if you recieve 10 million dollars can you retire and never work agian if you want 300k income after taxes?

Answer 1

Yes, easily. Generally, you need to be able to draw less than 4.5% of your total to be able to live off the amount in perpetuity. That's $450,000 before taxes, and you could absolutely find ways to reduce your tax exposure to less than 33% overall (e.g., try a charitable remainder trust with a portion - you get the income tax-free, and a charity gets the principal upon your death). And anyone get close to a 5% return on a just a money market account.

I'd retire tommorrow given your proposed situation - where do I sign up?

Answer 2

The answer is yes ... conditionally.

It depends on the rate of interest you can get on investing
the 10 millions dollars ... also how old you are and what
happens to the principle.

10M divided by 300K is 33 1/3 years by itself with
not investments. If you invest at 3% you will get
300,000 a year forever and still have 10M when
you die.

There are lots of alternatives, but you can probably
get a safe 3% in a bank or money market with no
problems.

Answer 3

A reasonable amount to take from your principle is 5% a year. this will assume (for the long run) a conservative return of 8% and inflation of 3%.

So, 5% of $10M is $500K, after taxes would be about $300K/year. So, you're good to go. In fact, that's exactly how much you'd have, and it would be enough to cover inflation and that you'd need more than $300k in future years.

You should be able to live, literally, forever on this.

Answer 4

A simple formula : Take any amount, divide it by 2 and then drop a zero.

10 MILLION :
$10,000,000.oo divided by 2 = $5,000,000.oo DROP a zero = $500,000.oo.

$500,000.oo a year will be what you would make IF you had it in an investment account, NOT a savings account. You will have to pay taxes off that yet. If you only want $300,000 you will be just fine !!

Answer 5

Yes.

Answer 6

YES