A lump sum of money that would set up for life

[Dirty_Zulu]

A lump sum of money that would set you up for life

The last mega lotto was $200 million. 12 winners in UT will have a very merry Xmas.

How much money in a lump sum would it take for you to screw work, school, and everything you want to screw with?

Give me $50million and I'd gladly tell my boss to shove it. I'd like to own one of the yachts that the rappers own so I can have all my hoochies strutting around in their bikinis. I think eating out everyday would probably use up the rest of the cash.

 

[AeroJonesy]

Re: A lump sum of money that would set up for life

Probably somewhere around $10M lump sum after tax.

 

[TurbulentTurtle]

Re: A lump sum of money that would set up for life

$27 billion.

 

[BobCox2]

Re: A lump sum of money that would set up for life

All of it.

 

[Mcwhopper]

Re: A lump sum of money that would set up for life

Well ehm like 2 million euro would do the trick.... That's what? 3 million dollars or somesuch?

 

[s4nder]

Re: A lump sum of money that would set up for life

The trick is to make the money make more money, not spend it in five years and get back to work. Most big lotto winners end up being poor in the end. Still, I'd say around 5 million euros would make me not care about any of that, hehe.

 

[stillman]

Re: A lump sum of money that would set up for life

Eating out what exactly?

I certainly wouldn't spend a single cent on some gold digging broad. But here's what I would do if I had more than one million:

-give a bottle of hard stuff to the alcoholic who begs in front of Sobey's every day until he dies from liver failure. I don't like seeing him out in the cold like that. It makes me sad.

-Dress up like a poor man in tattered clothes so no one robs me.

-Pay off my student loans. Federal and provincial.

-Roll a bunch of it into a GIC.

-Tell every nice looking girl I meet that I am a janitor, living at home with my parents.

-Vow to never eat in a restaraunt ever again.

-Play d3 for a long time when it comes out, with no worries about work. See if I can make the top of the ladder.

-Become a hermit for a while.

-Move out of the city and into the country again for better tasting air.

-Become a health guru, making sure I get at least the exact right amount of every nutrient and antioxidant every day.

-If I had enough money (billions), I'd build a hospital in my name. The meaning of life is to have a building named after you. The janitors would make tripple what they make in other palces.

-Do some fun research, like give a begger one grand, but the deal is I get to follow him around and see what he does with it.

- Write a book. Oh I know, design a PC RPG game in all the spare time I suddenly have.

-Can't think of much else atm. Sadly, the priority is real life stuff like paying down student loans, helping my family, making sure my health and living expenses for life are taken care of. Boring. That stuff alone would eat up quite a bit of money.

 

[Garbad_the_Weak]

Re: A lump sum of money that would set up for life

$1 mil should be adequate, if not less.

Just enough to ensure that I could do what I wanted to do without worrying about downturns in the economy, getting fired, getting sick, etc. The interest + my salary doing a job I loved would be more than enough to provide a decent standard of life forever. (And yeah, I would work -- try going a few months/years without working and see how awful and boring life is).

 

[whitey]

Re: A lump sum of money that would set up for life

I'd say 1-2 million after taxes would be enough. My wife and I aren't big spenders and even if we had a huge amount of money we wouldn't buy a huge house (hate them) and even if we bought all the stuff we ever wanted we wouldn't spend much more 100 grand. The bulk of the money would be invested in some way that we couldn't touch it for a while.

 

[Ikeren]

Re: A lump sum of money that would set up for life

1 Million after taxes, maybe less. Invested at 2-4% for 20 to 40 grand a year, and then working part-time at whatever interests me. Right now I'm a university student living on about 13 grand a year, and that's comfortable enough. 40 000 seems unfathomable.

 

[Dondrei]

Re: A lump sum of money that would set up for life

Let X represent the (pre-tax) annual income on which you could live in satisfactory comfort, and let Y represent what you estimate the average interest rate you could get from a conservative investment portfolio or bank deposit would be. Then your amount is X/Y.

I'd guess it's a few million.

 

[AeroJonesy]

Re: A lump sum of money that would set up for life

You'll want to make sure you'll be comfortable down the road, too. If you don't allow your base to grow, you'll be in trouble 20 years in the future when inflation has cut down the size of your nest egg.

 

[Knarlfist]

Re: A lump sum of money that would set up for life

million


I agree with many here. It seems more than enough for me.

I'd most likely live off the interest, in a very frugal manner. I don't dream of riches, and my lifestyle could be lived even cheaper if I didn't have to work for a living. Would probably spend my time working out/exercising, reading books, maybe playing some D3 =p

 

[MasterOfPuppets]

Re: A lump sum of money that would set up for life

Don't forget about the time value of money.

Personally, I have about 50K in the bank split between some high interest yielding accounts (5-6% CDs) No college loan or credit card debt, the only loan I have is my car @ $320 bucks a month. And I own a house in San Francisco. Currently making $56k a year straight out of college. I'm 22.

Gimme another 10M tax free and I would be golden. Screw that "living off interest" b/s. Money sitting in the bank is dead to me, you're losing out on opportunities. I would buy more property, rent it out and let the tenants make the payments for me, even realizing a gain if possible - breaking even is fine. I would pay virtually no income tax as my depreciation will offset my income from my job. Property tax might hurt a bit, but I have that base covered.

In 10-15 years time, I'll be sitting on a goldmine.

 

[Lizardking]

Re: A lump sum of money that would set up for life

i'll be happy with 100.000 euro's ^_^. Life is like d2, if you have everything you can only be mr bigshot and brag about it. If you have nothing and play life untwinked you have fun ^_^

 

[AeroJonesy]

Re: A lump sum of money that would set up for life

Personally, I have about 50K in the bank split between some high interest yielding accounts (5-6% CDs) No college loan or credit card debt, the only loan I have is my car @ $320 bucks a month. And I own a house in San Francisco. Currently making $56k a year straight out of college. I'm 22.

You don't owe any money on the house? Either you're living in squalor or you've got some very nice parents...

edit: I should also point out that if you own a 2nd house and have tenants paying rent equivalent to a mortgage, and you have a job, depreciation wouldn't be near enough to reduce your income tax liability to near zero. On a $250,000 30 yr. fixed mortgage at 4.75% interest, you're looking at about $1300 per month or $15,600 per year. Added to your $56000/yr salary gives a total income of $71,600. Rental properties depreciate over a 27.5 year period, so you'll get to depreciate around $9,000 per year. How do you plan on using a $9,000 depreciation deduction to wipe out $71,600 in income?

 

[pancakeman]

Re: A lump sum of money that would set up for life

I would say 5 million should do it, but in my case the question reveals its flaw: If I get the job I am in school for I would want to work. Therefore, I would be free to put that money in the bank and live off my salary. Dip into it for a few items, say, an Ascari A10, but other than that I'm good.

I would imagine that a lot of the money from those lotteries goes towards huge houses, and I simply don't need that. Lot of money saved right there.

 

[MasterOfPuppets]

Re: A lump sum of money that would set up for life

How do you plan on using a $9,000 depreciation deduction to wipe out $71,600 in income?

You would be absolutely correct, Except, you missed a big part of the equation: EXPENSES.

90% of your mortgage payment goes to paying off interest on your loan and not the principal. The reasoning behind this: more principal = more interest income for the issuer. So in effect, 90% of your mortgage can be written off as it is interest expense. (But of course this write-off will gradually decrease as time goes by) And that's not even adding in other ordinary expenses (water, upkeep, garbage, electricity, plumbing, leasehold improvements etc) that can be written off.

On a $250,000 30 yr. fixed mortgage..

250K for a rental/house?! Where do you live haha. I'll give you my current situation to paint a better picture:
I'm making 56K a year. (I actually only make 52K a year, but I got a 4K bonus for finishing my CPA within a year).
So anyway:
Present Taxable Income (TI) = 56K
Less: Standard deduction that everyone gets = 10K
Less: Depreciation on my house = 25K
Adjusted TI: 21K

I am now in the 2nd lowest tax bracket, paying a measly 15%. I have complete control of how much taxes I pay, depending on how much I put into my IRA and 401K. I can be paying as little as $2-1,500. I can even reach the 10% tax bracket if I wanted to. But I would advise you to put your money in a ROTH IRA - you don't get the deduction straight up, but you will be able to receive your money TAX-FREE when you are able to dip into it. Regular IRA's are the opposite (Take the write-off, but you pay taxes when you are able to dip-in)

You don't owe any money on the house?

Correct. I co-own a house with my father in San Francisco, it's a 3 flat w/ 1 in-laws room. We break even on the house, but we're able to write off 25K in depr. every year - which I desperately need, because I don't want Uncle Sam taking my hard earned cash.

Now if I had 10M tax free, I would only be able to writeoff 25K (the MAX amt of depr. that anyone can write off per year, Thanks to REAGAN), but all my rental income will be offset by expenses and my loan. And like I said, in 10-15 years when my property eventually appreciates, I would be sitting on a goldmine.

 

[AeroJonesy]

Re: A lump sum of money that would set up for life

So I'm confused. If you're taking depreceiation on the house, you aren't living there. So where are you living?