skipper
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Several things need to be known before that can be answered:
1. In terms of today's dollar, how much will the person withdraw each year?
2. What will be the future rate of inflation.
3. What rate of return will the money earn?
Assume an initial annual withdrawal of $240,000
Assume a constant rate of inflation equal to 4.5% per year
Assume that each year an additional 4.5% is withdrawn to keep pace with inflation.
Assume that the money is invested at a guaranteed 5.0% per year.
The money would be gone when the 20 year old person reaches age 77. |
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theantilib
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I need more information. If a Democrat is in the white house you would be able to knock off 50% from taxes and go from there. What difference does it make if your in your 20's? |
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Jasmine W
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For me...about 10 minutes |
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kaleo
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their whole lives. if you invest it wisely and dont blow it on stupid things it would last in to your kids lives and their kids lives, etc. you have to be selective. |
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jonnosays
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as most people don't earn it in there lifetime as long as you want. If you put $ in savings account at 5% you get $600,000 a year and not spent money of $12 million
Or you get groupies and coke and gone in 4 years |
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tonyisl33t
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Depends on how you will spend it.
If you plan on living a lavish life; New 200+ thousand dollar cars, million dollar house, dining at restaurants every day, spending tens of thousands on clothes, and getting massages daily, it'll last up to 2 - 5 years.
But if you spend the money wisely, you can have enough money to give your grandchildren a few millions. |
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Spell Check !!
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12 Days |
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Rick B
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If they only use 3% of it each year and invest it in quality mutual funds, it should last forever. |
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shawn
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well I am exactly 27 today, and 12 million would last me a life time, and my kids would still have plenty to live out a well off life, after that I don't know, I guess it would depend if they saved any for there kids. Personally I could live happy off the yearly interest of one million dollars! |
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KG
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Put it all in cd's
guarenteed about 5% interest every year.
live on the interest
if you're greedy then invest it otherwise
that 12 million should last your family forever as long as you don't go stupid with it... |
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johnsontinaa
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Now this would take a genius to spend just right to help yourself out and spend it in just one day |
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nottellinghaha
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My whole life.. |
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jeepsarecool
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Should last a lifetime if it is invested wisely and not wasted on Hummer H2's with 24" rims and other stupid stuff. |
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agutieres
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well if their resposible and think of the future a long time..invest and all that..if their imature then i give it 2 years |
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Cookiemobsta
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If you're smart about it, it'll last you for the rest of your life. The stock market returns about 10% annualy, on average. 10 percent of 12 million is 1.2 million. This means that without spending a cent of the original 12 million, you would have 1.2 million to spend each year for the rest of your life.
When you invest in the stock market, there is risk, and so possibly your 12 million would go down over time. The way you offset that is either not spend the whole 1.2 million each year--spend 600K and save the rest. That way your investment money grows each year and bad years are offset easily.
You could also just stick it in T-bills, that have essentially 0 risk. You'd get about 5% return, which would mean 600K each year to spend.
If you're idiotic with the money, you can blow it in a matter of days, but if you're smart you would never need to work again. |
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crazylazy
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It should last a few generations if you are intelligent. |
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Stephen K
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If you invest it wisely and live on about 50,000 a year, it can last forever |
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brkshandilya
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If that person hasn't earned it by the sweat of his brows,it wouldn't last for very long.How ever,if he invests it wisely in a diversified manner and saves equivalent to the rate of inflation to reinvest,he can retain his capital till eternity. |
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az_reb2
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if invested it would last the person all their life an some of their children |
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stupidjerk
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forever, if you donate it in a charity, it will definitely benefit and change others lives forever |
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richard t
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4% a year gives you $480000 per year without touching the principal..................................
it all depends on how much you need to spend.............. |
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alloutfallout
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it would depend on their spending habits.
if you are happy and think that your money would last forever, then spend evey day on ridiculous luxuries, you would last about 5 to 10 years. 12 million is a lot, but you can use it all. the average person who thinks money wise would probably invest , etc and get richer, then it would last forever.
a normal person like me, it would last my whle life |
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Hermoderus
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As of today, the yield for municipal bonds (which are tax-free) is precisely 4%. Allowing 2% for inflation, $12 million would provide $240,000 in untaxed income per year, forever. |
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happycfogirl
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It depends on how you invest it. If you are earning 4% in a Certificate of Deposit, going rate, you should earn enough to support a comfortable lifestyle without jeopardizing the principal. There's always rainy days ahead, don't blow the money (speaking from experience when my dad died). Get yourself some life insurance if you qualify to pay the probate taxes and put the money in a trust that you control. Go see an attorney and check them out with the bar before you proceed. Get references! Don't take anyone's word for something and don't get suckered into "get richer faster schemes" - do your homework, the internet is a valuable tool if you know how to compare and contrast the information. Public or government sites offer the highest level of accurate information from which to start. |
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noĪ±mericĪ±nfilm
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How could you possibly blow through 12 million dollars
in a year? I'd think investing it would last you generations. |
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Just Meā„
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This depends on what they decide to do with the money. If they want to live an extremely lavish lifestyle, they will run out of money very quickly. If they want to live average, they will always have money. If the person wants to live well but not in an extreme since. Their money should last them until they can get on social security with the right budget and making an effort to save as well as invest.
I would say if you buy a house or car. Pay for it fully in cash this way you avoid all the extra payments you make by using credit or leasing, mortgage etc. Buy ONE house that is big not six. Buy a couple nice cars, not ten! Do spend lavish but in a moderate way whereas you do not end up bankrupt like MC Hammer. Actually, he is no longer broke. He may not be a multi-millionaire but he does okay.
It should last for the life time assuming that you only spend a small percentage each year. 2% each year (50 years) This means living large but on a budget. No outrageous spending every day or anything. |
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Purple
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Depends on what kind of lifestyle you choose to live.
12 million is a LOT of money , if the person invests it and is smart about it they could benefit a lot. On the other hand if you go crazy and go on a massive shopping spree it'd take you barely a day to use it all up!
It all depends on how you spend it! |
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Lover not a Fighter
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For Britney Spears, she goes through about 700K per month (yes per month). She had to disclose her income for the divorce. So for her that will only last about 2 years.
That girl / family so F-ed up.
Good Luck |
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hottie3381
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I am in my mid 20s, for me, would last me most of the rest of my life. |
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Jennifer W
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Not very long. It would last about as long as water would through a sieve. |
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Digital Age
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A long time, if they live a normal life.
Invested into a fund that pays an annuity (annual income check), they could live a middle class life and not have to worry.
But if they went out buying Bentleys, and diamond encrusted hub cabs, and living like a rap star, they would spend it fast. |
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