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AmazonianGuru
Living Jungle Boy



Registered: 02/14/11
Posts: 1,571
Last seen: 1 year, 3 months
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Could you live off of interest, if you played it right?
#26432149 - 01/13/20 08:42 PM (4 years, 16 days ago) |
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What's up everybody? Myself and some others were kicking around ideas of how you could live off of the interest of an initial large investment, (i.e, 1,000,000 dollars), as opposed to starting a business or investing in stock somewhere.
Some banks, for regular savings account, offer anywhere from .4 percent interest to as high as 2.5 percent interest, depending on the terms and conditions of the accounts.
Could a person do it?
I mean, if you were to leave the principal alone, pay taxes off of whatever you accumulated in interest, without any long term investments or registered savings plans... could a person TRULY do it?
If you had all your loans paid off, and had a few meager bills come up, it would be doable.
This came up after a group of us heard about a group of people splitting a 15 million dollar jackpot seven ways, and we thought about investing the winnings to live off of interest, as opposed to playing the stock market or any other complicated stuff.
What would you do? What would be the easiest thing?
If you could find a financial set up as balanced and as self regulatory as nature is, it would be easy.
Anyways, sorry for the long rant. :p
Any ideas? Anybody who knows of anyone who plays the investment games?
(Banking sucks, btw) :p
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spirit_shadow
Feature not a bug



Registered: 08/15/11
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Re: Could you live off of interest, if you played it right? [Re: AmazonianGuru] 1
#26432158 - 01/13/20 08:45 PM (4 years, 16 days ago) |
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If you know how to hunt you can live off of anything......so my advise..... Learn to hunt
-------------------- ERROR 418 IM A TEAPOT.....(this account is automated, all posts related to illegal activities or advice thereof are strictly from numerous online sites and are for informational purposes only)- Circa 2011 Ban lotto
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AmazonianGuru
Living Jungle Boy



Registered: 02/14/11
Posts: 1,571
Last seen: 1 year, 3 months
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Re: Could you live off of interest, if you played it right? [Re: spirit_shadow]
#26432180 - 01/13/20 08:58 PM (4 years, 16 days ago) |
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Quote:
spirit_shadow said: If you know how to hunt you can live off of anything......so my advise..... Learn to hunt 
What are we hunting?
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PatrickKn


Registered: 07/10/11
Posts: 20,563
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Re: Could you live off of interest, if you played it right? [Re: spirit_shadow] 2
#26432206 - 01/13/20 09:08 PM (4 years, 16 days ago) |
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You wouldn't be able to live off a million dollar investment with a .4 - 2.5% interest rate without living quite frugally. Being free from working is one thing, but without work to occupy your day, $4000-25,000 per year is not a whole lot to live off of, and would be consumed by property taxes and everyday living costs. I think you'd find a life working regularly but pulling 40-70K per year to be more fulfilling compared to living off that amount of interest but not doing anything with your day.
Modern savings accounts do not even keep up with inflation as well, you'll find that 2.5% interest is the inflation rate on an average year, and not often less, more often than not it will be higher. So you could not practically live off that interest for very long as you will need to pull more and more each year to live 'comfortably'.
Likewise, with $1 million, you could generate passive income through businesses anyway and make more than 2.5%. The best thing you could do is diversify it to yield more than 2.5% on average.
With 3 million I think you'd be living quite comfortably for the rest of your life from the age of 25 or 30. But you're not just going to be handed $3 million either, and if you have even the slightest of impulsivity, you'll probably find yourself over spending with that much in the bank.
Edited by PatrickKn (01/13/20 09:15 PM)
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theRealrollforever
I DID-DENT



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Re: Could you live off of interest, if you played it right? [Re: PatrickKn]
#26432213 - 01/13/20 09:11 PM (4 years, 16 days ago) |
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I would live off it for a while
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sunshine said: The order has to be secret and no one is sure.
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tyrannicalrex
Strange R



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Re: Could you live off of interest, if you played it right? [Re: PatrickKn]
#26432215 - 01/13/20 09:12 PM (4 years, 16 days ago) |
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I could do it with a million, but I'm 55 now.
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ichugwindex
Dex



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Re: Could you live off of interest, if you played it right? [Re: tyrannicalrex]
#26432252 - 01/13/20 09:41 PM (4 years, 16 days ago) |
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If you had several million before age 30 a hard MAYBE
-------------------- Only hope can give rise to the emotion we call despair. But it is nearly impossible for a man to try to live without hope, so I guess that leaves Man no choice but to walk around with despair as his companion.
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viraldrome



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Re: Could you live off of interest, if you played it right? [Re: ichugwindex] 1
#26432319 - 01/13/20 10:27 PM (4 years, 16 days ago) |
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You would be better off buying an old million dollar house in a desirable area that has been divided into apartments and living in the cheapest unit yourself. Depending on the rental market in that area. You will have to subtract property taxes and cost of repairs from your profits. I wouldn't quit my job in that scenario though.
-------------------- Lysergamides I have tried so far: 1P-LSD, 1cP-LSD, ALD-52, AL-LAD, LSZ, ETH-LAD, MIPLA, EIPLA, 1cP-AL-LAD
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