Quora Answer: If, as a 17-Year-Old, I Received US$30 Million, How Can I Live Off That for the Rest of My Life?

The following is my answer to a Quora question: “If I am 17-years-old, and just received $30 million dollars, how can I live off that for the rest of my life?  $300,000 a year for 30 years?”

The answer will only address generalities.  Firstly, put the funds in an entity that is distinct from you, either a trust or a company.  This mitigates your tax liability, and allows you to expense out a lot of things.  Secondly, get an investment banker, an accountant and a financial advisor involved.  Managing funds is a full-time business, and you should the spend time getting the best you can afford.  Thirdly, cultivate the habit of living within your means.  Nobody needs 20 mansions and half a dozen vehicles.  People forget how easy it is lo lose track of spending and wasting a lot of money.

When it comes to your asset management, diversify them to mitigate risk, so that a downturn in one sector of the economy does not affect your net worth severely.  At even $10 million set aside, getting a reasonable 6.5% or so return per annum is around $650,000.  With proper management, it is quite possible to turn that $30 million into $100 million in five years or so.