First, 10% of the one million dollar windfall would go to charitable causes, so there goes $100,000 right off the top.
Next, $200,000 would go into trust accounts for my two young children under the age of five.
I would give my parents $100,000 to use on whatever they want. My parents are pretty awesome people and this would be a good way to say thanks for all they have done for me.
An additional $100,000 would go into emergency savings. Since we are completely debt free including our mortgage, we won’t have to pay down any significant debt.
We’ll take the remaining $500,000 to start a buy and hold real estate business. We will set aside $100,000 to pay for the initial set up of the business and emergency reserves.