Is 10 million dollars enough for my wife and I to quit our jobs?

Question

and live for the rest of our lives without working???

Answer 1

If you had 10 million then you can find a respectable investment that is fairly safe and make a nice bit of money.

Lets say 5%. That will be $500,000 a year just from the interest that the 10 million is making. You can definately live off of that. Heck, you should be able to live off $100,000 and re-invest the other $400,000 and never have to worry.

This is assuming that you can actually live off of the interest and not get stupid and spend thru the $10 million.


Also, a person gave a math scenario that is wrong. 5% compounded monthly on $5,000,000 is not going to give $250,000. The 5% is the yearly amount. It is just broken down and computed more than once in a year. Monthly is 12 times in a year and weekly is 52 times in a year. The monthly gain would actually be a bit more than $20,000 for a 5% compounded monthly. The method given earlier would result in a growth of 1264% a year. A few years of that and you would have all of the money in the world and money would be worthless because of it.

Answer 2

Probably but it would depend on what you and your wife want to do afterwards. The amount you need to retire differs with each person or couple. If you have/want an extravagant lifestyle, then 10 million might not be enough. Some folks are able to survive on a lot less (these days, 1 million is considered a lot less) if they have a simpler lifestyle. So besides trying to determine how much you need to retire, you should also think about what you want to do along the way, and then, when you reach critical mass, determine what you want to do with the rest of your lives. Retirement without purpose and a plan can contain much less enjoyment than you think. Life is a journey.

Answer 3

Yes as long as you don't go crazy. If the money was put into a general savings account you are looking at an annual return of nearly 250,000 with which almost anyone would live comfortably for the rest of their lives.

Answer 4

I think so...

I would take about half and buy a house, cars and do other fun stuff, then I would take the rest of the money and shop around different banks and find one with the best interest rate, at the best compounding schedule, i.e. 5% compounded weekly.

Pay for everything upfront, so you don't owe anybody anything...

5,000,000 at 5% interest compounded weekly would be 250,000 every week...

If compounded monthly, then 250,000 a month or about 62,500 a week...

I could live off of that...

Answer 5

It all depends on how you spend it, how old you are now, how you invest it. etc. It may be able to sustain you for your life if you continue to live at a middle class type of lifestyle. However this is very very difficult for many people to accomplish. Also, about 30% of personal bankruptcies are due to medical costs which you can't really predict or anticipate.

Answer 6

Certainly should be. If you can't live on the income from that, you are just plain living too high.

Now your only problem is where to find that initial $10 mil.

Answer 7

If gas prices keep going up and staying up I wouldn't. Just kidding, get a financial planner, you can live well on 10 M

Answer 8

Yes, it is. Get a financial advisor, tell them to make money and pay you a salary and you can still afford to spend half a million.

Answer 9

Yes...

Now go to your local Edward Jones Office (Or any other Broker) and tell them you want to open up a Money Market Account. Then hand them your $10m and tell them what you want to do and how you want to live...

Answer 10

Depends on your spending habits.

Try to invest it risk-free (ie. FDIC insured), live off the interest and you can live forever with that.

If you can live on $500,000/year, then you should be good.