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I'm not in this position, I've thought a fair bit about it since it's in the realm of possibility. This is what I'd like to believe I would do: Buy 30yr Treasu

I'm not in this position, I've thought a fair bit about it since it's in the realm of possibility. This is what I'd like to believe I would do: Buy 30yr Treasury Bonds with enough of the cash to generate ~$200K/year passively for the next 30 years. Then proceed to continue my normal life. I'd treat the extra income from the bonds like a raise, invest it smartly, buy things as I would normally. Except now I have an immense buffer to stop current work and/or the freedom to pursue other interests. But I wouldn't change anything in the first year of such a cash influx.

mobilefriendly 7y ago
Wait. You'll need closer to $8 million invested at 2.57% (30 yr current yield) to earn $200,000 a year. And consuming that every year means you'll destroy much of the real value of your hoard over 30 years (you're not reinvesting something to cover inflation). Further putting it all into Treasuries is actually riskier than diversifying across multiple assets - foreign stocks, real estate, etc. If we go into an inflationary period and you're locked into a 30 year at 2.6%, you'll watch your fortune collapse and your stipend's buying power crumble.
marcrosoft 7y ago
You might want to consider inflation into this strategy. 100% allocation to 30yr Treasury Bonds at the current rate will continuously lose money until your 200k (plus yield) becomes a buying power of < 40k in 30 years. US stocks should be part of your allocation.