r/UpperMiddleFinance

58 (M), married (52F) two kids. Spouse and I make ~$200K. I am a project manager and wife is a courtesy clerk. Been steadily contributing to IRA's and 401K's. To put in perspective at end of 2023 we had $915K in retirement. In less than three years we are up another million. Primarily S and P 500 using Backdoor Roth, Roth IRAs. Kids graduating debt free from state school. Lots of sacrifices and living like we make $120K.

Just wanted to share and let people understand what's possible.

Curious to hear how people would genuinely spend (or save) a life-changing windfall.

Not just "quit my job and travel forever" I want the real plans. Pay off debt? Buy a house? Start a business? Help family? Or maybe invest it all and keep living normal?

Imagine winning something like $50M+ after taxes. What's your immediate move, and where does that money go over the next 5 years?

I was just randomly thinking how stupid rich someone like Taylor swift is (I don’t like her, she annoys me and I’m not a fan) but she just released some music and I’m sure she’s making bank and has been for like a decade now.

I’m not rich, I barely have any savings and I’m very conservative with how I spend my money.

So I started thinking to myself, how does she feel having that much money? Does she count her money like I do every month? Does she think about how much she’s spending on a day to day? Does she buy expensive things everyday like house decorations and expensive food and clothes and shoes? Or does she just live a regular life but doesn’t spend time thinking how much money she’s spending?

Just in general, I wanna know how really rich people think about their money and what their thought process is if there even is one.

Because I consider every little thing I’m spending my money on and it happens on a daily basis. Not a single day goes by where I don’t think how I can save $5-10 at any chance.

let me teach you a little bit about real wealth.

first of all, all money is fake, but we have no choice but to use it, because we are in a slave system. real wealth is assets, but not all assets are equal.

if you calculate real inflation; ignoring technological gains. historically it comes out to around 10% a year. the government lies to you because inflation is a scheme for them to tax your savings, and this scheme is intertwined with the stock market and housing markets. ponzi schemes are illegal, because the stock market is a ponzi scheme, and the government hates competition.

what they sell you, is the appearance of gains, and the appearance of a solution. the carrot infront of the donkey. play stupid games, win stupid prizes.

unfortunately, if you are early in life, and you have shitty parents who don't help you get your basic needs resolved, you have no choice but to play the stupid games, in order to "own" your own house. but be aware even then, you don't "own" it. the government does.

avoid debt at all costs. debt is a trap.
the system, the government force you into debt, because shelter is a basic human need.

now. do not be fooled into thinking a house is an investment. IT IS NOT. a HOUSE is a DEPRECATING ASSET.
Always is and always will be, because it wears down, no matter how well it is built. you will always loose money in the long run.
people believe that they can "beat" inflation, out perform it… but only because they believe in official inflation numbers.

Avoid all financial schemes. They are SCHEMES. GAMES.

Rental Game. Stock Game. All of it is a lie, and 99% of you will not realize it until you are DEAD.

After you have resolved your basic human needs, food, clothing, shelter.

There is unfortunately, only one way to protect your wealth, and that is precious metals. But they have SCHEMES there as well. Money was historically backed by precious metals, because MONEY is A SCHEME. Over time, they slowly debased the currencies until they are what they are today, NOT EVEN PAPER. You are fighting for NOTHING. THIN AIR. THIN ELECTRICITY.
If you don’t hold it, you don’t OWN IT. ETFs, Paper Precious Metals, all of it is just the same SCHEME. Paper MONEY. Every single time throughout history, every single “representation” of “value” or rather “precious metals” is ABUSED. Every single time in history, you will have “printing” of more than that physically exists… otherwise, how else would they make their “money.”

Therefore, after you have all of your basic human needs met, hold PHYSICAL GOLD and SILVER.

Be a fool, fall for greed, play stupid games and win stupid prizes, and fall for their trap. Die a fool and never realize it.
Be smart, plan for generational wealth. Physical Gold & Silver. Be honored by your children.

Family of 4 (2 adults, 2 kids) in VHCOL area. One adult works, other adult stays home.

NET WORTH

$800k across retirement accounts

$100k college fund accounts

$100k in HYSA

$200K Home equity

Liabilities:

Mortgage $400k at 3%

Monthly net after maxing 401k and HSA: $16k with $15k bonus/quarter (averaging $5k/month)

Expenses:

Needs: $6k

Wants: $6k

Savings: $4k

We just finished paying student loans, and would like to make the best of discretionary savings ($4k/month and quarterly bonus of $15k/quarter). What's the best place for us to put ~$9k/month?

Ideally, we would like a business to offset taxes and provide other income and investment opportunity, which is why we are considering buying a property and use it as a short term rental. I think investing in RE for a short term rental could provide non-working spouse opportunity to fund solo 401k or SEP ira by managing short-term rental, and maybe even fund kids Roth ira by providing employment opportunities for them.

We could also avoid the headache by throwing money into a brokerage account, and keep paying ~$70k/yr in income tax.

Any thoughts are appreciated, thanks!