• Donkter@lemmy.world
      link
      fedilink
      arrow-up
      50
      ·
      9 months ago

      For anyone curious (1000000/50)/12 is 1666.66 which is how many years you would have to live to make a million dollars.

      • TheLameSauce@lemmy.world
        link
        fedilink
        arrow-up
        14
        ·
        9 months ago

        Also should be noted, if you took that 1 mil and just put it in a bunch of high-interest savings accounts, you’d be averaging a little over $3k/month just in the interest earned.

        It does make me wonder, at what point is the guaranteed $x a month a better call than one lump 1 mil?

        • KevonLooney@lemm.ee
          link
          fedilink
          arrow-up
          3
          ·
          9 months ago

          You don’t need a degree in finance to do this calculation. You are simply looking for the present value of a stream of income.

          It depends on what interest rate you think is “risk free”. Right now treasuries range from 5% to 3%. Just divide the yearly dividend (12 * 50) by that interest rate. $50 per month risk-free in perpetuity is worth $12,000 to $20,000.