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[treeoflife3]

If we had that much money, we would probably either just pay off our house so it is ours outright and use a chunk to make it a tad nicer (we could use new windows.. they are 40 years old!!! and solar panels and the fence needs work) or we would purchase some land in a LCOL area in our homestate near but not TOO close to my family (close enough for babysitting access, but not so close they can drop in every single day bahaha) and put money towards building a perfect fit home that will be just slightly crowded when we fill it up with our kids but only slightly too large once they are all moved out (and I don't mind slightly too large then... I need space for potential grandbabies!) I'd make sure to build it to maximize savings on energy and water bills as well as creating space for growing our own food.

I'd think with the money left over, my husband would be able to get out of the military and go to school like he wants but is too scared to take the risk for and get a job that continues paying our (hopefully smaller) bills. Considering he would get free schooling, it wouldn't take much of the money left over from buying off/building to support us for a bit assuming we live very frugally which is always the goal and he gets a part time job, which he would need to for his sanity.

I think total, it shouldn't even come to a million dollars as a high estimate once you factor in using some of the money for living off of for awhile after buying land and building a home (the most expensive option for us) while DH goes to school (free) and has a lower paying job considering we wouldn't be building anything huge or using top of the line luxury products. We currently live in a 1100sqft home and at MOST, we would probably only need just double that... and that seems like too much for our family/living plans hahaha especially considering our house does NOT use space wisely and we'd make sure anything we build DOES.

We wouldn't stay in a HCOL area unless we needed to be there, that much is for sure.

[brittneyscott]

Well I don't live in a HCOL area and wouldn't want to. My dream life would be self-sufficient out in the country. If we had that kind of money we'd buy a large parcel of land and build a house outright as efficiently as possible. Orchards, gardens, fencing and livestock would be put in place. I would set up well and alternative power too to lower expenses. Ohhhh and reverse that vasectomy we hastily had done with two babies in the house . I think we'd be good to go for the rest of our lives on that much money but then again not in a HCOL area. Or go stark raving crazy and buy an old plantation. Ahhhh but I can dream! Good luck to you!

[ChristyMarie]

I think that before anything, a financial planner is the way to go.

The house...eh, decide after the financial planning talk.

One thing to remember with a larger house is that every single thing about it is more expensive. That $10K in maintenance per year won't go as far. Last year we replaced 2 hot water heaters (I think about $3K) and one of the a/c units (6K) and our ejector pump (1K). This year so far we've had our carpets cleaned ($2K) and our fridge went out. Luckily that was a $1K repair because to replace is about 10K. I'm dreading the day our roof is done because I know it is going to be about $45K. Painting costs, I can't just buy a gallon and have a room done. It takes a few to get the job done.

Then the little things, when I go to buy flowers to plant, I can't just buy one flat, it looks stupid. I only did a few pots and spent a lot just because of the scale of things. Halloween decorations, I found these adorable ghosts to line the walkway up to the front door. I finally settled on a dozen but I really need double that.

I see you have landscaping fees but what about cleaning? My cleaning lady flaked out on my recently and I decided to start cleaning on my own. Not joking, I bet it takes 6-8 hours a week of JUST cleaning - that does not include straightening up, laundry, etc, just cleaning. This also means more supplies, more lightbulbs, oh the lightbulbs! LOL.

So when you are looking around, consider the true maintenance of a larger home. I love our house, I wouldn't trade it, but I was in shock with a few things I just did not expect.

[marimara]

I would love one of those restored Arts n Crafts bungalows or cottages in CA. I would purchase a small, sustainable, green home w/alternative energy and gardens.

Or I would move to a lower cost of living area. This is what *I* would really do. I would want that money to last longer. You know what you can get in Belize or Dominican Republic for the same amount of $? Or even Florida? New Mexico? Maine? Arizona? Texas?

[mar123]

Dh and I were talking hypothetically about what we would do if we won the lottery. I would divide the money by 4- 25% invested for retirement, 25% to give away to relatives, 25% to invest to live off of now and 25% to pay off bills and pay cash for a house.

What if you took the 2 million and divided by 3- spend 1/3 on a house including whatever furniture and things you may need, 1/3 to invest and don't touch the principal- just use the interest income (maybe estimate a 5% return) to use for expenses and 1/3 for long term investments? That would give you about 600-650K for a house, etc. With 650 invested, estimating a 5% return, that would give you an income of 32,500 per year- enough to cover the expenses you are estimating.

Just a thought.....

[mnnice]

Originally Posted by brittneyscott

Well I don't live in a HCOL area and wouldn't want to. My dream life would be self-sufficient out in the country. If we had that kind of money we'd buy a large parcel of land and build a house outright as efficiently as possible. Orchards, gardens, fencing and livestock would be put in place. I would set up well and alternative power too to lower expenses. Ohhhh and reverse that vasectomy we hastily had done with two babies in the house . I think we'd be good to go for the rest of our lives on that much money but then again not in a HCOL area. Or go stark raving crazy and buy an old plantation. Ahhhh but I can dream! Good luck to you!

That would be my vote too (except for the vasectomy reversal DH has already had two vasectomies and if I suggested a reversal and a pregnancy at this stage in life he would think I was a complete) . Spend about $150 to $200K total. There are lots of places in my state where you could buy the acreage and a useable house for $120-$150K and have another $50K for the self-suffiicency stuff. I would be more motivated to separate myself from anyone in my house needing to go to work for pay than having a fancy place. $2 mill plus what we currently have saved would be plenty for a simple living family like us.

[SleeplessMommy]

Originally Posted by ChristyMarie

....Last year we replaced 2 hot water heaters (I think about $3K) and one of the a/c units (6K) and our ejector pump (1K). This year so far we've had our carpets cleaned ($2K) and our fridge went out. Luckily that was a $1K repair because to replace is about 10K. ...

you have a sub-zero, right? consumer reports gave them terrible reliability ratings.

[ChristyMarie]

Originally Posted by SleeplessMommy

you have a sub-zero, right? consumer reports gave them terrible reliability ratings.

Yep and I find that incredibly hard to believe as they normally last 25-35 years. Mine just needed a new coil or something and this is the first major repair in 16 years. The repair guy said there's really nothing that can't be fixed. Plus since they have separate systems for the freezer and fridge the entire unit runs more efficiently and keeps food at a more constant temp. I just have never ever heard anything bad about them except for the initial price.

[Thalia]

As other posters have said, (and maybe I missed your reply), it would also be important to know your expected income and whether you want or need to stay in CA.

CA is tough because in some areas you have to pay a lot just to have a home in a relatively safe neighborhood. After growing up in AZ, I'd also be a little worried about water issues down the line: water could end up getting really expensive there in the future. CA also seems to be prone to more than it's share of natural disasters: wildfires, earthquakes, mudslides. We know a couple who had their million dollar house literally fall off a cliff during a mudslide, and their insurance did not cover the loss. There are lots of wonderful wonderful things about CA, don't get me wrong, but if it were me, and I inherited that amount, and I weren't tied down, I would move somewhere else where my money would go farther and the real estate market was less volatile.

And your income: does one or both of you want to work? Do you currently have jobs? If you had two or one lower-paying jobs, and work wasn't particularly high on your list of priorities for a satisfying life, I would definitely buy a much less expensive house, whether in CA or not. Why be house-poor if you can avoid it? Or rent (inexpensively).

Don't let anyone talk you into getting more house or "lifestyle" than you need, just because you have a big lump of cash. You're doing the right thing in thinking through your future costs and priorities. Keep up the good work!

[iamama]

I would want to build a custom energy efficient home with lots of built ins like in the book "Not so Big House." The theory is every inch of the home is usable and beautiful and catered to the owners lifestyle but not inexpensive! I would guess that in my area which is fairly high COL for 500,000-650,000 I could buy land and build an incredible 2,500 sq ft home that I could live in til I die.

[lunarlady]

I would rather put the money into investments and life off the interest than buy a new home. (I'm assuming you mean no debts = owning your current home).

If you're renting, well, in the bay area I might still say the same and use the interest to pay your rent. Maybe move to something a little nicer.

If you weren't in the bay area, I would say build your own home, and I'd budget about 400,000 to do it. (Maybe up to 500,000 for the lot of my dreams.)

Cool delima to be in. If I ever had a 2 mil windfall, I can say my first thought would be "how much goes to taxes". My second thought would be "debt free, hooray!" New house would be way down the line.

[Ianthe]

I'd move to the woods and start a commune

I have no idea the housing market in the bay area, but I agree with the others, I would get an adequate home that you can afford month to month expenses easily, make it as self sufficient as possible for a city dwelling, and use the rest for college funds and whatever else you want to invest in.

[jimblejamble]

Under $175,000.