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Of course it very much depends on your current financial status and how you handle the money. But it will not move you to life styles of the rich and famous.
Oh so now the bar is “life styles of the rich and famous”? Well since no one was talking about that you’ve greatly moved the goal post
From a global perspective — a million in the United States ain’t a bad lot in life.
I’m in NC and you can buy a very nice 1000-1500 sq ft home for $225k. Great weather/not much snow and not far from beautiful mountains and beaches.
Then a nice brand new car for $40k.
How about $20k on a new boat?
Now you have $715,000 left over.
All you’re left with is your utilities ($200-300/month), property tax (~$1500/year) and of course food.
Keep $100k out for day-to-day/yearly expenses and think of some way to invest the other $615,000.
You could take $200k of the $615k and buy just one rental property…something low maintenance. That alone could generate a pretty passive $1,000/month in income.
Last edited by GoAmericaGo; 07-06-2022 at 07:42 PM..
True a million isn't a lot these days. Probably would put 40% in stocks, some into emergency and some into Roth IRA and purchase a home outright.
I guess in Florida you could do that... here in the Bay Area, you could barely even do the last part (buying a house outright).
Full disclosure: I inherited close to this when my father passed last year, and so far all I've done was to "buy" a house and new car. Didn't buy the house outright, just the down payment of $130K on a modest $640K home. But I chose to buy a house in a rural location, not even technically the "Bay Area." If I'd decided to purchase something on the Peninsula/Valley I wouldn't even have been able to get a condo. Sad but true.
As I just mentioned above (and those who've known me here for ~16 years can likely verify I'm not a liar), I inherited close to $1M when my father passed away last year... not all of it is in my hands yet, but so far I've received more than half. Mostly tax-free or low tax, too, since he set it up in the form of life insurance and trusts. And I opted to have a chunk of that distributed in bi-annual payments over the next 5 years, just as a safety net so I don't blow it too fast.
So far I've purchased a home - just the down payment, also as explained above - and a nice but reasonably-priced new Subaru. Also paid off all my debts, which thankfully wasn't much. Honestly, I have no idea what to do with the rest! So I'll be working with a financial consultant when the time comes, and deciding how to invest whatever is left. I also have a vested pension I can collect as soon as 6.5 years from now, so I'm looking at maybe retiring soon? Not completely, but it does give me the ability to go part-time and possibly relocate.
I'm not complaining by any means, but it is kind of overwhelming to think about all the options now. I want to be cautious, but at the same time ENJOY this gift. I have no children, likely won't ever due to my age/choice, so what am I saving it for exactly? Again, my pension + SS (if it still exists by then) can carry me into old age. So it's not like this is all I've got until death. And for those who know my situation, I've been explaining it as "not enough to go sip mai-tais on the beach forever, but certainly enough to give me a freedom I've never had before."
Oh, and yes - I have and will be giving to charity as well. Just a little so far, mostly to Alzheimer's research (we started a foundation in my father's name since he had it) and pet rescues. I'd like to give more once the dust has settled.
I guess in Florida you could do that... here in the Bay Area, you could barely even do the last part (buying a house outright).
Full disclosure: I inherited close to this when my father passed last year, and so far all I've done was to "buy" a house and new car. Didn't buy the house outright, just the down payment of $130K on a modest $640K home. But I chose to buy a house in a rural location, not even technically the "Bay Area." If I'd decided to purchase something on the Peninsula/Valley I wouldn't even have been able to get a condo. Sad but true.
Yes the sensible house and car, even that small boat, and you are movin' on up. A bit. But I think the key to life changing for 'almost anyone' would involve that serious chunk of change left for investment. And then have a real and significant impact on life in retirement.
Yes the sensible house and car, even that small boat, and you are movin' on up. A bit. But I think the key to life changing for 'almost anyone' would involve that serious chunk of change left for investment. And then have a real and significant impact on life in retirement.
For sure. Read my follow-up comment, as I do go into that a little more... it's kind of overwhelming, especially for someone like me who doesn't have this practical knowledge! I've been a paycheck-to-paycheck worker for most of my adult life, and a government employee with a vested pension. So I really have no idea what to do with the remaining funds. I'll be consulting someone with that knowledge, of course.
Interesting piece on wealth across the US and under various definitions. I'm actually surprised that it only takes $6.8 million to be in the top 1% in California.
Interesting piece on wealth across the US and under various definitions. I'm actually surprised that it only takes $6.8 million to be in the top 1% in California.
I saw this yesterday afternoon. Puts some perspective around those saying a million isn’t much or to be given that amount might makes things a “bit” better
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