If $700,000 dollars fell into your lap, I’m sure you would be thinking, now that’s a lot of money. I know that would be my first thought. But what does it really get you? Can you live on it? Retire on it? Is $700,000 dollars a lot of money or not? Let’s find out.
Is $700,000 Dollars a Lot of Money
I’d have to say that for the vast majority of us, $700,000 dollars is a lot of money.
Sure, if that’s all you got, you can’t live on it forever, but as a salary, wow, or as a lump sum surprise, you’re going to be sitting pretty.
So, let’s see what all this cash will get you.
$700,000 Dollars as a Salary
If you are making seven hundred dollars a year, then you are doing very, very well.
Regardless of where you live in the United States or elsewhere, you should have a nice, comfortable lifestyle.
You can travel when you want and buy pretty much whatever you would like.
A multi-million dollar house is not out of reach, and you can easily buy a fancy sports car such as a Lamborghini.
You have arrived, my friend, so enjoy it.
$700,000 Dollars as a Gift
Do you actually know anyone that could give you this much cash as a gift?
If so, good for you.
Unfortunately, I don’t, but if I did, yes this would be a great deal of money.
It could even be life-changing money.
You could pay off all of your debts, including student loans, and even pay off your house.
Most likely, you would end up debt-free with money left over to have some fun or travel around the world.
That’s a great position to be in.
$700,000 Dollars for Retirement
Even though this is a great deal of money, according to experts it isn’t enough to retire on.
Most say you need a couple of million dollars to retire comfortably and even that might not be enough depending on where you live.
Even so, this will really help out and is a great amount to have in your nest egg.
You will be well ahead of most Americans as many have no retirement savings.
However, this won’t allow you to retire early before the traditional retirement age.
You’ll still need to wait until 65 or thereabout.
Things to Buy with $700,000 Dollars
You can buy a lot of things with this kind of money.
Some of those items include:
- A really nice sailboat or speed boat
- A vacation home on the beach
- A Lamborghini Aventador (costs around $450,000)
$700,000 To Have In Your Savings
No one is going to keep this much money in their savings account.
If you did you’d be losing a great deal of money on interest income.
Instead, you would invest it and watch it grow.
$700,000 Dollars to Invest
Depending on your risk tolerance you will have several options to invest this money.
If you want to live off the income, this could become a passive income for you and a decent stream of income over the years.
However, if you want to invest it as a lump sum and give it time to grow, you will really have a lot by the time you get ready to use it.
For example, at 9 percent interest for 20 years you would end up with just under $4 million dollars.
At 30 years it would grow to a little over $9.2 million.
Now that would give you a fantastic retirement.
What is $700,000 Per Year an Hour?
If you’re working a 40-hour week and are making 700 thousand dollars per year, then you are earning $336 dollars per hour.
Now that is certainly a nice salary.
Just think about what you could do with all of that money.
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How Much Per Month is $700,000?
That same $700,000 a year salary would work out to $58,333 dollars per month before taxes.
With all that money you could travel the world, of course, you’ll be too busy working all the time, but it is a nice thought.
Can You Buy a House with $700,000 Dollars?
In the middle part of the country, you could buy a very nice house with this money. You could even buy an estate with some ground.
In a bigger, more expensive city where the cost of living is a lot higher, you could still buy a house, but it is going to be a small one.
Even so, it should be pretty nice and heck, it will be paid for.
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To Sum it All Up:
Yes, $700,000 dollars is a lot of money, but it won’t buy you everything and you certainly can’t retire on it. If you get it in a lump sum, you can have one heck of a shopping spree, or it is a ton of cash to invest. No matter how you get it, I have no doubt it will make a real difference in your life.