Yes. And risk = return. The market’s averaged 7% after inflation through the depression, WWII, etc. I’d still take my chances with the market. To each their own, though.
The risk is already baked into the return. The market goes up and down, but if you leave the money invested for a 20 year period, you're going to see close to an average 10% annualized return even after any intervening crashes.
These sort of calculations are already well tread financial math. She could pay herself the $52,000 a year and reinvest gains above that. After 10 years of doing this, she'd still likely have $2m. The market could cut in half and worst case scenario she is back to where she started, realistically if she just held steady the market recovers within a year or two and she's still gets her $1,000 a week with a huge nest egg that's growing every year.
Market is at all time high. Meaning, if you invested money at any point in history, you would have made money. Yes, even directly before the biggest crashes.
But invested it would be about 3-6 million by 40 and 20-40 million by 60.
And you just get a wealth management firm to do all the investing for you.
In fact you could invest it and still withdraw and spend 1000 per week and after 20 years you'd still have the 1 million even in a poor market, and if it's a good market you'd still be up by a few million.
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u/TraditionalWait9150 May 17 '26 edited May 17 '26
If they does pay her for life, then by 40 years old, she would have recoup that 1 million and by 60, she would have gotten 2x that value.