If you won exactlly $10 million...

[MikeVic]

Stole this idea from the other thread... But it's a question that I usually think about like... once a month. $10 million is a lot, but is it enough to get you to retire if you were 20 years old? As much as I'd hate to do it, I'd probably still work... I'd buy stuff that I always wanted, nice house, and a nice car... but I don't think $10 million would be enough to last the rest of my 60 or-so years...

Unless I'm underestimating how much $10 million really is?

[mckerney]

I'd still work (though not very hard), but I'd have a lot of sweet entertainment equipment.

[JeeberD]

I'd still buy that sweet Porsche...

[VPI97]

I could easily retire on $10,000,000....heck, that's making $200,000 a year for 50 years without even considering investment income and interest. I'd probably have to fight the wife over some high priced things that she may have her eyes on, but personally, there's nothing that I would want that would make the slightest dent in $10,000,000.

[Nyarlahotep]

I'm not 20, and $10 mil is plenty for me to retire on the second it hits my bank account.

[Vince]

As I've been told by my Uncle (an investment advisor), 2 million in even a modest returning venture will net you enough interest to live off of every year without touching the original 2 million ever. So yeah, it's probably enough to retire on and then have some to play with

[albionmoonlight]

Even at a 3% interest rate (which is a very low (i.e. safe) rate), that nets you $300,000 per year. You could live a very nice life on that forever.

Perhaps rephrase the question to what would you do if you won $500,000 dollars. Not enough to live on forever, but enough to change your life.

I think that I would take one kick ass worldwide vacation with my fiancee and then put the remainder into a house. Then I could live my life like everyone else (middle class), but not have a mortgage.

[QuikSand]

It's pretty reasonable to say that you'd stash the $10m away, gain a decent interest rate, skim from that everything above the cost fo living (which you'd put back into principal to keep even) and live off that. It would take some discipline -- to have "access" to $10 million but basically not use it -- but that's not impossible.

Anyway, if you did so - a reasonable rate of return might be about 4% above inflation - or $400,000 in today's dollars, which would continue to escalate over time. (And therefore, you'd have the whole stock to grant to your descendants) It would be hard to imagine having trouble living on that amount of annual income, unless the "availability" of the big bucks poisoned you sense of perspective (which is certainly possible).

So, could you retire on $10M? Of course.

Would you? Who knows.

[Bee]

I'd invest in short-term municipal bonds. Tax-free and usually around a 4% return. I could retire...although my wife would probably have to keep working.

[Samdari]

Originally posted by albionmoonlight
I think that I would take one kick ass worldwide vacation with my fiancee and then put the remainder into a house. Then I could live my life like everyone else (middle class), but not have a mortgage.

But for the typical American, you want a mortgage. Since mortgage interest is deductible, you'd be far better off investing the cash elsewhere, and borrowing the money for a home.

[QuikSand]

Originally posted by Samdari
But for the typical American, you want a mortgage. Since mortgage interest is deductible, you'd be far better off investing the cash elsewhere, and borrowing the money for a home.

Quite correct.

[albionmoonlight]

Originally posted by Samdari
But for the typical American, you want a mortgage. Since mortgage interest is deductible, you'd be far better off investing the cash elsewhere, and borrowing the money for a home.

Yes and no. I would certainly perfer to have mortage debt than any other type of debt. However, if I have the opportunity to have no debt, I will take it. I know that I could probably make more money by investing at a higher rate than my mortgage interest. However, the psychic goodness I would feel with no debt would be worth it for me--even if it is not quite the best choice $$ wise.

[Philliesfan980]

This thread is way to depressing to read at work.

[Philliesfan980]

Dola

Ok, here's what you do.

You start out with $10 million right? Ok, Take $1 million of that and get everything you need and want. Here's what I'd get.

House (one of those Yuppie deals - Can't afford an mansion, but could still get a really nice place) $600,000

Boat $200,000 (like ahouseboat)
A few cars (pick any luxury 1. Sports Car 2. SUV 3. Sedan) $200,000


OK, so now you have $9,000,000 left, and no debt. Even at 4% a year (super conservative over 50+ years) you'd get $360k before taxes. Or 30K a month!!

Granted, you're not going to have a michael Jackson "playland" or anything that you'll see on MTV cribs (hell, maybe you can with 30k a month), but its a nice life! Which even makes me more pissed off at Athletes who BLOW their money (Aka. Jose Conseco).

[QuikSand]

Originally posted by albionmoonlight
Yes and no. I would certainly perfer to have mortage debt than any other type of debt. However, if I have the opportunity to have no debt, I will take it. I know that I could probably make more money by investing at a higher rate than my mortgage interest. However, the psychic goodness I would feel with no debt would be worth it for me--even if it is not quite the best choice $$ wise.

Well, isn't that a little like this:

A: Flushing $100 down the toilet is financially a bad idea.
B: Well, yes and no. It's lots of yuks, so it's worth it to me.

Fine, you might have a set of personal values that tell you that this makes sense for you... but that doesn't lessen the fact that it's a bad idea from a pure financial perspective.

[bbor]

If you can't live of 10 mil from the time you are 20 until the time you die...well...i got news for you....you prolly are'nt gonna make it now,cause must of us won't make 10 mil. even if we worked until we die.

[FrogMan]

Originally posted by MikeVic
Stole this idea from the other thread... But it's a question that I usually think about like... once a month. $10 million is a lot, but is it enough to get you to retire if you were 20 years old? As much as I'd hate to do it, I'd probably still work... I'd buy stuff that I always wanted, nice house, and a nice car... but I don't think $10 million would be enough to last the rest of my 60 or-so years...

Unless I'm underestimating how much $10 million really is?

Mike, I don't how it is in Ontario, but in Quebec, that $10 million isn't taxable, which makes a HUGE difference with most of you South of the border friends...

For me and the wife, it's already clear that if we ever win a big sum of money, part of it would go to the immediate family. For example, in the event of a 10 million win, 1 would go to my parents, 500k to my mother-in-law, another 500k to my father-in-law (they're divorced), and another 1 to my sister (maybe more since she's younger than our parents and her family would benefit from it for years to come). Having a small family like this makes it fairly easy to give a little bit to everyone and would still leave us with 7 millions to pay back the house and get a reasonable car. Not sure I'd go on a spending frenzy, but would probably buy a few "toys" around the house (like changing our 20" TV to a nicer one )... I would probably keep on working for at least a few more years, but with a whole lot less stress...

FM

[bbor]

Dola....

A lot of people would still work,more than likely at their own ventures just to keep busy.There are only so many vacations you can take,i think as humans we still need to have goals or else the will to live is just not there anymore.You see that often with elderly people,many die 2 or 3 years after they retire from work,or after their spouse dies...just because they have lost that "will" to live...

[bbor]

Originally posted by FrogMan
Mike, I don't how it is in Ontario, but in Quebec, that $10 million isn't taxable FM

It's the same across Canada i do believe Froggy.

[Travis]

$10 million

Approx 2 mill to each of my family (3 total), leaving me with 4. Put 1 aside strictly for investment and to 'live off of'. Set myself up with house, car (okay, maybe a winter and summer vehicle because, well, it's Canada and most nice vehicles don't work in 10 inches of snow). Also buy the 'rest' of the house including the dream computer setup as well as home theatre (rest of the house can now officially have nothing aside from a fridge and microwave).

Donate to various charities as well as helping out friends get things they wan't but can't realistically get with their current situation (ie, a certain buddy of mine wants an outdoor rink, which would be done damned quickly).

All in all, once all the spending is done, looking to keep 1.5 or so to fund me until I pass (and buying the good ketchup to eat with KD, apologies to the Bare Naked Ladies).

Edit: As far as activities, I would set up the best damn fantasy leagues for football, baseball and hockey. Be able to hit the gym when it's ::gasp:: not busy, and join every rec league I can find.

[Subby]

I'll tell you what I'd do, man, two chicks at the same time...

That's it? If you had ten million dollars, you'd do two chicks at the same time?

Damn straight. I always wanted to do that, man. And I think if I had ten million dollars I could hook that up, cause chicks dig a dude with money.

Well, not all chicks.

Well the kind of chicks that'd double up on me do.

Good point.

[Radii]

I would pay off all of my debt, my parents and my sister's debt. I would buy my sister a condo or a house, and a car.

I would then, as politely as possible, inform them that I have just set them up as perfectly as possible, but that I cannot continue to bail them out in the future, so I expect them, ESPICIALLY my sister, to take advantage of this and put keep themselves in a good financial position in the future.

At this point I expect that I should still have over 9.25 Million left.

I probably buy myself a house, and just pay the damn thing off. I'm not sure though. That is an interesting discussion. I put a lot of weight into the psycological factor of having no debt, even if taking on the debt is a better way to go financially for tax purposes. I would not spend more than $300,000 on this house. the houses I want right now are in the 175K-200K range, and I can get a lot more than I will ever really need for an extra 100K.

After that initial spending spree, I would invest the rest with a modest goal of having 125K/year after taxes to play with. Even at savings account interest rates, that seems very very easy.

25K of that would go towards a World Series of Poker entry every year, and a few other high priced tournament entries a year, WPT style tournaments and such.

I'd quit my job, but I would try to find something to do to further educate and challenge myself that I enjoyed. I would likely go back to school, and I would very very seriously consider becoming a teacher.

[SunDancer]

Originally posted by Philliesfan980
Dola


Granted, you're not going to have a michael Jackson "playland" or anything that you'll see on MTV cribs (hell, maybe you can with 30k a month), but its a nice life! Which even makes me more pissed off at Athletes who BLOW their money (Aka. Jose Conseco).

What do you mean blow their money? Remeber, athletes have the money to spend with salaries, bonuses, endorsement deals, ect.

[cuervo72]

Originally posted by Radii

25K of that would go towards a World Series of Poker entry every year, and a few other high priced tournament entries a year, WPT style tournaments and such.

Oooohhhhh, that's a GREAT idea!

[Glengoyne]

Originally posted by Subby
I'll tell you what I'd do, man, two chicks at the same time...

That's it? If you had ten million dollars, you'd do two chicks at the same time?

Damn straight. I always wanted to do that, man. And I think if I had ten million dollars I could hook that up, cause chicks dig a dude with money.

Well, not all chicks.

Well the kind of chicks that'd double up on me do.

Good point.

Had a friend of a friend, single guy with lots of disposable income. He did this a while back on a trip to Nevada. Cost him a couple grand, but He was certainly not remorseful about his "investment".

[Ksyrup]

I think you guys are forgetting one thing in your calculations: your posse! Once your homies are done bleeding you dry - and your accountant rips you off - you'll be back to your 9-to-5 in no time.

Ain't that right, MC Hammer?

[Franklinnoble]

Bah. About half of it would get chewed up in taxes right off the bat. Suppose you go and buy a million dollars worth of property and other crap after that... then you're stuck with taxes on all that stuff for the rest of your life.

I dunno if the interest on $4 million would be enough to live off of and pay taxes with. Chances are, most people would screw it up, and end up broke and having to sell what they bought within 5-10 years.

[Passacaglia]

Originally posted by Subby
I'll tell you what I'd do, man, two chicks at the same time...

That's it? If you had ten million dollars, you'd do two chicks at the same time?

Damn straight. I always wanted to do that, man. And I think if I had ten million dollars I could hook that up, cause chicks dig a dude with money.

Well, not all chicks.

Well the kind of chicks that'd double up on me do.

Good point.

I was about to say, "You know what I would do, if I had a million dollars? I'd give half of it to Assad in securities..."

[Swaggs]

Originally posted by FrogMan
Mike, I don't how it is in Ontario, but in Quebec, that $10 million isn't taxable, which makes a HUGE difference with most of you South of the border friends...

For me and the wife, it's already clear that if we ever win a big sum of money, part of it would go to the immediate family. For example, in the event of a 10 million win, 1 would go to my parents, 500k to my mother-in-law, another 500k to my father-in-law (they're divorced), and another 1 to my sister (maybe more since she's younger than our parents and her family would benefit from it for years to come). Having a small family like this makes it fairly easy to give a little bit to everyone and would still leave us with 7 millions to pay back the house and get a reasonable car. Not sure I'd go on a spending frenzy, but would probably buy a few "toys" around the house (like changing our 20" TV to a nicer one )... I would probably keep on working for at least a few more years, but with a whole lot less stress...

FM

Don't forget a million to your brother Swaggs.

[mckerney]

Originally posted by Franklinnoble
Bah. About half of it would get chewed up in taxes right off the bat. Suppose you go and buy a million dollars worth of property and other crap after that... then you're stuck with taxes on all that stuff for the rest of your life.

Just tell the government your considering using the land for farming and watch the goverment checks start rolling in.

[Godzilla Blitz]

Originally posted by Subby
I'll tell you what I'd do, man, two chicks at the same time...

That's it? If you had ten million dollars, you'd do two chicks at the same time?

Damn straight. I always wanted to do that, man. And I think if I had ten million dollars I could hook that up, cause chicks dig a dude with money.

Well, not all chicks.

Well the kind of chicks that'd double up on me do.

Good point.

Loved the first half of that movie.

[SunDancer]

What nations are pretty looser on taxes, in terms of that kind of taxitation.

[FrogMan]

Originally posted by Swaggs
Don't forget a million to your brother Swaggs.

Oh, yeah, the guy who says "down with Hattrick" in his sig



FM

[MikeVic]

Originally posted by FrogMan
Mike, I don't how it is in Ontario, but in Quebec, that $10 million isn't taxable, which makes a HUGE difference with most of you South of the border friends...
FM

I'm in Manitoba!


A lot of interesting ideas here. The interest thing makes sense. I'd spend a couple of million right away, then put the rest into a bank for interest, and live off of that.

However, like bbor said, I'd probably get so bored. There's only so much relaxing you can do, vacations you can take, and sleeping-in you can do. I'd join some rec. leagues, maybe work a minimum wage, part-time job once in awhile.. just to keep sane.

[Schmidty]

I'd invest enough of it to have about 50,000 a year for the rest of my life. Then I'd give the rest of it to my church, and my family.

[FrogMan]

Originally posted by MikeVic
I'm in Manitoba!

Oh, I'm so sorry for you... Anyway, is it the same where you live, I mean is it taxable?

FM