If you have 10 million dollars, then you are extremely fortunate. You can have a good standard of living without having to work. It also opens up a whole spectrum of opportunities for you.
If you prudently invest the 10 million dollars, you are assured of financial stability. As a result, you can retire early, pursue your interests or hobbies and provide for your loved ones.
All you need to know is how to manage such a large amount of money and how to make it work for you. But then, you may need to get the help of financial advisors to guide you and advise you on how to increase your wealth.
Why Do Some People Lose It Fast?
You can easily lose your 10 million dollars if you are not careful. If you keep using the money you currently have, at some point in time, it will run out. Likewise, upgrading your standard of living and lifestyle will also cost you in the long run.
Below are the many ways you can lose your 10 million dollars. They are :
- Not investing in bonds, real estate, or stocks
- Investing all the money in one venture
- Buying expensive houses or apartments
- Taking expensive vacations and cruises
- Buying expensive cars
- Staying in exclusive hotels and resorts
- Buying designer clothes and shoes
You could also lose money by investing in risky ventures or be lured into other questionable deals by fraudsters. Therefore, you need good money management skills to prevent duping.
Most people end up losing money because they lack the understanding of handling such a large amount. Their naivete and rashness result in bad decisions being made.
Can You Retire With That Much Money?
You can retire with 10 million dollars, but you should consider a few guidelines. They are:
- You must have enough money in your savings to cover your living expenses
- You must factor in inflation
- You may have to change your lifestyle
- You must factor in the amount of tax you will have to pay
Another aspect you need to consider is insurance. You need to have affordable insurance coverage when you retire. With rising inflation, you will have to be wary of increasing premiums.
You could also buy an annuity. This provides a guaranteed income for life and takes the hassle out of budgeting for your daily expenses.
What Percentage Of US Citizens Have A Net Worth of 10 Million?
The estimation of the percentage is based on the number of households in the US. There are around 1,456,336 households in the US with a net worth of $ 10 million dollars. Therefore, the percentage is 1.13%.
To be considered wealthy, your net worth should be between $1.9 million to $2.6 million dollars. As it is, the US has the largest number of millionaires in the world.
Should You Invest With That Kind Of Money?
Having 10 million dollars in a savings account is not going to get you very much. Whereas, if you make smart investments, then you can increase your money and end up with a nice nest egg to retire on.
But you do not necessarily have to invest all that money. You can set aside roughly 2.5% of the money to be used on spending and enjoying yourself.
Traditional investments aside, you can also try a Trust investment. This helps your money to grow and also protects it against taxes.
Where Should You Invest?
Having 10 million dollars gives you a wide choice of investments. You can invest a portion of the money and also keep some in hand for sudden investment opportunities.
You can invest in :
- Index funds – Passive investment with low fees
Exposure to many companies and sector
- Real-Estate – Provides consistent cash flow
Provides tax exemptions
- Separately Managed Accounts (SMA) – More control and flexibility
Provides a customized portfolio
The more you invest, the more choices you will have to grow your $10 million. This, in turn, will provide you with financial stability as well as improve your finances.
Final Thoughts on How Long Can 10 Million Dollars Last
Ten million dollars may seem like a lot of money, but you can watch it disappear if not managed wisely. Therefore, you need to evaluate your circumstances and work in such a way that you can protect your wealth.
You must ensure that you can increase your wealth and, at the same time, make it work for you. By thinking ahead and planning out your finances, you can enjoy the freedom of financial stability.