this post was submitted on 19 Aug 2023
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Suppose you win 100 million. What do you actually do with it? Banks only guarantee 250,000. Do you have to invest it? Is there anywhere you can just let it sit and draw interest?

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[–] [email protected] 0 points 1 year ago (1 children)

Considering that quality of life won't improve much beyond a net worth of 5-10 million dollars (heavily depends on the cost of living in your area, as well as stuff like cost of healthcare), there is no point keeping that much money.

If I got 100 million dollars, I would donate 95 million do various causes, pay whatever tax I owe for the other 5 million, and retire with the 2.something millions I have left.

As for where to keep it... First I would pay off my mortgage, and then I would invest in index funds and bonds.

[–] [email protected] 0 points 1 year ago (1 children)

Two million is hardly anything for retirement. If you’re in your 50s then that’s only 66k a year until you’re 80. Unless you’re about to die that’s an absolute pittance. If you’re younger then that’s even less per year. You can’t think of retirement as “oh I only need this much money”, you have to think of it as paying yourself your yearly salary until you die. Life expectancy has massively gone up, so has inflation. If you live to 65 in the USA you have an average extra expected years of 15-20, so up to 85 years life expectancy in certain states. If you’re retiring at 30 you’ll be looking at 55 years of paying yourself. If you want a decent “salary” you’re looking at at least 5.5 million.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

What? $66K in the USA is more than most. It can be a really great life. How the fuck can $66K be a pittance?

Editing to add: Real median household income was $70,784 in 2021