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What would you do with a million dollars?

Submitted by BiggL, , Thread ID: 152820

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RE: What would you do with a million dollars?

suwooucey32
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03-12-2020, 07:57 AM
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Firstly I would deposit the million dollars into my nearest bank and then transfer the $1 million in its entirety in multiple high interest online savings account like Ally or Betterment and i would wait for a week not touching the money and just going about daily life and get used to the miracle that im worth a million bucks but i aint doing nothing with it.

$1,000,000. After a week or something, i would start to make my moves. I would get in touch with a Financial Advisor and get some idea about my options of where to invest my money. If he/she backs my ideas, i would invest $300,000 into three different Vanguard Index Funds, and i would leave it there to grow for decades.

$700,000 left. I would put some money into stocks of Big and more importantly, stable companies, established giants like Coca Cola, Apple, GEICO, Bank Of America and JP Morgan. Lets say about $250,000 just to get some skin in the game.

$450,000 left. Next i would try to break into the Real Estate game which has been a great way to get grow wealth for some centuries now. Real Estate Investment Trusts (REITS) would be an attractive option to me, let's say $50,000. And for actual properties, i would look for duplexes or small apartment buildings/complexes, take 30 year mortgages on them and set aside $300,000 as deposits and a safety net. I would hire a Certified Public Accountant (CPA) and form a team to help me identify and buy good properties that i can rent to tenants for cashflow.

$100,000 left. I would leave $60,000 in different online savings accounts to accumulate enough interest to outpace inflation and i would not touch this money ever. $30,000 will be deposited in a savings account of a bank, and $10,000 in a checkings account for my personal use.

( Warning, extremely optimistic numbers!) So, assuming an annual 7% appreciation of the stock market, my three Index Funds should earn about $21,000 per year, maybe $15,000 a year in dividends from the blue chip stocks, 10% return on the REITS would mean $5,000 a year, $1,500 monthly rent from each apartment or $2,000 for duplexes, and of course a 1.25% interest rate by Allybank means i would earn $750 a year in interest before inflation.

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