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So how much do you need to be 'set'?

Topic closed. 12 replies. Last post 8 years ago by DeeSpence.

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Entertaiment Capital
United States
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April 19, 2006
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Posted: March 17, 2009, 2:29 am - IP Logged

 It's certainly not 1 million dollars nowdays. You can buy a nice house in LA county for that amount of money. But that's it.

 You need something that can generate incomes. CDs? (interest rate too low to generate incomes) bonds? (you need a few million dollars worth of bond fund to generate comfortable income) Mutual funds? (not in these days) Real Estates? (you need to set up your own LLC and/or get a dedicated management company)

 I think it's nice to have decent chuncks of everything.

 See, the cap rate for a good income property is 6%, which is tough to get nowdays. So you have a million dollar income properties or three of $300,000 houses for rent. So the income is about $56,000 before tax. And you need to pay the insurance and pay to the management company. So I guess you end up getting a bit less than $40,000 after everything. In LA country, your household should be making $100,000 to be a middle-class. And that's before tax.

 And you have to pay the property tax, and that includes your house. Well, then you don't have that much left. You are not set with $900,000 properties in LA county. You need to have more properties to live on rental incomes.

 Generally, the rent for a $300,000 house is about $2,000. I'd say you need ten of them to live comfortably. And you need an emergency cash reserve. If you are a jackpot winner, you should put away at least a million bucks in a long term CD account. And I'd use a bond fund as an IRA. Municipal bonds are still making money. (even the California one!) So it would be nice to put some money in there, too.

 So I'd say you need at least $5,000,000 to be set for life in LA county. And you can't have a luxurious life yet. See, if you are smart then you don't need to win anymore than $7~8,000,000 after tax and everything. But a lot of winners are not that smart. The most common mistake is to quit your day job, ditch your spouse, and get involved with a scammer to open a business.

 See, who in the hell needs to win $100,000,000 after tax? If I win that amount, I'd probably donate the half of it to charity. Since you already paid more than a few millions for tax, you will get the money back anyway.

 

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    Posted: March 17, 2009, 2:34 am - IP Logged

    The average American make $2,000,000 during their lifetime.

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      Entertaiment Capital
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      Posted: March 17, 2009, 2:48 am - IP Logged

      The average American make $2,000,000 during their lifetime.

       Well, that's average. I bet there are whole bunch of people who move around deadbeat jobs and never save money.

       And even well-to-do people still have a hard time having a million-dollar cash in their bank account.

        savagegoose's avatar - ProfilePho
        adelaide sa
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        Posted: March 17, 2009, 7:31 am - IP Logged

        you could always rent a place, owning a house sure does make needing  more  a certainty  to be " set " but id say 1 mill should do , 2 mill if u want to own a house. to , thats not a win thats total in the bank.

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          BobP's avatar - bobp avatar.png
          Dump Water Florida
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          Posted: March 18, 2009, 1:45 am - IP Logged

          I could make do ok with a clean million after taxes.  Though I would like to buy one of these and for that I'd like to win at least twenty million. 

          http://www.missilebases.com/

          No kidding they're forsale at reasonable prices for lottery jackpot winners or anyone else with that much surplus cash. 

          BobP

            The Hitman's avatar - Lottery-061.jpg
            Fayetteville Georgia
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            Posted: March 18, 2009, 1:59 am - IP Logged

             Well, that's average. I bet there are whole bunch of people who move around deadbeat jobs and never save money.

             And even well-to-do people still have a hard time having a million-dollar cash in their bank account.

            I totALLY AGREE with u

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
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              Posted: March 18, 2009, 5:38 pm - IP Logged

              ambelamba,

              To each their own, but I just couldn't see coming into a score like a multi-million dollar jackpot and doing something like being a landlord and tying myself down to properties (other than the one I'd live in, maybe that and one more somewhere), etc...

              Why not invest in REITs rather than tie yourself down to something?

              Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

              Lep

              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                diamondpalace's avatar - Untitled 2.jpg
                Dallas, TX
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                Posted: March 18, 2009, 6:26 pm - IP Logged

                Enough will never be enough, there's always things to buy, people to give money to, etc...

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                  Entertaiment Capital
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                  Posted: March 19, 2009, 1:41 am - IP Logged

                  ambelamba,

                  To each their own, but I just couldn't see coming into a score like a multi-million dollar jackpot and doing something like being a landlord and tying myself down to properties (other than the one I'd live in, maybe that and one more somewhere), etc...

                  Why not invest in REITs rather than tie yourself down to something?

                   REITs got hit real hard. I'd rather own actual properties.

                    Think's avatar - lightbulb
                    Marquette, MI
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                    Posted: March 19, 2009, 9:57 pm - IP Logged

                    ambelamba,

                    You ignore inflation and all kinds of other factors!

                    "The American Voter is too Stupid..."   Jonathan Gruber Obamacare Architect

                    "There is no sin except stupidity" Oscar Wilde

                    https://books.google.com/books?id=apm21IcqhmcC&pg=PP6&lpg=PP6&dq=americans+can+tolerate+just+about+anything+except+stupidity&source=bl&ots=tq9QUeP46j&sig=qXfXEz-wh_yUQSsE8DZG0ZjABls&hl=en&sa=X&ved=0ahUKEwil8YSjmuDPAhWF7IMKHV11A0kQ6AEIUzAI#v=onepage&q=americans%20can%20tolerate%20just%20about%20anything%20except%20stupidity&f=false

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                      Entertaiment Capital
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                      Posted: March 21, 2009, 1:42 am - IP Logged

                       Inflation is not a huge issue if you own the properties for less than a decade.

                       And there are a lot of property-rich people whose most incomes come from rents.

                        psykomo's avatar - animal shark.jpg

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                        Posted: March 21, 2009, 3:32 pm - IP Logged

                        I could make do ok with a clean million after taxes.  Though I would like to buy one of these and for that I'd like to win at least twenty million. 

                        http://www.missilebases.com/

                        No kidding they're forsale at reasonable prices for lottery jackpot winners or anyone else with that much surplus cash. 

                        BobP

                        PSYKO NO "WORRY">>>>$$$

                        killed a few POSSUM's from>

                        my trash can>>>>friday nite!!!

                        gona buy sum sweet poteter's

                        saturday>>>>cook-um g@@D

                        play D-JackPot lottery and>>

                        watch D NASCAR on sunday!!

                        aunnt living in D USA G@@D?

                        "Don't TAX my POSSUM'$ "

                          DeeSpence's avatar - Lottery-040.jpg
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                          Posted: March 21, 2009, 3:40 pm - IP Logged

                          Is this a trick question? I think you answered your own question with your first sentence. Just as one million dollars today isn't enough, ten million dollars a day in ten years won't amount to much either. Essentially, enough is never enough. We should all continue to strive for not only our benefits but the benefit of our families. The economy standards are only increasing.

                           

                          Just my two cents anyway!

                          There are millionaires and billionaires, so why aren't there any hundredaires? Things that make you say hmm.