Welcome Guest
Log In | Register )
You last visited December 8, 2016, 12:55 am
All times shown are
Eastern Time (GMT-5:00)

How many Millions would set you for life?

Topic closed. 97 replies. Last post 2 years ago by TheGameGrl.

Page 3 of 7
3.97
PrintE-mailLink
Scratch$'s avatar - sm lottery.jpg

United States
Member #158848
September 5, 2014
294 Posts
Offline
Posted: February 19, 2015, 12:07 am - IP Logged

If someone wants to retire with an extra $100,000 a year for the rest of their life, $2 million will cover it nicely. But that depends on how living comfortably is defined and based on some of the responses, some define it as extravagance.

Assuming a person lives to about the age of 80, $2 million wouldn't cut it for most people under 55 years of age. $2 million at $100 grand a year will only last 20 years. 

A 20-year old who won the lottery could reasonably expect to live about another 60 years. So figuring they'd need a hundred grand a year for 60 years to live in sufficient comfort, they'd need to win $6 million after taxes.

Scratchers ~ Cash 5 ~ Powerball ~ Mega Millions

    noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
    Bay Area - California
    United States
    Member #136477
    December 12, 2012
    4108 Posts
    Offline
    Posted: February 19, 2015, 12:44 am - IP Logged

    If someone wants to retire with an extra $100,000 a year for the rest of their life, $2 million will cover it nicely. But that depends on how living comfortably is defined and based on some of the responses, some define it as extravagance.

    Well maybe where you live Stack, but I'm accounting for friends at home, in Europe and beyond.  Btw- you can't get an outhouse for $100K in the Bay Area..

    People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

      mikeintexas's avatar - tx avatar-1.gif
      Texas Panhandle
      United States
      Member #136843
      December 20, 2012
      1279 Posts
      Offline
      Posted: February 19, 2015, 12:45 am - IP Logged

      Assuming a person lives to about the age of 80, $2 million wouldn't cut it for most people under 55 years of age. $2 million at $100 grand a year will only last 20 years. 

      A 20-year old who won the lottery could reasonably expect to live about another 60 years. So figuring they'd need a hundred grand a year for 60 years to live in sufficient comfort, they'd need to win $6 million after taxes.

      I took Stack's comment to mean that 2 million wouldn't start to be being spent until the age of 62-65, maybe a lower age if you have a military pension or are vested fully in your company's retirement plan, plus your SS.  Then there's the interest;  not touching the principal that's invested in CDARS CDs at 1.5%, that will bring you 30 grand a yr. ($150k after the five yr. jumbo CDs mature) before taxes.   I've always thought a little bit more than 2 million would be a good enough amount for me (although, like most everyone else, I'd really want more);  that would let me call myself a multi-millionaire, if only in my own mind. (I wouldn't have cards printed up w/ that on it, IOW)

      Also, as Stack said, it depends upon what sort of lifestyle you want.  Several yrs. ago, when the JPs were huge, I dreamed about buying a 1700 acre ranch w/ several homes and a golf course for $7.95 million. (it would have been worth it, believe me - it's now sold) The taxes were $20k/yr. and you'd need several employees just to maintain the golf course during the summer and there were a bunch of other costs, depending upon what one wanted to do with the land.  I wouldn't have bought it unless I had a clear 100 million after buying it, though, figuring I'd need the interest on that amount just to maintain the property, pay wages and all the associated costs with that and have enough left over for other things.

      It depends upon where you live, too.  You'll need a lot more to live in Beverly Hills than you would in Old Mobeetie, Texas.  The Beverly Hillbillies would be the only exception, seeing how frugally they lived with "only" 80 million in the bank. (as I recall) <wink>

      I'm still puzzling over the post near the top that said they would quadruple their money in five yrs.  Without touching the principal or money earned each yr., I figured it would take a return of something like 33% annually to reach that goal.

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
        United States
        Member #136477
        December 12, 2012
        4108 Posts
        Offline
        Posted: February 19, 2015, 12:50 am - IP Logged

        You would need to win at least 400 million or more (depending on the state) for you to get back $180 million after tax. Plus more tax on top of that when giving/spiting any money with family.

        A $180 mil jackpot is an obscene amount  of money.. Hope you pull it off though. .

        People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

          noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
          Bay Area - California
          United States
          Member #136477
          December 12, 2012
          4108 Posts
          Offline
          Posted: February 19, 2015, 1:09 am - IP Logged

          noise-gate

          LOL no, I wish I knew how though.  I'm older, retired, not in  the best of health. I like where I  live.  My  house and car are paid for. 

          Zephbe- l would have thought that having more than $250,000 would work to your advantage given your statement of not being in the best of health. Are you sure you did not mean a 1/4 of a Billion? 

          People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

            Scratch$'s avatar - sm lottery.jpg

            United States
            Member #158848
            September 5, 2014
            294 Posts
            Offline
            Posted: February 19, 2015, 1:25 am - IP Logged

            I took Stack's comment to mean that 2 million wouldn't start to be being spent until the age of 62-65, maybe a lower age if you have a military pension or are vested fully in your company's retirement plan, plus your SS.  Then there's the interest;  not touching the principal that's invested in CDARS CDs at 1.5%, that will bring you 30 grand a yr. ($150k after the five yr. jumbo CDs mature) before taxes.   I've always thought a little bit more than 2 million would be a good enough amount for me (although, like most everyone else, I'd really want more);  that would let me call myself a multi-millionaire, if only in my own mind. (I wouldn't have cards printed up w/ that on it, IOW)

            Also, as Stack said, it depends upon what sort of lifestyle you want.  Several yrs. ago, when the JPs were huge, I dreamed about buying a 1700 acre ranch w/ several homes and a golf course for $7.95 million. (it would have been worth it, believe me - it's now sold) The taxes were $20k/yr. and you'd need several employees just to maintain the golf course during the summer and there were a bunch of other costs, depending upon what one wanted to do with the land.  I wouldn't have bought it unless I had a clear 100 million after buying it, though, figuring I'd need the interest on that amount just to maintain the property, pay wages and all the associated costs with that and have enough left over for other things.

            It depends upon where you live, too.  You'll need a lot more to live in Beverly Hills than you would in Old Mobeetie, Texas.  The Beverly Hillbillies would be the only exception, seeing how frugally they lived with "only" 80 million in the bank. (as I recall) <wink>

            I'm still puzzling over the post near the top that said they would quadruple their money in five yrs.  Without touching the principal or money earned each yr., I figured it would take a return of something like 33% annually to reach that goal.

            Hi Mike. Smiley

            I'm highly skeptical a young person winning the lottery would be willing not to touch the money until they hit retirement age. Somebody in their 50's might be able to wait until 62-65, but no way would many if any young people wait that long. 

            The OP (noise-gate) stipulated what one would need to live "comfortably". It's safe to say that Beverly Hills or a large ranch with multiple homes would be in the "extravagant" category. I'd say a good general definition of comfortable would be a nice upper middle-class home, a couple of cars in the $30,000 each range, a full array of consumer electronics items etcetera.

            In a nutshell, a nice upper middle-class existence.

            Scratchers ~ Cash 5 ~ Powerball ~ Mega Millions

              CTNY's avatar - Lottery-062.jpg
              New Haven, CT - Queens, NY
              United States
              Member #98740
              October 13, 2010
              5432 Posts
              Offline
              Posted: February 19, 2015, 3:54 am - IP Logged

              Well I'm a little over a quarter century old so I will need about 15 mill, maybe less since,

              I find fulfilment in turning dollars out of 50c. lol

              The goal is to approach the Pick 3 & Pick 4 game sensibly and systematically!! Wink

               I'm not like the guy who predicted the end of the world and nothing happened.

                Avatar
                NYC
                United States
                Member #161115
                November 17, 2014
                126 Posts
                Offline
                Posted: February 19, 2015, 8:30 am - IP Logged

                Ok LOL we all know it can get that high. Look at the jackpot that was just won. Wasnt it 564 million??

                Which was split by three people. So you have to worry about that, and also the jackpot doesn't get that high often. Usually someone wins it before. Mega Millions only had one time where it went over 400 million last year. And one time for PB.

                  Avatar
                  NYC
                  United States
                  Member #161115
                  November 17, 2014
                  126 Posts
                  Offline
                  Posted: February 19, 2015, 8:47 am - IP Logged

                  A $180 mil jackpot is an obscene amount  of money.. Hope you pull it off though. .

                  That's not my amount. It's Shelby Mustang.

                    zephbe's avatar - animal butterfly.jpg
                    South Carolina
                    United States
                    Member #77167
                    July 15, 2009
                    555 Posts
                    Offline
                    Posted: February 19, 2015, 9:19 am - IP Logged

                    Zephbe- l would have thought that having more than $250,000 would work to your advantage given your statement of not being in the best of health. Are you sure you did not mean a 1/4 of a Billion? 

                    I play several draw games for the 5 white balls.  I wouldn't give a jackpot back if I won but my lifestyle wouldn't change much.  I will be happy with my "little" win. Smile

                      Raven62's avatar - binary
                      New Jersey
                      United States
                      Member #17843
                      June 28, 2005
                      49767 Posts
                      Offline
                      Posted: February 19, 2015, 9:31 am - IP Logged

                      I like your style!

                      Thanks!

                      It's about what one has: Not about what one wishes they had!

                      A mind once stretched by a new idea never returns to its original dimensions!

                        Avatar
                        Maryland
                        United States
                        Member #162434
                        January 2, 2015
                        888 Posts
                        Offline
                        Posted: February 19, 2015, 9:44 am - IP Logged

                        Thanks!

                        It's about what one has: Not about what one wishes they had!

                        Another good comment Smiley

                          Avatar
                          Kentucky
                          United States
                          Member #32652
                          February 14, 2006
                          7313 Posts
                          Offline
                          Posted: February 19, 2015, 11:22 am - IP Logged

                          Assuming a person lives to about the age of 80, $2 million wouldn't cut it for most people under 55 years of age. $2 million at $100 grand a year will only last 20 years. 

                          A 20-year old who won the lottery could reasonably expect to live about another 60 years. So figuring they'd need a hundred grand a year for 60 years to live in sufficient comfort, they'd need to win $6 million after taxes.

                          I used a basic minimum 5% interest a year on $2 million as a starting point and $100,000 a year income as ball park figure for living comfortable. That of course was assuming the $2 million was after tax.

                            Avatar
                            Kentucky
                            United States
                            Member #32652
                            February 14, 2006
                            7313 Posts
                            Offline
                            Posted: February 19, 2015, 11:39 am - IP Logged

                            Well maybe where you live Stack, but I'm accounting for friends at home, in Europe and beyond.  Btw- you can't get an outhouse for $100K in the Bay Area..

                            You said "living comfortably" and the median yearly income in San Francisco is $75,604 and per capita income is $48,486 and both well below the $100K a year I suggested. Did you miss were I said it depends on how much a person feels they need to live comfortably?

                              Avatar
                              Kentucky
                              United States
                              Member #32652
                              February 14, 2006
                              7313 Posts
                              Offline
                              Posted: February 19, 2015, 12:27 pm - IP Logged

                              I took Stack's comment to mean that 2 million wouldn't start to be being spent until the age of 62-65, maybe a lower age if you have a military pension or are vested fully in your company's retirement plan, plus your SS.  Then there's the interest;  not touching the principal that's invested in CDARS CDs at 1.5%, that will bring you 30 grand a yr. ($150k after the five yr. jumbo CDs mature) before taxes.   I've always thought a little bit more than 2 million would be a good enough amount for me (although, like most everyone else, I'd really want more);  that would let me call myself a multi-millionaire, if only in my own mind. (I wouldn't have cards printed up w/ that on it, IOW)

                              Also, as Stack said, it depends upon what sort of lifestyle you want.  Several yrs. ago, when the JPs were huge, I dreamed about buying a 1700 acre ranch w/ several homes and a golf course for $7.95 million. (it would have been worth it, believe me - it's now sold) The taxes were $20k/yr. and you'd need several employees just to maintain the golf course during the summer and there were a bunch of other costs, depending upon what one wanted to do with the land.  I wouldn't have bought it unless I had a clear 100 million after buying it, though, figuring I'd need the interest on that amount just to maintain the property, pay wages and all the associated costs with that and have enough left over for other things.

                              It depends upon where you live, too.  You'll need a lot more to live in Beverly Hills than you would in Old Mobeetie, Texas.  The Beverly Hillbillies would be the only exception, seeing how frugally they lived with "only" 80 million in the bank. (as I recall) <wink>

                              I'm still puzzling over the post near the top that said they would quadruple their money in five yrs.  Without touching the principal or money earned each yr., I figured it would take a return of something like 33% annually to reach that goal.

                              People living comfortably with their current income should take that figure plus inflation to decide how much they will need. The national average was about $52,000 in 2013 so I used $100,000 and a very conservative (5%) annual return. At that rate after a year, one could collect $100K a year and never touch the principle. Even if they took the first year off the top, they won't out live the principle.

                              There are several $1 million investments like rental properties with a 10% annual return.

                              "I'm still puzzling over the post near the top that said they would quadruple their money in five yrs.  Without touching the principal or money earned each yr., I figured it would take a return of something like 33% annually to reach that goal."

                              I Agree! It takes 15% a year, every year for five years just for the money to double.