A scenario was brought up where if you had 2 million what would you do? My first thought was to put it in annual CD's and live off the interest (Assuming compounded and after being taxed on it, would be about 80k a year income.) and then Will the rest once a goner. Is this even a good idea though? I mean a bank insures 100k max right? So to be safe, that would mean you'd have to make CD's in over 20 banks of CD's right? (It doesnt matter how many accounts, the max they cover in one bank is 100k?) With the goal that at the end of each year, before the interest is removed, it would have to be less than or equal to 100k right?
Is there a better way to do this and have your money SAFE?
Just a concept thought, nothing thats really happening BTW :(
But geez, wouldn't people with money over 100k in a single bank be concerned?
Lots of topics to cover I know but thanks to all with thorough answers.
The formula I came up with was Pe^RT and used something safe, 5% so 2mil/22 banks at 5%
2007-07-25
01:54:12
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2 answers
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asked by
avengress
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Investing