Re: What would you do with an extra $300,000.00?
Posted by:
It really isn't that much
()
Date: February 20, 2021 08:47PM
thats a lotta cash Wrote:
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> I would put it all into some mutual funds, ETF's
> etc and make about $30,000 a year. Enough to rent
> a shabby studio apartment in Altoona, PA and watch
> TV and eat junk food the rest of my life.
Good luck with that plan. My bet is in 15 years you would be broke.
Getting a 10% total return on investment in recent years would not have been difficult. Getting anywhere near a 10% yield would have been a miracle. In a good year maintaining that $30,000 cash flow would mean tapping into the annual appreciation. In a bad year it would mean tapping into the principal. Once you start tapping into principal it is a vicious downward spiral. Tapping principal means there are fewer assets to generate income and appreciation.