Can I live off the interest of $4 million?
It depends on where you live and how many people you need to support. You can get a GUARANTEED risk-free rate of return of ~2.8% each year. This rate is based on the 10-year government bond yield, which is sovereign. The US government will pay you your annual coupon. If it doesn’t, it’s likely that alien invaders have taken over the White House.Historical chart of the 10-year government bond yieldWith a 2.8% risk-free rate of return, you will generate a guaranteed $112,000 a year in pre-tax income. $112,000 a year is almost DOUBLE the median household income in the US of $59,000. Therefore, if you live in a non-coastal city, you will be absolutely fine.However, to live a middle class lifestyle in an expensive coastal city like San Francisco or New York, you’ll likely need to earn $200,000 or more. Here’s a chart I put together on how one couple with one child lives a pretty normal life on $300,000 a year.As you can see from the chart, this family isn’t living large. They are comfortable. They’re saving for retirement and their child’s college education.If you’re retired, $4 million is plenty, because living off the risk-free rate of return of 2.8% today isn’t even cutting into principal.What I recommend is for folks to figure out a way to conservatively invest your money to generate a slightly higher rate of return with relatively low risk if you’ve already accumulated a decent sized nut. You will notice from the initial chart that the risk-free rate of return has been coming down for over 30 years, thereby making risk-free income harder.But what has happened due to lower risk-free rates is that asset prices have surged higher. Therefore, it’s a good idea to not just buy government bonds, but diversify into various risk assets that have principal appreciation upside.Here is my passive income portfolio for 2018–2019 that allows me to be a stay at home dad with my wife in San Francisco and not go back to the coal mines ever again.Regards,Sam, Financial Samurai
If I hit the lottery and won $50 million can I move to Canada?
Yes. As others have said.. money talks in this world. I tried out the Come to Canada quiz on your behalf. I claimed to have a net worth of more than $2 million, was a high school grad with almost no business experience, fluent only in English and no French, and who was willing to invest more than $800,000 to try and start a business in Canada. The website said that I could be eligible under the investor program. (As far as I know, Canada Immigration made changes to the investor program, but they did not cancel it. ) The other thing you could do is apply for a study permit and go to school in Canada. In theory, as long as you stay in school, you could live in Canada for years, transferring from one program to another just trying to get university degrees. But your chances of winning $50 million is about as good as putting a colony on Mars. Actually, putting the colony on Mars may be slightly favored. Besides, with $50 million in your pockets, why on earth would you choose to live in Canada? You could live year-round in someplace like the Mediterranean or the Caribbean.
If I give you $1 million right now, what would you do?
If you gave me a million dollars, I’d never stop thanking you.But what I’d spend it on?$500,000 for a house, first of all.Something similar to this would do:Then we can have a safe place to live, without having to worry about rent!Second of all, I’d put some money in the bank.Let’s say, about $250,000.$50,000 for my uncle, he recently moved to Europe and needs about that much to start his own business.$50,000 would be used for investing, like stocks and such. I want to learn how to make money and not have to rely on the free $1 million all my life.$25,000 is for my entertainment (gaming PC, videogames, lots and lots of pizza, a samurai sword, a pair of awesome headphones, and a few pairs of Nike’s should do).I’d get something like this.$25,000 to a charity of my choice.And the remaining $100,000 is for my parents.They can do whatever they want with it.I think they deserve a hundred grand, they’ve worked hard all of their lives.
What would you do if you won the lottery?
Pay off college debt. Pay off my mom's house and car. Build two big fancy houses on a ton of acreage. Buy myself a nice small SUV and a black F250. Build a barn and riding facilities suited to my needs (big indoor, big outdoor, nice pasture with gorgeous fencing, good barn, separate building for hay, indoor heated wash stall, heated tack room.) Inground pool with a rock waterfall and a hot tub. A grilling patio...fancy with the grill(s) built into the stone patio area. Buy myself a few really fancy WBs (preferably weanlings/yearlings from a farm out in California that I really like.) Buy myself a really nice OTTB (with a WB-y build--not one of those scrappy ugly little things you see at CANTER.) Buy myself top-of-the-line everything (breeches, boots, half chaps, tack, etc.--all custom.)
How much taxes will I pay on a $2.3 million dollar lottery win?
The tax rates vary depending on the country you reside in. Let’s say you played through the online platform Lottoland and you are an Indian citizen. Being an Indian, you will have to file your income tax returns according to the Indian law.As per the Income Tax Act, 1961, the income from lottery falls under “Income from other sources”. The tax rate for all income that is of gambling nature is 30%. Any income above 1 Crore further attracts a surcharge of 15% on the tax amount. Then comes EC (Education Cess) and SHEC (Secondary & Higher Education Cess), which is 1% on Surcharge.Now, let’s consider winning prize money of $2.3 million, which is nearly INR 16.4 Crores. 30% of 16.4 is 4.92 Cr. Now calculate surcharge on this 4.92 Cr, which comes out to be 0.738 Cr at 15%. Now, calculate EC and SHEC on the surcharge, which comes out to be .00738Cr.So, the total tax liability on the winning sum of INR 16.4 Crores is 5.665 Crores. In percentage terms, it comes out to be 34.5% of the winning amount that you pay as taxes if you are filing your tax returns in India.Even if you are playing on reputed online platforms like Lottoland, you have to pay taxes. The online giant is coming to India soon, and even after paying the taxes, you take home crores to live life on your own terms.Image Source : Google
What are the genuine online lotteries out there?
Mooojo Lotto App:There are many genuine online lotteries out there but this one is really good. I have recently started playing and they have very few users so more chances to make good money!!My Mooojo Team Code: 8dqgka(See the pictire below for the winnings of my team in a week)Its a great Lottery App that requires zero investment and helps you earn around 10$ a week or maybe more if you choose the right team like mine. The name of the app is MOOOJO LOTTERY. Here each team member makes as many entries(lotto tickets) possible each week after watching a 20second ad for the weekly lucky draw. And share the earnings of each team member. So more the team member; the greater the earnings. If you join my team then each team member’s entry will be your entry too and you will also earn from your team member’s entries apart from your entries. Sometimes they don't have ads so you should check back in a few hours and make more entries for the week.I have a screenshot of my teams winnings when I didn't have any entries but still I earned:)Update1: 3rd week of June: Did 200 own entries and got 200 entries thanks to my team i.e. 400 entries. Won over 10$. Sharing the screenshot-