Stratusfear21 t1_j16hr80 wrote on December 22, 2022 at 12:45 AM

Reply to comment by sighthoundman in [Image] “My goal is to build a life I don't need a vacation from." by Butterflies_Books

I mean what do you mean by generates that amount: Is it in a savings account and you're talking dividends? Are you doing 50k for 20 years? Let's say the average person has 30k student debt, and let's go ahead and say a full car note for 30k. I'm going a little on the high end of course. You could pay that all in full and buy another good car when this one is trashed. So 90k off. Let's buy a house. In my area the average is 250-300k. With 300k now you're -390k and have 610k left over. If you spent it only on utilities, gas, and groceries you'd be fine for decades. Get a part time job and work like 15 hours a week or something and you are completely set. It's not generational money by any means but you can make a million last a lot longer than you think and live comfortably.

sighthoundman t1_j1768dq wrote on December 22, 2022 at 4:00 AM

You invest it in the stock market. Then "on average", between dividends and capital gains, you should make 5% above inflation. (I don't remember if this is since 1900 or since 1790. US figures.) So you take your 5% and leave the rest.

With $50k you can live in the US. Pretty well in some areas, not at all in others. But because you don't have to live near your job, you don't have to live in an area where $50k won't actually support you.

Stratusfear21 t1_j177onf wrote on December 22, 2022 at 4:13 AM

With a million you could invest in most things I'm sure. I don't know how much Walmart or Raytheon stock is but still a lot of those things are still gambles if you're counting on them for the rest of your life. Walmart is a power house but anything could happen in the coming decades to crash even them. The military industrial complex is less likely for sure but even then you never know. Of course that 5% is all profit and if you need to sell you can get everything back say in 30 years and have more money than if you took my advice most likely. But you also won't own a house or any assets. I just think there are other ways to turn the million into more money per year. Or just buy a house and live comfortably for the rest of your life. Really either option isn't a bad decision. Blowing all of it is a bad decision.