Say you won 30 million dollars?
A house, no matter the cost, is rarely a wise investment unless you are able to rent it out at a decent profit. If i won $30 million, I would invest it in some nice dividend paying stocks and never work again. I would buy a house just large enough for me to live.
Is two million dollars enough money to never have to work again if you are 29 years old?
Yes it is, but only if you:Invest it rightCan live off 80,000 inflations adjusted.The 4% rule is tried and tested, even during the downturns. However, it only works if you:Adjust your withdrawals for market rises and fallsDon’t panic during market downturnsYou have 25%+ in bondsActually the 4% rule includes a conservative buffer, and the original academic who came up with it, has later suggested it could be revised to 4.5%.However, with bonds at historic low levels, it is always better to be conservative.If you wanted to be super conservative, you could limit your withdrawals to 3% during the market downturns, and 4% during the normal and good years, or limit the withdrawals to 3% if you can live off $60,000.It also depends where you live and how much money you are used to.If you live in Central NYC and are used to making a lot of money, living off 60k-80k may be hard.In comparison, if you emigrate or live in a cheaper place, then you can live well off that.Some reading:How to get rich investing,52 finance tipsWant to retire in your 30s or 40s? What is the FIRE movement?How much can you safely withdraw from a portfolio in retirement?
Is one million dollars enough to retire in India?
Yes it will be enough for a fairly acceptable lifestyle but not luxurious. It will be equal to the lifestyle of 2018 with INR 87K per month.Here’s the calculation:1 million USD = Approx 6.3 crore INR.Out of that put 5 crore in various mutual funds.Many funds make more than 9% every year.At the end of the year, out of this 9% withdraw just 3% for the next year and leave the other 6% gain in, to cope with inflation.That 3% will be, in the beginning, 3% of 5 cr = 15 lakhs. After 30% tax, that would be 10.5 lakh per year. Divvy by 12, we arrive at Rs.87,500 per month.Remember we put only 5 crore in this. Out of the other 1.4 crore spend 40 lakhs on an apartment in a suburb, and the other 1 crore in an extra investment fund or FD that can be handy for unforseen major expenses or for crisis situations.Not a luxurious retirement but it is possible if inflation stays around the same level (around 6%) and investment returns continue to return 9% or more.Another avenue is putting that 5 crore in real estate (like 10 flats) and make that 12k-13k from rent from each, and after taxes arrive at the same 87K per month. And real estate values will ensure that rent rises with inflation. But I didn’t suggest this avenue because, dealing with mutual funds should be easier for retirees to deal with than finding tenants, managing rental collection, house maintenance etc.
If you won a million dollars, would you quit your job?
Let me tell you the story of this person: Marva WilsonIn 2012 she won 2 millions dollars at some lottery in Kansas.In less than 2 years she lost everything. She has been scammed and of course it’s bad but IMHO if it hasn’t been for a scam, it would probably have been something else.Earning 1M$ is NOT equal to Winning 1M$When you win 1M$, here’s what happens:You don’t learn how to make moneyYou don’t learn how to deal emotionally with large sums of moneyYou don’t know what to do with all those new “friends” that start to invade your privacyYou don’t realize that in reality 1M$ is not a large sum at allYou don’t know how to balance a simple accounting sheetYou simply don’t know that if you spend more than you earn, you are de facto poor!Did you know that she is not the only one?In fact I found an incredible amount of loto millionaires that went broke in a few years after winning the grand prize. They all have in common one thing:They adopted a totally new lifestyle and abandoned old habits.Those habits were probably the only thing that were bringing a sense of normality in their world. Once lost, every bit of common sense went off the window. That’s when the troubles started.So ultimately, leaving my job would be a stupid idea. However, now I have the means to choose a job I like. The routine is what matters here, waking up in the morning, doing something with people that don’t know my net worth and going back home at night.
Is $10 million enough for retirement?
First of all, congratulations! The answer to your question is yes, IF you are careful. At 2% interest, $10 million would kick off $200K in income each year. I would recommend living on half and reinvesting half, so that your money continues to grow safely. You are in a situation that most people only dream about, and you need to be very careful with your money - there will be a LOT of people with many ideas about how you should invest it, but your primary concern at this point is capital preservation - unlike most people, you don't need to worry about growth, so you have the luxury of NOT having to risk any of your $$ in mutual funds, stocks, etc. I would recommend splitting up your $10MM into 4 equal parts of $2.5MM each, and putting it into 4 different financial institutions - maybe one large bank, one credit union, one small local bank, and one other institution (maybe USAA, or ING). That way, you can shop around for the best CD rates, AND you won't be "putting all your eggs in one basket" in the unlikely event that one of these institutions fails. The people at these institutions should be VERY helpful (they'll try to get you to deposit all your money with them, but heed my advice above) - ask them about setting up what is called a CD ladder. This is where you get multiple certificates of deposit (CD's) at varying maturities, so that you can take advantage of changing interest rates in the coming years (rates are historically very low right now). Remember - as a large depositor, you have TONS of leverage, and in most cases you will probably be able to negotiate better CD rates than are advertised. If you don't like what one particular institution is offering, or even if you don't like how their employees treat you, take your money elsewhere. I hope that helps. Congratulations on your winnings, and good luck!
If you have 12 million dollar can you retire luxuriously?
For example a 2 million dollar home. 2-3 great vacations per year, 200,000 $ worth of cars (changed every 4 years), nice fashion, good meals, etc. (200,000-300,000 $ spent annually) Can this last until your death?