Is $2 million enough money for me to quit my job?

Question

What are some great investments to make my money grow?

I'm 37 yrs old and own a custom home building business.

Answer 1

Ha. Lucky you! If you have 2 million net (no debt attached), then you can very easily earn about 8k a month in interest in an FDIC insured fixed CD account paying 5% at pretty much any bank. If you want a higher rate of return, you can consider a tax-free municipal bond fund (if your tax bracket warrants) that pays around 4.5%.

To determine if a tax free fund is more appropriate in your situation, use this very simple formula:

Tax Free Rate / 1 - (State +Federal Taxes).

Example: 4.5 / 1 - .28
4.5 / 0.72 = 6.25%

This is called a taxable equivalent yield. Elementary financial concept that is easy to use.

Anyhow, with two million dollars, you have won "the game" so to speak. If you live on the interest and invest a smaller portion of the money in good equity mutual funds and take systemmatic withdrawls from your account you will never have to work again. If you have children, you can also fund most of their life events (including your death) without tapping into your principal.

Enjoy.

Answer 2

At 37, you would be stupid to quit work now. You have a lot of earning years left and even at 50 and if your business is doing well, you could have $20 million by then if you continue working and investing.

Answer 3

I retired at 44 with real estate investments/rentals worth about 1.5 million planning to live off the rent. I still do that 6.5 years later and do not regret it. I never touch the principal. Thats very important. I decided that I had won the money game and hated work. You must decide for yourself when you have won. Life is limited and if you have enough money to not work then do other things you like better. My biggest problem is finding others my age to do things/travel with because they are all still working. I you plan carefully you can easily live your life with what you earn on 2 million.

Answer 4

If you don't have $2 Million you are wasting you time trying to determine what to do with it. At this level of funds you want to put it in business enterprises that provide you with leverage.

Real Estate is a good example. Buying an apartment building where the rental income provide you a good monthly income would be a wise move.

Answer 5

$2M is enough to generate an income of $100,000 a year for evermore. By distributing the money into various "risk classes", you can all but guarantee a minimum average return of greater than 5%, so as long as you withdraw only 5% a year, your money will never get any smaller!

If you can tolerate some risk, of course, you can do a whole lot better than averaging 5%!

Answer 6

have a financial advisor help you with how much you want to invest. you can pay some bills off first. put some money into a cd first of all and you can do treasury bonds as well too. another good investment is some stocks, I would suggest krispy kreme and search for some good low ones with him/her and of course properties are always good investments.

Answer 7

Treasury bonds are paying 5-6% right now, and they're risk free. That would give you about $100-120k annual income.

If you can manage to keep your budget below that amount, your money will grow and you'll never lose it.

You can try higher yield accounts, but you risk losing some or all of it.

Answer 8

I think it depends.

You might want to take into account food, bills, and other extra stuff you might want to splurge on. Investing might not be enough.

If you're around retiring age, then sure, why not? You might not be able to have the best lifestyle, but it would be comfortable.

Answer 9

I don't know how old you are, the size of your family if any, your current lifestyle or your intended lifestyle, which would all be factors in this type of decision.

You should ask around and find a financial planner -- make sure you have references and make sure they are certified in whatever area they say they are certified.

Answer 10

No, $2 million won't last you very long these days. Keep your job, pay off your debts.