How do millionaires go broke? 20 million generates 50k a month

[SinaloaPaisa]

20,000,000 X 0.03 = $600,000 annual interest$600,000 / 12 = $50,000 monthly interestThe answer is $50,000 per month.

I could live like a king on 50k a month.

Not sure how these people go broke.

[seanb1979]

20 mil can go fast when you drop 100k a day because you have to show off

[thorpowers]

lmao if you can only get 3%, ROI, what are you putting it in a CD or something? A conservative ROI would be 6%. I get ~15% pretty easily.

[SinaloaPaisa]

lmao if you can only get 3%, ROI, what are you putting it in a CD or something? A conservative ROI would be 6%. I get ~15% pretty easily.

Yea I am just being super conservative, basic savings account.

What do you invest in that is safe and easy that returns 15%?

[Hadtodoit]

lmao if you can only get 3%, ROI, what are you putting it in a CD or something? A conservative ROI would be 6%. I get ~15% pretty easily.

^ this.

Extremely safe and diversified index funds make about 8% on average. People say 6% because they don't want to seem overly optimistic but averages speak for themselves.


The other guy was right too.. the ones who go broke obviously can't manage anything and get into drugs and blow it all.

A lot don't go broke, they're just less flashy so you don't hear about them.

[seanb1979]

Yea I am just being super conservative, basic savings account.

What do you invest in that is safe and easy that returns 15%?

warren buffet is his broker

[thorpowers]

Yea I am just being super conservative, basic savings account.

What do you invest in that is safe and easy that returns 15%?

Real estate and stocks. Nothing's "safe" the higher the ROI generally the more risk. But 3% ROI is literally the rate of inflation so you're only maintaining your wealth, not growing it. And if you used that 3% to live off your net worth would be going down every year to inflation.

[SinaloaPaisa]

A million dollar home is about a monthly payment of 3,000 dollars.

Got to be a complete retard to amass even 10 million and go broke.

even 25k a month and I am balling.

[Hadtodoit]

Real estate and stocks. Nothing's "safe" the higher the ROI generally the more risk. But 3% ROI is literally the rate of inflation so you're only maintaining your wealth, not growing it. And if you used that 3% to live off your net worth would be going down every year to inflation.

Higher risk doesn't mean higher return though over long term averages though

[89mahou]

^ this.

Extremely safe and diversified index funds make about 8% on average. People say 6% because they don't want to seem overly optimistic but averages speak for themselves.


The other guy was right too.. the ones who go broke obviously can't manage anything and get into drugs and blow it all.

A lot don't go broke, they're just less flashy so you don't hear about them.

so $20,000,000 * 0.08 = $1,600,000 a year? just for parking your money into a "diversified index fund"?

[jmoneyjumpman]

Just lol if you aren't getting at minimum 10% return on all your investments in your portfolio. If you aren't you are invested in the wrong things.

[SinaloaPaisa]

Real estate and stocks. Nothing's "safe" the higher the ROI generally the more risk. But 3% ROI is literally the rate of inflation so you're only maintaining your wealth, not growing it. And if you used that 3% to live off your net worth would be going down every year to inflation.

Yea, but you would still die a rich man not worrying about money and doing what he wants (in reason).

You could buy lots of properties and they would increase in value. Rent them out and have others pay off the mortgage.

[Hadtodoit]

so $20,000,000 * 0.08 = $1,600,000 a year? just for parking your money into a "diversified index fund"?

Correct. Free money.

You'd have to pay taxes on those gains once you sell the stock, but assuming you kept the stocks over 1 year (you should) you'd only pay 15% (long term gains tax).

That's right.

The last 12 months has returned 23% for the market normal.. in other words $4.6 million for free this year for those who have that, minus the 15% tax.

[musD]

The money would be in assets that could go bust. A bad decision by the company and a few years revenue becomes losses and the 20 million company goes bankrupt.

Many people also have an image to keep up(celebs) so they might rent expensive stuff that they wear once, or host expensive dinners and show off to much.K

[89mahou]

Correct. Free money.

You'd have to pay taxes on those gains once you sell the stock, but assuming you kept the stocks over 1 year (you should) you'd only pay 15% (long term gains tax).

That's right.

The last 12 months has returned 23% for the market normal.. in other words $4.6 million for free this year for those who have that, minus the 15% tax.

that's amazing. no i just gotta work on the 20 mil.

[Hadtodoit]

that's amazing. no i just gotta work on the 20 mil.

Exactly lol just get $20m and you're golden right? No big deal.

[seanb1979]

A million dollar home is about a monthly payment of 3,000 dollars.

Got to be a complete retard to amass even 10 million and go broke.

even 25k a month and I am balling.

i think youre thinking of what the property tax would be

[SinaloaPaisa]

Not sure about the US, but here in Southeast Asia and South America, I would be balling on just 5k a month.

[thorpowers]

Yea, but you would still die a rich man not worrying about money and doing what he wants (in reason).

You could buy lots of properties and they would increase in value. Rent them out and have others pay off the mortgage.

Yea, hell even with 3 million you could be in a very good place if you knew how to invest it right. 3 million returning 10% a year, minus 3% for inflation is a positive 7% a year. 7% of 3 mil is $210,000 a year. So you could live a $210,000 year lifestyle passively with just 3 million in a conservative diversified portfolio. If you actively managed your investments you could do much better than 10%, or possibly lose it all depending on how good you were.

And if you had 3 million invested, I would assume you would also have no debt, own your own home and car. So you would have almost no bills.

[89mahou]

Exactly lol just get $20m and you're golden right? No big deal.

[quadfecta]

Johnny Depp was worth 200 million and he's nearly broke. Expenses included: 30k a month on rare wines, chartered a private jet whenever he had to fly, 18 million on a yacht, 3.6 million annually for personal staff, over 80 million in real estate investments, and millions more in jewelry and hollywood memorabilia.

Easy to go broke when you have no concept of financial planning

[BericDondarrion]

Exactly lol just get $20m and you're golden right? No big deal.

CEOs hate him

[gharamlifter]

they keep increasing their standard of living as they get richer.

that's why i still live at home and drive an 01 civic.

[KyleAaron]

Yea I am just being super conservative, basic savings account.

What do you invest in that is safe and easy that returns 15%?

There is not thing safe and easy at 15%, or everyone would invest in it and the banks would go bust.

Making unwise investments is how people with $20 million go broke. They want $40 million. Then $100 million, and so on. They get greedy. They go for 15%.

[abdi321]

Not sure about the US, but here in Southeast Asia and South America, I would be balling on just 5k a month.

Not sure about Southeast Asia and South America, but here in zimbabwe, I would be balling on just 500 a month dead srs

[thorpowers]

There is not thing safe and easy at 15%, or everyone would invest in it and the banks would go bust.

Making unwise investments is how people with $20 million go broke. They want $40 million. Then $100 million, and so on. They get greedy. They go for 15%.

They don't go broke trying to get 15% gains on investments. They don't buy assets, they buy a bunch of liabilities that cost them more money in depreciation, taxes, maintenance, ect than it could ever make them such as fancy cars, vacation homes, clothes, jewelry, staff, ect

Typically people that won the lotto, celebrities, or athletes are the ones going bankrupt not a business owner or investor trying to increase their networth

[SinaloaPaisa]

brb winning the lotto and having 200 million.

200,000,000 x .03 = 6,000,000 / 12 = 500,000 a month

Fug me.

[SinaloaPaisa]

Not sure about Southeast Asia and South America, but here in zimbabwe, I would be balling on just 500 a month dead srs

Lol im dead.

That **** was funny

[Fang2]

Making bad investments and being a dumb ass.

[Tornach]

Not sure about the US, but here in Southeast Asia and South America, I would be balling on just 5k a month.

Until the police come knocking on your door looking for their cut...
If you're a foreigner you're paying way more for goods than locals too.