well...what would you do?

me personally I would like buy nothing other then what i need, maybe some studio time, and like invest in something like toilet paper and cd's(not music) and high interest savings accounts so that i could comfortably retire by the time im like 30!

... I would not be posting here for a start.

well...what would you do?

me personally I would like buy nothing other then what i need, maybe some studio time, and like invest in something like toilet paper and cd's(not music) and high interest savings accounts so that i could comfortably retire by the time im like 30!



Um...not to nitpick but if you had a million dollars wouldn't you be able to retire TODAY?


If I had a million dollars, I would buy a bunch of stuff that I am saving for at the moment. Then I would set up a scholarship and donate a bunch of it-to what? I haven't thought about it.



Cat

Well..I would pay off all of my debts...and then give a sigh of total relief.  Then, I would sell my house, and find my dream house....do some traveling, get a new wardrobe...and invest some.

I would keep working while the $1M earns interest in stocks, bonds, and high-yield savings accounts.  Then I'd retire, use the interest to buy a bunch of random stuff, and keep the base $1M earning interest for the rest of my life.

Probally waste on buying DVDs, an XBOX 360, and a HD TV.  ;D

Probally waste on buying DVDs, an XBOX 360, and a HD TV.  ;D
I can easily do that without the million dollars!

Probally waste on buying DVDs, an XBOX 360, and a HD TV.  ;D


same here ;D

Get really.. really.. REALLY.. hammered.

I'd buy a million lottery tickets

Actually after thinking about it and where I live, a million bucks isn't really THAT much money anymore (though, I'd take it in a flash).
In Southern California where the AVERAGE house in Orange County is $445K, a million just doesn't go as far as you'd think it would, it would not even begin to get me a "dreamhouse" so...

I'd probably get my parents a nice vacation home or condo (back east), pay off my debts, buy a nice car (BMW, Audi under $60K), then I'd have only about 100K left over, guess I'd take half a year off, travel the world, the rest, well maybe get that ring the GF has been hinting about, have the worlds biggest CD spending spree at Virgin, then whats left, it goes into the bank, investing, so on.

Now if I had maybe TWO million, then no question, there'd be a bright red Ferrari in my driveway no question. ;)

Get really.. really.. REALLY.. hammered.


i was just thinking that. for a long time.



I would keep working while the $1M earns interest in stocks, bonds, and high-yield savings accounts.  Then I'd retire, use the interest to buy a bunch of random stuff, and keep the base $1M earning interest for the rest of my life.


i would have to hire someone to make sure this is what i really do.

i was just thinking that. for a long time.


i would have to hire someone to make sure this is what i really do.


You could hire me.

You probably wouldn't.. see much of the money, ever again.. admittedly.. but you'd be really really really really really hammered.

You could hire me.

You probably wouldn't.. see much of the money, ever again.. admittedly.. but you'd be really really really really really hammered.


funny that.  everytime i see you i get really hammered and i lose money.

you're a good friend.

funny that.  everytime i see you i get really hammered and i lose money.

you're a good friend.


Two reasons, you're a lightweight and I'm a habitual criminal.

Two reasons, you're a lightweight and I'm a habitual criminal.


kismet! ;)

I would take the first $150k and pay off my student loan.  Then I would get a financial adviser to help me invest the majority of it wisely while simultaneously paying for my daughter's college education and related expenses.  After I would rack up some big interest that I could dip into, I would take my dream trip to Scotland & Ireland (because now I could stay as long as I wanted without having to worry about rushing back to work).  I would work, but on my own terms...and maybe get my PhD after all.  Of course I would use some of the money to set my parents up wherever they want to be and make sure they don't want for anything...they deserve it and I wish I could help them now.

kismet! ;)


.. yeah... kebabs?

Pay off debts and invest the rest.  :)

well...what would you do?

me personally I would like buy nothing other then what i need, maybe some studio time, and like invest in something like toilet paper ...


$1,000,000 can buy an awful lot of butt wipes.  ;)

I'd share some of it with my favorite inthe00s members

I'd share some of it with my favorite inthe00s members
...but how much of it?

...but how much of it?
good question. I hadn't thought that part out yet, but let's just say it would be enough  ;D

good question. I hadn't thought that part out yet, but let's just say it would be enough  ;D
How much is enough?

How much is enough?
let's just say it would be a lot $$$  ;)

Um...not to nitpick but if you had a million dollars wouldn't you be able to retire TODAY?


"Maybe."

Rule of thumb for retirement planning is that you can withdraw 4% of your first-year portfolio (with "portfolio" defined as a fairly  nonaggressive mix of 60% stocks, 40% bonds) balance, and adjust that figure upward for inflation annually, and have a good (with "good chance" typically defined as "over 90% probability") chance of the portfolio lasting for 30 years.

Applying that rule, if you can live off $40K/year today, then you can probably live for 30 years on a $1M nest egg. 

So where'd the rule come from in the first place?  It's not enough to just guess at a rate of return, you've gotta take into account the variability in annual rates of return.  Some years you'll make money, some years you'll lose money - and if you have a string of bad years at the start of your retirement, you'll run out of money earlier than if you had a run of good luck and a string of bad years at the end of your retirement.  (To take an extreme example, if you start with $1M and a $40K/year withdrawal, you have $960K to invest in your first year.  If you lose 20% in your first year, you've only got $768K to work with for the next 29 years.  If you make 20% in your first year, you've got $1,152,000 -- 50% more money than the guy who screwed up -- for the same 29 years.  But when you're down to your last $100K, hopefully in your adult-diaper-wearing years, making or losing 20% is only $20K, or six months of retirement either way.  This works in your favor too -- if you're just starting out, you can afford to be more aggressive when you've only got $100K on the line in your 20s-30s, than when you have $1M on the line in your 40s-60s.)

For reference:
Safe Portfolio Withdrawal Rates: Beyond The 4% Solution
Measuring Volatility and the Cost of Retirement
A comparative analysis of retirement portfolio success rates: Simulation versus overlapping periods

Further reference:
An article by some guys at a shop called Quantext shows up highly on a Google search for monte carlo withdrawal rate, and gives some real-world examples of how risk dramatically impacts safe withdrawal rates for most simulations. 

If I had a million dollars I wouldn't HAVE to eat Kraft Dinner.

...But I'd eat MORE!  :)

good question. I hadn't thought that part out yet, but let's just say it would be enough  ;D


Say.. $20K for the most almighty bar crawl the world has ever seen?

A million pounds sterling would be better!

"Maybe."

Rule of thumb for retirement planning is that you can withdraw 4% of your first-year portfolio (with "portfolio" defined as a fairly  nonaggressive mix of 60% stocks, 40% bonds) balance, and adjust that figure upward for inflation annually, and have a good (with "good chance" typically defined as "over 90% probability") chance of the portfolio lasting for 30 years.

Applying that rule, if you can live off $40K/year today, then you can probably live for 30 years on a $1M nest egg. 

So where'd the rule come from in the first place?  It's not enough to just guess at a rate of return, you've gotta take into account the variability in annual rates of return.  Some years you'll make money, some years you'll lose money - and if you have a string of bad years at the start of your retirement, you'll run out of money earlier than if you had a run of good luck and a string of bad years at the end of your retirement.  (To take an extreme example, if you start with $1M and a $40K/year withdrawal, you have $960K to invest in your first year.  If you lose 20% in your first year, you've only got $768K to work with for the next 29 years.  If you make 20% in your first year, you've got $1,152,000 -- 50% more money than the guy who screwed up -- for the same 29 years.  But when you're down to your last $100K, hopefully in your adult-diaper-wearing years, making or losing 20% is only $20K, or six months of retirement either way.  This works in your favor too -- if you're just starting out, you can afford to be more aggressive when you've only got $100K on the line in your 20s-30s, than when you have $1M on the line in your 40s-60s.)

For reference:
Safe Portfolio Withdrawal Rates: Beyond The 4% Solution
Measuring Volatility and the Cost of Retirement
A comparative analysis of retirement portfolio success rates: Simulation versus overlapping periods

Further reference:
An article by some guys at a shop called Quantext shows up highly on a Google search for monte carlo withdrawal rate, and gives some real-world examples of how risk dramatically impacts safe withdrawal rates for most simulations. 



Interesting. Of course the key is to spend less than you make-whether it be from a paycheck or investments.




Cat

"So tell me / how to be / a millionaire"
- ABC


Interesting. Of course the key is to spend less than you make-whether it be from a paycheck or investments.


And that's how.  Living beneath your means is the only way to get started. 

Finally, where you live also makes a big difference.  Starting with $1M, you can't afford to live in NYC or SF, where a house costs more than $1M.  So you'll pay $1500/month in rent, burning about half of your $40K/year upfront, and leaving you with around $1800/month, or $22K/year to live on.  I've seen the future; I can't afford it.

Move to rural Montana or Wyoming, buy a nice house on a few acres for $100K, and you've got $900K, or $36K/y left to play with and no rent to pay.  That's $1200/month.  You could waste $40/d having lobster flown in by FedEx every day, and still break even.  (No point in shipping your steaks in.  Just offer your neighbor some of yer big yuppie crawdads for a few pounds of the cow that's been lookin' at you strange ever since you settled in...  Maybe those luxuries can only compensate...)

I would invest in a company that makes pre-wrapped bacon.

I definitely wouldn't be living in the Cleveland area.

in the Barenaked Ladies song, they song about how they wouldn't have to eat Kraft Dinner.  If I had $1,000,000, I would still eat Kraft Dinner.  I'd buy a lifetime supply 8)

I spend it all on myself

Um...not to nitpick but if you had a million dollars wouldn't you be able to retire TODAY?


If I had a million dollars, I would buy a bunch of stuff that I am saving for at the moment. Then I would set up a scholarship and donate a bunch of it-to what? I haven't thought about it.



Cat



I disagree... I think if you make just a little bit of money... say 30K and you don't change your spending habits then you should be able to live without working for 10 or 15 years

in the Barenaked Ladies song, they song about how they wouldn't have to eat Kraft Dinner.  If I had $1,000,000, I would still eat Kraft Dinner.  I'd buy a lifetime supply 8)


And a K-Car...  ;D

And a K-Car...   ;D


Yea, a nice Reliant automobile.

first thing I'd do is change my phone number, then I'd go buy a really nice car, maybe a Porsche or an Audi or a BMW, what the heck, may as well get all 3  8)