- Joined
- 20-Jun-2003
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- 2,011
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- Age
- 51
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I had a thought this morning while in the shower. What would I do if I was given $1,000,000, after taxes were cleared? This money could be in the form of a lottery winnings, an inheritance, some random stranger handing my a bag of money (hopefully not stolen from somewhere else though!)... the point is, it doesn't matter where this money comes from. What would I do with it? I mean one million dollars really isn't that much money in 2024, right?
Ah, but it IS! Look. If I write out all my expenses just to live for right now I have:
If I were to invest this one million dollars in a high-yield savings account, or to invest this money at a guaranteed rate of 5% interest, that's simply $50,000 in interest payments per year, right? I know I'm probably over simplifying this. Us poor people aren't taught financial smarts in school. Right now, I'm killing myself slaving at a job to earn about $28,000 after taxes. With this simple investment, I wouldn't have to work another day in my life! I'd be set. Granted, I wouldn't be traveling all over the world, neither would I be having the luxury car, or the huge house to live in, but if I didn't change anything about how I was living, I would be free to pursue my passions all day, every day without the stress of working.
Furthermore, I would take this money and put it into a Trust. The extra money that I don't need for my living expenses, I would invest back into the High-yield savings account, and that would grow my money. Since the money is in a trust, the Government can't tax it if I die. I know this probably isn't 100% accurate, but I think I'm at least close to figuring out how something like this would work.
Now, I just need to figure out a way to be given my one million dollars! Hmmmm
Ah, but it IS! Look. If I write out all my expenses just to live for right now I have:
| Rent: | $20,700.00 |
| Electricity: | $ 1,800.00 |
| Phone: | $ 2,400.00 |
| Internet + TV: | $ 2,400.00 |
| Transportation: | $ 1,080.00 |
| Health Insurance: | $ 960.00 |
| Food: | $ 3,600.00 |
| Total: | $32,940 per YEAR |
If I were to invest this one million dollars in a high-yield savings account, or to invest this money at a guaranteed rate of 5% interest, that's simply $50,000 in interest payments per year, right? I know I'm probably over simplifying this. Us poor people aren't taught financial smarts in school. Right now, I'm killing myself slaving at a job to earn about $28,000 after taxes. With this simple investment, I wouldn't have to work another day in my life! I'd be set. Granted, I wouldn't be traveling all over the world, neither would I be having the luxury car, or the huge house to live in, but if I didn't change anything about how I was living, I would be free to pursue my passions all day, every day without the stress of working.
Furthermore, I would take this money and put it into a Trust. The extra money that I don't need for my living expenses, I would invest back into the High-yield savings account, and that would grow my money. Since the money is in a trust, the Government can't tax it if I die. I know this probably isn't 100% accurate, but I think I'm at least close to figuring out how something like this would work.
Now, I just need to figure out a way to be given my one million dollars! Hmmmm
