Categories: Business & Finance

How to spend a million dollars

This is assuming that we have a million dollars of cash waiting for us to spend in our bank account.

 

The money must be free and clear, that means the government does not impose any tax on it.

 

How to spend a million dollars?

 

For me, the most important thing is preservation.  That means I want to preserve the million dollars as a capital, and make it grow.

 

I will enjoy the money earned from investing the million dollars.

 

I will use half the million dollars to buy annuities.

 

Since different insurers have different rate of growth based on their investments, I will buy 5 annuities with 5 different companies.

 

I will want immediate annuity.  That means I put in the money today, and I will receive the monthly payout next month.

 

Related Post

Many annuity plans will pay for life.  That means I will have secured my retirement with just these five policies.  Once the annuity stats to pay out, nobody can cancel the policy, not even the government can do that.  The judge cannot force you to sell the annuities to pay debt too.

 

With this single action, I disposed of half a million dollars.  Now I have to plan to spend the other half a million dollars.

 

I will use half the money to buy stocks, and the other half to buy bonds.

 

The dividend from stocks, and the coupon yield from corporate bonds will be used to pay the monthly mortgage.

 

Since the stocks and corporate bonds have higher rate of return than housing loan, it does not make sense to pay off housing loan.

 

All the other things I want to buy and do will come from the annuity payout and investment return.

 

If the monthly payout from annuity is just enough to pay the bills, I will work for another couple of years to fund luxury travel, and to fund a few meals at restaurants every month.

 

 

Come to think of it, a million dollars is not a lot of money.   I have spent it all in just 10 minutes of writing this post!




  • scheng1

    View Comments

    • This is such a wise approach to spending your million dollars wisely! Too bad more people don't think this way. So many are broke within a year of a large lotto winning, for example....

    • wow, you sure are good at stock market and stuff. At least you know what to do with your 1 million dollars.
      You will be having 3 million dollars or more with these investments.
      Clever and wise approach

    • Very clever ways to approach investing a million dollars. I would be able to live comfortably by doing your method. I do not need to have a lot of money so this would be perfect and I could just supplement with working online like I do now. Great post.

    • Instead of this 'how to spend a million dollars', if you would have shared something on'how to make million dollars', it would have been more appropriate when almost every one of us are trying and struggling to make some decent money online with which we could at least pay our monthly electricity bills and telephone(internet) bills.

      Your way of thinking on the topic can be possible only if you could win something big in a lottery. So your approach is nothing but a wild imagination, so to say.

      • Have you heard of the law of attraction? Visualization is part of the law of attraction, as is believing that it has already happened.
        That is the real purpose of this blog.

    Recent Posts

    Heart Attack Causes and its Solution

    What is the Main Cause of a Heart Attack? What is its Solution? A heart attack is the blockage of… Read More

    12 months ago

    Understanding the Debt Ceiling: Its Impact, Importance, and Implications

    In the vast economic arena, one term that often takes center stage, inciting extensive debates and discussions, is the "debt… Read More

    1 year ago

    De-Dollarization: The New World Order of Currency and Its Global Impact

    De-Dollarization: The Changing Face of Global Finance The financial landscape is in a state of flux, with an intriguing economic… Read More

    1 year ago

    Unstoppable Bayern Munich: The Story Behind Their 11th Consecutive Bundesliga Title

    The curtains closed on a dramatic Bundesliga season with Bayern Munich standing tall once again, clinching their 11th straight title.… Read More

    1 year ago

    Celine Dion Cancels Concert Tour Due to Deteriorating Stiff-Person Syndrome

    The Unfolding Story of Celine Dion's Health In recent news that has left fans across the globe stunned, iconic singer… Read More

    1 year ago

    Navigating the Crossroads: LeBron James, Anthony Davis, and the LA Lakers’ Uncertain Future

    As the echoes of the recent NBA season start to fade, the attention of enthusiasts is firmly glued to one… Read More

    2 years ago