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.
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!
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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.