Comments on: Why I Don’t Want 1 Million Dollars https://www.moneyinfant.com/1-million-dollars/ Baby Steps to Financial Freedom Tue, 27 Nov 2012 17:29:22 +0000 hourly 1 https://wordpress.org/?v=3.4.1 By: Money Infant https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2154 Money Infant Mon, 27 Feb 2012 01:14:11 +0000 https://www.moneyinfant.com/?p=337#comment-2154 The concern is not with the growth of the nest egg, but rather with the expansion of inflation. I know many people don't think about it because it has been so low for much of the past 30 years, but that doesn't mean it is gone :) So yes the portfolio will almost certainly be worth much more than 1 million, but what will the purchasing power be? And this assumes that you aren't spending the growth of said portfolio for the next 40 years. And it also assumes you have the 1 million now, not as a savings goal over the next 15-20 years. The concern is not with the growth of the nest egg, but rather with the expansion of inflation. I know many people don’t think about it because it has been so low for much of the past 30 years, but that doesn’t mean it is gone :)

So yes the portfolio will almost certainly be worth much more than 1 million, but what will the purchasing power be? And this assumes that you aren’t spending the growth of said portfolio for the next 40 years.

And it also assumes you have the 1 million now, not as a savings goal over the next 15-20 years.

]]> By: Shilpan https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2148 Shilpan Sun, 26 Feb 2012 23:55:39 +0000 https://www.moneyinfant.com/?p=337#comment-2148 Steve, Einstein's rule of 72 will do the magic. In 40 years, your portfolio should be worth much more than 1 million. :) Steve,

Einstein’s rule of 72 will do the magic. In 40 years, your portfolio should be worth much more than 1 million. :)

]]> By: Money Infant https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2146 Money Infant Sun, 26 Feb 2012 23:43:45 +0000 https://www.moneyinfant.com/?p=337#comment-2146 Yes, you can live now on 86k per year happily, but I expect to be around for another 40-50 years. How far will that 86k go in 2032 and beyond? Yes, you can live now on 86k per year happily, but I expect to be around for another 40-50 years. How far will that 86k go in 2032 and beyond?

]]> By: Shilpan https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2142 Shilpan Sun, 26 Feb 2012 22:49:48 +0000 https://www.moneyinfant.com/?p=337#comment-2142 Steve, Another option is to take $250K and buy a house with cash. Take another 50K and pay off credit card and car loan debts. Now, invest $700K in high dividend paying stable, big cap stocks. At 4% dividend and 4% average return, you are growing that money by 56K every year. Now, find a hobby that you love and can make you another 30K. You can live happily for 86K a year anywhere in the world. :) Steve,

Another option is to take $250K and buy a house with cash. Take another 50K and pay off credit card and car loan debts.

Now, invest $700K in high dividend paying stable, big cap stocks. At 4% dividend and 4% average return, you are growing that money by 56K every year.

Now, find a hobby that you love and can make you another 30K. You can live happily for 86K a year anywhere in the world. :)

]]> By: Money Infant https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2095 Money Infant Sun, 26 Feb 2012 11:34:09 +0000 https://www.moneyinfant.com/?p=337#comment-2095 Yes indeed. Even now though I think I would want another stream of income so that 1 million nut could keep growing. Otherwise you might find yourself nutless in 30 years. Yes indeed. Even now though I think I would want another stream of income so that 1 million nut could keep growing. Otherwise you might find yourself nutless in 30 years.

]]> By: Money Infant https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2094 Money Infant Sun, 26 Feb 2012 11:33:09 +0000 https://www.moneyinfant.com/?p=337#comment-2094 Interesting indeed. I think I wouldn't have the cajones to drop it all into a hotel too. Interesting indeed. I think I wouldn’t have the cajones to drop it all into a hotel too.

]]> By: Financial Samurai https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2076 Financial Samurai Sun, 26 Feb 2012 05:06:35 +0000 https://www.moneyinfant.com/?p=337#comment-2076 Hmmm... tempting! Although, if all I had was $1mil, I think I would shit a break investing the entire sum in a hotel!! Hmmm… tempting! Although, if all I had was $1mil, I think I would shit a break investing the entire sum in a hotel!!

]]> By: Financial Samurai https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2075 Financial Samurai Sun, 26 Feb 2012 05:05:32 +0000 https://www.moneyinfant.com/?p=337#comment-2075 It depends on when you get that million bucks yeah? If we had $1 million liquid right now, then all is good. In 20 years, not so much. All about growing the nut baby! It depends on when you get that million bucks yeah? If we had $1 million liquid right now, then all is good. In 20 years, not so much.

All about growing the nut baby!

]]> By: Shilpan https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2074 Shilpan Sun, 26 Feb 2012 04:36:05 +0000 https://www.moneyinfant.com/?p=337#comment-2074 1 million is enough. :) I will show you how. Find a great hotel investment that generates 9-10% capitalization rate. And there are good investment opportunities right now. Normally, hotels are sold by multiple of revenue. So, if you put $1 million into a hotel(25% down), you are buying at hotel for $4 million. Hotels are sold at 3 times revenue. So, you are buying a hotel that has revenue in excess of 1.25 million. With good management, you can take $200,000 in net profit every year. Key is to find a great brand like Hampton, Holiday Inn, Country Inn and Suites. 1 million is enough. :) I will show you how. Find a great hotel investment that generates 9-10% capitalization rate. And there are good investment opportunities right now. Normally, hotels are sold by multiple of revenue. So, if you put $1 million into a hotel(25% down), you are buying at hotel for $4 million. Hotels are sold at 3 times revenue. So, you are buying a hotel that has revenue in excess of 1.25 million. With good management, you can take $200,000 in net profit every year.

Key is to find a great brand like Hampton, Holiday Inn, Country Inn and Suites.

]]> By: Money Infant https://www.moneyinfant.com/1-million-dollars/comment-page-1/#comment-2068 Money Infant Sun, 26 Feb 2012 02:59:45 +0000 https://www.moneyinfant.com/?p=337#comment-2068 Yes if I had 2 million today and was 65 years old I would retire. I am 20 years away from retirement though. I could probably stretch the 2 million, but not if we returned to the same levels of inflation we had from 1968-1982. No one imagines it, but then who would have imagined gold over $1700/oz, mortgages under 4% and oil over $100/barrel 20 years ago? or even 10 for that matter? And no I would not turn down a million dollars, why are you offering? :) Yes if I had 2 million today and was 65 years old I would retire. I am 20 years away from retirement though. I could probably stretch the 2 million, but not if we returned to the same levels of inflation we had from 1968-1982. No one imagines it, but then who would have imagined gold over $1700/oz, mortgages under 4% and oil over $100/barrel 20 years ago? or even 10 for that matter?

And no I would not turn down a million dollars, why are you offering? :)

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