Could YOU comfortably live the rest of your life on 1 million?
2007-08-06 14:44:45 · 8 answers · asked by muffin 6 in Business & Finance ➔ Personal Finance
Yes, but if you're not going to work and stretch it out as much as possible, I would move outside of the big city and continue to live frugally and invest it wisely.
2007-08-06 15:00:01 · answer #1 · answered by PK 5 · 0⤊ 0⤋
Not for long...and the reason is inflation.
Allow me to demonstrate. Suppose that your current lifestyle requires $50k annually, and that you consider this somewhat comfortable. 5% is a rather safe expectation for earned interest. For the first few years, you will probably not notice the effects of inflation, but it WILL catch you.
The inflation rate is roughly 3%. That means after one year, your $50k lifestyle now costs $51,500. In just ten years, your lifestyle will cost over $65k.
You could attempt to earn more than 5% on your $1 million, but you would also increase your risk of losing the money.
The best thing to do with $1 million, assuming you're not already at retirement age, is to continue working - preferably for yourself - while allowing the money to grow.
2007-08-06 23:04:35 · answer #2 · answered by virtues_of_capitalism 1 · 0⤊ 0⤋
I could comfortably live off of the compound interest earned on 1 million dollars in the bank
2007-08-06 23:07:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
depends on what you mean by "comfortable" a 5% return gives you 50K per year which most people can live on, and there are many ways if you have that type of money to get a higher return. if you can be happy at where you are then you can live on that. the key would be getting a job you like to do and try to live on that and just ket that best egg grow
2007-08-06 21:49:33 · answer #4 · answered by Domino 4 · 0⤊ 0⤋
I could live very well on that. I could live comfortable on half that amount. But then I'm very good with money management.
2007-08-06 21:48:12 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋
No, I'm too young (35) and my lifestyle is a bit too expensive for that (about $40k per year in expenses). I'm targeting about $1.5M at age 40 as the "have enough money" point.
Doug
2007-08-07 08:05:28 · answer #6 · answered by Doug M 4 · 1⤊ 0⤋
im gonna say yes......cause as of now i have about dollar in the bank....but my bills are pd kids have food clothes and other necessities.....i would say half that would be OK by me...
2007-08-07 12:05:13 · answer #7 · answered by realbtch 1 · 0⤊ 0⤋
Absolutely. . .
2007-08-06 21:51:50 · answer #8 · answered by towanda 7 · 0⤊ 0⤋