If you had 2 million in the bank, what would you do?

[lenny2]

100k to pay for current expenses
300k in stocks (personal trading)
300k in short term bonds
300k in long term bonds
500k in GICs or mutual funds
500k in Residual income programs
(monthly payout tends to be anywhere around 0.75% per month or 4~6% annual)

I'd probably bring in about 6k-7k per month on avg (low 5k, high 9k)
Will keep on working though, so around 120k-140k per year of disposable income (around 80-85k after taxes) + the principle 1.9million.

How would you make anywhere near 7K/mo on those investments?

I'd suggest to purchase life annuities giving you maybe 140K per year for life, before taxes.

Take off around 8-9K a year for taxes. Annuities are hardly taxed at all.

You are left with over 10K a month, till death do you part, and never work again. Why bother.

 

[Scarey]

I'd travel.There are so many places in the world i'd love to see.Take some courses..do some charity work.I doubt alot of my spending habits would change.i've had them for about 30 years.I'd still budget...just give myself alot more leash.

 

[danmand]

Post articles by Noam Chomsky in the terb political forum.

 

[frankcastle]

Keep my day job. The interest for conservative things like GICs probably don't get you more than 2 to 2.5%. I wouldn't want to rely on mutual funds or stocks.

But maybe spend 1.5 million buying 3 or 4 rental properties in say Kingston, London near a university make sure it is up to code to rent out to 4 or 5 students per house who each pay 500+ per month. So that would be 6 to 8 grand gross before income or property tax per month. With 500 K in the bank..... maybe keep 200 K as your balance and put 300K into riskier investment. Hell put that 300 K towards another rental property and let the kids pay the mortgage off.

 

[Nickelodeon]

Short answer is easy. $2M is close to a "fuck you" number where you can do what you want. Not quite because it can only reasonably generate you $50K in investment income a year.

Then you find a part time job or consulting gig to top out to an income level you want.

Many guys reaching retirement are exactly in this situation. No pension but sizable nest eggs that they don't want to diminish and they're done with the 50-60 work weeks it took to put away $2M.

 

[good to go]

I would work 5 more years till i was 55, then retire. Then i would call up my friends and chill out and enjoy life with them.

 

[danislaw]

I probably wouldn't change my habits much either, aside from renting a nicer condo and seeing more SPs.

A chunk would go to my parents and sister, some to charity, and the rest to a boring mix of GICs and bank preferreds.

 

[great bear]

Exchange puns on Terb.

 

[djk]

Invest a large chunk of it in stocks with a dividend yield of around 5%.

 

[nottyboi]

I would totally retire.. it can be done on much less then that.

 

[mrsCALoki]

To make $52k clean a year, you'd have to make about $175k.

You need a better accountant. Last year they only got like 44% in Ontario from me.

By the way once you make over about $500,000 it is much less expensive to become a non-resident. You can live well in most of the world for $200,000 net that you save not paying income tax.

 

[JamesDouglas]

Even if you're 30 you can easily retire with 2 million and live comfortably if it's invested properly. Having 2 million in the bank is different than making 2 million one year and paying half of it in taxes, I'm talking about having 2 million dollars in the bank.

 

[mrsCALoki]

Even if you're 30 you can easily retire with 2 million and live comfortably if it's invested properly. Having 2 million in the bank is different than making 2 million one year and paying half of it in taxes, I'm talking about having 2 million dollars in the bank.

Hun, $2,000,000 is just not that much in 2012. Assuming you get 5% on your money, say $100,000 a year. You lose 3% of gross to inflation -$60,000. You pay something like 50% tax on the money you make so the there goes another -$50,000. So you lose $10,000 of your money every year without even spending a penny on fun stuff.

How much you have to spend of the capital to live well depends on what you consider well. . To live an average life you probably spend like $50,000 a year. So after something like 32 years you have lost about all of it. (Yes I know there is net present value and 2012 dollars and 2020 dollars have different value, but that is beyond me . And $50,000 clear a year is 50 x a great dinner for 4 with vintage wine. Or 50 nights in a suite in a four star hotel.

I do know that living well cost way over $100,000 clear a year, and once you start being able to spend over $250,000 clear a year all the rules change.

So $20,000,000 where life starts to be very comfortable.

 

[FTWWTF]

If you read this board on a regular basis, theres a couple of millionaires on here. Who spend all their time posting on terb, 7 days a week, bragging about the money they have and all the girls they pay for sex

 

[simon482]

If you read this board on a regular basis, theres a couple of millionaires on here. Who spend all their time posting on terb, 7 days a week, bragging about the money they have and all the girls they pay for sex

i was just about to say that lol.

 

[GG2]

Hun, $2,000,000 is just not that much in 2012. Assuming you get 5% on your money, say $100,000 a year. You lose 3% of gross to inflation -$60,000. You pay something like 50% tax on the money you make so the there goes another -$50,000. So you lose $10,000 of your money every year without even spending a penny on fun stuff.

How much you have to spend of the capital to live well depends on what you consider well. . To live an average life you probably spend like $50,000 a year. So after something like 32 years you have lost about all of it. (Yes I know there is net present value and 2012 dollars and 2020 dollars have different value, but that is beyond me . And $50,000 clear a year is 50 x a great dinner for 4 with vintage wine. Or 50 nights in a suite in a four star hotel.

I do know that living well cost way over $100,000 clear a year, and once you start being able to spend over $250,000 clear a year all the rules change.

So $20,000,000 where life starts to be very comfortable.

$20 million. Is that how much your hubby is worth? You love doing calculations on his money, don't you. hehehehe

 

[coolxxx91]

Not to freak people out...But 2-3 million is minimum requirement to retire comfortably in canada according to the Gov. So if I had 2 million i would invest it immideately!!

 

[simon482]

So what is the other 99% of the population to do:frusty:

The reality of being rich or comfortable is about what you spend not what you earn. Not everyone in the population has 50 x a great dinner for 4 with vintage wine or for that matter wants to. I believe you are spoiled to how the other 3/4's live.

exactly. no matter the size of my bank account i would be very content with a small house. 3 bedroom for now but probably downgrade after my kids leave. i don't want fancy expensive shit for the sake of having fancy expensive shit. whey drive a bently when a dodge will get you there just the same. i also don't need a big house to make up for my lacking in other places. i would not be one of those rich people that people know about, in fact i would be one of those guys that you could live beside for your entire life and never know he had money.

 

[danibbler]

Not to freak people out...But 2-3 million is minimum requirement to retire comfortably in canada according to the Gov. So if I had 2 million i would invest it immideately!!

Huh? The gov't said that?! Where???

 

[simon482]

Huh? The gov't said that?! Where???

why you gotta question your gov't, just take what they say as true because 99.999999% of the time the gov't doesn't and wouldn't lie to you.