If you have 5 mil in your retirement account...

[DesiPower]

So here's the scenario.

Say, from somewhere you got, or maybe someone gifted you 5 million dollars which, you will only receive when you are 65. In a trust fund or something. You had no control over the money whatsoever, you cannot take loans against it not can you mess it up. Its totally safe and totally yours and totally untouchable before 65. Also its invested in such a way that its bound to keep up with inflation, so it will never diminish in value instead it will grow pretty decently, probably around 5% per year or so... What will you do?

Option 1. Quit your full time job and do something just to get by and enjoy your life.
Option 2. Work as usual and have fun with all the money you make, knowing that you don't have to worry about your old age.
Option 3. Continue as it is today, as if that fund does not exist... (cautious/pessimistic approach)

 

[nageov3t]

I'd stop contributing to my 401K but otherwise continue living life normally.

my chief reason for full-time employment right now is paying my bills and not being homeless, not saving for retirement.

 

[Drako]

Depends on how close to retirement you might be, and how much cash you have on hand.

For me, I would go with option 1. I'm closer to retirement than I'd like to admit, and I have enough cash to easily get by until I could use the 5 mil.

 

[child of wonder]

Option 3.

5 million dollars today will become 13.7 million in 2044 (when I'm 65) assuming a modest annual growth of 3% to keep up with inflation. One could retire on that no problem.

My approach would be to raise money so I would have enough retirement money of my own to quit working at age 50 (just throwing a number out there) so I'd have enough to get me by until age 65 when the 5 million becomes available.

 

[SlitheryDee]

Keep working and spend all my money rather than investing in a retirement fund. The only savings of any sort that I would keep would be the emergency fund everyone should have for short term unforeseen expenses.

 

[Train]

$5 mil right now, even if earning only 3% interest, would get you 150k a year ($12,500 a month).

I'd just live off the interest indefinetly. Though I'd probably work part time on and off to keep from getting too bored.

 

[thegimp03]

I would probably continue working and investing money in the market like I am today, pay off a house, etc., retire from my current career early and do something I want to do. I could live off the money that I've saved and invested during my working years, and then about the time that starts getting low I'd be 65 and able to use the money in the other retirement fund.

 

[YOyoYOhowsDAjello]

$5 mil right now, even if earning only 3% interest, would get you 150k a year ($12,500 a month).

I'd just live off the interest indefinetly. Though I'd probably work part time on and off to keep from getting too bored.

So you're over 65?

 

[skyking]

I have always lived option 2 for the most part anyway. I'd continue taking long vacations, spending money as much as we want. I might just kick it tomorrow, no regrets.

 

[Train]

So you're over 65?

65 what?

I thought the OP meant inches. I've been over 65 since like 5th grade.

 

[spidey07]

$5 mil right now, even if earning only 3% interest, would get you 150k a year ($12,500 a month).

I'd just live off the interest indefinetly. Though I'd probably work part time on and off to keep from getting too bored.

You forgot taxes.

 

[Slew Foot]

Invest in muni bonds and get 4%(200K/yr) tax free

 

[Train]

You forgot taxes.

When someone says "I make $150k a year", they usually mean pre-taxed right?

Unless they say "take home", or "after taxes"

 

[Zargon]

#3 until the car and house are paid off.

then option 2 for a while

then #1

 

[dullard]

My priorities for short term and long term are simple. Long term, save enough to enjoy retirement. In this scenario, that is taken care of. Short term, save enough so that I don't have to ever borrow a penny again in my life, no matter where I move. That takes roughly $500k of net worth. So, in this scenario, I'd choose option #3 until I have that $500k, then choose something between option 1 and 2.

 

[vi edit]

With the rule that I can't touch it till I'm 65 then really the only way my life would change right now would be a little extra money a month that I'd no longer be shoveling into retirement accounts. It's a decent amount of money, but nothing lifestyle changing. I'm 32 years old. That's still my life twice over again before I can access it.

 

[AreaCode707]

Option #3 - current plan is early retirement and I would continue to work hard toward that goal.

 

[darkxshade]

Kinda sucks that it's locked up... what if I don't make it to 65? Certainly don't have the dough to do what I want now.

 

[TridenT]

65 what?

I thought the OP meant inches. I've been over 65 since like 5th grade.

No, you're just a dumbfuck who thinks they can post in a topic without really reading the OP's post and still come out awesome. But, you can't, because you're fail.

 

[Exterous]

Depends on how old I am. Probably a mix of 2 and 3. I would spend more but still save some of it

 

[Train]

No, you're just a dumbfuck who thinks they can post in a topic without really reading the OP's post and still come out awesome. But, you can't, because you're fail.

If I'm a dumbfuck for not taking random, theoretical ATOT threads too seriously, then I'm the King shit of all motherfucking dumb fucks.

 

[TridenT]

I'm a dumbfuck

Yes, you are.

 

[ultimatebob]

Yeah, I'm thinking a mix of #2 and #3 would be good. I'd still save a little in retirement, just so I can retire before 65 and enjoy myself for awhile before I could dip into those savings.

 

[zinfamous]

No, you're just a dumbfuck who thinks they can post in a topic without really reading the OP's post and still come out awesome. But, you can't, because you're fail.

So, who peed on your grits this morning?

 

[IGBT]

nothing is guaranteed in life. don't count your chickens till they hatch.