Can 3 million dollars last a lifetime?

Can 3 million dollars last a lifetime?

Postby townly52 » Wed Apr 20, 2011 5:55 pm

So I found out i inherited 3 million dollars from my grandma who died recently. All the money goes to me. Will 3 million last me the rest of my life and can i live well? Like can I buy a house for 1 million dollars, save the other 2 million to use for the rest of my life, and just work at walmart making some extra cash?
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Can 3 million dollars last a lifetime?

Postby slevin » Wed Apr 20, 2011 5:57 pm

If you budget well, such as not buying that million dollar house and buying say a $100,000-$300,000 house, and not buying cars that cost more than that house that cost a million dollars. stuff like that will make it last a lifetime. maybe even more than one life time so you could pass it on.
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Can 3 million dollars last a lifetime?

Postby darrance5 » Wed Apr 20, 2011 5:58 pm

if you invest well and budget it well ... then your good
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Can 3 million dollars last a lifetime?

Postby rushe » Wed Apr 20, 2011 6:00 pm

I would buy a 300 grand house then just live the rest of my life as a normal person. It should last you for the rest of your life as long as inflation does not go haywire. Still go to college just in case you run out of money if you have not already. You should get a job at wal mart too.
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Can 3 million dollars last a lifetime?

Postby orell58 » Wed Apr 20, 2011 6:02 pm

Yes. But I would still be a bit frugal if you want it to last. You have to factor in taxes on a 1 million dollar house, and many other expenses. I guess a walmart job could handle a good amount of expenses, but it also depends where you live. If your talking the NYC / Long Island, or an area like some places in California, then no. I'm sure it'll last you where you decide to live, and how you go about it.
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Can 3 million dollars last a lifetime?

Postby eideard44 » Wed Apr 20, 2011 6:03 pm

Yes, but only if you invest wisely and spend frugally.

In this economy, buying a house for 1 million dollars is a terrible investment. A house is not an asset, it's a liability. You have to pay taxes and maintenance costs. At a $1 million, that's gonna be a lot of taxes and can cut significantly. Consider buying a more modest house around $200,000.

Invest wisely. With QE1, QE2 and possibly QE3, our money supply has doubled and gone through the roof. Every time this has happened historically, inflation has risen. Money has no intrinsic value. You'd be smart to turn it into things that do have value.

Why would you earn that much money to work at Wal-Mart? Set aside an amount perhaps to try and start a business.

Be smart with your money. Your grandma did not save up all that money for you to blow it on a house for $1 million. Create a plan, and come back to it a month later to see if you still think it's a good idea.
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Can 3 million dollars last a lifetime?

Postby sativola » Wed Apr 20, 2011 6:05 pm

as long as you buget it well yes but remember if you own land you will usually be responable for paying taxes on it and a friend told me the best thing to do with a house is to buy the land then pay someone to build the house it`s cheeper then just buying a new one plus you get to design it
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Can 3 million dollars last a lifetime?

Postby domhnall49 » Wed Apr 20, 2011 6:07 pm

Make an appointment with a bank manager at a well known bank. Don't be talked into any investments that have a risk. Buy your home for sure but buy well. If you have the money you should be able to knock the price down . Find out what per year your out going money will be to maintain the home such as insurances and rates. Find out what you can earn from interest on your investment. Many people that have won a lot of money become broke after a few years as they haven't invested wisely and they have splurged out on unnecessary buys.
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Can 3 million dollars last a lifetime?

Postby amwolf » Wed Apr 20, 2011 6:09 pm

Sorry for your loss / congratulations on your inheritance.

Certainly that money can last a lifetime. There are high yield savings accounts that will generate 3% a year or more in interest. You could live off the interest only, leaving the $3 million principal for your kids to inherit when you die. On 3 million, 3% interest is in the neighborhood of $100,000 per year, forever. You would be living the lifestyle of someone who earns $100k (plus anything extra you earn). Search for 'high yield savings account' and you should find some good places to put your money.

An investment like that is risk-free, but the rewards are relatively small -- $100k per year won't get you your own jet. You *could* turn 3 million into much, much more, but not without the risk of losing it. It's wise to have a diverse portfolio of investments with a mixture of low-risk and high-yield holdings. For as much money as you have, some professional financial advice would be worth paying for here.

Most importantly, think long and hard about your risk tolerance. Living off this money forever is possible, but you can't live like a rock star then. There are higher yield investments that will let you live much better, but they are gambles, literally. You can lose big. But if $100k per year is enough for you, you can generate that forever with zero risk and *still* have the 3 million to leave to the next generation. Just tell your bank manager that that's what you want to do and they'll set you up.

Best of luck,

Jay
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Can 3 million dollars last a lifetime?

Postby colan » Wed Apr 20, 2011 6:10 pm

best if you buy few apartments and rent them
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