So you think you're rich.

[I Think]

Even if your house is not paid for, if you invested the million in something like Canadian Banks Shares, you would likely gross about $100,000/year.

But you know you are gonna rush out and spend some right away.
And many people define themselves by their job, without their job they would be lost souls.

[Glacier]

In order to have a perpetuity, you need to live off of the investment returns minus inflation. If we assume 5% above inflation, then you would make $50,000/year. This number would grow to keep up with inflation. Not bad.

[logicalview]

Even if your house is not paid for, if you invested the million in something like Canadian Banks Shares, you would likely gross about $100,000/year.

Not following your math on that one. Royal Bank only pays a dividend of 3.91%. At $80 a share, with your million you'd get 12,500 shares, paying a dividend of $3.08 per year per share. That $38,500 per year. Pre-tax.

I don't think you should pursue a career as a financial adviser.

[Queen K]

Whatever Kelowna's newest millionaire thinks, I hope she doesn't make the mistake of believing she's rich enough that it won't end.

I hope her friends don't make her feel guilty for winning, and they didn't.
I hope they don't drain her dry, emotionally or financially.

Whatever she decides to do, I hope it's income producing and not simply draining the new resource.

[I Think]

My gross return, over 30 years, on a mix of bank stocks is much better than you indicate.
You are not including share appreciation obviously.

Dear mr view writes;

Royal Bank only pays a dividend of 3.91%. At $80 a share, with your million you'd get 12,500 shares, paying a dividend of $3.08 per year per share. That $38,500 per year. Pre-tax.

I don't think you should pursue a career as a financial adviser.

Mr view cannot resist the impulse to insult others to his detriment.

[logicalview]

My gross return, over 30 years, on a mix of bank stocks is much better than you indicate.
You are not including share appreciation obviously.

Of course I'm not including share appreciation. Share appreciation is not a guaranteed thing, so you can't say that you'd "gross" $100,000 a year on bank stocks. That's misrepresentation. Remember 1987 and the crash? Remember 2008? Share prices fluctuate. If you are talking purely of gross return on bank stocks, you are talking about dividend, unless you are selling said bank stocks and recognizing the paper gain, if there is one. But then you wouldn't own the stock anymore.

Mr view cannot resist the impulse to insult others to his detriment.

Why was that an insult? I was just pointing out that you shouldn't be a financial adviser.

[I Think]

Since you have adopted the name view, I am sure that you can SEE the simple fact, that you can sell incremental amounts of appreciated stocks while keeping the original portfolio at $1,000,000.
The neat thing about that is if and when there is a downturn in stock price, you just do not sell until the stock increases.
What a silly thing to do........... take a light hearted thread and derail it to satisfy your large ego.

[logicalview]

What a silly thing to do........... take a light hearted thread and derail it to satisfy your large ego.

My thoughts exactly. You made an incorrect statement. I corrected it. And now you've whined in post after post about being insulted. The only one with the lame ego here is you.

[I Think]

Mr View writes;

You made an incorrect statement.

My statement was correct.

I corrected it.

You expressed a different opinion, that is not correcting anything.

Are you less than 5'6"?
I have noticed that shorter people have ego problems.

[logicalview]

My statement was correct.

LOL - around the merry-go-round we go. No, your statement wasn't correct.

"if you invested the million in something like Canadian Banks Shares, you would likely gross about $100,000/year."

Just not true.

Are you less than 5'6"?
I have noticed that shorter people have ego problems.

LOL - ego problems. Good one! If you had just admitted your statement wasn't correct, or backed it up with some sort of basis, instead of letting your giant ego get in the way, this thread would have been so much better.

[Homeownertoo]

$184 000 to pay off the mortgage and debt
Money put away for kids education
Upgrade our house (either reno or move)
One kick *bleep* vacation
the rest of the moneys would go in our high interest savings account

What high-interest savings account?

[Homeownertoo]

You could retire, and live comfortably off the interest returns on one million bucks (if your house is paid for).

Not off the interest. Dividends on a million would provide a modest living. Make if two, plus a pension of $40-50,000, and life is grand.

[WeatherWoman]

Maybe I should have said higher interest account. There is some rules with it. Minimum $5000. You can only take money out of it once a month. After that you get charged $5 a transaction.

[Homeownertoo]

In order to have a perpetuity, you need to live off of the investment returns minus inflation. If we assume 5% above inflation, then you would make $50,000/year. This number would grow to keep up with inflation. Not bad.

If you have a long span ahead, lots of studies conclude a 4% withdrawal rate on equities would be sustainable. In later years you can adjust that, probably upward. At 5%, there is a significant risk of running out of money when you can no longer earn more.

[Queen K]

Honestly, I wonder how Kelowna's newest millionaire is doing. Not that it's my business, but I hope she still has most of it.

Now if only I could get my chance at winning a mill....