Dalanee is home and recovering from her second surgery. The margins are clear, and we are unbelievably thankful. No chemotherapy is needed, praise God, so the only treatment left is radiation and oral medication.
The hardest part now is keeping the dogs off of her. They love her so intensely that they launch themselves at her the moment they see her. I’ve resorted to keeping them on leashes inside the house and bracing myself like I’m anchoring a tug-of-war team. They’re just little mini goldendoodles. They look like teddy bears. A dog's love creates tremendous strength.
Grammy stayed with us last week while Dalanee was in surgery. In the past, the kids would smother her with attention when she visited, and she’d leave exhausted. This time? They barely noticed she was here (or at least they didn't acknowledge it). She was perfectly happy sitting in a quiet house with her iPad and Kindle all week. Honestly, it was a blessing having her here, especially because the kids had fall break. Don’t even get me started. Who invented fall break? They just went back to school, and suddenly they need a vacation?
Also, here’s something cool: below is a picture of Senay wearing a real Olympic gold medal, straight from the 2024 Games. It belonged to the gold medalist in the hurdles.
Let’s play a game. Imagine your boss walks up to you today and says, "You’ve done such a great job, we’re giving you a $1,000,000 bonus." You’re suddenly a millionaire. Sounds amazing, but here’s what really happens.
First, taxes take a big bite. This bonus counts as ordinary income. In 2025, a married couple making that much will pay an effective federal tax rate of roughly 30 percent after deductions and progressive brackets. On top of that, you’ll pay 6.2 percent Social Security tax on the first $168,600 and Medicare tax of 2.35 percent on the entire amount. Altogether, you’ll lose about $334,000 to taxes, leaving you with roughly $666,000.
Naturally, you’d want to reduce those taxes. One of the only legal ways to do that is by contributing to retirement plans. In 2025, the maximum 401(k) contribution is $23,500 per person, plus a $7,500 catch-up if you’re over 50. That’s $31,000 each, or $62,000 if both spouses are working and contributing. That money goes in pretax. But at this income level, you’re not allowed to deduct contributions to a traditional IRA, so that option is off the table. Maxing out 401(k)s could still save you around $18,000 in taxes.
Next, you’d clean up any high-interest debt, such as credit cards. Then you’d make sure your insurance planning is in order, especially life insurance if your family depends on your income.
After that, most people want to pay off their mortgage. Let’s say you owe $200,000 on your house at a 3 percent interest rate. Paying it off sounds smart, but that’s actually cheap debt. You could put the same $200,000 into a CD or treasury earning around 5 percent today and come out ahead financially. Not to mention, once you pay off the house, the cash is gone and hard to get back.
Liquidity gives you control, so I wouldn’t rush to pay off a low-interest mortgage.
But even smart people will celebrate a little. Maybe you finally buy that $80,000 car you’ve dreamed of. Maybe you take a $20,000 trip to Europe. Maybe you remodel the kitchen for $80,000. Then a few family members "unexpectedly" need help, and there goes another $50,000. You didn’t buy a yacht or a second home. You weren’t reckless. But now $230,000 has quietly disappeared.
So where are you now? You started with $1,000,000. After taxes: around $675,000. After 401(k) contributions around $600,000. After a few reasonable lifestyle choices, about $375,000 is left. Let’s say you invest $300,000 of that responsibly in a diversified portfolio. Using a safe long-term withdrawal rate that would produce about $12,000 a year, or $1,000 a month, in retirement income.
And that’s the point. A million dollars isn’t what people think it is. It doesn’t automatically mean freedom or retirement. Having a plan can significantly improve your life. If you don’t, it vanishes faster than you think. The difference between financial security and financial regret always comes down to decisions, not dollars.
If you or someone you know receives a windfall, ensure they consult with someone knowledgeable before making any decisions. What happens in the first 90 days matters. About 15% of NFL players file for bankruptcy within 12 years of retiring.
Be Blessed,
Dave