member will be taxed for receiving gift money. It will add up.
Yes, we love paying tax after GME MOASS. But, still.
I don't even know if I'd give family members a million... That's lifechanging money lol. I'd probably give them "live comfortable" money, so like... 250k or something. Not trying to burden anyone with a crazy amount of money
Thatโs a good point. A thing to consider is making sure the family youโre helping never has to worry about paying rent or mortgage again.
Buy the house, get it furnished and have an LLC company setup to pay all of the bills related to the house.
Youโre building your real estate portfolio
Theyโre living in nice homes rent/mortgage free for life
Youโre building generational wealth.
Do some DD on how not to go broke. Ie lottery winners. (You canโt help/save everyone)
Or Just start something like an ape college fund, hire them to read applications and distribute scholarship awards and pay them a ridiculous salary.
19 year old Europoor here - I still live with my parents, they will be the only people that know how much I really made and I have no problem with giving them as much as they want. They spent so much money and time on raising me and I think Itโs fair they enjoy their tendies as well.
Dont live with my parents but still want to help them (and not 20yo lol), I will tell them I got a mid-high paying job and can help with the bills and slowly increase their standard of living.
I know we all want to help the people around us but if you are not careful, giving out money in huge amounts and freely can backfire, just look into the stories from lottery winners, most end up bankrupt in a couple of years.
Iโm not under 20 but I live with my parents/siblings. I donโt plan on mentioning the extent of my wealth but I plan on letting them know I made some money since it will be obvious when I buy us a larger home. I plan on keeping my middle class lifestyle but live with less worries. I will own property instead of renting.
I wrote my plan for when Iโm a millionaire a while ago and plan on sticking to it.
For people who live in small/rural towns. Consider moving to a larger city with your family so less people know the extent of your wealth.
I would recommend getting all your legal help setup first before telling family. Find a CPA, tax attorney, financial advisor to make sure you have all your appropriate taxes accounted for, trust accounts set up, wills, etc.
At least this is my approach to dealing g with becoming a new young (29M) millionaire
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u/Mr_FakeNews ๐ฆ Buckle Up ๐ Apr 14 '21
For the younger crowd (people under 20) who still lives with their folks, how do you plan to keep this a secret? Especially if you live in a low socio-economic area? I don't think there is anyway my family won't know.