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A standard ING account is at 4% right now. on $5M, that's $200K. What exactly do you have to manage again?
by run4yourlives 18y ago
A standard ING account is at 4% right now. on $5M, that's $200K.
What exactly do you have to manage again?
- mechanical_fish 18y agoWatch out for the inflation rate! If inflation is at 4% your ING account is worthless and you're spending down your principal in real terms. Believe me, I've been thinking a lot about that recently. That said, your point is taken: There is some amount of money where you can set up some fairly risk-free, static investments and take out $X every year indefinitely. Just make sure you do a little more thinking upfront about how much money that is, and what static investments those are.
- nostrademons 18y agoTIPS or I-bonds would seem to be the prototypical example: they guarantee a certain real rate of return (about 2% when I looked a couple years ago, though I heard it's gone negative with the credit crunch), so if you've got $10M or so you're guaranteed your $200k. Only thing you have to worry about is a government default, but if they do that, you have bigger problems to worry about than what happened to your money.