Comments on: How Much Interest Would $1,000,000 Yield?

By: Stephanie

Stephanie — Mon, 20 Apr 2009 01:25:02 +0000

@James: CDs generally have a similar interest rate to online savings accounts. So yes, they’re definitely an option, although they require a lot more maintenance than a savings account, since you’ll have to reinvest the money when it matures. (Well, you don’t have to!) So yes, CDs are definitely an option – it depends on how you want to manage your money.

By: James

James — Sun, 19 Apr 2009 22:55:41 +0000

What about CD’s. Don’t they draw alot of interest?

By: Stephanie

Stephanie — Tue, 09 Dec 2008 16:48:37 +0000

@Mona – No investment is 100% risk free, even bank accounts. There is always an inherent risk to giving your money to someone else. Also, though, there’s an inherent risk to sitting on your money and NOT giving it to someone else! (That risk is inflation, the fact that it will lose value over time.)

This is what economists call “opportunity cost” – doing something (or nothing) with your money means you can’t do something else with it, so every action (or inaction) has its own risks.

I know what you’re trying to ask, but the fact is that with money, risk=reward. The more risk you take on, the greater the returns over the long run.

To get at least $3500 a month out of $700,000, you would need to get 6% (yearly) returns on your money. That’s more than a bank is going to give you, so you’ll need to take on more risk. There are some relatively conservative (less risky) investment that will give you 6%, though!

I highly suggest you check out this book: The Bogleheads’ Guide to Investing. It’s no-nonsense, easy to read, and will help point you in the direction of getting the returns you want. Good luck!

By: Mona Cleglachlan

Mona Cleglachlan — Tue, 09 Dec 2008 07:46:32 +0000

In tough times like today, if you have about $700,000-800,000, what’s the best and SAFEST (100% RISK FREE) way to invest it so that it would yield a decent reutrn to live on. Lets say about, the returns being along the lines of $3,500-5,000 a month ?

Any ideas ? Please share.

Thanks.
Mona.

By: Jah

Jah — Tue, 02 Sep 2008 13:59:09 +0000

You will make the biggest mistake to bank with Bank of America.

This bank will rip you off big time. Check this link out.

http://www.google.com/search?q=Bank+of+America+Class+Action+Lawsuit&sourceid=navclient-ff&ie=UTF-8&rlz=1B3GGGL_enUS274

By: Wayne Smith

Wayne Smith — Tue, 04 Mar 2008 21:53:12 +0000

In this current situation, Does no one out there find it sad that the bank is making 16% of the money we the people place inside it and we the people only get 2% interest from the bank? Something is truly wrong with this system.

By: DeeOhGee

DeeOhGee — Tue, 04 Mar 2008 13:26:42 +0000

Finance Guy is wrong, you do NOT get a “much higher rate” from the banks because you have $1mil. You get preferential treatment along with possibly a slightly higher rate, but not much more.

Also, a couple can get $300,000 FDIC protection with one bank by having 3 separate accounts, one in each name and one joint account, each one fully protected.

By: Eddie

Eddie — Sun, 10 Feb 2008 04:29:01 +0000

Ya know,peaple that rag on the lottery are right up to a point.If you spend alot on the lottery you are a sucka but a little is worth it.
I never played 9 yrs ago my co-worker won 10mil 5 yrs ago I got 5 out of 6 #’s on a 15mil pot,so you never know.

By: ryan

ryan — Wed, 05 Dec 2007 00:33:23 +0000

probably about 10 million times more likely the bank will fail before you win the lottery. so keep buying those tickets, sucka

By: penty

penty — Tue, 10 Apr 2007 06:07:52 +0000

FDIC insurance wouldn’t cover any more for multiple savings accounts at the same bank.

You would need to spread the 1 mil around to 10 different banks (100,000 at each).