Could £1,000,000 last me for the rest of my life?
Suppose I won 1,000,000 pounds in the millionaire raffle on Euro Millions, Do you think I could live of it for the rest of my life and not have to work etc.
I was thinking I could maybe rent a small, cheap bedsit and slowly dig into the money. I wouldn't splash out on anything, just the necessities, food...
What would you do to make the money last really long/the rest of your life?
Update:I'm 20 years old so it practically has to last me a whole lifetime, I'm in good health, and I suppose the interest is really good
Answers & Comments
Verified answer
Assuming you invest the money and average a 5% return, which is historically low, you would have £50,000 year and NEVER touch the principle. The website linked below put the average income in the UK at just under £30,000. Comparing those numbers, you it should be possible to live on the income from £1 million for as long as you live.
How old are you now? What is your picture of health? If you are very old or very ill and have one foot in the grave and the other on a banana peel, then yes, it will last the rest of your life.
Otherwise, it all depends upon how much you need to spend each year to maintain the lifestyle you want. There are stories of people who've won the lottery and are bankrupt in just a few years.
What would I do. Exercise self-discipline and spend only what I need to spend. If I want the money to last the rest of my live, I would not change my lifestyle because I've suddenly become rich.
a comfortable income is say £40,000 a year . invested at 3% you would get 30.000 pounds a year interest.
you could , in fact probaly get 4 or 5 percent or more for such a large investment .
because of inflation you would need to break into the million for about the last 20 years of life. inflation doubles in about 10 years , so 40k now is like 20 k in 2022
thats about 1.6 milions usd so it could last you your whole life but you woudint live a veryu good quailty of life it think it would be better if you used the money to buy a house a car furniture you know some bug things then tuck the rest away and keep working that way youll still be a normal joe but youll be a milion punds ahead of every body else
let say you place the cash in the bank and get about 4% income each year!
1 000 000 * 1.04 = 40 000 £ each year
thats the average income for a Sr. Software Engineer / Developer / Programmer in England
so yes, you can.. you can live on the income
It could support 2-4 people (or more) for a lifetime.
Nope.
That would be about 50,000 a year for 20 years.
and 25,000 a year for 40 years
Add inflation into that equation, and the answer is no.
Google "annuity calculator" if you are serious about this.