If you had one million dollars, would you stop working completely?

[Teja.]

Was just re-watching one of my favourite movies Office Space and there's a scene within it where C1 asks C2 what he would do if he had one million dollars. C2 replies with "2 girls at the same time, man", C1 then says "I would do nothing at all". C2: "You don't need a million dollars for that, man".

I think I would invest it in something safe, occasionally write articles on stuff I enjoy working on and otherwise do nothing at all, too. Just rent a 2 BHK, re-develop a quality weed habit and do a bunch of non-expensive fun stuff which won't make me money. Maybe play Poker on weekend nights for some extra cash.

I can't think of any luxury life that I'd value over financial independence.

Obviously kids changes things completely so it's primarily aimed at those who don't already have kids.

So what would you do if you had a million dollars

 

[MrPrez]

I'd invest most of it and live off the interest, quit working for anyone, and fiddle around with my own personal projects-that-could-turn-into-businesses.

I'd love to start my own business now but as a 24 year old in a good job its kinda nonsensical to drop a good gig to start something I realistically can't afford to bankroll.

 

[zorax]

A million dollars isn't that much anymore, is it?

I'd invest it all, see what kind on monthly return I get on it, keep part of that for myself, and donate part to causes I support

I'd probably keep my full time job because a) I love it and b) I don't think the monthly return on 1 million dollars will be enough to sustain me

 

[MrPrez]

A million dollars isn't that much anymore, is it?

I'd invest it all, see what kind on monthly return I get on it, keep part of that for myself, and donate part to causes I support

I'd probably keep my full time job because a) I love it and b) I don't think the monthly return on 1 million dollars will be enough to sustain me

Not sure about Hong Kong but in South Africa you'd be very wealthy off the interest for sure.

 

[vcs]

Yeah, the interest on a million dollars would be comfortably enough to sustain most people in India without kids. I'd say 99.5% of families' income would be less than that.

And I'm not even talking about any fancy investment, just a plain vanilla bank fixed deposit.

 

[Teja.]

We did the math a while ago and I could honestly do financial independence in India with like 150k$ (1 crore rupees) assuming my girlfriend continues working her chill 9-2:30 job and I make 1000$ a month of miscellaneous earnings somehow lol. That savings about 3-4 years away.

We would still live in a pretty decent apartment in Bangalore and have a good monthly budget, would just have to remove my obsession with buying the latest electronics/expensive watches.

I scoffed at the idea when she brought it up a while ago but it seems a lot more attractive haha.

 

[cpr]

Buy myself a decent house outright, and invest in a couple more to rent or do up/turn over (the return % around some parts here can be pretty neat thanks to the cheapness of Salford and the size of its uni. Fallowfield less so). Probably drop back to uni for a couple of years to do law this time (can't be worse than some students), and/or proper accountancy qualifications. Reckon you can live fairly off one house income (given you've no rent/mortgage overheads) for a couple of years, maybe keep a bit to live off during that time too. Would be returning to work at the end, but in a much better shape IMO.

 

[Howe_zat]

If I quit my job, which pays well enough for me to live comfortably, and spent 1/30 of it for 30 years I wouldn't be any worse off. The only big difference would be pension stuff, which compared to having a large amount of captial isn't really a point. So the notion that it's not enough to live on any more is one I find a bit hollow.

My gut feeling is inflation would make that a terrible idea, but as a ballpark figure, 25k a year until I'm 60 would be just my current life.

I'd probably go part time, or take some time travelling before coming back to do tutoring or lecturing or some such. People who have been unemployed for a long time talk about how bored and useless they feel before long.

 

[Dan]

Probably buy half a cardboard box in suburban Sydney, based on the way our property market is.

 

[Uppercut]

I've wondered about this, because I love my job, but I don't think I could motivate myself through the difficult periods if I was rich enough not to work at all. I'd really worry about developing crippling ennui if I was given a huge sum of money.

I don't think $1m would be quite enough to do that, though. I think I'd just pay off my house and find the best possible treatment for my injured leg. Then I'd go on living the way I do now.

 

[sledger]

I've wondered about this, because I love my job, but I don't think I could motivate myself through the difficult periods if I was rich enough not to work at all. I'd really worry about developing crippling ennui if I was given a huge sum of money.

I don't think $1m would be quite enough to do that, though. I think I'd just pay off my house and find the best possible treatment for my injured leg. Then I'd go on living the way I do now.

Yeah, this for me as well.

Though fortunately (touch wood), I do not have an injured leg to contend with.

 

[Flem274*]

i'd die of boredom and isolation if i quit my job lol i need that commitment to keep me mentally healthy.

buy a 500k house outright with half, invest the other half in the spot i already invest while continuing to work. would probably step down from my current position and just be a normal employee. if i stepped down i'd keep my 4 day week but get my days and hours switched to normal human hours, monday to thursday or something like that.

it would be pretty chill. i'd make 40k per year off just the interest alone plus even more from my current job so life would be well set up.

these numbers adjust if i can convince my parents to let me pay the rest of their mortgage. they'd never accept it, but i don't know if you can just roll into a bank and pay random mortgages.

 

[silentstriker]

I've pondered this - what if I won a 50 million dollar lottery? And I think I would actually do exactly the same thing I am doing now. Just with a better house. It feels pretty good - shows me I'm doing what I'm supposed to be.

 

[dontcloseyoureyes]

If I had the means I would never work a day in my life again. Don't understand anyone who would continue to work on any level. There are so many things to do and see.

 

[StephenZA]

Not sure about Hong Kong but in South Africa you'd be very wealthy off the interest for sure.

Depends on lifestyle of course. But 1 million rand gets you about R5000 a month to live off for about 20 years before you investment is gone (in today's monies). So if you hitting retirement age of 60+ with $1 million (R15 M) more than enough. Wanting to retire at 50 is doable; but anything around 40 years or younger, with dependants and mortgages to pay off and and trying to have enough to get to 85 (at least) becomes very difficult. From my calculations very similar in the UK, but for different reasons.

Of course that sort of money just takes a lot of stress out of life even if you do continue to work, whatever age.

 

[NUFAN]

Are you factoring in buying a house Stephen?

I wouldnt quit my job, Id consider it at 2.5 million. The only really noticeable change for me would by my holiday choices.

My wife would stop paid work, I think shed go into volunteer work for something she is passionate amount.

 

[MrPrez]

Depends on lifestyle of course. But 1 million rand gets you about R5000 a month to live off for about 20 years before you investment is gone (in today's monies). So if you hitting retirement age of 60+ with $1 million (R15 M) more than enough. Wanting to retire at 50 is doable; but anything around 40 years or younger, with dependants and mortgages to pay off and and trying to have enough to get to 85 (at least) becomes very difficult. From my calculations very similar in the UK, but for different reasons.

Of course that sort of money just takes a lot of stress out of life even if you do continue to work, whatever age.

Oh, I'm referring to living off the interest, not using the money directly.

R15 million at an interest rate of 5% per annum (I'm sure you could get higher) would mean R750,000 in interest per year. I could live off half of that tbh (currently do) although it admittedly becomes different with kids and a spouse. But, for example, two teachers in South Africa won't earn R750,000 per annum and they make do comfortably.

 

[StephenZA]

Are you factoring in buying a house Stephen?

I wouldnt quit my job, Id consider it at 2.5 million. The only really noticeable change for me would by my holiday choices.

My wife would stop paid work, I think shed go into volunteer work for something she is passionate amount.

So property is much cheaper in SA. But if you wanted a decent retirement you want to have paid off you property and have a new paid for car. Then you need at least R35 000 a month to live off realising that a decent medical aid in SA cost R10 000 a month for your older age, and you still have to pay taxes even in retirement. So it starts getting dicey to have a comfortable middle class life in SA, by western standards, if you and your partner have less than R5 million in retirement, to get from the age of 65 to 85. Ideally you want something closer to R7-10 million, because you cant guarantee interest rates etc. Big difference between the UK and SA, is medical costs in SA versus NHS, whereas property in UK is obviously much more expensive. Generally day to day living is pretty much the same in middle class terms.

Of course people live off a lot less in SA, and that is why I talk about what would be a sort of 'standard' western world middle class lifestyle.

 

[trundler]

Put it in a bank. Get out of Pakistan.

 

[StephenZA]

Oh, I'm referring to living off the interest, not using the money directly.

R15 million at an interest rate of 5% per annum (I'm sure you could get higher) would mean R750,000 in interest per year. I could live off half of that tbh (currently do) although it admittedly becomes different with kids and a spouse. But, for example, two teachers in South Africa won't earn R750,000 per annum and they make do comfortably.

You need to take inflation into account, and you still pay tax on dividends and interest.If you go look at the numbers a R1 million rand gets you around R 5000 a month in real terms for about 20 years before that money is gone assuming a 6% return on investment in real terms i.e 12% interest (high) subtracted by 6% inflation (low). You start eating into capital after about 12-14 years.