How much do you earn in interest if you put $1 million in a U.S. bank?
Usually a bank account limit is set at what is federally insured, the amount being $250,000. But if you're looking at interest rates, Bank of America will pay a 5% annual interest rate on money you hold in your checking account or savings account, which would net $50,000 a year. But then you would have to pay taxes on it, which would fall into the capital gains tax rate of 15%, if you waited for 1 year and a day before withdrawing each year. Then you would have only $42,500 every year.Still, 5% is disgustingly small. I could easily make upwards of 50% in one year, and have done so or better for a long time. But then, I have a stock trading/commodities skillset with 16-17 years of experience and learning...
How can I turn 500,000 dollars into a fixed income of at least $10,000 a month?
EDITED ANSWER, as I now have another options:OPTION 1: USD500k right now is close to Australian Dollars 750k. I own a 25 year lease on a villa in Bali that is currently worth AUD250k, so you could afford three of these. The villa rents out at AUD200 per night, and 75% occupancy is easily achievable (these are beautiful houses and have full advertising, management and staff systems in place). That's AUD4500 per month x 3 = AUD13500 per month. About AUD3500 is expenses, leaving about AUD10000 a month income. It's not exactly what you want, but it's in the ballpark. It means you also have a beautiful place to stay when you want.OPTION 2:This is my brother-in-law's method, which he's just successfully completed. Use the $500k to borrow money from the bank to enable a $1.5m development. He bought an old house in a good suburb for about $750k and knocked the existing house down. On the land, he had built a $600k house. Around $100k in various fees and charges, means his total outlay was $1.45m. He sold two weeks ago for $1.75m; the property had been on the market for just two weeks. This yields about $300k on his original $500k. This is NOT passive income: it took him roughly a week a month working on this over almost 18 months. But, working 25% full-time for an equivalent of $200k annual income translates pretty well and far exceeds your $10k a month. It also means that upon sale, his equity is preserved entirely and he can simple 'rinse and repeat'.
Has it been long enough to chant taunts at the 2008 Yankees?
Yankees fans were deprived of their favorite anti-Red Sox chant taunt, "1918", with Boston's 2004 World Series championship. The Yankees, of course, have not taken home the trophy since 2000. With the drought reaching seven years and counting, is it time to begin retaliatory chants next season? While "two-oo thou-sand" doesn't really scan well, "twen-tieth cen-tury" or "last mill-enn-ium" both work reasonably well, despite aiming a bit high in expecting Yankees fen to grasp the meaning and feel appropriately annoyed and/or diminished, which is what a good taunt should achieve. Has it been long enough to begin the payback? Would it be more crushing to impose this during the last season of Yankee Stadium, or be a bit more respectful and wait to sully the new park in 2009 (taking the minute risk that the Yankees win it all in 2008 and short-circuit the opportunity)? And what about ARod? When was the last time the standing league MVP left his team?
How much money should a 25 year old have saved, including 401k and investments?
All of the answers below are great investing advice, and I totally agree with them if you can. But before you ever get to that point, you MUST, simply MUST save an emergency fund of at least 3 to six months of whatever it costs you to live. Companies close. Industries change. You can't count on welfare and foodstamps to pull you through. If you live frugally, then saving around $6,000 to $10,000 would at least give you some options if you had to pull up stakes and begin completely over again.That being said, there are cultures in Asia that, unlike Americans, save at least 20% of their total income, without interruption. I've had some of my friends from there be able to take advantage of amazing deals on cars, houses, travel, etc. simply because they had the cash to do so when others could not.It all depends on how you want to live your life. Blow it all today and hope tomorrow fends for itself; put it all aside today and save for that great later rainy day; and/or (probably better) do a little of both all along the way.
My company makes an average of 500,000 net profit a year. How much should I value my company if I want to sell it?
I sold a small company like this before. Here are some things to note:It will depend on how many years your company have been around, and how much stable profitability a year have it achieved. If it’s been profitable for 1 year only, you’ll probably land around 1.67x to 2x in net revenue. The multiple increases if your company has been profitable for longer.Niche market is fine, you can sell via a business broker and they will work with you to find a buyer. Realistically, you will not get more than 5x of annual net profit because it is not a high growth, venture funded startup in a large market. People who tells you that you can get 7x has set unrealistic expectation to you. Consult with your business broker who has your best interest in mind (you have to choose a trustworthy broker).While eliminating 50% of administrative cost is nice to mention, the offer you are going to get is as it right now. During the process it’s best to not changing the structure of the company because it introduces new variable and it’s hard to determine how it’s perform without waiting.Think from the side of the buyer then you can reach more pleasant deal, how many years can they recoup their investment and start getting profitable. It will set realistic expectation for both sides so you can choose buyers better.It’s mostly like this: If your company has been profitable for 18 months, take that as an indication that your buyer might take a risk of maximum 18 more months to recoup investment and start making profit. It translate to the multiple that you can realistically offer.