How to invest 4 million dollars reddit. Pay off every bit of debt and then go to my buddy's comic book store and make that giant nerd very, very happy. Set it up on drip and add money throughout the year as dollar cost average. I have started a startup in biotechnology and I am looking for about $1 million to fund the year 1-2 of operations. 5% - 8%. With today's interest rates, 2m invested in a money market fund would make approximately 100k per year in interest. I got lucky flipping NFTs and made 4 million in paper gains but did not take profit before the LUNA crashed and took the crypto market down, so my portfolio went from 4M to 200k. Keep the $10k and start investing with whatever's left over Grab a bond above 5%. Started making good investments personally and professionally. Real Estate. if you're relatively financially stable, it'd be best to relegate it to investments. Stir into a pot, let simmer for 30 years or so, enjoy! You are thinking small game. Although money isn't everything but it certainly works as catalyst. or be born rich. Play the free investing games on investopedia. Step 3: . You should be to find a business that returns 20% on equity, or $1 million annually. Zero volatility. • 10 mo. It's a question of risk tolerance. Your taxes for this amount will probably be less than you expect, especially in the US. First, you can place a Basically that's the 4% rule. Edit: since this has come up a lot, the 4% percent rule is a rule of thumb used in retirement planning. You can retire on $4 million at 9% yields pretty easily for more lifestyles. I make $3,500 a month and I and really considering buying the BnB. Step 2: Blow. I wouldn't put all my eggs in one basket either, I'd likely buy some small property and rent for reasonable prices, look into maybe giving some funding to small projects I think would have a decent return and also things I enjoy as well. In the process of selling my house, planning on house sitting for family the next 1-2 years. 20 Million doses of weed. Get a financial advisor to invest for you. I use the Robinhood account strictly for ETFs only. 75%, which is under $40k a year (minus taxes on the interest gains as well) on five million. I suggested him etfs, mutual funds, reits and other things. If that’s all invested then 5% annual is a conservative amount that it will grow each year. That $100/mo would increase to $125, $150, etc over time. Meaning if you invest $2M now, it earns you $80k a year. But the idea that it will turn into 5. You ain't gonna clear much with $100. Even if you dwindled that $1M to $600k with taxes you would be better off buying real estate and leveraging $600k you can make a lot more then $48k a year with hiring a property manager. Pay off my debt, buy a new car, fix up the house, invest. Donate 50k to my community right away by throwing a big community event. So if one to were "account" for SS as $360,000 he'd still be retiring with the equivalent of $640,000. Invest it in a money market fund. 5% return on cost, depending on location, those of course are without debt or asset appreciation. So that means you can have $100k each year to live off of and your portfolio would still continue to grow each year by $150,000. VT and chill. 5%. [deleted] •. Simplest answer is find a financial advisor to help you out. Inherited around $30,000 from my grandmother, but at that point my net worth was in the upper hundreds of thousands, so it was nice, but didn’t seem like a whole lot at the time. At 10 million that is $400K/year. Spend less than you make for 100000 years. Put 500k into guitars, trips, expensive food, etc etc. Interest rates for bonds usually range between 2% and 5% annually. Put $1 million into a house (probably more like 500k into, and 500k for future repairs). You can write 4 calls and 4 puts write them $2-$3 dollars out (eg. Buy $1,000,000 in and in 6 months they will pay giu $27,500 in interest income. Could also lose more of course. Plans. 2. A friend of mine is a wealth manager and he was telling me about some of The amount you invest should be looked at for how much income it produces based on the 4% rule. 51K votes, 18K comments. Stay away from crypto, day trading, r/wallstreetbets, casinos, strip clubs, and gold diggers. The last 10 years have netted me another $750,000. Step 1: Hookers. They're a group of people who retire between 35-50 who specialize in figuring out how to invest to last 50 years. grind until you get half a million, then do that again. to take advantage of the power of compounding growth, one needs to contribute 1) as much as possible, 2) as soon as possible, 3) as often as possible. Actually CNBC reported that the median retirement savings for people age 56-61 is only $164,000. 20% Gold. • 6 yr. Feb 10, 2023 · 1- Private Lending. Of course a single person with no kids might be able to live better than someone like me who has a family. 1. Assuming I’ll live 50 years (in reality I’ll live probably much less), that’d be roughly between 6-9,000 dollars a month which would be enough to live on without working. The reason why it gets easier after the first 100K or 1 million is because you have more opportunities to build wealth and expand your portfolio. Long story short some life events happened where today I am sitting on $2 million and I became financially independent overnight. When you answer the client profile questions, be mindful, 4 million in investable assets will get you a phone call from an advisor that works for that firm. I don’t see myself buying much more than 6-8 btc depending on price. How would yall recommend me diversifying their portfolio. 4 million. 375% interest rate. The first way to invest one million dollars is through private lending. We bought our small townhome in 2018 for $485K. Money Mustache forum. Health care is a bigger now days in terms of savings. If rates stay high you may earn $55,000 over a 12 month period. There are plenty of under-valued assets out there you can invest in for the long-term that have a very good chance of success. I still carry the mindset that crypto is volatile enough that i wouldn’t invest more than i could afford to lose. I tell you simply : you could lose 100% but you could win (may be). 5 years: Purchase House (with mortgage): $1 million. That's about minimum wage at $10/hr for 40 hrs/week for 52 weeks which is definitely possible to live off of. Half of it is in cash and the other half is "invested": Betterment, Wealthfront, a Vanguard money market account, and some t-bills. If you choose to invest in something like an indexed fund, you could have close to no risk, and gain interest to match inflation, and maintain the 88k a year, plus whatever beyond inflation you make in interest. Therefore, OP has about 46% of a yearly salary saved. Share. That way, you build/grow that wealth instead of just spending it and losing it. I would invest in one of the following three portfolios, withdraw approximately 4% annually (or less, dependingon financial needs), and rebalance annually: THE ALL SEASONS: 30% total U. Either my wife or I could retire if given a million but not both of us. You'd want to grow the million dollars by the rate of inflation every year so that the real value of the interest doesn't shrink over time. With 1. If you want to make a little scratch check out amazon mturk, or r/beermoney . falco_iii. Peaked out in the late 80's, early 90's (net worth at this time of about $4 million). I was looking into FSKAX, VTI, FZROX, VTSAX for total market and VXUS, FZILX, VT for international. Cruztd23 • 5 days ago. if MCD bought at 99 Research the 4% rule. Add in inflation and 5-6%/year should be plenty. The downside of going bankrupt from completely normal life events if you have no savings is really high. So let’s say you want to have $4 million in savings for retirement. there are other things as well. It can be done in one of two ways. $500k is a lot. 2 - Save money, invest it in the stock market, take combinations of calculated risks. They borrow money from the Fed, mark it up about 3% and lend it to individual borrowers like us. If its a million dollars in LBP u can get upwards of 16%. Today it's worth $658K. Bonds are a key component of a balanced investment portfolio. The 50% lump sum and 50% DCA over a year is a pretty good plan. If you’re buying a stable larger multi deal right now cap rates average around 4%, if you’re building, the market wants around 5. Quit my job, pay off debt and travel the world. A dash of REITs or gold. There are two principal types of orders to buy a stock. A million dollars could last the rest of your life or be gone in a year. docbauies. Hey I am moving around 4 million dollars for my parents who do not know much about investing they are 48 years old and will retire around 60 I bet because they love work. You invest in mutual funds, dollar cost averaging, is the best way. Make it your holding company, and buy 51% of a company with a market cap less than 6 million. 1 - Pick one of the very few fields that pays compensation packages of $250k+ and save for a few years. 10% probably isn't realistic unless you were planning on putting it all in stocks and we just happen to have decent, consistent stock market results. Depending on the start and end dates, you can get a reasonable range of about 5. I would find a good sponsor and invest the million for true passive income. This can be a lot of fun. $3 million invested in savings account (but not the regular one that your bank offers). i am a high school pass out only have 5000 dollars have a knowledge of dropshiping and a little bit of investing is it possible to do so and if yes are there some long term business ideas that u can suggest me This gets asked once in a while. The government grants you AT LEAST 20% on top of what you put into the plan, per year, up to a max of 500$ per year (for an investment of $2500), and the capital you invest is not taxed upon withdrawal when you go to pay for school. They cover your exact scenario. •. x 12 months. #financialplanning. I was think of putting it into 4 different banks as term deposits, keeping in mind the Australian guarantee is only up to 250k. 2%/year. The people I know would do it for like a six pack of beer. $1M at 4% gives you a good amount of money without using dividend returns. Pay off student loans and credit cards. Invest in a business. Learn about angel investing and the like, find some groups that do it, and if it is of interest to you, be very careful, picky, and spread your risk. This is what differs me from Ponzi schemes or scammers. Either you invest in a business that you will operate or act as a silent partner for an existing business. An easier way to remember how realistic a million dollars is, is to remember 1000 x 1000 = 1 million. Using the 4% rule, 1 million can probably last you a long long time if you only spend about $40,000 a year. You could break it up into 10 $2,000 investments in high risk high dividend yielding stocks. ago. Repeat until billionaire. Jan 23, 2023 · Furthermore, a portfolio worth $4 million would generate $360,000. S. Tons of places, stop looking near cities. Achieve 1 Million Dollars Net worth in 10 Years. To asure if those 20 million are actually mine and not part of a illegal transaction or a mistake. At $100M you may choose to hire staff to do those things —— either multi family office, family office, or high end wealth manager. Have 2 million dollars and start a restaurant. Also the interest rates on USD start at 4% and can reach 10% for a few hundred k. Check out the FIRE community, I use to read Mr. I’d go the other way, tell everyone you have a crippling gambling habit and ask them for money. You Have a good yearly income and time to enjoy life. 480k/year divided by 15 mil = just 3. Impossible to say what return you'd get but it should average out to 6-10% annually. =P Congratulations for having a problem like this. There are 3 realistic ways in my mind of becoming a millionaire. However, we would hope that as OP gets older, he will start making more and can put more away each month instead of just $100. $500 really ain’t shit to create consistent cash flow, passive at least. I picked those stocks based on their fundamentals, dividend yields, and the initial goal to have enough shares to get 1k in dividends from each on a yearly basis. Try and get a job working at a mint. Probably invest 500k per company and I work very close with the founders personally. It’s price is well worth the buy for the BnB is an AAA Diamond awarded Victorian Mansion (fully furnished) in a very well versed I just bought a 3 bedroom with 40 acres for 300. 85 = $615,660. chaosumbreon87. With a 7% rate of return they would have $5 million in 22 years. If you later decide you want a, say, $120k/yr lifestyle you're going to have to earn more money somehow, but if you budget for it getting there from $60k/yr passive isn't so bad. "its time in the market, not timing the market" We have many clients, who have over a million. Fuck your could invest it to make an average 7% on it take out 3% a year while working a part time job. I am in my mid-30s. You want to preserve wealth for 50 years, and purchasing power. I can turn your $100,000 into trillions overnight. Then just boring stuff like a house and pay my friends and families mortgages etc. I hire professionals, but supervise them directly. Aug 25, 2023 · This means that when there is a lot of market turbulence, bonds seem to stay even keel as long as you work with a reputable issuer. 91. Give it to me. So, with $4 million you could earn between $80,000 and $200,000 per year. Buy a few homes and rent them out to families. Also, if $500K is not as good in the future because of inflation, then neither is $100. Suppose you’re starting from scratch and have no savings. Though this may sound ambitious and partially unrealistic, I'd like to achieve a net worth of $1,000,000 in 10 years between my (1) Robinhood Account (2) WeBull Account (3) Roth IRA and (4) Work 401K. Okay, investing reddit. IE it would likely be $80K depending on inflation per year in the 2050's. You can do so on $1 million as well, but for most of Is earning 20 million dollars possible to earn in 10-15 years The conditions are. 10 million tacos. 6 month T bills now pay 5. In fact, in the million dollar range, I would recommend getting several and split the money between them. On $5M that’s 250,000 per year. Investing 1 million dollars. r/AskReddit is the place to ask and answer thought-provoking questions. Invest it wisely and live sensibly. It costs like $15 just for transactions, and odds are you aren't going to double your money anytime soon (no offense) on just a stock or two. You could live pretty comfortably on 100K per year in most places. Buy one of each skyline from a hakosuka up to a r35. Think subscription. Use roughly 3-4 million to invest. Separate from that, it can generate enough income to pay the premiums for a really expensive healthcare plan that doesn't cost very much to use. Could also buy $500 worth of Q&A. In our neighborhood there are small townhomes and big single-family homes. Ignore the people with advice on saving; you need the investing side. The rule of thumb is to have at least 3-6 months of living expenses (rent, food, car, insurance) in cash in the bank before you start investing. Boggle heads comes to mind as a resource. Lost 4 million pesos profits. FI/RE (Financial Independence / Retiring Early) is a money strategy that's sweeping the nation. I do not guarantee any return. I’d rather use the million, pay off the house and debt and create a nest egg. If a couple makes $200k, pays $30k in taxes and spends $70k per year, then they can save $100k / year. Anywho, During the countless meetings, I met this person who is willing to invest 200,000 but pushing it, he says he can arrange up to 500,000. If you keep that million in cash and just spend 40k per year, inflation will slowly destroy your buying power. Start a buissnes and become rich with a mansion and fancy suites. Most people retire with drastically less than $640,000. There's a few stocks out there that will yield annually 10%+ and pay out monthly. Buy a house with plenty of space, a comfortable distance from neighbors, a lot of natural light, a pool, and a space for an artist's studio. 5% gold (GLDM) 7. Reply reply. We have $345K left to pay on a 15-yr loan with a 2. Feb 7, 2022 · After that, you can continue to withdraw the same value amount, adjusted for inflation. Except my kids. Sort by: vettewiz. No bitcoin, just staying invested. Buy a house, buy a car, invest half, party until I die. 1 million isn’t enough to retire sure but it is enough to sit on to give you options. It's a lot, but it's not a life changing amount of money. If $200k is a ton of money to OP, maybe they could invest 1/3 and DCA the other 2/3 over 2-3 years. Invest in property and stocks, take a dream vacation, and donate to charity. How much would your product/service have to cost to bring in a a million bucks (gross sales here)? Let’s look at a recurring revenue model. x $17 dollars per month. I think it depends on what $200k means to OP and how much they want to reduce downside risk. ShadowLiberal. No debt house and two cars are fully paid for. Put $1 million into savings, stock market, etc etc. May 8, 2023 · How to Invest $1 Million in Bonds. For most people, 3 million dollars is life-changing money, potentially enough to retire and live off passive income for the rest of their life. Just buy books. Depending on how the vested stock has performed, I can generally add another $100K (in equity value) after tax each year. This quote was my first thought as well when I read the title. Assuming you don’t take out more than this amount (from dividends and selling stocks), your original $2M will never go away. So emphasizing again: Don't do anything until you have a solid plan. If you don’t work with a reputable issuer, the bonds may carry more risk. 5m that comes to $60k/yr or $5k/mo pretax. They offer the benefits of cash flow, diversification and capital preservation. Expect to strike gold 1 in 10 companies that I invest in and take it With $100 million, I'd be more worried about preservation of principal and purchasing power rather than upside potential. Nov 9, 2023 · Saving a million dollars in five years requires an aggressive savings plan. Investing it. 1-2 million to buy a few properties, and then live on the rest. If inflation ran at 2% the next year That might go a long way toward funding the basics, and you might be able to spend 4-5% of the million you have left. That amount can reliably generate about 220k USD a year in income, that will rise in conjuction with inflation. Every other answer is wrong! The interest off a million dollars is less than 1/3 my house hold income. When the stock Jan 12, 2024 · 6. At a mere $17M ($38M until funding some irrevocable trusts recently) I still handle most of the mundane details of life. Once you've decided that buying Reddit stock is right for you, you'll want to place an order. g. Portfolio: divided between dividend and non-dividend stocks, alternative assets, oil & gas, and cash. Not an issue at all if he invests wisely and keeps it diversified to minimize risks. That means, you can buy into various companies that are not publically traded. It isn't easy. Poof, now you have 1 million. With $1 million, you should be able to leverage an additional $4mil. . I have $50,000 in the savings account to invest. The problem is our townhome is now too small for our family. Getting a 4% interest is $80,000 in interest. If you have ANY plans to go to post-graduate schooling, the money should be put into an RESP - Registered Education Saving Plan. . More risky. Open accounts at Fidelity and Schwab, explore their platforms, see which one you like. Anyone can make 5-6%/year. I could do the same with AT&T but needing an extra 100k or so. Order 100 million things from McDonald's dollar menu. pension) cash is around $230K per year. That leaves me with 1. 48 = 14,368 shares and 14,368 × $42. Compensation: roughly take-home (after tax and social contributions e. = 1 million + (per year) Now for speed of growth, prefer max scalability. Easily, I mean, even just put it in a GIC and get 4%/year right now. Frozen monthly, quarterly, yearly. Split $2 million among friends and family and tell them to never ask me for anything again. If you leave it alone, you have 220k a year in 2023 buying power, with minimal healthcare Better to put it in a savings account and let it sit for 6-12 months while you read up on investing (or find a competent financial advisor you trust) than to do the wrong thing. Now I could live comfortably off 50,000 so I did this calculation: $50,000 ÷ $3. My biggest recommendation, u/Voidbinder is to read the sidebar and start exploring from there. 65% yearly interest rate for just having the money on current account. Feeling is higher rates are going to be the new normal. 30% Total Stock Market. Way 3: Invest with a professional. $3 million invested in a mix of stocks/bonds/mutual funds. Annual return of anywhere between 7-15%. My self and life happiness. Then use the rest to buy properties on the beach. 5-7 years: Start business: $750k (Brewery with my brother - both Master Brewers) 20-25 years: Pay for College: $40-250k. Buy $1 million worth of a broad market index fund. Instead of being content, he wanted to move us all from "rich" to "wealthy" and started investing heavily in start ups. Immediate: investment income: $50-70k/year. It's not easy, but it is simple: earn more, spend less, and use the difference wisely. But more prospect for major reward. So absolutely, $500 a month will get you far (and when combined with social security and no debt, should take care of retirement for most people). Nov 27, 2018 · The lack of clarity on the future makes it difficult to know where to put your money, especially if you’re a high-net-worth investor. Carplesmile. starting with $1K at 18 years old, one would need to contribute $225 a month for 47 years @ 7% to become a millionaire. Way 4: Put the money under a rock and save it for a rainy day (Like today in California). Investing 4 million. Put in a set amount, each month, 6 months whatever without fail and it will grow and give you nice returns. If you are in Canada, it makes sense to get dividends as you can get $50K tax free. How would you invest 1 million dollars without too much risk. Hire a cleaner. We have $1. Step 4: Profit. We spoke to six experts about where they’d invest $1 Others have done it. Wajina_Sloth. I'd spend 150k on a nice enough house and make standard investments (aiming for 7% a year average over many many years) with the rest. Neither of these scenarios make much sense in the real world, but I'm curious if it'd be possible on both counts. Some say 3% to be more conservative. U could also invest In something alternative like buying lawn mower or equipment that will make u money. Consider that with $1M you can now be an accredited investor. (You can google it. As such, it is more resistant to wild inflation and corrupt banks. This practice should allow your portfolio to last 30 years, at least. Is this a stupid thing to do, I understand diversification is safe, but this just seems like a reasonable way to live passively. Pay the tax or the IRS will get ya. Job. start at 4:08 with the 250 men named dennis story. If it's not a lot of money, they could lump sum the whole thing. They should be in the nearest major metropolitan area if you want a face to face meeting post covid. That’s exactly what banks do. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. Which means that with $1 million you can get an inflation adjusted $40K per year forever. That leaves approximately $40-50,000 after taxes. The first million is the hardest, so I’ve heard. ) Most solid stock investments will return 4% plus the rate of interest over the long term. This is def not the way. By investing $10,000 per year ($833 per month You would need, in my estimate, 2 million to live modestly off the interest. With that said, you only need 10,000 assets to hit an average of $100 to make a million; or 50,000 assets only need In the simplest terms, if you have 1 million dollars and just put it in a savings account that gives 2% interest, you will get $20,000 a year doing nothing. First divorce in '88. 46M subscribers in the AskReddit community. in the end you have passive income. Five to my immediate family, one to a close friend. Mar 23, 2024 · Step 4: Place an order. Based on that goal, you can withdraw $160,000 (. 7 million of today's dollars is misleading. Go to Vegas and bet $30,000 on roulette. Probably spend a year learning about investing first. Depends on where you live and what options are available to you. Build a baseline of financial security with the difference first, then use it to invest for your future. Play with my other half of the money, invest in the Angel round in startup companies that operates in fields I'm familiar with. Monthly interest income for the $3,258,000 will be $13,575 at 5% if it’s still available or you got a bond longer than 10 years. If they're not a fee-only fiduciary, they'll probably try to sell you something they get a commission for. Buy 51% of a company with a market cap of less than 3 million, and with more than 3 million in cash post liquidation. 5% commodities (PDBC) The portfolio should be above 200 million in my twilight years. My bank has 11. Apr 8, 2024 · As you can see, investing $5,000 per year consistently over time (that's about $417 per month) could get you a million-dollar portfolio in 36 years. I’m very well rounded in the financial department. Generally if you invest it in a mix of stocks and bonds you should be able to take out 4% forever (with inflation) without it running out, most likely it will grow significantly over time. For example, you could borrow the funds and then turn around and lend them to someone else for more. Repeat as needed. I was able to cashed out 500k before this and paid all of my debts of 200k, 200k I used You don’t need to make that just to be considered a high paying job. At a rate of 4% inflation, in 50 years the million dollars - and its 7% interest - is only worth 1/4th of its value today. Put 500k into a used book store. Start with 2 million and open a restaurant. I'd leave it there and live off the nearly 10k monthly income. 5 million in retirement and $300K in savings. You're forgetting inflation. Think of it this way, going from $100,000 to $200,000 is much harder than going from $900,000 to $1,000,000, because you have less money working for you at $100,000 then you do at Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. I’m 26yo with 800+ credit score. Way 2: Invest Some conservatively and some aggressively. Throw them off the scent and spend 2 million on cyborg upgrades. If this is 4%, then OP makes roughly $87k per year, assuming this is all pre-tax dollars (not a roth 401k). This can be one of the most lucrative ways to invest $1 million and is also a more entrepreneurial path you can explore. I have $1,000,000 in T bills and they have provided me with income of $50,000 over the last 12 months. stock market (VTI) 40% long-term treasury bonds (TLT) 15% intermediate-term treasury bonds (VGIT) 7. Wanting to invest in a million dollar bed and breakfast. 1/3 each Vanguard Total Stock, Vanguard Total International and Vanguard Total Bond. After investing for 10 years at 5% interest, your initial investment of $2,000,000 will have grown to $3,257,789. Make $1. So total net income usually oscillates around $330K each year. The only adjustment I'd make is to take 25% of the equity allocation and buy rental properties. Very eager to do whatever it takes to create passive income. 5,000 customers. You ask 1 million people for a dollar each. You’d need to invest around $13,000 per month to save a By hiring some trusted financial advisors. If I had $500 I’d invest into my knowledge so I can build a skill or craft to recoup that initial investment. Send them to me. 04 x $4,000,000) the first year. I stumbled NFTs last Q1 2021 with 25k capital. 10% Rental Properties. I wouldn’t really need to invest and make money, it would be more of a safety net and hedge. (going on the high side, say 4% a year, so it'd need to grow $200k a year) Places like Capital One 360 only offer 0.
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