I use to think so but today it doesn't seem like that much.
2007-03-22 08:47:31 · 19 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
A million dollars invested at 10% average (a mildly agressive index fund invested in stocks) produces $100,000/year. Of course the value of the $100,000/year will be decreasing over time due to inflation.
Realistically, you could have $50,000/year adjusted for inflation for the rest of your life. Perhaps that isn't quite enough to retire on, but that is alot of money in my oppinion :)
2007-03-22 09:08:53 · answer #1 · answered by cuztis209 4 · 1⤊ 0⤋
If you spent $50,000 per year, a million dollars would only last 20 years. But if you invested a million dollars in a high quality money market mutual fund, such as Vanguard Prime, at today's rate (about 5%) it would pay you about $50,000 per year forever, and you'd never exhaust the original million dollars.
2007-03-22 11:47:44 · answer #2 · answered by Algol 1 · 1⤊ 0⤋
If you don't think a million is a lot, then there's no way you could think a hundred dollars is a lot, and if you don't think a hundred dollars is a lot, you're probably not going to bother saving ten dollars here and there so you can accumulate a hundred dollars, and if you can't accumulate a hundred dollars, there's no way you will ever have a million.
2007-03-22 08:54:11 · answer #3 · answered by open4one 7 · 0⤊ 0⤋
About 20 years ago that sum was considered a lot of money. But not with today's economy.
20 years ago, a million in the bank was worth 50,000 per life with just the interest only. You could actually live on that then.
Now it is not worth that much by any means as inflation has eaten it up so much.
Yes its a lot if you do not have much, but in reality, . . . . . NO. !!
2007-03-22 08:59:41 · answer #4 · answered by having fun 3 · 1⤊ 0⤋
Well when your buying a house these days a million dollars is nothing! Most houses run from half a million. But when you look at that amount when buying food or small things then its a lot!
2007-03-22 08:56:15 · answer #5 · answered by Carolyn 3 · 2⤊ 0⤋
Every year inflation eats it more and more. As the cost of living and everything goes up, more and more people will become millionaires and it will be less and less significant as a measure of wealth.
If the inflation rate remains averaged at 3%, in 40 years (2047) a million dollars today will have the spending power of only $295,000.00. (calc at the below URL)
2007-03-22 08:53:55 · answer #6 · answered by Ethan 3 · 0⤊ 0⤋
this day in age, a million dollars then is like 10 million dollars now. it's insane.
2007-03-22 08:51:03 · answer #7 · answered by Krissi 4 · 1⤊ 0⤋
It depends on where you live and how wise you spend or invest it. The cost of living varies. I would agree that it's not what it used to be as far dollars but it's still alot better than none.
2007-03-22 08:52:57 · answer #8 · answered by Oh Snap 2 · 1⤊ 0⤋
Well I was almost there and then it was gone in no time I'm happy without the bother but sure would like the chance again and soon
2007-03-22 16:37:13 · answer #9 · answered by sally sue 6 · 0⤊ 0⤋
ever heard the saying "I have PLENTY of NO money"??
Of course a million is a lot - especially if u dont have any
2007-03-22 08:54:42 · answer #10 · answered by leifp2000 2 · 0⤊ 0⤋