Your Site Wins $1 Million in a Contest - What Do You Buy?

* stash $125k in bonds or a savings account - start over, emergency fund.
* invest $250k in a high yield/risk managed portfolio - schwab
* buy a large 50'-60 foot (sail boat) for $500k - and cruse the Caribbean/Virgin islands with European/US adventures, chase the seasons.
* use $125k for operating buffer - slow years, so on.
* charter for yearly maintenance/costs - off season beach bum/surfer, diver/instructor, whatever blows your hair back.
 
Last edited:
Ernest L. Defoe said:
I agree with prices the way they are today $1,000,000 isn't that much. Yeah if spent wisely you could live pretty comfortably for the rest of your life. As long as you didn't go over the top. I would buy a nice $200,000-300,00 house a nice truck. (Really love the F-150 Raptor but I would get the Roush Raptor just to have a little extra get up and go). Then I would put the rest in the bank and live off the interest. So at the end of the day I would still have $600,000+ in the bank. While I could get by with less house and less truck I could still live the rest of my life and pay all my bills with what I would get from the interest alone.
Click to expand...

The interest on 600,000 would be $15,600/year. You aren't living off that.
 
Ernest L. Defoe said:
You couldn't pay me enough to live in Texas. I hate that state (not the people mind you) with a passion. They have by far the worst quality roads in the US. Plus their exit systems are stupid. 1 way frontage roads all over the place. You miss a turn you (well me considering I drive an 18-wheeler) may have to drive 5+ miles out of the way to get turned around. 5 miles may not sound like much but with diesel at $4.00+ a gallon and a truck that only gets 5mpg that adds up if you miss enough exits. If Texas had exists like all other states then it wouldn't be so bad.
Click to expand...
We also have speed limits unlike any other state. I live a few miles off a 85MPH hwy that runs 130 miles from San Antonio to Round Rock. There is no fine for 5MPH over, so you can legally drive 90MPH. And once you've been here awhile, the frontage road system makes better sense. Hell, anything beats a New Jersey traffic circle.
 
Tracy Perry said:
I'd pay off the $13,200 we owe on our house, the $1800 we owe on our 2012 Ford Fusion, the $11,000 on the Volvo and then go buy me a new boat (I've got a perfectly good '96 Ford F250 PowerStroke with 87,000 miles on it to pull it with - it's not even broke in yet). :whistle:
Click to expand...
Boat = a floating hole that you constantly throw money into to keep it afloat. No more boats for me.
 
^ Several people wanted a boat. You know the old saying:

If it floats, flies or ****s it's better to rent than buy.
 
Last edited by a moderator:
DRE said:
But yeah I'm

quite shocked at people saying $1million isn't enough. Sounds like something someone with a gambling addictions would say. If I had a million I'd be comfortable just living in an RV. Drive everywhere.
Click to expand...
It's simple numbers, lets say that you're 30 years old and need to make $50k a year to support your current lifestyle. Let's also assume that the $1 million is after taxes, otherwise we'd be starting with only ~$600,000.

If you put the $1 million in a bank account, that doesn't earn interest, you'd have enough money to last you until you're 50. Not taking inflation into account.

Now if you wanted it to support you until you were 80 (50 years), you'd need to do some aggressive investing to keep up with inflation. Here's a pretty cool calculator.
http://www.calculator.net/annuity-p...cinflationrate=3&cmonthoryear=month&x=71&y=15

With a 6% return and 50 year payout you could get ~63k a year, however that's deceiving thanks to inflation. In 50 years, with a modest 3% inflation, your ~$63k would be worth the same as ~$14k today.

This is why you can't retire off of a $1 million. It will however make your life MUCH easier and you could probably get by on small odd jobs and interest payments.
 
I don't even wanna look at this thread anymore. People telling me a million is nothing. lmao ludicrous...
 
Sheldon said:
Based on your numbers above, I could retire. Easily. And I would not ever work again.
Click to expand...
You're grossly underestimating the cost of inflation. Plus remember that you still have to pay taxes on your interest earned.

I put a little excel spreadsheet together to calculate the numbers (doesn't appear that XF allows us to attach excel files:(). Investing $1,000,000 at 6% interest, 3% rate of inflation, and a $63,000 a year payout.....you'll run out of money in year 23. However if you can get a yearly return of at least 9.1% (which is very doable) it'll never run out. (y) (I'd like to note though that this doesn't take taxes into account which will greatly affect your return)

DRE said:
I don't even wanna look at this thread anymore. People telling me a million is nothing. lmao ludicrous...
Click to expand...
No a million is a lot, it's just not worth what it used to be. It takes very careful planning to retire off of it.
 
Help some friends and put the rest in savings.

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.
 

Similar threads

N
Xenforo site threatened by hackers "you'll be destroyed at all costs." What do you do?
Replies
13
Views
1K
Wildcat Media
Wildcat Media
Top Bottom