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I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the inte
by suboptimal 19y ago
I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the interest. Or if you can tolerate greater risk, pursue investments with higher returns, and/or expatriate yourself.
The question is, could you stop working and retain your sanity? I wonder about people who achieve success too early in life--they have many years ahead of them and much to learn, and wealth in some ways may be a hindrance.
- wschroter 19y agoPeople undervalue $1 million (or similar numbers) incredibly. It doesn't mean you don't have to work, but it pays for just about all of the things you end up working the first 15 years of your life for - house, furniture, "stuff". Once you've purchased all that crap, any money you make over and above that actually seems like a lot more because it's not going toward buying couches and bedroom sets. I made my first million when I was 22, and though it didn't keep me from working ever again, it basically paid for all of the things I needed. Anything beyond that has been incremental gains. It's a lifestyle changing amount of money.
- hhm 19y agoThanks you all for your interesting replies (all comenters replying to my original comment).
- jey 19y agoYes, but remember to subtract inflation from the expected return! 5% interest means you get like 2% post-inflation.
- ojbyrne 19y agoThe problem is of course, that after taxes (you forgot those), and inflation, 5% interest is really more like -0.5% return.