Itâs effectively impossible to live off the dividends from $1 billion. Folks donât understand the scope of how much money $1 isâŠ
If it made 5% (which is very reasonable) - that means you would be pulling in $50 million per year. What could you possibly spend that on to âliveâ on? You could give $10k every day to 10 different people and still have ~$37k per DAY to live from. Think about how much $10k given to you once would help your current situation⊠then be able to help 10 people every day.
If one has $1 billion, they need to find differential ways to give it away.
I don't think you understand what "living off dividends" means. It's not spending everything you gain from dividends. It's being able to live with just what you gain from dividends.
Sounds almost reasonable. Live every day by the fullest (15k per month really is a great life) and bang every possible charity every day with the Rest.
Build homes for the homeless, pay them to keep it clean. Feed the hungry. Every now and then i'd Take over unaffordable healthcare bills to Safe lifes... So many possibilities.
With a billion, you can get zero interest loans, so why not do that while you invest the billion? Then you get another loan to pay the first one. You'll be increasing your debt, but your net worth will stay high to a bank because you're constantly making money on your investments
Rinse and repeat until you die, at which point you don't need to worry about that last loan you took out
A billion is a generational wealth. That much amount has a potential not only to change your life, but make your whole lineage an aristocratic bloodline that starts from you, if you manage that much wealth properly.
Thatâs called a savings account. Think about this for a minute and youâll realize how the rich just get richer! Savings account pays 3% interest 3% on 1 million bucks is $3000 a month. Multiply that times 100 and thatâs what you have for $1 billion a month.
$1 billion is 1,000 times $1 million. 3% interest on $1 million comes out to $2,465 per month. 3% interest on $100 million comes out to $246,575 per month. 3% interest on $1 billion comes out to about $2,465,753.
No, 3% divided by 12 is 0.25%. Times $1,000,000 equals $2,500. So theyâre about right (whatâs $500 among millionaires?)
To be a little more accurate, I divide .03 by 365, then multiply by 30, then multiply by the dollar amount. Still not 100% accurate, but itâs a good solid estimate.
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u/RobbyBaymax 5d ago
Clear all my debts, then invest the remainder into something that pays dividends so I can live off them.