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Depends how you look at it. With the $5000/month you wouldn't have to work for money, so you could devote 100% of your time to whatever it was you wanted to st
by tempestn 10y ago
Depends how you look at it. With the $5000/month you wouldn't have to work for money, so you could devote 100% of your time to whatever it was you wanted to start. Even if you needed capital, you should be able to get a loan relatively easily given your guaranteed 5k/month lifetime income.
- AstralStorm 10y agoNot a high loan of course. Banks do expect a risk of default over time on those. While with 1M as a collateral they might feel more venturesome.
- tempestn 10y agoYou would think so, but you might be surprised. A couple years back I was looking to get a mortgage. I own a profitable company that pays me a comfortable 6-figure salary and has for years, as well as having liquid savings greater than the total value of the house I was buying. Most of the savings are in a holding company though, so it made sense to get a mortgage rather than taking the tax hit of withdrawing the funds. While I did eventually get a mortgage, it was actually quite difficult, because my income was not "guaranteed". One lender even said something along the lines of, "Yes, you have that money saved, but there's no guarantee you won't spend it." And somehow the fact that I owned the company paying my salary made that income less reliable than if I was dependent on a separate employer. Even though by any logical metric I was far less of a risk than someone living paycheck to paycheck, the situation was outside of their regular mold, so they considered it risky.