4% is 40K a year (before capital gains taxes). You could definitely live off of it on your own, but not super comfortably and definitely no family. I see a couple of options. I'd probably throw it into savings and build up a few years more years of engineering experience. Then I'd go part time as a consultant. If I could pull 90K a year at 20hours a week with somewhat reduced taxes, that'd be pretty sweet. Alternatively, I could just keep working normally as is until ~30 or so. By then I'd likely be looking at 2-2.5mil, which is definitely enough for me to retire with.
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How long could you stretch 1 million dollars? How many years?
- Thread starter Liquidsnake
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backflip10019
Member
Probably, though I'm really talking about maintaining my current lifestyle, which I'm really happy with. So, give or take a few years and take investments into consideration -- probably 30-35 years?
Skiptastic
Member
1. Do I need to pay taxes on that gift?
2. Can I continue working?
If the answer is no and yes, I can make that last pretty much forever.
And to answer your other question, I could leave $1M in the bank and be perfectly fine with it sitting there.
massivekettle
Member
If you did, you would probably be poached by a hedge fund (unless that's where you work). Very few fund managers can pull this..
ITT, people who don't grasp inflation.
Assuming you live off $1,300/month now; that amount, assuming 2% inflation per annum, will be $4,265 in 60 years, so no, you will likely go through the million much faster than that.
Liquidsnake
Banned
My parents gave me a condo. I sold the condo for a $200,000 profit. I gave my mom 100k and I deposited about $88,000 after costs into my savings and checking account.
I then quit my job and proceeded to spend it all over the next 8 months. Like I said having worked every day of my life since the age of 16. It was the best 8 months of my life.
Living in a nice place, women, clothes, vacations. But I was very stupid and careless.
Example: I bought that stupid Samsung Matrix phone off ebay for $1,000 dollars. Why?
Because I wanted it. It was a garbage phone anyways. I bought a $2,200 dollar HD TV CRT 52 inch. One of the first of its kind. Dumb stuff like that.
endresults
Member
After I doubled it by putting it all on black, I would probably buy a sweet jet car and save the rest.
hahaha omg I can't xD
HappyBivouac
Member
I spend a lot of time in China and fucking love it, plus I have really low standards as far as living space is concerned, and I don't need too many toys or luxuries to be happy. I once rented an apartment in Ningbo (one of the wealthier mid-sized cities and a hub of international trade) for roughly 80 USD a month. Granted, things in China are changing and costs of living are rising, but I'm pretty sure I could make a million last a really fucking long time.
I could probably go decades without working. Realistically, I would probably want to work anyway, so I would budget it out and find a nice middle ground, enjoying a few small luxuries, but mostly enjoying the extra financial security.
Too bad I'm a poor recent grad with a BA in English 
I could probably go decades without working. Realistically, I would probably want to work anyway, so I would budget it out and find a nice middle ground, enjoying a few small luxuries, but mostly enjoying the extra financial security.
Long term market gains over the last century averages out to about 10% per year.
Khalifa Jayy
Banned
1. Build custom home.
2. Sell for profit.
3. See step 1.
2. Sell for profit.
3. See step 1.
HappyBivouac
Member
That would be a fun lifestyle but I doubt the ROI would be enough to live on.
If I had to stretch it, I can use it to live the rest of my life. I'd live in poverty, but hey, no need to work.
What I would actually do is maybe buy a house with it. That or put it in my retirement fund. I'll of course keep working. So it'll either go immediately (house) or last until I die (retirement).
What I would actually do is maybe buy a house with it. That or put it in my retirement fund. I'll of course keep working. So it'll either go immediately (house) or last until I die (retirement).
Baron Doggystyle von Woof
Member
You can travel the world on the rent alone. IF you travel cheap and don't stay in 5 star hotels.
I personally would buy an apartment and live of the rent I would receive.
Renting 5 rooms for 400 euro's makes 2000. Easy to live on that plus you keep some money on the bank.
I personally would buy an apartment and live of the rent I would receive.
Renting 5 rooms for 400 euro's makes 2000. Easy to live on that plus you keep some money on the bank.
massivekettle
Member
I know - but you would have to invest in "the market". Point being, being a DIY investor does not mean you will achieve the same rate of return as the "market" (i.e. 10%).
Lastly, whilst Index/ETF funds do a great job for cheap, there's always a slight deviation/error.
FrostuTheNinja
Member
Attempt to live off of the interest.
Spread out your investment enough and your returns will invariably follow the market. It's the same reason why you can poll 1,000 people in the US and get pretty damn accurate results for the whole country. All that said, my ideal setup is a situation where I can give my money to someone else and get a guaranteed % per year. Investing is still work.
Considering my age I don't think I will need to stretch it that far anyways, but you are right, I didn't factor in inflation nor did I factor in interest or dividends. A simple response for a simple question. As long as I can grow it at inflation, the 64 years would still work.
captmcblack
Member
A million dollars? If I was literally just spending it on myself, and I gave myself a $60,000 yearly "salary", I'd have almost 17 years on that.
I'd probably use that million differently, though - I'd wipe out all debt for me and my girlfriend, put aside $100k for us to use for higher education, another $100k for any children we have and their education, and use $200k to buy something(s) to own - home, condo, used car(s), whatever. The rest would be placed in a savings acct and we'll put that at our backs so we can live worry-free while we work.
I'd probably use that million differently, though - I'd wipe out all debt for me and my girlfriend, put aside $100k for us to use for higher education, another $100k for any children we have and their education, and use $200k to buy something(s) to own - home, condo, used car(s), whatever. The rest would be placed in a savings acct and we'll put that at our backs so we can live worry-free while we work.
I live in Mexico, I could probably live comfortably for the rest of my life here.
Now, what I'd actually do? Get a second degree abroad, and then work part time as a language instructor / translator for the rest of my existence, keeping learning as many languages as possible. It'd be cool. Someone give one million dollars pls.
Now, what I'd actually do? Get a second degree abroad, and then work part time as a language instructor / translator for the rest of my existence, keeping learning as many languages as possible. It'd be cool. Someone give one million dollars pls.
zephervack
Member
How much would you be getting yearly and where would you put it?
Randolph Freelander
Member
I'm not one to suggest I could go a lifetime on it (without working), but regarding handling it, I'm already accustomed to "paying myself." I have my direct deposit (all but a token amount to satisfy a bank fee avoidance requirement) going to my savings account. I then transfer a cumulatively smaller amount weekly to my checking to cover expenses. This enforces savings and living within a reasonable budget. The amount of the paycheck and the value of the savings account(s) are not all that important (holding that inflows exceed outflows, of course).
BumblebeeCody
Member
Damn the amount of Freddos I could buy with that money. I guess not very long then.
Without any real investments other than a house and paying off my current debts, I could probably make it last 15 years. I could get by on about $30k/yr, but I'd probably bump it to about $50k just to have some fun.
Of course I wouldn't work during that time either, but I might peruse some current hobbies and turn those into an actual job of some sort. Even if I knew ahead of time that these side things wouldn't pan out, I would quit my current job today.
Of course I wouldn't work during that time either, but I might peruse some current hobbies and turn those into an actual job of some sort. Even if I knew ahead of time that these side things wouldn't pan out, I would quit my current job today.
metalslimer
Member
I could live on a million until retirement. Honestly the biggest expenditure I would want is a new car and a few trips to places around the world. I also would definitely work. I don't see how some people could be happy not working at all.
If nobody found out about it, I could easily live half of my life on it. My lifestyle is really cheap, I was raised in a family of 4 and we had 20k/year total for 20 years.
Realistically, though, someone in the extended family would find out about it, then everyone knows and I'm coerced into blowing it all in under a year.
Realistically, though, someone in the extended family would find out about it, then everyone knows and I'm coerced into blowing it all in under a year.
Yup. Give me a million dollars and I'm done for life.
NipplesAndToes23
Member
Get financial advice from someone, probably a family member, if not hire someone, get myself a car, an apartment, and give some to family. With that first part, I should be set for life.
My realistic attempt to manage the money would be to pay off all my debt, front my parents probably $100,000, put the rest in the bank and continue to live my life as I do now. I would probably consult with my rich uncle and get some advice and possibly invest some of it.
Living at or below my means with my current job ($70k a year, hopefully increasing over the years of course), just now I can be a little bit more care-free when it comes to buying a video game, going out to eat, buying new electronics.
I don't think I would go crazy on getting a large place to live or spend it on anything overly expensive.
So I think I could stretch it out over 30-40 years.
Living at or below my means with my current job ($70k a year, hopefully increasing over the years of course), just now I can be a little bit more care-free when it comes to buying a video game, going out to eat, buying new electronics.
I don't think I would go crazy on getting a large place to live or spend it on anything overly expensive.
So I think I could stretch it out over 30-40 years.
metalslimer
Member
This is the real problem. I would certainly do something for my mom and grandma, but everyone else could go fuck right off. This is a big reason why athletes end up broke.
I have four kids, assuming I wasn't working, didn't pay for their college, kept my current home(paid off), cars (paid off) and didn't save for retirement any longer and was somehow able to magically get the same health insurance premiums I have through my employer I could make it go 20 years approx. based on my yearly budget numbers if I remember them correctly.
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