Hello, Dinks. In today’s post, I will be going over a pretty interesting topic. A million dollars is a lot of money. For most people, that amount of money will change their lives. I know for a fact that it would change mine. Have you ever considered how much interest 1 million dollars could earn each year? I’ve thought about it. The number differs depending on the type of investment that you do. Based on your lifestyle you may or may not have to work anymore depending on how much interest you make. It would depend on things such as your spending and your budget. Below, I want to go over two different ways that you can invest that million dollars.
US Treasury Bonds
The first way that you can invest one million dollars is through US Treasury bonds. The current rate for a 30 year US Treasury bond is 3.08%. You would earn approximately $30,800 from the one million dollars each year. That’s an ok investment. Let’s see how much you can get by investing in a savings account.
If you decided to put your money in a regular savings account from a bank such as Bank of America, you could expect to earn only one thousand dollars each year. It would be a waste of time to put your money there.
In this case, the one million dollars will make substantially more money being invested in a 30 year US Treasury bond. For many people, $33,000 is not enough to live off of. I don’t spend that much money, but I’m not even sure that I could pull that off. I would have to tighten up in a few areas. Also, I probably would only be able to travel once or twice each year. Putting a million dollars in a regular savings account shouldn’t even be an option. You can make an extra thousand each year by selling things on Craigslist. If I were you, I’d speak with a financial advisor to figure out some of the other options that are out there. Stocks and mutual funds are a couple of other investment options that you can consider. You want to make sure that you are comfortable with where your money is going.
Some people may choose not to work anymore if they can find a way to grow the million. That decision will come down to a couple of things.
You have to consider your budget. Your housing, food, bills, healthcare, and taxes should all be included. For many people, one million dollars is just not enough to live on. You will still need some more income coming in.
We live in a very unpredictable world. Right now the economy is doing pretty good, but who knows what will happen under this new presidential administration. 2008 could happen all over again. If it does, you want to be prepared. You don’t want to go broke during the tough times.
As you’ve read, the amount that one million dollars can earn from interest can fluctuate. It would do better if you invested it in the bonds or stocks than if you just put the money in a regular savings account.