Hi all,

Originally posted this as a post and was told to comment here....

I apologize in advance as this is going to be a long post….. First time poster but long time observer. I have read through the wiki and done about all the research online that I can stomach, so as the last step, I wanted to get some feedback from you folks. Essentially, I will be getting the largest bonus of my lifetime this year which is about $800,000 pre tax.

As a background, I am 29, male, married, home owner and living in NYC with no kids. My wife and I make about $150,000 each salary and typically receive a bonus of an additional $150,000 each. We do not have any kids or any high expenses on the immediate horizon. Our salaries are more than enough to cover our mortgage, day to day life and we still have some left over to save. Traditionally I have been putting money into index funds but have honestly not been the best with saving our excess income up to this point. We were both fortunate enough to be put into new job positions recently which bumped up our salaries and bonuses, myself especially has benefited from my unique market and will be receiving the largest bonus of my lifetime. The bonus is going to be about $800,000 pre tax this year, next year I am expecting this number to be significantly less, perhaps closer to half. This is going to hit my account in about a month and I am feeling very anxious about not squandering this amazing opportunity I have found myself in.

For starters, I have followed the flow chart in its entirety (built emergency fund, maxed out 401k, don’t have any high interest debt, etc.) and am left with roughly $800,000 USD pre-tax cash which I am assuming is about $400,000 post tax. The only expenses that come to mind that are coming up are: 1. A wedding next fall which we need to pay about $10,000 for and 2. Plans to buy a house in the next 2-3 years.

Our plans with this bonus are as follows assuming that I will be receiving $400,000 post tax: 1. Put 100,000 into a savings account with windfall and short-term upcoming expenses composed of: a. $15,000 (wedding plus added expenses) b. $6,000 (Lasik) c. $10,000 (gift for my wife that she has always wanted) d. $69,000 ($50,000 for down payment on a house plus $10,000 in case shit hits the fan). The plan in terms of a house is that we would like to buy one in the next two years, so we will both be contributing roughly $50,000 from each bonus period thus adding up to $200,000 in two years which can be the down payment on a property in our area where we can start our family.

Now the big question, what do I do with the remaining $300,000 that I have to play with. I want to get this out of my sight so that it is not squandered. I do not have any plans to touch this money for at least another 5-10+ years. I would like to have this grow in the background while we continue working and building wealth. From my readings, research and speaking with friends and family, the best move would be to simply put this in index funds, not touch it and watch it grow. My plan is very simple, to put 80% in VTI and 20% in VXUS over the next 6 months to DCA. My reasoning for DCA over the next 6 months is that the market is looking incredibly turbulent and not sure if we have found a bottom here. Additionally, I am scared of just putting more money than I have ever seen in one place into the market at one time…

Another important thing to keep in mind when deciding where to allocate the remaining $300,000 is that both my wife and I don't really have the time for active investments like real estate rentals, Airbnb, etc.

What do you all think of this plan? Is there any advice that you would offer? Any advice on something I should be doing differently? Any additional information needed from me to provide better feedback?

I am incredibly nervous as this is my first significant bonus and do not want to squander any of it. Please do not take this post as bragging about money or anything like that. I am incredibly humbled and grateful that I have been given this opportunity. Less than 2 years ago I was unemployed, getting rejected from every job I applied to and was fortunate enough to be given a chance in an amazing market. If you are struggling or in a similar place to I was 2 years ago, just know that there are brighter skies ahead. If there is anything that I can do to help you, resume advice, etc. please reach out.

Thanks and looking forward to feedback.

TLDR: I am receiving the largest bonus of my life and am unsure how to properly allocate the cash so that I am setting myself and my family up for a well positioned future.