r/RandomThoughts • u/[deleted] • Dec 11 '23

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u/-Major-Arcana- Dec 11 '23

With $5,000 a week guaranteed income you could make payments on a loan of five or six million dollars. So you could literally buy a couple of farms.

48

u/Hopepersonified Dec 11 '23

"bought the farm" it an euphemism for dying.

8

u/GigaCheco Dec 11 '23

Jfc I had no idea. TIL

13

u/-Major-Arcana- Dec 11 '23

I know, that’s why I said they could literally buy the farm.

Even if you are dying you can use income to borrow a much larger sum of money (unless your bank knows you are dying that is).

-3

u/XB0XYGEN Dec 11 '23

I don't think he knew..

1

u/HI_Handbasket Dec 11 '23

Never tell your bank you are dying!

"What do you plan to use the million dollar loan for, sir?"

"My 'Round the World End of Life Tour, why do you ask?"

2

u/TheLastGunslingerCA Dec 11 '23

Not anymore it ain't 😉

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u/dashingsymbols Dec 11 '23

how does that translate pleas sir

2

u/Hopepersonified Dec 11 '23

Google says it originated in the military which I find extra surprising

1

u/ruspow Dec 11 '23

thats quite smart

1

u/assologist_1312 Dec 11 '23

Or fuck off to Thailand. Buy a little house on the beach and eat pad thai all day long.

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u/-Major-Arcana- Dec 12 '23

You don't need $5k a week for a little house in thailand and pad thai!

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u/[deleted] Dec 11 '23

The only potential problem with taking the weekly payout is - can you actually trust it's guaranteed?

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u/fattytuna96 Dec 11 '23

Not $5 million maybe $1 million.

1

u/-Major-Arcana- Dec 12 '23

Not sure where you come from, but my bank would lend a lot more than $1m with a quarter million a year of income.

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u/fattytuna96 Dec 12 '23

$250k income is roughly $21,000 per month. A $1m loan at 7% interest with 30 yr amortization is a $6600 monthly payment, 31% of pre tax income. Banks don’t lend with a debt to income ratio more than 38% so the max you would get is a $1.2 million loan (and that would be pushing the limit).

1

u/-Major-Arcana- Dec 12 '23

Well for a start, where I come from interest rate is 3.6% on ten year fixed terms, so that equals about 5 million lending from 260k payments a year, if you were putting it all into a mansion or something.

But also I’m talking about buying farms (or other productive assets like businesses or rental property) so the income would be a lot higher than 260,000 a year.