One Million Dollars: food for thought

ABV · 11-10-2004

What does $1,000,000 mean to you today? A lifetime without worries? A new car, in a new garage, attached to a new house? What will $1,000,000 mean to you when you retire? Will it have the same meaning? Will you someday be worried that you only have $1,000,000 to live your life with?

I was looking at an inflation calculator today, and found some interesting (if not slightly depressing) info. If I were to retire at age 65 (39 years from now) with $1,000,000 assuming a 3.0% inflation rate, that money would only be worth roughly $300,000 in today's dollars. Punch in 3.5% inflation, and the amount drops to $250,000. That's a little scary considering that you would be depending on that money to live off of for up to 25 years (or more).

Of course there's other factors that come into play, it's not a cut and dry scenario for the future, but I thought it was interesting. Just food for thought.

The calculator that I used is right here. http://www.simplejoe.com/web-calcula...calculator.htm

**Kracka** · 11-10-2004

Even today $1 million cash is not that much money, the key is to take that million and have it spread out in investments and hopefully match or beat the index rate of ~4% return. That would give you aproximately $40,000 per year to live off of which would be pretty good considering most retirees have their homes paid-off, plus recieving a SS check every month of at least a few hundo. Keep in mind the less you spend, the larger the return will be the following year. Every year you of couse could start tapping in to that $1 million and if all goes well you'll be down under $100k when you die (just enough to pay for funerals and give an inheritance to family members who hopefully deserve it).

dylan · 11-10-2004

I would invest it all in real estate and let other people pay me for the rest of my life.

Matt D. · 11-10-2004

The only way to stay ahead in that game would be to invest... Split it up between things like CDs, but also have some aggressive investments as well.

ABV · 11-10-2004

I guess it's all relative too. As I get older, my salary will increase as well, along with the cost of living. And if I look at my investments as a percentage of my salary, rather than a fixed annual amount, then it makes everything look alot better.

But think about this. Wether you like it or not, the day will come when a McValue meal will cost you $20.

People will say "Shit son, I remeber when gas only cost $2.00 a gallon. and $20 got you a lap dance". Yeah, that's what I'm going to say to my granchildren.

Raptor · 11-10-2004

I will never make retirement age so I don't really care. If by some medical miracle that happened, I will live at Caterburry smoking the young pukes at holdem and shagging the occasional waitress

with the required daily break to go drifto in the parking lot!

Shotgun! · 11-10-2004

Quote:

Originally Posted by Raptor

I will never make retirement age so I don't really care. If by some medical miracle that happened, I will live at Caterburry smoking the young pukes at holdem and shagging the occasional waitress

with the required daily break to go drifto in the parking lot!

You are my idle Raptor!

Raptor · 11-10-2004

Funny Reid, glad I am someones!

Shotgun! · 11-10-2004

"*cough* sevens *cough*" - My very favorite Raptor quote!

niterydr · 11-11-2004

Quote:

Originally Posted by Grey Wulf

"*cough* sevens *cough*" - My very favorite Raptor quote!

That was fucking awesome.
I forgot the way u and i would go out..i think i'd hit a wall at some godaweful speed yelling 'truck motor!'
1 million? Def invest.

11-11-2004

i think the best thing is to do is invest in real estate lots and lots of it. then just sit back work a little and get $$$ every month from it.

**Kracka** · 11-11-2004

Real estate isn't quite that easy. Like any other market, you can make huge returns, but you can also take huge losses. Is real estate in that certain area growing faster than what the non-homesteaded tax rate will be? What sort of costs are involved in capital improvements to the house in order to sell it for a higher price? The list goes on. "Don't put all your eggs in one basket." I would deffinately have certain real-estate in a large portfolio while being sure not to over-invest. One more thing, real estate prices in many urban and lake-front areas is overvalued right now and will probably drop or at least slow within the next few years.

dylan · 11-11-2004

Rental real estate is the way to go. I will be getting my real estate license within the next month and if I come across a huge chunk of money I will be investing in real estate. Real estate is a much better investment than say a DSM or a couple 4 wheelers or just about anything else. You just have to know what you are doing.

1Fst14B · 11-11-2004

anybody ever think about retiring overseas?
1 million in say, south america, or africa would do alot....

Adam