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7 answers

Yes, you could easily live off $1 Mil if you managed it right. Say you placed it into a good mutual fund (generally good ones are 12-14%, really good ones are near 18-20%) at 12% interest. Inflation has averaged about 4.2% for the last 40 years.

If you take in account that inflation and only withdraw 7.8% of the investment (so that you would continue to get a price of living increase every year), that would give you $78,000 to live off for the first year and it would go up 4.2% every year to combat inflation. Of course you would be taxed on it, but I think most people could get by with that.

2007-01-22 04:24:08 · answer #1 · answered by Nate 3 · 0 0

It would depend on the interest rate you got and how much money you spent. 1% per annum would give you 10,000 dollars a year to live on which probably isn't enough but if you could find an investment that got you 4% pa then you might manage. If you invested it in property and got a return of 10% pa then you'd probably struggle by I would imagine.

2007-01-22 06:53:52 · answer #2 · answered by gerrifriend 6 · 0 0

Here is the formula for interest : 1,000,000.oo divide by 2 = $500,000.00 then drop a zero = $50,000.oo.

Can you live off $50,000 annually whether in two years or in 30 years ?

I know I can due to having no debt and being as frugal as I am.

2007-01-22 05:45:24 · answer #3 · answered by Kitty 6 · 0 0

At 10% APY, Yes I could live off the interest.

Michael

2007-01-22 04:27:41 · answer #4 · answered by PrayerRequestBox 3 · 0 1

maybe, if you earned 1% interest on a standrad savings account that would be approx $10000/month (if you always take it out once per month) I'd stay that is a pretty comfortable amount per month as long as you don't have a huge mortage to pay, you will most likely need to live in an average home.

2007-01-22 03:56:36 · answer #5 · answered by Em C 5 · 0 2

depends on where you invest it and rate of return and your lifestyle. if you live like a bum and spend very little very likely you can but if you spend too much you won't be able to

2007-01-22 03:56:46 · answer #6 · answered by Anonymous · 1 1

If it is wisely invested and you are frugle, yes.

2007-01-22 03:56:55 · answer #7 · answered by Anonymous · 0 1

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