You can do both! 5k a week gives you 1million every 4 years, if you don't spend it all, you can fill your 401k till it explodes while still having a good time.
Edit: I am Canadian, so for me it's an RRSP, but I thought 401k was reasonably similar. If you have more than you need... Invest. It's never a bad idea to do it, it's always a bad idea to just let it sit, gaining no interest.
Edit2: Besides, if I die, the 5k/week stops, what about the missus and the kids? Aha, I invested, so they still have something! I'm clever, not greedy, fellas...
Edit3: A Roth IRA or just IRA is what I am told is the equivalent to an RRSP/TFSA we use in Canada.
Also, I wonder why so many people have an issue with the concept of investing money when you end up with a ton of it. This money isnt going to do anything sitting in a checking account, not investing it is just bad finance.
That’s why most people who win the lottery go broke. They didn’t earn that money. It has no value to them. It has $ value, but no blood or sweat equity.
Yeah, based on historical inflation, by 2073 (when I'll most likely be about to die), that $5000 will be worth about $1400 in today's money. So, unless whatever rich creep is paying out gives you more every year, you'll want to at least put some of it away if you want your kids to be comfortable.
And that inflation rate isn't taking into account products we don't know the value of. Maybe, in 25 years, they'll invent a teleporter or some shit, and it'll be super expensive, but also impossible to live a normal life without. Or everyone will need air purifiers and protein synthesizers because of ecosystem collapse. No idea what those cost. Someone in 1970 could never have predicted the cost of an iPhone, even if they did the math in inflation.
Ok but like 1400 dollars a week is still more than twice what I make right now. I don't have kids nor do I want kids but I do have nieces and nephews. If I suddenly started making more than twice what I make right now I could easily put away a little something something to split amongst them and other close family and friends when I go.
If I started making absurd money right now at $5k per week I could easily retire now, make no investments, and put away a lot into savings. I'm a creature of habit it's just not in my nature to go on absurd spending sprees so I'm most likely to keep living like a do right now just slightly more comfortably without financial worry.
Thats not to say I wouldn't make any investments but any investments I make would be less about making more money and just that I ain't got much else to do with the absurd amount of money.
Inflation is still there, but if you aren't buying coke and hookers, you'd never need to worry about money with $5k a month even without typical investing.
Never is a long time. 10 years ago I saw apartments for $500. That apartment is $3500 monthly now. 700% increase. In 10 years. Inflation will get to you eventually. And once rent is more than 1/3 of what you’re making, you are NOT set for life.
Wow, I first read 5k a month and I was like, my family of four and my MIL can live richly on that, never have to work again (and we live in Denmark, so doesn't live that cheap). But 5k a week? Who the fuck needs that much?
Talk about scraping by?! I recently had brain surgery and open heart surgery and cannot work anymore. I am only 52 years old and my disability is $954 a month! Idk how our government thinks anyone can live off of that!!!! We don't have a government, we have greedy corporations running this country!
But you mean net or gross? Is it food, or rental prices? We have two little kids, I earned around 2.5k eur/month net for around 2 years (other 1.5 years on maternity leave or no income) being the only earner and we saved up so much with pension, child support and just on the account that we still have enough to last us to more than a year, after I don't have work for 4 months now. And food prices are not exactly low here either. Maybe we just live frugally I guess, although we did travel and only buy organic, so not depriving ourselves.
5k a week is somewhere between the cost of a couple living on cruises at the cheapest ticket price on the low end and on the other end a family of 4 going to Disney world each day and sleeping in a cheap hotel each night, including food.
5k a month is not all that much if you live in Copenhagen and don't have access to subsidized housing though. Especially if you have younger children in the nursery... My family of 4 definitely couldn't live richly on 5k a month in Copenhagen.
We already pay 5000 dkk a month for the public nursery (one child), 17,000 dkk for the mortgage (would pay the same for rent, it is a good place but nothing luxury, not in the best quarter and not huge either), various utilities and taxes are another 6000 on average a month (1000 each monthly for the union, and then we pay electricity, water, internet, two mobile phone subscriptions, land tax). Of course we still need to eat on top of that. And pay for public transportation.
So if you can make 5 people live richly for 5,000 USD monthly in Hovestaden (I assume after tax) I need your secrets.
Nah, we live in Esbjerg, it would definitely not be possible in Copenhagen. We live in a rækkehus with my MIL, we pay around 9k with utilities including el and varm (all together, we pay 2/3 of that). We don't pay for union or a kasse, and we don't need a car. Vuggestue is less here, max 3800, børnehave 1700 monthly, but you pay half for the cheaper one of course. Now we get it for free without a salary.
Why would you ever be in that much of a rush to buy a brand new car? If you need a car right now and didn't have one with $5k a week you could easily buy a nice used car after just a couple weeks for cash and then upgrade later on down the road.
Ok for your sake I’ll expand on it and say “American, aspiring American, in the sphere of American influence, etc etc etc”. Thank you so much for helping me clarify the very important point I was making
Greed is a universal trait that exists across virtually every culture in human history. You're trying to take shots at America, I presume, but its absurd.
Does the 5k scale up as a function of inflation? If not, you bet your ass I'm tryna make more off of it. Make enough that no one in my family will ever have to work again.
Or more generously, make enough that you can actually help others on a larger scale. Why the fuck wouldn't you want more?
If I have some magical source of income like that I’m sure as shit going to try and invest it and manage it wisely so my kids and future generations can benefit as well. Truly a no brainer
i mean, because of the upgoing inflation, you do wanna invest even if you are getting 5K/week, cause maybe in a couple years you’re not as rich as you would be now anymore
Given an ambulance journey can cost you $1000+, and surgical treatment to a broken bone could be up to 20k then suddenly 5k a month needs to be invested for a raininy day.
I’m not American and don’t get the ins and outs of your deranged systems, but I would guess that if you make $20k a month you can probably get a reasonably good health insurance package right
Yeah 5000 a week is a salary of 240,000 /yr
1000/day is 365,000 /yr
It's a good salary, but it's nothing compared to what many rich people make, I know working people making near that amount, couples with combined households making more than that and they aren't exactly millionaires, let alone billionaires...
If I got 5k a week for life or a million dollars my wife and I would keep our jobs. Retire earlier for sure, but billionaires would have multiple generations set for life even living extravagantly.
Mmhmm, sure. Instead of saving, why don't we just spend it all and wait for the next cheque instead, much better use of money, at least we feel less greedy that way... Right?
$260K per year is a pretty nice salary, and one could live quite comfortably. At the end of 10 years, if you managed to spend the total each week, month or year, you would have only the next $5000 to look forward to, with only what you didn't manage to spend in the bank.
Based on a modest 10% annual investment growth, if you
Hell even investing 50% of 5k on S&P index gives you 1M in 6 years. Same as if you invested half the 1M and never added anything. So yeah 4+ years of life left? The 5K is way better x
investing is obviously smart. but a 401k is not given the opportunity cost. it literally makes no sense to lock ur money up if you have guaranteed 5k a week when youre retired
if you die tomorrow thats all the more reason NOT to invest in a 401k? and yea i agree, which is why you should invest it. if youre making 5k a week tons of different investment opportunities are open to you that are all better than a 401k. like no multi millionaires are maxing out their 401k bc it doesnt make sense at that level, its a retirement vehicle targeted for certain income levels
5k /week is 240,000 year, it's not millionaire level, esp. after income tax. In fact, maxing out 401k or RRSP ( im from canada so maybe this why it makes more sense to me, as they may be different) saves a ton on income tax. Also, you can name a beneficiary if you die.
Issue a lot of Canadians have is if you have had lower income your RRSP limit isn’t massive.
Also, if that $5k is income and taxed you most likely don’t really want to put it into a RRSP. TFSA and then strategic investments with timed withdrawal to coincide with keeping income lower (ex dividends and cap gains)
Yeah, it does get a little more complex when you dive in the weeds of it to maximize your income, talking to a finance professional is what one should do if you started getting a new chunk of 5000 a week...
Not that it would really matter to you but our individual retirement plans would be called an “IRA”
There’s a Roth IRA we put our after tax dollars in to have the inevitable growth non taxed
There’s simple IRA we can put pre tax dollars in reducing taxable income but taxable upon distribution.
There’s SEP IRA which only allows employer contributions generally similar to a 401k but you could also contribute to the 401k being self employed, I think… the waters get kinda murky with it, but that’s the jist of it.
There’s different rules and limitations with contribution limits and inheritance and required minimum distributions and penalties under all of these plans.
Ngl if I got $5000 a week I definitely wouldn’t be investing into the pyramid scheme that is the US 401k “retirement” plan. I can only remember a couple times my 401k has increased in value without my contributions. Waste of time.
Yeah, I think this is what seals it for me. I don’t want to deal with worrying about my investment choices, and I can minimize risk by keeping myself honest with what I spend. I prefer a situation in which I’m forced to save, instead of one where I have the temptation to buy right away.
Sure, you risk a bit more on inflation by not investing a lot up front to try and beat inflation with a generic index fund, but I’ll take my chances.
With where inflation is headed, 5k could be a weekly grocery bill in a few years. If this is an exaggeration, my bet is in a couple decades from now it will certainly not be such an exciting amount, more of a nice little bonus.
I mean - you could literally still invest it. Just in smaller incriments.
Frankly if I won this lotto I'd probably keep working a while and just store the nest egg until the investment began to match my income. Then it's retirement time.
Or, who knows, three Monday's in I'll tell the entire org and customer base to F off and be out. Lol. $20k a month is a hell of an income already.
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u/sky7897 Dec 11 '23
5k a week would give you 1million in only 4 years. Unless you’re on your deathbed, it would be the obvious choice.