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If he put $1M in a bond fund, he could probably expect to get around $40k a year on the interest alone. He would only pay 10% capital gains tax on that, which w
by castratikron 9y ago
If he put $1M in a bond fund, he could probably expect to get around $40k a year on the interest alone. He would only pay 10% capital gains tax on that, which would leave him with $36k. Well above his $25k yearly budget. The bachelor lifestyle is cheap.
- pc86 9y agoNot to mention the NFL pension on top of that. Not sure when he can draw it (at retirement, or does he wait until 55/60/62/65?), but even just modest investment returns + pensions puts him above the median US household income.
- ac29 9y agoBond interest is taxed at normal income tax rates in the US, not capital gains tax rates.
- kelnos 9y agoHell, he could put it in a municipal/tax-exempt bond fund and at the very least not pay federal taxes. If he lives in a state that has a state-specific bond fund, he could let it grow tax-free. 3-4% on one of those is not unreasonable. (But he'd probably want to diversify a bit...)