You are given $2.5 Million today on condition you will never receive any more money for the rest of your life. Do you think you would be able to live comfortably?
Yep! I'm the one taking the deal so I can't earn money but my husband can still earn money right?
I don't think so. By my calculation (very rough guesstimate), I need about another 14-17 years before $2.5M would be 'comfortable'. That's assuming the kids go to an in-state college.
You can't earn interest off of that money? If not then no, If yes then yes.
Could I live comfortably? Probably. Would I take that deal in exchange for making as much as I can for the rest of my life? No.
Not yet. I would accept the offer if I was 60.
If I can't invest it then no.
If I'm barred from working or investing, then no.
if I can't invest or collect interest, no. if I can do both of those then yes. I picked no since the question says you can't get any more money
Ok, so even if I can't invest I'll still get interest on a savings account. Subtract $500,000 for a small house, fully furnished, that leaves $2 mil. I'm 48. If I live 40 more years, it's $50k per annum, inflation compensated by interest. Green light
Just don't throw taxes or any more restrictions at me besides not investing, that's unfair.
Age is a big factor.
Definitely. It would be risky even at my age. Suppose inflation speeds up and I make it to 2050, think optimistic, but am broke. Who wants to hire an 85 y/o geezer who is totally alienated from work, not having held a job in 36 years. I'd be screwed.
It would be more than that with the right annuity.
Unless the dollar collapses as the world's reserve currency, yes.
I think I could live off that, but I still feel like it'd be a bad deal. Especially since I'm a young person.
Agree. Also think of inflation.
So true. Good point. If I was 65, I'd take the money.
Sure. I'd invest $1.5M in various fixed income products - at a 3% yield, that's around $45k in income. I could live on that. I'd probably move to South America, buy a nice place on the beach, and invest the rest opportunistically.
For sake of argument, let's say you cant invest any of the money.
Then my answer's no. If I had to keep it all in USD, and couldn't invest or hedge, that's extremely risky. Who knows what the dollar will be worth in a few decades.
Well let's also say it was somehow known to you the dollar will be stable with current inflationary rate.
I say no. If i was allowed to invest, I say easily yes.
Agreed - I'd say no. I mean, after you buy a house, a few cars, and whatnot, you're probably down to $2M. I could live another 60-70 years, that's only $30k a year to live on. That's definitely doable right now, but who knows what kind of medical...
expenses I'll incur later in life. Plus, what would I do with all my time? But yeah, if I could invest it, I'd go yes.
I think I can make more than that, so I wouldn't take it.
Same. My friends thought I was being stupid.
All my friends said I was crazy for saying no. They said I am too ambitious in terms of what I want for standard of living. What say you?