clawhammer

I'm pretty sure that I would not be able to live off of it for the rest of my life, since I'm only 20, and I'd like to live for an additional 60 years or so.

$1 million after all taxes is probably closer to $600,000 in reality. If I got that much money, I'd probably use $10k to pay off the S2000, plus maybe another $5k for mods.

The rest I'd probably invest in different mutual funds, basically $585,000. Then I'd finish college and get a job the same way as if I'd never gotten that money in the first place, and maybe retire by age 40.

Mr. Francesco

Being 21, I wouldn't change my lifestyle or work ethic at all.

I would have to invest the million in some type of money market or mutual fund and keep it their for a few years so that eventually I could have a nice amount saved for emergancy and also be able to live off of the intrest.

If the above option wasnt promising then I would buy some rental property and invest what is left over.

NFRs2000NYC

You definetely couldnt live like you wanted to.

First of all, are we talking about 1 million free and clear, or an actual one million winning, meaning you pay taxes, and go home with $364,000.


Regardless, you cant live on that for the rest of your life. A decent house will eat a good chunk of that, then property taxes (capital gain if you leave it in the bank) etc.....

1 million dollars today sure aint what it used to be.

cthree

Of course you could. Even at 4% that's still $40K/year in interest which is higher than the median US family income (sad). The real question is would you want too?

NFRs2000NYC

You would pay 51% tax on that 40K, leaving you with 20K....which, in NYC anyway, is chumpchange.

To re-phrase my post....

You *could* live on it....but you sure as hell wont be comfortable IMHO.
(Based on my definition of comfort).

I remember seeing a financial analyst on MSNBC saying, that "to live WELL in the US, you need $10,000,000 in the bank"

ATOice

Could I, yes...would I, no...I make the money work for me, taking 15% a year as I have been, oh my...

Amit

I doubt anyone on this forum could retire with a million dollars. I say that considering the fact that it's a sports car forum, and most of us own one or want one. to retire with a million dollars you'd have to have a a very basic lifestyle and live in the boonies, and even that's iffy.

the funny thing is the average joe that doesn't have a clue about the financial world probably thinks they would live like a king for a million bucks.

NFRs2000NYC

The only way I can see you living well with a million dollars is....

Put the ENTIRE 1 mil on a downpayment on a house....that in 5 years, will double or triple in value.

This however, only happens after disasters... (9/11 for instance)...

Apartments were selling for 500-700K that are worth 3-5 mil now.

magician

And how will you afford payments on a, say, $3 million - $4 million house?

steven975

That's a pretty bad assumption. On average, real estate is projected to be flat in real terms (meaning post-inflation). In my area, it is projected to lose 15-20% over the next 2 years!