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February 15th, 2013

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11:01 pm - Remember when all the cool kids did memes on LJ ?
This comes via shadesong :
What I would do if $N dropped into my lap in some legal non-taxable (or post-tax) way:

$10: Keep it in my wallet, most likely.

$100: Spend it on books, or maybe Lego, or maybe Bub.

$1000: Put it in our bank account (mortgage offset) and decide what to do with it (maybe some work around the house).

$10,000: Put most in the bank account, consider new bike or laptop or books or Lego or Bub stuff or stuff for the fencing club.

$100,000: Pay a chunk off the mortgage, maybe keep a bit for house improvements etc. Also consider seeding a permanent venue for the fencing club and serious advertising to boost membership.

$1,000,000: Kill the mortgage ! And plenty left over for serious home improvements (I've been thinking that it would be cool to have a proper observatory dome on the roof :-) ), and to invest a chunk in a safe/reasonable investment (which would probably mean an investment property).
This is the first level that could bring major lifestyle changes - I could change jobs to something a bit more interesting than the IT side of the financial industry, rwrylsin would be able to do more fencing work (especially if I was able to work from home most of the time).

$10,000,000 (and above): All of the above, and I'd never need to work again. I imagine we'd work on a permanent home for the fencing club, regular travel to see family and friends in Oz and overseas, and hanging around and enjoying ourselves.

(I sometimes think about this while riding to and from work (good thinking time, when the traffic isn't trying to squish me), and figure $2-3m would do the trick quite nicely.)

Original post on Dreamwidth - there are comment count unavailable comments there.
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(3 touches | En garde !)


[User Picture]
Date:February 15th, 2013 04:45 pm (UTC)
$2-$3 million isn't really enough. You can't figure on getting an investment return of more than 2% above the rate of increase in the general standard of living (which should be your benchmark for the return you need, since otherwise you'll get poorer and poorer compared with everyone else as time goes on), which means you have an effective income of $40,000-$60,000 per year for the rest of your life, assuming you don't make any capital expenditures at all (e.g. paying off the mortgage).
[User Picture]
Date:February 17th, 2013 06:49 am (UTC)
Hmmm. I was thinking investing in property, 3-4 apartments in reasonably desirable locations in Melbourne could be around 400-500k each, and return 1300-1700/month each - obviously there are maintenance costs and things to come out of that, but the rental vacancy rate here is around 2%, and not likely to change too much in the near future.
4000-6800ish a month, with existing mortgage paid off - I think we could live on that, and renters around here expect rents to rise with CPI (or a bit above). Savings could be added to our superannuation funds until retirement age, and one day, the properties could even be sold if required.

... there's probably an obvious flaw to this plan, of course (apart from the bit where I don't have a handy $2-3 million :) )
[User Picture]
Date:February 16th, 2013 02:44 pm (UTC)
not sure of the exchange rate so in pounds

£10 buy booze
£100 buy books
£1,000 pay the regular bills, use it for Redemption, use it for a weekend break in a posh hotel - actually,I just got some convenient PPI comp so I've done/am doing just that plus the books.
£10,000 pay off most of our credit card/loan debt. Travel to europe again.
£100,000 ditto the debtsm Travel. Everywhere possible.especially the US, Australia, new Zealand, China, Japan, Korea.Go look for the Japanese lady whose picture my Dad carried in his wallet for 60 years after he came out of the army (my mum never minded, they were very happily married but he used to grin a lot if you asked him about the Japanese lady). Or else find her relatives if she's gone.
£1 million buy a huge house with library, do- jang and bedrooms for all the cats (Cleo has her own already)
£10 million buy an island. and put a James Bond villain lair on it for Dave with small edible shark tank -no laser beams- for the cats' amusement.

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