Do you think 500,000 dollars is alot of money?

Question

Is that alot of money?

Answer 1

Im sorry but that is really just a stupid question. Of course it is. The average person would take decades to make that much.

Answer 2

If you want to live off it right away and not work, you'll have to try to live on $25,000 just to make it stretch 20 years. If you want to use more per year, then it'll last a shorter time. That's not very good for a young person. This doesn't even take inflation into account, which makes $25,000 worth less as the years go on.

However, if you continue to work, you can invest it. At 11% annual growth, which may be possible if you invest wisely, you can double your money (to $1,000,000) in 6 years and 8 months. By the time you retire, the value will be even higher. That's something you can live on (especially because at retirement age, you only have a couple of decades left in your life...).

To answer your question, $500,000 is a lot of money to invest, but not much to live on, if you don't want to work anymore.

Answer 3

A report just issued (sorry i forget the source) says the average if all wealth in the world were equally divided is ~$20,000. Also that having $500,000 is what it takes to be in the top 1% of the richest in the world.

That's the numbers but it is still relative. New York City, London or some such city and it isn't much. Other places it is beyond imagination. But look at how people live in many of those places with clean water etc. unavailable.

So make your money in NYC and then move somewhere else.

Answer 4

It's all relative. Let's say you were hit by a drunk driver and you were now paralyzed. A judge awarded you $500,000 in damages. In that case, $500,000 will barely cover your medical bills not to mention long-term care you would need as well as any potential lost wages.

On the other hand, let's say you are a poor college student and you won $500,000 on a lottery ticket. This would cover all your student loans, allow you to take some time off after school to do something fun like travel, get you set up where you'll be starting a new job and allow you to live off of something besides Ramen noodles.

Answer 5

If i were given it as a gift then yes it would be considered alot of money. OR if I owed that much in taxes then YES... but really that is not alot of money... certainly not to live off the interest with anyway for retirement... Better have more than that if you want a great retirement !!

Answer 6

Relative to your local adn national economy 500k is a substantial but not monumental amount of money. However, to put things into perspective, in most states in the US, a 3-4 bedroom home on a modest 1/2acre plot of land would cost around that figure give or take tens of thousands.

Answer 7

It's a fair chunk of cash, but it's not enough that you could live off the interest. If you guesstimate an achievable, risk-free return of 5% a year (to account for taxes, inflation, volatility, etc.) then $500K would only spit off $25,000 a year, which is barely above "poverty level".

Keep saving!

Answer 8

Half a million was a lot of money at one time, but condidering the houses (A house isn't a home until there's a family in it) in my area start at 650,000, it's not a lot anymore.

Answer 9

To me yes, I would be totally debt free (including my house) and still be able to invest 1/2 of it for retirement. Since I still have a good 30 + years to work, I would have a HUGE retirement fund :-)

It's all in how you look at the glass. ;-)

Answer 10

I consider $500,000 a substantial sum. But if you don't, I would be happy to take it off your hands.

Answer 11

ON a global scale, no its change.


For a guy like me who is a messenger and makes less than mininum wage, yes it is a lot of money.

Even for a rich person it is a lot of money.